An update from the Ohio River Valley Institute notes that a total of five project developers have dropped out of the ARCH2 hydrogen hub centered on the Appalachian region.
Chemours, First Mode, MPLX, and TC Energy have completely exited the ARCH2 hub, taking their respective projects with them. This reduction significantly impacts the overall capacity and scope of the hub.
As previously announced, CNX withdrew from one of the flagship projects, the Adams Fork ammonia plant in West Virginia. As a result, this project has also fallen out of the hub’s scope, according to the report.
The report casts further doubt on the finances and wherewithal of the remaining projects. For examply, although still part of the hub, Plug Power is in a financially precarious position. Empire Diversified Energy, responsible for the proposed hydrogen production facility in Follansbee, West Virginia, has seen its stock price plunge to extremely low levels, the report notes.
Meanwhile, Fidelis New Energy and KeyState Energy are new and lack experience in managing or building significant industrial facilities. Fidelis, in particular, presents itself as managing several major energy projects, but none of these facilities exist. The opacity surrounding their finances and lack of proven track record raises doubts about their ability to deliver on their projects, the report says.
ARCH2 issued an RFI earlier this month for new hydrogen projects, making $110m available for up to three developments.