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CAD $20m awarded to 18 Alberta hydrogen projects

The total value of the funded projects, including matching investments for project partners, is more than CAD $200m.

The Alberta Hydrogen Centre of Excellence is awarding CAD $20m to 18 projects to advance innovations in hydrogen through its first funding competition, according to a press release.

A full list of the projects can be seen here.

One of the projects is the proposed Bremner 100% Hydrogen Community in Strathcona County, Alberta. ATCO and Qualico are studying the logistics, technology requirements and other considerations involved in developing 100% pure hydrogen communities – an step toward eliminating carbon emissions produced by hot water use.

“Other successful projects in the competition will examine the safe and effective use of pipelines for hydrogen transmission,” the release states. “Another project will look at how to convert heavy-duty long-haul trucks to dual-fuel machines. In all, projects will examine everything from production, transmission, distribution, and storage, to end-uses of hydrogen.”

A total of 68 project proposals were received. The HCOE will fund up to 50 per cent of eligible costs for the successful projects, or up to 75 per cent of eligible costs for projects led by post-secondary institutions, or those with a significant Indigenous component.

The total value of the funded projects, including matching investments for project partners, is more than CAD $200m. Projects have 24 months to complete their proposed work.

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Bosch to invest more than $200m to produce fuel cell stacks in South Carolina

As part of Bosch’s local for local manufacturing strategy, the fuel cell stacks produced in Anderson will drive hydrogen-powered trucks coming to the roads of the U.S. in the next few years.

Bosch, a producer of powertrain and propulsion technologies, will begin producing fuel cell stacks in its Anderson, South Carolina, facility as part of a more than $200m investment.

As part of Bosch’s local for local manufacturing strategy, the fuel cell stacks produced in Anderson will drive hydrogen-powered trucks coming to the roads of the U.S. in the next few years.

Start of production is expected in 2026, according to a news release.

“The hydrogen economy holds great promise and at Bosch we are all in,” said Mike Mansuetti, president of Bosch in North America. “This is a significant milestone as we announce the first fuel-cell related production for Bosch in the U.S. to support the growing demand from our local customers as part of a diverse approach to powertrain technology.”

The Bosch Anderson facility has already begun work on the expansion to support fuel cell technology. Capital upgrades to the Anderson campus include an estimated 147,000 square feet of floor space to be developed to manufacture the fuel cell stack as well as supporting clean room and climate-controlled environments required for quality-critical processes.

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Pennsylvania hydrogen hub submission includes Shell, Equinor

Equinor and Shell USA would oversee technical and commercial delivery of the project.

Pennsylvania has submitted a concept paper to the U.S. Department of Energy to establish an H2Hub known as the Decarbonization Network of Appalachia (DNA H2Hub) focused on industrial and manufacturing decarbonization.

Team Pennsylvania will serve as lead applicant, while partners Equinor and Shell USA will oversee technical and commercial delivery of the project, according to a press release.

“Pennsylvania is excited to be taking this critical step towards becoming part of a DOE-funded H2Hub,” said Acting Secretary of Community and Economic Development (DCED) Neil Weaver. “This proposed partnership represents a unique opportunity to advance our goals for reducing greenhouse gas emissions while growing our economy through deploying the next generation of energy and industrial infrastructure in the state.”

Appalachia has long played an important role in energy production and manufacturing in the United States. The region has evolved from being the site of the country’s first oil production wells to the source of abundant coal power, the birthplace of commercial nuclear electricity and now into extensive natural gas production. The region remains the center of steel, plastics, and refining production in the US, and has a robust supply chain for the automotive industry.

“Pennsylvania’s historical strengths in energy and industrial productivity mean that we are well-positioned to lead the energy transition towards deep decarbonization,” said Abby Smith, Team Pennsylvania Foundation President & CEO. “And Team Pennsylvania’s ability to accelerate economic growth through public-private partnership will be leveraged to support an application for a hydrogen hub that will keep Pennsylvania economically competitive for generations to come.”

The DNA H2Hub concept submitted to the Department of Energy is the next step in the process to be considered for one of at least six Regional Clean Hydrogen Hubs eligible for $8bn through the Bipartisan Infrastructure Law to expand the use of clean hydrogen in the industrial sector.

A Project Advisory Board including DCED and public sector partners will provide project leadership in conjunction with Team PA. If selected, the DNA H2Hub will establish a large low-CO2 infrastructure network through the emissions intensive tri-state region, providing a pathway to widescale emission reductions in hard to decarbonize industries including steel-making and manufacturing.

In order to position Pennsylvania to take advantage of this DOE funding opportunity, last week, Governor Wolf signed House Bill 1059 which established a $50m per year H2 tax credit specifically for a manufacturing facility that is part of a Regional Clean Hydrogen Hub as designated by the Department of Energy.

In addition to the Team PA DNA proposal, the Wolf administration is supportive of a proposal led by the City of Philadelphia and partners, called the Mid-Atlantic Clean Hydrogen Hub (MACH2), according to the release.

Building off the legacy of petroleum refinement and chemical production in the Mid-Atlantic, the MACH2 proposal will leverage the wealth of existing technology and infrastructure in the region to generate clean hydrogen, and reuse and revitalize existing pipeline infrastructure.

If funded, MACH2 is expected to support a just energy transition by creating or retaining more than an estimated 20,000 well-paying jobs through re-training, up-skilling and talent pipeline building, and providing economic opportunities as well as health improvements that directly benefit historically underserved communities in Southeast PA, Delaware, and Southern New Jersey.

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Glenfarne’s Texas LNG moving to project finance execution phase

Glenfarne has appointed lawyers and is moving into the execution phase for financing its Texas LNG project.

Texas LNG, a four million tonnes per annum liquefied natural gas export terminal to be constructed in the Port of Brownsville, and a subsidiary of Glenfarne Energy Transition, LLC, a global energy transition leader providing critical solutions to lower the world’s carbon footprint, has received sufficient expressions of interest from leading project finance banks to move to the execution phase of project financing.

Glenfarne has also appointed Latham & Watkins as Borrower’s counsel and Milbank as Lenders’ counsel for the issuance.

These lenders have been key supporters of Glenfarne, having led over $4 billion of financing to Glenfarne’s businesses over the last 10 years, supporting the acquisition and/or construction of various energy transition focused assets, the company said in a news release. Furthermore, these banks are active in LNG, having participated in approximately $44 billion of project finance debt to the U.S. LNG sector alone over the last 24 months.

“Texas LNG’s financing consortium will be comprised of the world’s leading institutions that recognize the attributes of the project and Glenfarne’s excellent history of building energy transition infrastructure,” said Brendan Duval, CEO and Founder of Glenfarne Energy Transition.

ReSource recently interviewed Glenfarne Senior Vice President Adam Prestidge about Texas LNG as well as the company’s hydrogen plans.

Today’s news follows Texas LNG’s recent announcement that it signed a Heads of Agreement with EQT Corporation for natural gas liquefaction services for 0.5 MTPA of LNG. Texas LNG also recently announced partnerships with Baker Hughes and ABB to help develop the terminal, representing more than half a billion dollars’ worth of equipment selections for Texas LNG to date.

The first LNG exports from Texas LNG are expected to be shipped in 2028.

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US gas compression firm raising $432m

A Houston-based CNG company is raising money to develop a virtual marine pipeline between the US Gulf Coast and the Caribbean.

Andalusian Energy, a natural gas compression, export and transportation company, is undergoing a $432m capital raise to develop and build a compression and filling station in Plaquemines Parish, Louisiana and export line to Honduras, according to two sources familiar with the matter.

Whitehall & Co. is advising on the transaction, the sources said. Capital allocation will also support the purchase of CNG containers and destination port improvements in Puerto Cortes, Honduras.

Targeted initial equity is $168m, or 40%, according to a teaser seen by The Hydrogen Source. Targeted COD of the project is 2H25.

Gross-cumulative investment could exceed $2bn. The phase I estimated project cost of approximately $421m is expected to be split 40% to permanent equity capital ($168m) and 60% to structured debt ($253m).

Andalusian uses lightweight composite cylinders to ship compressed natural gas (CNG) at ambient temperature to the Caribbean, Central America and eastern Mexico. Marketing materials state the process is lower cost than shipping liquefied natural gas (LNG).

The company has installed a demonstration facility in Choloma, Honduras to import natural gas from CNG.

The Louisiana compression facility will be constructed with two adjacent docks and a site with utility connections. Natural gas will be supplied using a combination of regional pipeline networks including Southern Natural Gas pipeline and High Point Gas Transmission Pipeline. An agreement has been reached to provide interconnection and construction of a 1.5 mile lateral.

Andalusian completed its development capital raise with a strategic investment by MAN Energy Solutions USA, a division of Volkswagen AG, and equity investments by HBG, Progressive Energy and Grupo IDC.

Additional marine engineering, consulting, and ship classification services are being provided by DNV GL and confirmed by the Norwegian Maritime Authority.

Additionally, to monetize spare ship capacity and based on a contract to deliver CNG to an IPP in Honduras, Andalusian has reached an agreement with a global shipping company to transport commercial container cargo between Louisiana and Honduras, the teaser states.

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exclusive

Exclusive: National RNG developer in equity sale process

A large US developer and operator of renewable natural gas projects has tapped an advisor and is in the early stages of a sale process.

DTE Vantage, a developer of renewable energy projects with a national footprint in the US, is in the first round of a process to sell its RNG business, according to two sources familiar with the matter.

Lazard is running the process, the sources said. First round bids were recently received.

The company’s RNG portfolio includes 13 projects, four of which are landfill-to-gas while the remainder are on dairy farms, with more under construction, according to company materials. One of the largest RNG producers in the Midwest, the company also has projects in North Carolina, California, New York, and Wisconsin.

Of note, the Riverview Energy landfill gas asset in Riverview, Michigan produces 8.6 mmcfd of pipeline natural gas and includes 6.6 MW of solar. Pinnacle Gas in Moraine, Ohio, produces 4.5 mmcfd, while Seabreeze Energy in Angleton, Texas produces 5.8 mmcfd.

DTE Vantage is a non-utility subsidiary of DTE Energy. Founded in the 1990s, it has about 600 employees and operates 64 projects in 16 US states, with one asset in Canada. The company serves industrial, agricultural, and institutional clients across three core groups: Renewable Energy, Custom Energy Solutions, and Emerging Ventures.

DTE declined to comment. Lazard did not respond to a request for comment.

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Exclusive: OCI Global exploring ammonia and methanol asset sales

Global ammonia and methanol producer OCI Global is working with an investment bank to explore a sale of ammonia and methanol assets as part of the re-opening of its strategic business review.

OCI Global is evaluating a sale of several ammonia and methanol assets as part of the re-opening of its strategic business review.

The global producer and distributor of methanol and ammonia is working with Morgan Stanley to explore a sale of its ammonia production facility in Beaumont, Texas, as well as the co-located blue ammonia project under development, according to sources familiar with the matter.

The evaluation also includes OCI’s methanol business, one of the sources said.

Representatives of OCI and Morgan Stanley did not respond to requests for comment.

As part of the earlier strategic review announced last year, OCI in December announced the divestiture of its 50% stake in Fertiglobe to ADNOC, and the sale of its Iowa Fertilizer Company to Koch Industries, bringing in $6.2bn in total net proceeds.

However, OCI has received additional inbound inquiries from potential acquirers for the remaining business, leading it to re-open the review, CEO Ahmed El-Hoshy said last month on OCI’s 4Q23 earnings call.

“As such, OCI is exploring further value creative strategic actions across the portfolio, including the previously announced equity participation in its Texas blue clean ammonia project,” he said, adding: “All options are on the table.”

The comments echoed the remarks of Nassef Sawiris, a 40% shareholder of OCI, who recently told the Financial Times that OCI could sell off most of its assets and become a shell for acquisitions.

In the earnings presentation, El-Hoshy took time to lay out the remaining pieces of the business: in particular, OCI’s 350 ktpa ammonia facility in Beaumont; OCI Methanol Group, encompassing 2 million tons of production capacity in the US and a shuttered Dutch methanol plant; and its European ammonia/nitrogen assets.

Texas blue

The Texas blue ammonia project is a 1.1 million-tons-per-year facility that OCI touts as the only greenfield blue ammonia project to reach FID to date. The company has invested $500m in the project as of February 24, out of a total $1bn expected investment, according to a presentation.

“Commercial discussions for long-term product offtake and equity investments in the project are at advanced stages with multiple parties,” El-Hoshy said. “This reflects the very strong commercial interest and increasing appetite from the strategics to pay a price premium to secure long-term low-carbon ammonia.”

El-Hoshy’s comments highlight the fact that, unlike most projects in development, OCI took FID on the Texas blue facility without an offtake agreement in place. The executive did, however, highlight the first-mover cost advantages from breaking ground on the project early and avoiding construction cost inflation.

Additionally, the project was designed to accommodate a second 1.1 mtpa blue ammonia production line, which would be easier to build given existing utilities and infrastructure, El-Hoshy said, allowing for an opportunity to capitalize on additional clean ammonia demand at low development costs.

“Line 2 probably has the biggest advantage, we think, in North America in terms of building a plant where a lot of the existing outside the battery limits items and utilities are already in place,” he said, emphasizing that by moving early on the first phase, they avoided some of the inflationary EPC pressures of recent years. 

At the facility OCI will buy clean hydrogen and nitrogen over the fence from Linde, and Linde, in turn, will capture and sequester CO2 via an agreement with ExxonMobil.

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