Apex Clean Energy, funds managed by the Infrastructure and Power strategy of Ares Management Corporation, EPIC Midstream Holdings, and the Port of Corpus Christi Authority have entered into a nonbinding memorandum of understanding to explore the development of green hydrogen production, storage, transportation, and export operation at the Port of Corpus Christi, Texas.
The project would include a newly constructed dedicated pipeline and a green fuels hub, according to a press release.
As contemplated by the parties, the project would produce green hydrogen and other derivative green fuels in volumes not yet seen in the United States, with additional scale possible by decade’s end.
Apex expects to utilize its industry-leading portfolio of wind and solar projects currently in development in Texas to power facilities producing green hydrogen and derivative green fuels products. In addition, EPIC will consider leveraging its pipeline construction and operating expertise to accelerate the development of a new, dedicated green fuels pipeline. The project would also endeavor to leverage and develop existing and new storage, processing, and export infrastructure sited on real estate owned by PCCA.
Ares and PCCA previously executed a separate non-binding memorandum of understanding in May 2021, with the intention of developing renewable energy infrastructure on PCCA-owned property to support the production of green hydrogen and optionality to provide renewable power directly to the port and its customers. This MOU builds on that effort, specifically with respect to the development of green fuels projects.
“We are excited to build on our existing relationship with PCCA to develop and build what we believe will be one of the largest green hydrogen projects in the country to date,” said Keith Derman, partner and co-head of Ares Infrastructure and Power. “The project demonstrates the type of innovative, broad, and collaborative approach across industries and stakeholders that we believe can deliver novel energy solutions that help accelerate the transition to a low-carbon economy and combat climate change. Further, this underscores Ares’ leading capabilities in providing differentiated solutions to a growing asset class as we seek to drive returns for our investors through opportunities aligned with their sustainability goals.”
“This project seeks to generate and deliver green hydrogen and other clean fuels precisely where they are needed most—at the industrial backbone of our nation,” said Mark Goodwin, Apex Clean Energy president and CEO. “Together with Ares, EPIC, and the Port of Corpus Christi, Apex would leverage the highest-quality wind and solar resources in Texas to help decarbonize difficult-to-abate industries—including the transportation, shipping, fertilizer, chemical, and refining sectors—and include optionality for global export. This would be green fuel production at gigawatt scale.”
“This initiative is exactly the type of interdisciplinary collaboration that would enable scalable projects that move the needle on diversification of the energy marketplace,” said Jeff Pollack, chief strategy and sustainability officer for the Port of Corpus Christi. “This monumental potential project would directly contribute to the burgeoning clean hydrogen hub at the Port of Corpus Christi and would directly support our ambitions to cultivate world-scale hydrogen exports as our part in national decarbonization and energy balance of trade objectives.”
