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California renewables developer taps advisor for capital raise

Utility-scale solar and storage developer RAI Energy has tapped an advisor for a capital raise. The company is evaluating co-development conversion for green ammonia production at projects in Arizona and California.

RAI Energy, the utility-scale solar and storage developer, has hired an advisor as it pursues a capital raise.

The company is working with Keybanc Capital Markets in a process to raise up to $25m, according to two sources familiar with the matter.

In an interview, RAI Energy CEO and owner Mohammed S. Alrai said the company “is excited about having [Keybanc] act as our financial advisors on this fundraising round.” He noted that RAI is first a solar-plus-storage developer and is approaching investors as such.

However, RAI is evaluating co-development conversion for green ammonia production at two of its project sites in Arizona and California, he said.

“Hydrogen is a natural next step,” Alrai said of his company, adding that the end-product would be green ammonia for use in fertilizer production and industrial sectors. Pure hydrogen could also be kept for use in transportation.

A variety of partnerships would be required to develop hydrogen at RAI’s solar sites, Alrai said. The company could need advisory services to structure those partnerships.

RAI is working with engineers on the hydrogen question now and is open to additional technology and finance advisory relationships, he said. The company is also evaluating several electrolyzer manufacturers.

“It’s an open book for us right now,” Alrai said of hydrogen production. “We’re always open to talking to people who can help us.”

For hydrogen project development, RAI would seek project level debt and equity similar to its solar developments, Alrai said. Early-stage project sites in Colorado and New Mexico could also be candidates for hydrogen co-development.

Keybanc delined to comment for this story.

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Shell, Ohmium to develop green hydrogen energy projects

Shell India and Ohmium International to cooperate on green hydrogen applications, markets and project opportunities globally.

Shell India and Ohmium International have agreed to cooperate on green hydrogen applications, markets and project opportunities in India and globally, the two companies announced.

As part of the collaboration, both companies plan to launch joint working groups to assess opportunities from the technical, commercial, and safety perspectives.

The collaboration is positioned at further elevating Shell’s ambition to help build a global hydrogen economy by developing the most competitive opportunities in the production, storage, transport, and delivery of hydrogen to end customers.

“We have set an ambitious goal of becoming a net-zero emissions business by 2050 with a target to reduce absolute emissions by 50% by 2030,” said Nitin Prasad, chairman, Shell Group of companies in India. “Green hydrogen has a critical role in helping the world reach zero emissions. We plan to develop integrated hydrogen hubs to serve the industry and heavy-duty transport to be a leading player in this space.”

“We’re thrilled to collaborate with Shell to explore green hydrogen opportunities and solutions worldwide. Shell has demonstrated tremendous ambition to become a net zero carbon business by 2050– we believe that green hydrogen is a critical component of that transition,” said Arne Ballantine, CEO of Ohmium International. “We look forward to working with Shell to explore all the opportunities our electrolyzers enable.”

Ohmium International is a green hydrogen company that designs, manufactures, and deploys PEM Electrolyzers. Ohmium’s unique interlocking modular PEM electrolyzers provide a safer, modular, flexible, easy to install and maintain alternative to customized electrolyzers. Ohmium is headquartered in the United States, with manufacturing in India and operations worldwide.

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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.”

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CB&I and Daewoo studying LH2 carrier and storage design

The companies will conduct a feasibility study of a liquid hydrogen carrier including an a storage tank design

CB&I, McDermott’s storage business line, and South Korea’s Daewoo Shipbuilding & Marine Engineering Co. (DSME), have signed a memorandum of understanding (MoU) for a feasibility study of a liquid hydrogen (LH2) carrier including an LH2 storage tank design, according to a news release.

CB&I will evaluate its LH2 storage tank design for ocean-going ships and DSME will investigate and develop the ship’s general design to install the LH2 storage tank. The output of the feasibility study is expected to contribute to the future design of a large-scale LH2 carrier.

CB&I spheres can store LH2 at temperatures of -423 degrees Fahrenheit and the company is nearing completion of the world’s largest LH2 sphere in Cape Canaveral, Florida.

The ability to ship large quantities of hydrogen across the ocean is an increasing need to help countries like South Korea achieve carbon reduction goals in a hydrogen economy.

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Green hydrogen developer raising capital for projects

Fusion Fuel, a green hydrogen developer based in Portugal, has engaged an advisor and is in talks with investors to raise capital for projects in North America.

Fusion Fuel, a green hydrogen developer based in Portugal, has engaged an advisor and is in talks with investors to raise capital for projects in North America.

The company is working with RBC Capital Markets as financial advisor, Fusion Fuel Co-Head Zachary Steele said in an interview, and expects to produce infrastructure-type returns on its projects.

For its first project in the U.S., Fusion Fuel has agreed to a JV with Electus Energy to build a 75 MW solar-to-hydrogen facility in Bakersfield, California.

The project will produce up to 9,300 tons of green hydrogen per annum including nighttime operation and require an estimated $180m in capital investment, with a final investment decision expected in early 2024 and commissioning in the first half of 2025.

The combination of green hydrogen and solar production incentives along with California’s low carbon fuel standard make the economics of the project attractive, Steele said.

“Hydrogen is selling for up to $15-$18 per kilogram in California in the mobility market, and we can produce it at around the low $3 per kilogram area, so that leaves a lot of room for us to make a return and reduce costs for customers,” he said.

The company sells electrolyzer technology for projects but also serves as a turnkey developer. The technology consists of Hevo-Solar, which utilizes concentrated solar power to create hydrogen; and Hevo-Chain, a centralized PEM electrolyzer powered by external electricity.

Fusion Fuel’s proposition is that its smaller-scale technology – of 25 kW per unit –  is ready to use now, and can be dropped into places like a gas station in New York City, Steele said.

“This allows customers to scale into hydrogen and makes it available on site, compared with the massive projects going up in Eastern Canada or the Gulf Coast that require customers to commit significant capital to underwrite large scale projects,” he added.

Along with Electus, Fusion Fuel has already entered into a land-lease agreement for 320 acres in Kern County, California for the Bakersfield development. Black & Veatch will perform a concept study while Cornerstone Engineering and Headwaters Solutions are also engaged.

Iberian pipeline

The company targets to have EUR 40m of revenues in 2023, with a third of that coming from tech sales and the balance coming from Fusion Fuel-owned development projects.

Its revenue pipeline for next year is focused on the Iberian peninsula, and has been largely de-risked with the company having secured grants, with land and permitting underway.

In addition to the electrolyzer sales, the company, together with its partners, can provide turnkey projects that include engineering, procurement of the balance of plant equipment, construction of the facility, and operations, Steele said on an investor call this week.

“This allows us to not only make returns on the tech sale but also on the overall project and potentially recurring revenue from operations,” he said.

The company plans to use projects it is building in Portugal to expand into other core markets, beginning with a focus on mobility opportunities and targeted industrial decarbonization projects. Starting in 2024 the company plans to extend its reach further into North America and also Italy.

U.S. focus

Similar to other international hydrogen players, the passage of the Inflation Reduction Act caused a strategic shift of focus to the U.S. and accelerated Fusion Fuel’s plans to grow its business there, company executives said.

Notably, since Fusion Fuel will use its own technology in the projects it is seeking to develop, a required amount of that technology will need to be manufactured in the U.S. in order to qualify for the full benefits provided in the IRA.

As such, Fusion Fuel is scouting for a location to build one, or possibly two, manufacturing facilities in the U.S.

“The size of the Bakersfield project alone justifies building a new manufacturing facility,” Steele said on the investor call.

Steele was previously CEO of Cedar LNG, a floating LNG development in British Columbia, prior to exiting to Pembina. He works alongside Fusion Fuels Co-Head & CFO, Frederico Figueira de Chaves, who is based in Portugal.

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Renewable hydrogen developer in exclusivity with strategic investor

A renewable hydrogen developer based in the western US is reaching the final stages of a capital raise with an investor in exclusivity.

NovoHydrogen, the Colorado-based renewable hydrogen developer, is in exclusivity with clean energy investment platform Modern Energy, according to two sources familiar with the matter.

ReSource reported in February that GreenFront Energy Partners was advising the company on a Series A.

NovoHydrogen CEO Matt McMonagle said previously that the company has about 30 projects in development in the US, ranging from a few megawatts to hundreds of megawatts. Its most active markets are the West coast, Northeast, Appalachia, Texas and the Rocky Mountains, though the company is not geographically constrained.

The company aims to begin construction on its first projects by the end of this year, the executive had said.

NovoHydrogen declined to comment. GreenFront and Modern Energy did not respond to requests for comment.

Modern Energy, a certified B-Corporation, recently put $90m into net metered solar developer Industrial Sun along with partner EIG. In 2020 EIG committed USD 100m to Modern Energy through a debt facility to fund the development of clean energy assets.

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Green ammonia provider looking to US for growth

A European green ammonia solutions provider is considering a number of strategies to grow in the US, including capital raising, strategic partnerships and a spinoff.

Proton Ventures, a provider of small-scale green ammonia solutions based in Holland, is considering several possibilities for growing its presence in the US, founder Hans Vrijenhoef said on the sidelines of the World Hydrogen Summit in Rotterdam.

Vrijenhoef, who also serves as president of the Ammonia Energy Association, founded Proton Ventures in 2000 after speaking to John Holbrook, an early proponent of ammonia as a fuel and a founder of the AEA.

Today Vrijenhoef is a minority shareholder owning one-third of the company, he said. The majority shareholder is Kees Koolen, the former CEO of Booking.com and a founding partner of EQT Ventures.

In the US the firm’s concept is to deploy its technology – small scale ammonia production – at wind farms in Midwestern states like Iowa, Kansas and the Dakotas to make fertilizer for regional farms and replace grey hydrogen in US agribusiness.

The company’s technology has also been deployed to convert flare gas at shale oil production sites in Saskatchewan into ammonia, Vrijenhoef said, adding that any energy source is applicable.

“We are in a position to deploy multiple hundreds of units in the US,” he said. “We need liquidity to do projects. We need a shareholder to come in.”

The company may have a need for a US-based M&A advisor, Vrijenhoef said. Multiple capital strategies, including a spinoff of the North American subsidiaries, are possible.

The technology is proven through a pilot project in Morocco, which has reached FID, he said. Modular ammonia units can produce between 1,000 and 20,000 tonnes, with the option to put multiple units at one site.

The company partly contracts its manufacturing in The Netherlands but could find new partnerships in the US, Vrijenhoef said. He highlighted an existing relationship with Northwest Mechanical in Davenport,Iowa.

The US subsidiary of Proton Ventures is an LLC based in Cheyenne, Wyoming, Vrijenhoef said. A Calgary-based subsidiary is called NFuelTechnologies.

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