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Ammonia future trades

The 5,000-tonne futures contract was traded at $385/t for May delivery and cleared through ICE, helping to enable development of an ammonia forward curve.

Global energy and commodity price reporting agency Argus said today that the first-ever futures ICE Ammonia Outright – Argus Ammonia NWE CFR Future contract has traded between counterparties in a deal brokered by Freight Investor Services (FIS).

The 5,000-tonne futures contract was traded at $385/t for May delivery and cleared through ICE.

Ammonia has historically been used as a feedstock for the global fertilizer industry, but its potential as a clean fuel of the future could see its importance grow as the world experiments with more sustainable energy sources. There is interest from both power generation and marine fuels markets, both of whom see potential in low-carbon ammonia as an energy source.

The first step in this process is trading ammonia futures based on the current market, which enables an ammonia forward curve to be developed that will provide the basis for more sustainable low-carbon ammonia investment decisions. Grey ammonia futures can act as a base contract to price future blue and green ammonia trading, or as a basis to wherever that green or blue ammonia is geographically located.

CEO of FIS, John Banaszkiewicz, said: “This is an important trade for many sectors, beyond shipping and fertilizers. ICE’s ammonia contract will be a cornerstone of price discovery and risk management as ammonia is unquestionably one of the most important fuels in our energy transition to a cleaner future. We are delighted to play our small part in helping this market develop.”

Jeff Barbuto, global head of oil markets at ICE, said: “Ammonia’s potential as an alternative fuel source continues to develop as new technologies and markets evolve. We’re excited to work with our customers to further build out the market and this contract alongside ICE’s vast suite of energy derivatives and risk management tools.”

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HTEC gets CAD 10m in federal funds for hydrogen facility at pulp mill

HTEC’s project will operate a renewable hydrogen production facility at a pulp mill in British Columbia.

HTEC and West Fraser Mills will receive CAD 10m from the Canadian government through a program seeking to facilitate adoption of innovative technologies.

Located in Nanaimo, B.C., HTEC’s project will operate a renewable hydrogen production facility at the Harmac Pacific Pulp Mill, producing clean hydrogen by electrolysis, according to a news release.

HTEC last year secured a CAD 217m investment from Chart Industries and I Squared Capital.

With a CAD 10m contribution through the Investments in Forest Industry Transformation program, the hydrogen will be used as clean fuel for transportation and heating, and will help the mill decarbonize its operations. HTEC’s project with Harmac Pacific is an example of how surplus energy from mills can be utilized to lower emissions and advance federal and provincial clean hydrogen goals, according to the release.

“HTEC’s growing network of hydrogen fuelling stations due to the industry demand for low-carbon transportation fuel in Canada has necessitated the development of local hydrogen production,” HTEC CEO Colin Armstrong said in a statement. “We are building multiple clean-hydrogen production facilities across the country, and this Nanaimo-based facility is a critical piece of the clean hydrogen value chain. We are grateful to the Government of Canada for its ongoing support in decarbonizing Canada’s transportation sector, allowing us to expand our retail fuelling network and opening up new market opportunities for heavy-duty transportation applications.”

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American Airlines invests in Universal Hydrogen

American joins Airbus Ventures, GE Aviation and Toyota Ventures, as well as several major hydrogen producers and aircraft lessors, as strategic investors.

American Airlines has made a strategic equity investment in Universal Hydrogen Co., a company building a green hydrogen distribution and logistics network for aviation.

The investment supports American’s science-based targets to reduce greenhouse gas (GHG) emissions by 2035, and ultimately its commitment to achieve net zero GHG emissions by 2050, and makes American the first U.S. airline to make two direct investments focused on the development of both hydrogen-electric propulsion technology and the future of hydrogen distribution logistics, according to a news release.

American joins Airbus Ventures, GE Aviation and Toyota Ventures, as well as several major hydrogen producers and aircraft lessors, as strategic investors in Universal Hydrogen.

Universal Hydrogen’s fuel distribution network uses modular hydrogen capsules that are handled like cargo, eliminating the need for new fueling infrastructure at airports and speeding up fuel loading operations. Universal Hydrogen anticipates starting hydrogen deliveries for regional aircraft in 2025, with plans to expand its services to larger, single aisle aircraft — first for auxiliary power in the late-2020s and then as a primary fuel by the mid-2030s. Because these segments represent two-thirds of aviation emissions — and with green hydrogen being a true zero-carbon fuel — these advances put aviation on a path to meet Paris Agreement emissions targets.

“This technology has the potential to be a game-changer on the industry’s path to zero-emission flight,” said American’s Chief Financial Officer Derek Kerr. “As the world’s largest airline, American has a responsibility to exercise leadership in making aviation sustainable. Our investment in Universal Hydrogen represents a vote of confidence for green hydrogen as a key element of a sustainable future for our industry.”

“Together with our investors, we are putting together the end-to-end value chain to make hydrogen aviation a near-term commercial reality,” said Paul Eremenko, co-founder and CEO of Universal Hydrogen. “This move by American is a strong signal that customers want a true zero-emissions solution for passenger aviation and are willing to back tangible, pragmatic steps to get there quickly.”

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UK aluminum recycling plant testing hydrogen burning

An award from the UK government will help establish hydrogen burning demonstration in sustainable aluminum production.

Novelis, a sustainable aluminium solutions provider, has been awarded EUR 4.6m to establish hydrogen burning trials at its Latchford plant in the UK, according to a news release.

As part of the UK Government’s EUR 55m Industrial Fuel Switching Competition, the EUR 1bn Net Zero Innovation Portfolio, and the wider regional HyNet project.

Novelis joined HyNet in 2017 and has been supporting the development of the regional infrastructure project as well as conducting its own technical feasibility studies on the use of hydrogen as a direct replacement for natural gas.

The Latchford plant will test the use of hydrogen on one of its recycling furnaces in a demonstration phase in 2024.

The trial has been set up in collaboration with Progressive Energy, an independent UK energy company, and requires the installation of new burners and regenerators – both capable of operating with hydrogen or a blended hydrogen/gas input – and replacing the furnace lining material with one suitable for hydrogen.

Depending on the final configuration, replacing natural gas with hydrogen to feed the remelting furnace could reduce CO2eq emissions by up to 90% compared to using the same amount of natural gas.

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CO2-to-SAF firm in $100m capital raise

A New York-based CO2-to-SAF firm is raising about $100m in equity and debt.

Dimensional Energy, the CO2-to-SAF startup based in Ithaca, New York, is in the late stages of a roughly $100m equity and debt round led internally, according to a source familiar with the matter.

The company is down to a shortlist of potential investors with two or three weeks until targeted close, the source said.

Dimensional did not respond to a request for comment.

Proprietary reactor technology powered by renewables is the core of Dimension’s regenerative process. According to its website, the company can make 15 barrels of fuel from every 10 tons of carbon sources form the atmosphere and hydrogen derived form electrolysis.

In May, the company signed an offtake agreement for 5 million gallons per year with Boom Supersonic, which is seeking to build a supersonic airliner that will travel at speeds twice as fast as today’s commercial jets.

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Hydrogen liquefaction provider looking for growth equity

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Absolut Hydrogen, a French liquid hydrogen and liquefaction company based in Grenoble, is looking for equity to scale up production following operations of their demonstration project in France, CEO Jerome Lacapere said in an interview.

Absolut has a partnership with SAF firm ZeroAvia to develop refueling infrastructure for aircraft, and is primarily focused on serving the mobility sector.

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Ambient Fuels evaluating hydrogen project acquisitions

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Following an equity investment from Generate Capital, Ambient Fuels has begun to evaluate potential acquisitions of hydrogen projects that are under development, CEO Jacob Susman said in an interview.

“We’ve seen our first project M&A opportunities come through in the last 10 days or so,” Susman said.

Three projects for sale involve land positions, he said. Those that appear most attractive have a clear line of site to offtake or a strong approach to renewable power supply. Two out of three are not on the Gulf Coast.

“In no instance are these brokered deals,” Susman said.

Following the $250m equity investment from Generate Capital, Ambient is capitalized for several years and has no immediate plans to seek debt or tax equity, Susman said. The transaction was done without the help of a financial advisor.

Moving forward Ambient is open to JV formation with a partner that can help access offtake and renewable power, Susman said. Those points will drive future capital investment in the company and were resources that Generate brought to the table besides money.

According to ReSource‘s project tracker, Ambient is involved in at least two of the hubs that were encouraged by the DOE to submit a final application: California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), and the Port of Corpus Christi Green Hydrogen Hub.

In 2021 Ambient completed a funding round led by SJF Ventures. Several other VC funds and angel investors also participated.

In January The Hydrogen Source reported that Ambient was in exclusivity with an equity provider.

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