Innovation, Project news

700 MW electrolysis capacity for H2 Green Steel plant

thyssenkrupp nucera will provide electrolysis capacity for H2 Green Steel's plant in Sweden.

May 22, 2023

The agreement between the Germany-based specialist for high-efficient water electrolysis, thyssenkrupp nucera, and the Swedish industrial start-up H2 Green Steel, secures capacity of more than 700MW for H2 Green Steel’s electrolysis plant in Boden – making it one of the world’s largest electrolysis plants announced to date.

According to a news release, the agreement with thyssenkrupp nucera will cover alkaline water electrolysis technology (AWE) and large-scale electrolysis plant engineering. thyssenkrupp nucera has a proven track record with more than 600 installed projects and over 10 GW capacity in the chlor-alkali technology, which is the DNA for ‘scalum’, its large-scale 20 MW standard AWE module.

“This electrolyzer agreement indicates a change in market dynamics and is also a proof of our new business model for reservation of production capacity. For customers where time-to-market is critical, ensuring access to production capacity of leading electrolyzer technology becomes essential. With this bold investment, H2 Green Steel has shown a strong commitment to their timeline to decarbonize the steel industry and we look forward to working with them,” says Dr. Werner Ponikwar, CEO of thyssenkrupp nucera AG & Co. KGaA.

Through this collaboration, thyssenkrupp nucera will deliver capacity of more than 700MW to the electrolysis plant, likely making the H2 Green Steel plant one of the world’s largest AWE installation by the time its commissioned.

The giga-scale electrolysis plant, the first globally, is based on a concept where H2 Green Steel uniquely will use several complementing technologies for green hydrogen production, enabling balancing of the system for cost- optimization and operational flow as each technology’s core benefits can be harvested. To build it, H2 Green steel is teaming up with different world-leading partners and expertise in design, construction, equipment, operations and financing.

“The electrolysis plant in Boden will be many times bigger than most electrolyzer installations that exist today. Combining our own strong technical expertise with that of an experienced electrolysis supplier like thyssenkrupp nucera gives us a solid edge in the growing green hydrogen economy, which we will leverage to transform hard to abate industries. We start with steel in Boden, Sweden, but it’s only the beginning,” says Maria Persson Gulda, Chief Technology Officer H2 Green Steel.

Hydrogen produced in the electrolysis plant in Boden will be consumed on-site in a direct reduction process, reducing iron ore to sponge iron, enabling production of green steel. The electrolyzer units will be crucial to maximize the operational and economic benefits of the hydrogen in the steel mill, which also forms the foundation for new patented intellectual property assets.

The work leading up to the signing of the contract was enabled through support from Sweden’s Industrial Leap programme, led by the Swedish Energy Agency.

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Innovation, Raising capital

Advanced Ionics takes investment from heavy industry giants

The Wisconsin-based company will use proceeds from a Series A to deploy its new electrolyzer technology to early customers.

Electrolyzer developer Advanced Ionics has closed a $12.5m Series A financing led by bp ventures, with Clean Energy Ventures, Mitsubishi Heavy Industries, and GVP Climate, according to a news release.

The capital will facilitate the initial deployment of the Symbio water vapor electrolyzer technology for heavy industry. The electrolyzer reduces the cost and electricity requirements for green hydrogen production by integrating with standard industrial processes to harness available heat.

“The system is made of widely available steels and other simple materials rather than expensive metals or materials common in other electrolyzers,” the release states.

Advanced Ionics will use the funds to expand its team and deliver the electrolyzer systems to early customers. The company is in a pilot program with Repsol Foundation. Bp will also be exploring pilot opportunities with Advanced Ionics.

Other investors in the company include Aster, and angel investor collectives Clean Energy Venture Group and SWAN Impact Network.

August 17, 2023

Innovation

Ohmium inks 120 MW electrolyzer deal with NovoHydrogen

The electrolyzers will provide 120 MW of green hydrogen capacity to an IPP to run through a natural gas plant in New Jersey.

California-based Ohmium International has finalized an agreement to provide Colorado-based NovoHydrogen with PEM Electrolyzers, according to a press release.

The electrolyzers will be used to provide 120 MW of green hydrogen capacity to an independent power producer to run at a natural gas peaking power plant in New Jersey.

Ohmium manufactures standardized interlocking modular PEM electrolyzers that produce pressurized high-purity hydrogen.

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November 16, 2022

Project finance, Project news, Raising capital

New Fortress Energy planning five industrial-scale hydrogen plants

The company is building a pure-play clean hydrogen business, known as Zero, which it plans to capitalize separately in the near future.

New Fortress Energy is planning to build five industrial-scale hydrogen production hubs as part of its pursuit of a pure-play clean hydrogen infrastructure business.

The liquefied natural gas company has started construction on its first plant in Beaumont, Texas, where it is expected to produce 50 tons per day of green hydrogen, the company said on its 3Q22 earnings call today.

New Fortress Energy is taking learnings from the construction of the Beaumont plant to scale up its hydrogen business via additional projects that will produce a combined 90,000 tons per year, according to a presentation.

The company is building a pure-play clean hydrogen business, known as Zero, which it plans to capitalize separately in the near future.

Plug Power will provide electrolyzers while Entergy will provide renewable power to the Beaumont plant, which is set to begin operations in 2024.

The location of the project in southeast Texas is near refineries with an anticipated demand of 1,000 tons per day – over 20 times what the Beaumont plant will produce initially, said Patrick Hughes, managing director and chief commercial officer of NFE Zero.

“So plenty of demand and plenty of growth potential in the immediate region,” the executive said, who noted the company was focused on optimizing offtake for the first phase of the project.

In addition to nearby refineries, the Beaumont project could also supply for an Entergy power plant known as Orange County Advanced Power station. Existing pipeline networks could also ship green hydrogen around the region.

“The good thing about electrolyzers is that it’s fairly straightforward to scale,” Hughes said.

November 8, 2022

M&A, Raising capital

Exclusive: Middle market flagship fund to target e-fuels, renewables

A new $1.5bn US-focused flagship fund focused on middle market companies is in discussions with new and existing LPs now and will consider e-fuels and other sustainable molecules in its deployment.

Energy Impact Partners, the New York-based investment firm, is in discussions with new and existing LPs to raise a $1.5bn flagship fund focused on the middle market, according to two sources familiar with the matter.

The raise is being done without a financial advisor, the sources said. Once complete, it will target platforms and assets in the $40m to $50m range.

While the fund will be broadly focused on renewables, e-fuels and other sustainable fuels companies will be considered, one of the sources said.

The investment manager has invested in clean fuels via equity positions in Electric Hydrogen, Terragia and Metafuels, among others.

EIP did not respond to requests for comment.

April 10, 2024

Project finance, Project news, Raising capital

Exclusive: North Dakota blue ammonia project kicking off FEED study

Catalyst Midstream is set to launch a FEED study for a 1 million ton blue ammonia facility in Berthold, North Dakota, with expected offtake in the Asia-Pacific marketplace. The project has not been previously announced or reported.

Catalyst Midstream is set to launch a FEED study for a blue ammonia facility in North Dakota that will produce over 1 million tons per year for export.

The project, which has not been reported previously, applied for a $10m North Dakota Clean Sustainable Energy Authority grant for the construction of a blue ammonia facility in Berthold, North Dakota. That’s in addition to $37.5m it requested from the North Dakota Development Fund’s Fertilizer Facility Loan Fund in September 2023.

The facility would be capable of producing 1,080,000 tons/year, using approximately 120,000 mcf gas/day.

Total project cost, according to the grant application, would be $960m.

As of September 2023, Catalyst Midstream was under contract to purchase a 330-acre rail loading facility for the project and had invested $15m in key project asset purchase and early project design work.

In February 2024, Catalyst Midstream employed Windom Peak Corporation to design, construct and operate the 2.4 million tonne per year CO2 sequestration part of the project.

Catalyst Midstream is owned by Edward Neibauer, who has been in project development in the oil and gas industry for several decades. When reached for comment, Neibauer noted the project would soon be kicking off a FEED study.

He added that the project was nearing agreements with offtakers in the Asia-Pacific marketplace, and that he expects to raise debt and equity to fund construction of the facility.

May 6, 2024

M&A, Project finance, Project news, Raising capital

Exclusive: Renewable fuels firm hires advisor for topco raise

A renewable fuels firm with operations in California has hired a bulge bracket bank to raise project and platform capital for new developments in the Gulf Coast.

Oberon Fuels, a California-based renewable fuels developer, has hired Morgan Stanley for a topco and project capital raise to launch soon, CEO Rebecca Bordreaux said in an interview.

The company, backed by Suburban Propane, plans to reach COD on its next facility in the Gulf Coast in 2026, Boudreaux said. Late last year the company hired its first CFO Ann Anthony and COO Derek Winkel.

Oberon produces rDME at its Maverick Innovation Center in Brawley, California and recently established a partnership with DCC Fuels focused on Europe.

The location of the Gulf Coast facility is not public, Bordreaux said, though the company aims to reach FID on it this year. When operational it would produce 45,000 mtpy of methanol, or a comparative amount of rDME. Capex on the facility is in the range of $200m.

The company is shifting toward production of methanol as a shipping fuel, she said. New opportunities also include using DME as a renewable hydrogen carrier, as the fuel is easily transportable and compatible with many existing logistical networks.

Oberon is also preparing to issue $100m of municipal bonds from the state of Texas, Bordreaux said.

More than $50m has been raised by the company to date, with Suburban Propane being the largest investor and customer in California, Bordreaux said. The company has a third project in the pre-FEED phase.

March 22, 2024