Resource logo with tagline

Buckeye Partners acquires EnCap-backed CCS developer

EnCap made a $350m initial capital commitment to Elysian in 2021.

Buckeye Partners has acquired Elysian Carbon Management from EnCap Flatrock Midstream.

Elysian provides integrated end-to-end carbon capture and storage (CCS) solutions to industrial, power and similar facilities seeking to transition to lower carbon products to advance emissions reductions goals.

EnCap made a $350m initial capital commitment to Elysian in 2021.

“This acquisition reflects Buckeye’s commitment to continue to provide essential infrastructure and logistics solutions to meet our customers’ evolving needs in the energy transition,” said Buckeye CEO Todd Russo. “Rapidly developing CCS-related technologies and solutions offer abundant synergies across Buckeye’s project development capabilities and existing pipeline network and are essential to enabling the energy transition’s success. We’re excited for the Elysian team to join the Buckeye platform and to integrate their expertise to better serve our customers’ growing lower-carbon needs.”

This acquisition is another meaningful step in Buckeye’s ongoing commitment to building a business that is responsive to the needs of the future while continuing to serve the energy needs of communities today. Through advancing strategies to further reduce carbon emissions, Buckeye is committed to becoming a net zero energy business by 2040, across scope 1 and 2 GHG emissions. These commitments and others can be found in Buckeye’s newly released 2022 Sustainability Report.

“Buckeye continues to demonstrate resiliency and emissions-reduction results across its increasingly diversified energy solutions portfolio,” said Elysian CEO Bret Logue. “We’re fully aligned with their decarbonization mission and look forward to adding immediate value to Buckeye’s customer base and their momentum in the energy transition by integrating CCS technologies across the energy value chain.”

Unlock this article

The content you are trying to view is exclusive to our subscribers.
To unlock this article:

You might also like...

DG Fuels selects Johnson Matthey-bp Fischer Tropsch technology

DG Fuels has selected the technology for its first SAF plant in Louisiana, and is planning 10 more facilities across the United States modeled after the Louisiana project.

DG Fuels has chosen Johnson Matthey and bp’s co-developed Fischer Tropsch (FT) CANS™ technology for its first sustainable aviation fuel (SAF) plant, according to a news release.

Located in Louisiana, USA, it would be the largest announced FT SAF production facility in the world, with a planned capacity of 13,000 barrels per day – capable, after blending to 50%, of producing enough SAF for more than 30,000 transatlantic flights annually.

The project previously planned to produce 120 million gallons at the facility, but today’s press release notes that the proposed $4 billion plant is planned to produce 600,000 metric tons (MT) of SAF per year when fully operational — or 159 million gallons — and would be the largest announced SAF production plant using a non-HEFA route.

DG Fuels has already secured offtake agreements with Delta Air Lines and Air France-KLM, and has a strategic partnership with Airbus to scale up the use of SAF globally.

DG Fuels is planning 10 more SAF production plants across the United States. These would be modelled on the Louisiana plant with JM and bp as the partners of choice for these facilities.

The fuel at the Louisiana plant is expected to be produced from waste biomass. DG Fuels is projected to purchase around $120 million of sugar cane waste annually, a third of which is planned to be purchased from St. James Parish farmers. JM and bp’s FT CANS technology converts the synthesis gas derived from this biomass to synthetic crude, which is then further processed to produce the synthetic kerosene that is then blended with conventional jet fuel to produce SAF.

In July 2023, DG Fuels announced the closing of investment transactions with aviner & co., inc, Chishima Real Estate Co, and an undisclosed investor. DG Fuels expects the $30m capital raise to fund the project until FID, which is expected in early 2024.

In September 2023, DG Fuels announced a partnership with Airbus in support of DG Fuels’ goal of launching the equity process and reaching FID.  Airbus and DG Fuels have agreed for a portion of the production of the first plant to benefit Airbus’ customers.

In November 2023, DG Fuels announced Air France-KLM has made an investment in the facility. Air France-KLM acquired an option to purchase up to 25 million gallons / 75 000 tons of SAF annually over a multi-year period beginning in 2029, in addition to the long-term offtake contract announced by Air France-KLM and DG Fuels in 2022.

Read More »

Co-developers signing on to Canadian wind-to-hydrogen project

A pair of renewables developers with a track record of completing large wind farms in North America are in late stage talks to join a massive Canadian wind-to-hydrogen project as co-developers.

Northland Power and Pattern Energy are interested in co-developing the Port au Port-Stephenville Wind Power and Hydrogen Generation Project, or Project Nujio’qonik, according to an environmental impact statement submitted by developer World Energy GH2.

“Discussions are at advanced stages with both companies,” the statement reads. “The Project would then benefit from their onshore wind development experience and local knowledge and relationships.”

In order to finance the project, financial advisor Green Giraffe plans to take a wide market approach using its project finance contacts as well as World Energy GH2’s relationship banks, which are mostly local Canadian banks, the document reads. The advisor plans to conduct the capital raise “in due time” and expects “strong interest” from lenders given the scarcity of green hydrogen projects in the market.

“Lenders will highly value the location (politically stable country with ambitious carbon-neutral targets), the experienced consortium, and the innovative aspect of the project that will be de-risked with adequate mitigations solutions,” according to the EIS.

The project involves 1 GW of wind power to produce hydrogen and ammonia on the Port au Port peninsula, Port of Stephenville, in Newfoundland and Labrador. Future expansions plan for up to 3 GW of energy from additional wind farms.

First production is planned for 2Q24 with full production reached by 3Q35.

In May SK ecoplant, the environment and energy arm of Korea’s SK Group, invested $50m in Project Nujio’qonik, acquiring a 20% stake in the first phase.

Read More »

Aviation manufacturers issue statement in support of SAF industry

The statement outlines a series of measures the manufacturers are promoting to advance decarbonization of the aviation industry.

Statement by the Chief Technology Officers of seven of the world’s major aviation manufacturers reads as follows:

Over a decade ago the aviation industry was the first global sector to set ambitious emission reduction goals. Today, we come together again to support the industry’s commitment to achieving net zero carbon emissions for civil aviation by 2050 and to highlight the importance of the production, distribution, and availability of qualified Sustainable Aviation Fuel (SAF) needed to achieve this goal. The development of fuel-efficient aircraft technologies has been a priority for the aviation industry for over 50 years and remains a priority. Greater uptake of SAF would mitigate the projected growth in aviation COemissions as the customer demand for global air travel increases.

Our companies are steadfast in delivering the technical solutions required to reduce the carbon emissions of the air transportation sector through our work in three key areas:

  • Developing advanced aircraft and propulsion technologies that enable net-zero carbon emissions while maintaining the safety and quality standards of our industry
  • Implementing improvements in aircraft operations and infrastructure
  • Supporting policies and measures that accelerate the availability and adoption of qualified SAF.

Increasing the production and utilization of SAF is a critical step for achieving the air transportation sector’s net zero CO2 emissions goal by 2050. However, the production of SAF is currently estimated at less than 0.1% of the global demand for jet fuel today. Moreover, SAF prices are typically two to five times higher than the price of conventional jet fuel. The supply is further constrained by competition for renewable fuels from other sectors that have alternative decarbonization options, such as with surface transportation and heating.

We support government policies and initiatives that stimulate investment in production capacity, reduce costs, and encourage greater industry uptake. This includes the US Inflation Reduction Act of 2022 (IRA), which provides a blender’s tax credit. The IRA also authorizes funding to support advanced technologies and infrastructure that enable expanded SAF production and distribution capacity in the US, as well as projects to develop fuel efficient aircraft or otherwise reduce emissions from flying. Public-Private Partnerships, such as the FAA FAST Tech Program, would enhance OEM adoption, testing, and technical clearance of new emerging SAF pathways to ensure seamless insertion into the commercial fleet.

Similarly, the CTOs welcome the political agreement found on ReFuelEU Aviation which will provide a strong signal for the deployment of SAF in air transport, and look forward to the legislation being adopted as soon as possible. The EU needs to implement the right industrial support policies, within the Net Zero Industry Act, to accelerate the availability of SAF and synthetic kerosene at commercial scale, building on the work of the Industrial Alliance for Renewable and Low Carbon Fuels (RLCF). In addition, qualification efforts that support the development of co-processing technologies that can harness the existing capital infrastructure will accelerate the availability of  SAF at commercial scale.

Public-Private Partnerships can play a key role in increasing the development and use of SAF through policy definition and alignment, along with financial incentives.  Policymakers have the chance to accelerate these processes by providing sustained and predictable support to the multi-year development of novel technologies, and by stimulating the ramp-up of capacity. Recognizing the technical challenges associated with decarbonizing aviation, greater public policy and financial support to accelerate SAF production and distribution over fuels used for surface transportation is essential.  Additionally, close collaboration with the aviation industry and fuel suppliers is required in the development of infrastructure and investment in SAF production capacity to accelerate availability in support of demand. Lastly, establishing standards for qualification of 100% SAF pathways that ensure full compatibility with engines and aircraft for civil and appropriate defence applications as they become available is essential.

We, as CTOs, are committed to supporting policies that increase the supply of SAF while ensuring a consistent and predictable demand through harmonised global measures. The aviation industry plays a pivotal role in modern life connecting people, economies, and nations. We are unified in the proposition that our industry has a prosperous and more sustainable future, and that we can make it happen through the near-term implementation of lasting industry-wide and globalized harmonized policies.

[SIGNATORIES LISTED ALPHABETICALLY BY COMPANY]

Sabine Klauke
Chief Technology Officer
Airbus

 

Todd Citron
Chief Technology Officer
Boeing

 

Bruno Stoufflet
Chief Technology Officer
Dassault Aviation

 

Christopher Lorence
Chief Engineer
GE Aerospace

 

Geoff Hunt
Senior Vice President, Engineering
Pratt & Whitney

 

Grazia Vittadini
Chief Technology Officer
Rolls-Royce

 

Eric Dalbiès
Strategy & Chief Technology Officer
Safran

Read More »
Recource
exclusive

Turnt up about turndown ratios

Optimizing electrolysis for renewables depends not just on how far you can turn the machine up, but how far you can turn it down. We asked electrolyzer makers: how low can you go?

Optimizing electrolysis for renewables depends not just on how far you can turn the machine up, but how far you can turn it down.

A consensus is growing around the importance of turndown ratios for electrolyzers, with a variety of use cases for green hydrogen requiring the machines to be run at low levels during periods of high power pricing.

Proton exchange membrane (PEM) electrolyzers are known for their ability to quickly ramp production up and down, but manufacturers of all stripes have begun to tout their technologies’ turndown ratios, with implications for capital costs and the levelized cost of producing hydrogen from renewable power.

Simply put, some electrolyzer plant operators will likely seek to lower hydrogen production during periods of high power pricing, since the cost of electricity is the largest operating expense. But cycling the electrolyzers completely off and on can lead to added system degradation, giving importance to the ability of the machines to run at low levels.

A study from the National Renewable Energy Laboratory (NREL) analyzes a US grid buildout through 2050, noting favorable locations and seasonality for power pricing as something of a guideline for green hydrogen development. The study notes that the lowest achievable turndown ratio is a main factor in minimizing hydrogen levelized cost along with the number of hours a system can operate at that minimum level – something that applies to all types of electrolyzers.

“When you start to look at hourly costs from the data in different locations, you see that all of this renewable buildout is going to create opportunities in given locations where you going to have a lot of renewable generation and not a lot of load on the system and that’s going to drive the cost for that energy down,” said Alex Badgett, an author of the study at NREL.

To be sure, the fast-moving technological environment for electrolysis leaves open the possibility for efficiency gains and disruptive innovation. And a variety of factors – balance of plant, energy efficiency, system degradation – also influence plant economics. But the lowest possible turndown ratios will drive opportunities for green hydrogen developers, Badgett said.

ReSource reviewed available spec sheets for electrolyzer providers and asked every maker of PEM and SOEC systems to detail the turndown capabilities of their machines. Alkaline electrolyzers were left out of the analysis given their more limited load flexibility, as their separators are less effective at preventing potentially dangerous cross-diffusion of gasses. Some manufacturers are fully transparent regarding turndown ranges while others declined to comment or did not reply to inquiries.

‘Not trivial’

In designing projects, developers are analyzing hourly energy supply schedules and pairing the outlook with what is known about available technology options.

“Some electrolyzers like to operate at half power, and others like to operate at full power, and in any given system, you can have between 10 and 50 electrolyzers wired and plumbed in parallel,” said Mike Grunow, who leads the Power-to-X platform at Strata Clean Energy.

“Our thought process even goes down to: let’s say you have to operate the H2 plant at 25% throughput. Do you operate all of the electrolyzers at 25%, or do you turn 75% of the electrolyzers off and only operate 25% at full power?”

The difference in the schemes, he added, is “not trivial as each technology has different efficiency curves and drivers of degradation.”

Different use cases for the hydrogen derivative, meanwhile, lead to different natural selection of technologies, Grunow said, adding that the innovation cycle is now happening every 12 months, requiring a close eye on advances in technology. 

Electrolyzer start-up Electric Hydrogen, a maker of PEM electrolyzers, is commercializing a 100 MW system that can turn down to 10%, according to Jason Mortimer, SVP of global sales at the company.

HyAxium, another start-up, can turn its system down to 10%, according to its materials. Norway-based Hystar, which recently announced plans to build a plant in the US, also promotes a 10% turndown ratio.

A more established PEM electrolyzer provider, Cummins, advertises turndown ratios of 5% for its machines. Sungrow Power, a China-based manufacturer, similarly advertises 5% for PEM electrolyzers.

Siemens Energy has a minimum turndown ratio per stack of 40%, but for a single system it can be less in exceptional cases, according to Claudia Nehring, a company spokesperson.

“We focus on large systems” – greater than 100 MW – “and currently consider this value to be appropriate, taking into account the optimization between efficiency, degradation and dynamics, but are working on an improvement,” she said via email.

ITM Power declined to provide details but said its turndown capabilities are “to be expected” for a market leader in this technology. Materials from German-based H-Tec Systems note a modulation rate down to 10%.

Additional PEM makers Nel, Ohmium, Elogen, H2B2, Hoeller Electrolyzer, Plug Power, Shanghai Electric, and Teledyne Energy Systems did not respond to requests for information.

PEM alternatives

Other forms of electrolysis can also ramp dynamically. And some project developers point to PEM’s use of iridium, part of the platinum metals family, as a drawback due to potential scarcity issues.

Verdagy, for example, has developed an advanced alkaline water electrolysis (AWE) system called eDynamic that it says takes the best of PEM and alkaline technologies while designing out the downsides.

The company’s technology “addresses the barriers that limited traditional AWE adoption by using single-element cells that can operate efficiently at high current densities,” executives said in response to emailed questions. 

“The ability to operate at very high current densities, coupled with a balance of stack and balance of plant optimized for dynamic operation, allow Verdagy’s electrolyzers to operate across a very broad range spanning 0.1-2.0 A/cm2,” they said.

In other words, the machine can turn down to 5%, part of the design that enables operators “to modulate production to take advantage of time-of-day pricing and/or fluctuations in energy production.”

Meanwhile, German-based Thysenkrupp Nucera, another maker of advanced water electrolyzers, advertises a 10% turndown ratio.

SOEC

A relatively new electrolysis technology, the solid oxide electrolyzer cell has also proven to be capable of low turndown ratios. Solid oxide electrolysis is particularly attractive when paired with high-temperature industrial processes, where heat can be captured and fed back into the high-temperature SOEC process, making it more efficient.

Joel Moser, the CEO of First Ammonia, said he chose SOEC from Denmark-based Haldor Topsoe in part because the machines can be turned completely off with no degradation, as long as you keep them warm.

“Generally speaking we expect to ramp up and ramp down between 100% and 10%,” he said. “We can turn them off as long as we keep them warm, and then we can turn them right back on.”

Still, SOEC systems are not without challenges.

“Low stack power and high operating temperature, which in turn requires more ancillary equipment to operate the electrolyzer, are widely viewed as the main drawbacks of SOEC technology,” according to a report from the Clean Air Task Force, which explores SOEC technology and its commercial prospects. “SOEC systems are also considered to have a shorter operating life due to thermal stress.”

Additional makers of SOEC machines Bloom Energy, Ceres, Elcogen, Genvia, SolydERA, and Toshiba did not respond to inquiries.

At NREL, researchers are watching for more automation and scale in the electrolyzer production process to bring costs down. Increasing efficiency through balance-of-plant improvements is another opportunity to reduce system costs.

In addition, more analysis of how large electrolyzer projects will impact the future electrical grid is required, according to Badgett.

The NREL team modeled the hourly marginal cost at any given time in any location in the US, but the model assumes that the electrolyzer takes energy without impacting the cost of energy.

“When we start to get to gigawatt-scale electrolysis,” he said, “that’s going to significantly impact prices, as well as how the grid is going to build out.”

Read More »
exclusive

Solar-powered hydrogen producer raising capital for EU and US growth

A European JV developing off-grid hydrogen production units using concentrated solar power – “white hydrogen” – plans to raise capital for growth in Europe and the US.

hysun, a Spanish JV between European firms Nanogap and Tewer Engineering, will raise $15m over three years for its first industrial plant and commercialization by 2026, CEO and Co-founder Tatiana Lopez said in an interview.

hysun has not engaged a financial advisor to date, but is open to meetings, Lopez said.

The new venture, formed in November, has raised $2m and is actively seeking another $3m (pre-money valuation of $10m) equity for a100 g H2/h prototype to close by the end of the year.

The company will then need $4m for an industrial plant, locations for which are being scouted now in the US and Europe. After that, the founders intend to enter a commercialization phase.

hysun’s intellectual property allows it to produce off-grid “white hydrogen” via steam generated with concentrated solar technology, Lopez said. The lack of electrolyzers means about eight times less land is needed to generate projects as large as 200 MW assuming 2,500 hours of sunlight per year.

“You don’t need to be next to a wind farm or solar plant,” Lopez said, adding that the hydrogen is produced at $1 per kilo.

Average project sizes range between 50 and 100 tonnes per year, assuming the same amount of sunlight, though the technology is applicable on a micro scale. The company sees the end uses being for ammonia production, replacement of grey hydrogen in industry and remote location deployment.

Lopez said the company is interested in growing in the US and Europe but believes the US will develop its industry faster.

Read More »
exclusive

US clean fuels producer prepping equity and debt raises

A Texas-based clean fuels producer is close to mandating an advisor for a platform equity raise. It has already tapped Goldman Sachs to help arrange a cap stack in the billions for a project in Oregon.

NXTClean Fuels, a Houston-based developer of clean fuels projects, is preparing a $50m to $100m platform equity raise in the near term and has large debt and equity needs for a pair of projects in Oregon, CEO Chris Efird said in an interview.

The company is close to engaging a new financial advisor for the raise, which will launch late this year or early next, Efird said.

Port Westward

Meanwhile, Goldman Sachs’ post-carbon group is retained for the capital stack on NXTClean’s flagship project at Port Westward, at the Port of Columbia County, Efird said. The $3bn CapEx (including EPC) project is fully permitted by the State of Oregon and is awaiting one federal Clean Water Act permit. An Environmental Impact Statement is expected this fall.

The project is dedicated to producing a split of renewable diesel and SAF, amounting to roughly 50,000 barrels per day total permitted capacity when fully operational.

FID is expected for roughly August 2024, he said. About 30 months from FID the plant will reach COD.

“What we’re most focused on right now is the true senior debt,” Efird said. On the equity side the company is engaged with strategic partners that have indicated interest in post-FID equity.

NXTClean has conversations ongoing with the Department of Energy’s Loan Programs Office, along with commercial project finance lenders.

Red Rock

In April NXTClean acquired what was the Red Rock Biofuel facility in Lakeview, Oregon. That woody biomass-to-SAF facility foreclosed after $425m in investment, following technical and financial issues brought on by the COVID 19 pandemic. NXTClean purchased the facility for $75m in preferred stock at auction on the courthouse steps.

GLC advisors was retained by lead bondholder Foundation Credit to advise on that process, Efird said.

Red Rock is being repurposed to produce carbon-negative RNG for the adjacent Tallgrass Ruby Pipeline, Efird said. The fully-permitted project has a significant amount of equipment already installed or on skids.

A first phase will require a spend of $100m to $150m. Some $50m of equity will augment a balance of debt, raised in part through USDA programming, Efird said. Cash flow from the first phase will help with the second phase, which will bring the capital needs of the facility up to as much as $400m.

Looking forward

Geographically, NXTClean will expand in the Pacific Northwest and British Columbia, Efird said.

Each of NXTClean’s two projects are held by a separate subsidiary. The company has a third subsidiary called GoLo Biomass that focuses on feedstock aggregation, Efird said. It engages with fish processors in Vietnam and used cooking oil suppliers in South Korea to augment supply from large companies.

Read More »

Welcome Back

Get Started

Sign up for a free 15-day trial and get the latest clean fuels news in your inbox.