Resource logo with tagline

Carlyle-backed Amp Energy tapped for 5 GW Australia project

Canada-based Amp Energy has signed an agreement to build a 5 GW green hydrogen project in southern Australia.

Amp Energy has signed an agreement to develop green hydrogen at scale on the Cape Hardy Port Precinct with Iron Road Ltd, according to a news release.

Amp Energy, a Carlyle portfolio company, is among the largest hydrogen developers in Australia, where it is progressing the development of 20 GW of electrolyser capacity across three precincts, equivalent to 19 million tons per annum of green ammonia production. Amp’s integrated model in Australia of owning and optimizing feedstock generation assets, transmission, processing, and export, will allow the delivery of cost-competitive hydrogen production globally.

Amp was drawn to the Cape Hardy project due to its strategic geographic location and strong support from the South Australia Government.  The Cape Hardy site has direct access to high voltage power through existing transmission infrastructure as well as a deep-water port that will facilitate transportation of the hydrogen product.

Furthermore, both the Traditional Owners of the land (the Barngala people) and the Eyre Peninsula landowners have strong relationships with the project, and the Australian Government has already shown firm support through its earlier announcement of $25m for further Port infrastructure development.  These factors will support the project to produce green hydrogen at competitive global prices and help South Australia meet its green hydrogen goals.

The company intends to develop and build up to 5 GW of electrolyser capacity over the next decade in the precinct, delivering over 5 million tons per annum of green ammonia, which will establish South Australia as a global leader in the production of green hydrogen and ammonia. At this scale, 4,800 Direct and Indirect Construction jobs and 250 Direct and Indirect Operations Jobs are expected to be created.

Amp’s involvement in Cape Hardy will extend its commitment to the State of South Australia. In 2021, Amp established the Renewable Energy Hub of South Australia, a AUD $2bn investment in renewable generation and Battery Energy Storage. This strategic commitment supports the clear commitment from the State of South Australia to the Green Hydrogen Economy.

“Our background of developing large scale upstream power systems globally positions Amp for the emerging opportunity of green hydrogen and provides industrial synergies.” said Paul Ezekiel, Co-Founder and CIO of Amp. “The development of strategically located, transmission-connected green hydrogen and ammonia facilities at select locations such as Cape Hardy in South Australia is critical to our continued global growth and long-term strategy.”

The South Australia Government is supportive of the Cape Hardy Precinct: “South Australia’s world-leading renewable energy reputation continues to strengthen. The Cape Hardy precinct speaks to our State’s hydrogen production capabilities. As a leading global hydrogen energy developer and asset owner, we welcome Amp’s continued strategic commitment to South Australia. This project complements my Government’s commitment to hydrogen, through the Hydrogen Jobs Plan. The Hydrogen opportunity will be transformative for the South Australian economy, delivering energy security – while helping the State decarbonise”, stated The Honourable Peter Malinauskas MP Premier of South Australia.

Amp’s expansion in South Australia will include and leverage Amp X’s digital energy platform which caters to a number of interoperable offerings aimed at unlocking grid flexibility at a large scale from the edge of the grid in order to support a fully decarbonised energy system and accelerate the energy transition.

Unlock this article

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

You might also like...

California outfit to build hydrogen-powered data center

Data center-as-a-service provider ECL is seeking to build its first 1 MW hydrogen-powered data center in 2Q23.

Data Center-as-a-Service pioneer ECL is seeking to build a modular, sustainable, off-grid data center that uses green hydrogen as its primary power source.

ECL will deliver data centers in 1 MW blocks with 99.9999% uptime, according to a news release. The company also announced $7m in seed financing co-led by Molex Ventures and Hyperwise Ventures.

The funds will be used by ECL to expand its market presence and in the construction of its first data center at the company’s Mountain View, Calif. headquarters, with completion scheduled for Q2 2023.

While other data center providers have deployed hydrogen fuel cells as backup power supplies, and with some conducting trials of systems forecast for production delivery in three-to-five years, ECL is the first provider to deliver a fully-green hydrogen-powered data center, the release says. This innovation is enabled by bringing together several technologies including green hydrogen-based power generation, battery energy storage and highly reliable power architecture without dependence on the utility grid. This maximizes efficiency and time to delivery and all but eliminates waste.

Lily Yeung, vice president at Molex Ventures and Nathan Shuchami, managing partner at Hyperwise Ventures join ECL Founder and CEO Yuval Bachar as members of the ECL board of directors.

Optimized for use by mid-sized data center operators – typically large companies with a mix of cloud and on-premises IT environments – ECL’s Datacenter-as-a-Service is two-thirds the total cost of ownership (TCO) of traditional colocation data center providers when measured over five years. The community-integrated data center design consumes no local resources, including power or water, and operates with zero emissions at extremely low noise levels. ECL’s modularity and lack of dependence on local utilities also means that its data centers can be designed and delivered much faster than others’, reducing planning and construction cycles from between 18 to 24 months to between six and nine months.

Bachar previously held top engineering, infrastructure and architecture roles at Microsoft Azure, LinkedIn, Facebook, Cisco, Juniper Networks and Digital Equipment Corporation (DEC). He was a founder of the Open19 project, a data center industry initiative establishing a new open standard for servers based on a common form factor, and is past president of the Open19 Foundation. He holds eight U.S. patents in data center, networking and system design and is the recipient of three Cisco Pioneer Awards.

“We are proud to be a part of this much-needed revolution in the data center industry, and look forward to working closely with Yuval and his team as they bring this peerless innovation to market,” said Shuchami. “ECL has a long lead on the competition in the delivery of a data center powered primarily by green hydrogen and we can’t wait to stand with them as they raise the curtain in Q2 2023.”

“It’s exciting to see ECL investing to bring tremendously relevant and novel experience into this high growth space around customizable modular data centers that can support the growing demand for advanced and flexible computational needs and sustainable power use,” said Lily Yeung, VP of Molex Ventures.

Read More »

M2X partners on gas-to-methanol-to-hydrogen pathway

M2X and Element 1 are pursuing a joint research and development program on the use of M2X’s low-carbon methanol as a feedstock for point-of-use hydrogen production.

M2X Energy, a startup company with a proprietary process technology that converts stranded gas into low-carbon methanol, and Element 1 Corp, a global leader in advanced hydrogen generation systems for the fuel cell industry, are conducting a joint research and development program to explore the use of M2X low-carbon methanol as a feedstock for point-of-use hydrogen production.

Element 1 is demonstrating the viability of low-carbon methanol produced by M2X’s gas-to-methanol unit as a feedstock for its hydrogen generation unit, and subsequent conversion to electricity, according to a news release.

The process technologies developed by the two companies can unlock the potential for clean energy production in demanding locations, where power grids are overloaded, and operating conditions require adaptability and grid independence. After confirming that M2X’s low-carbon methanol is a suitable feedstock for Element 1’s methanol-to-hydrogen systems, methane-rich stranded gases that today are often flared or vented, may instead be harnessed for downstream stationary power applications, hydrogen refueling stations, and on-board generation for hydrogen-fueled road vehicles, trains, and maritime vessels.

Early testing of methanol produced by M2X Energy shows promising results for unlocking hydrogen as a cost-competitive and low-carbon chemical sourced from stranded gases. “M2X is excited about this collaboration with Element 1. Serving as a supplier of low-carbon methanol for Element 1’s process equipment demonstrates our product market fit and the value of M2X low-carbon methanol as an attractive, low-cost hydrogen carrier, especially during the energy transition,” commented Paul Yelvington, Chief Science Officer at M2X.

With details emerging on the implementation of production credits for hydrogen and clean fuels in the U.S.’s Inflation Reduction Act (e.g., 45V and 45Z), M2X Energy and Element 1 are well-positioned to provide an integrated pathway to cost-competitive, low-carbon hydrogen with greatly simplified logistics for production, transportation, and storage.

Dave Edlund, co-founder and CEO of Element 1 Corp, said, “Low-carbon methanol, such as that produced by the M2X process, offers the most economical and practical pathway to widespread adoption of grid-independent electricity production while maintaining a low-carbon footprint. We are pleased to be partnering with M2X Energy on this important demonstration.”

This cross-industry collaboration aligns with the strategic priorities announced at COP28 for reducing methane emissions and expanding the role of hydrogen as an alternative energy carrier. It lays the groundwork for future commercial partnerships for the supply of M2X Energy’s low-carbon methanol in deployed hydrogen generation equipment using the Element 1 technology.

Read More »

GSE Solutions to build hydrogen plant model for NuScale’s SMR plant simulator

The project will determine the technical and economic feasibility of connecting a hydrogen production facility to a NuScale small modular reactor and evaluate operating parameters.

GSE Solutions, a provider of advanced engineering and workforce solutions that supports the future of clean-energy production and decarbonization initiatives of the power industry, announced today that it will build a hydrogen plant model for NuScale Power’s VOYGR small modular reactor (SMR) plant simulator.

GSE will provide the models, integration, and testing support to NuScale using its JPro Dynamic Simulation Software.

Portland, Oregon-based NuScale along with Shell Global Solutions (Shell) will develop and assess a concept for an economically optimized Integrated Energy System (IES) for hydrogen production using electricity and process heat from the SMR power plant.

GSE strives to create the most accurate, highest-level of advanced modeling technologies on the market, providing unparalleled accuracy and detail, enabling simulators to be used to test engineering changes, control system design and strategies, and even perform human factors engineering prior to plant commissioning, according to the news release.

GSE is one of just a handful of companies tapped to support NuScale in developing and assessing an economically optimized Integrated Energy System (IES) for hydrogen production using electricity and process heat from the VOYGR SMR. The existing NuScale control room simulator will be modified to evaluate the dynamics of the IES and will include GSE’s models for hydrogen production. The project will determine the technical and economic feasibility of connecting a hydrogen production facility to a NuScale SMR and evaluate operating parameters.

GSE appreciates their long-standing, 10+ year relationship with NuScale that has resulted in the delivery of their four Energy Exploration Centers, which employ GSE Solutions’ state-of-the-art simulation technology. The companies also worked together to demonstrate NuScale’s new control room operating and staffing philosophy to regulators and customers using a GSE simulator. The Solid Oxide Electrolysis Cell project will again showcase new concepts for use in small modular reactor power plants.

“We are proud to support NuScale in conducting this innovative research,” said Kyle Loudermilk, president and chief executive officer of GSE Solutions. “Our modeling of SMR technology and nuclear power systems help facilitate hydrogen production and demonstrates the potential to balance and stabilize power grids that will be driven by renewable energy sources in the future.”

Read More »
exclusive

Ambient Fuels evaluating hydrogen project acquisitions

The company is well capitalized following a $250m equity investment from Generate Capital and is now opportunistically reviewing an initial slate of project M&A offerings.

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.

Read More »

Exclusive: Seattle biomass-to-chemical firm planning equity round

A firm with plans for a biorefinery in Washington state will raise its first large equity round early next year.

Planted Materials, a Seattle-based biomass-to-chemicals company, is in early design stages for its first biorefinery in eastern Washington state and planning to raise an equity round in early 2025, co-founders Noah Belkhous and Greg Jenson said in an interview.

The company will seek to raise between $10m and $20m ahead of FID on the biorefinery, Belkhous said. The four-year-old company has raised $500k from angel investors to date and is currently raising another $1m from high net worth individuals in the Seattle region.

Planted Materials does not have a relationship with a financial advisor but is open to one, Belkhous said.

The company’s recycling model takes municipal landfill waste and converts it to chemical materials for pharmaceutical, paper, plastic and other manufacturing industries.

The proprietary recycling process is something the company would like to license to municipalities in the US and abroad, in addition to building biorefineries in the Pacific Northwest, Belkhous said. The company’s lab is currently based in the Ballard neighborhood of Seattle.

Early design work on the first biorefinery is underway. The duo expects CapEx to cap at $50m, reaching FID in 2026 and beginning construction that year.

While the majority of the company’s feedstock will likely come from the major metropolitan regions in the western PNW, refining capacity is more attractive in the east for reasons of space and existing waste management infrastructure. Jenson noted the presence of the relevant research campus of Washington State University in Pullman, as well as the Pacific Northwest National Laboratory in Richland.

Recently, the team accompanied Washington Governor Jay Inslee and members of the Washington State Department of Commerce on a trip to Sydney and Melbourne in Australia. The company has applied to a pair of $350k grants from the state.
Read More »
exclusive

Methanol-to-hydrogen firm planning capital raise

An early-stage provider of distributed methanol-to-hydrogen solutions is planning a capital raise as it scales up.

Kaizen Clean Energy, a Houston-based methanol-to-hydrogen fuel company, is planning to raise additional capital in support of upcoming projects.

The company, which uses methanol and water to produce hydrogen with modular units, recently completed a funding round led by Balcor Companies, in which Balcor took a minority interest in Kaizen.

Additional funding in the capital raise was provided by friends and family, Kaizen co-founder and chief commercial officer Eric Smith said in an interview.

But with its sights on larger project opportunities this year, the company is already targeting an additional capital raise to support continued growth, Smith said. He declined to comment further on the capital raise and potential advisors, but noted that the company’s CFO, Craig Klaasmeyer, is a former Credit Suisse banker.

Kaizen’s methanol model utilizes a generator license from Element 1 and adds in systems to produce power or hydrogen, targeting the diesel generator market, EV charging and microgrids as well as hydrogen fueling and industrial uses.

Compared to trucking in hydrogen, the model using methanol, an abundant chemical, cuts costs by around 50%, Smith said, noting that Kaizen’s containers are at cost parity with diesel.

In addition, the Kaizen container is cleaner than alternatives, producing no nitric or sulfur oxide, according to Smith. Its carbon intensity score is 45, compared to 90 for the California electric grid and 100 for diesel generators.

Smith also touts a streamlined permitting process for Kaizen’s containerized product. The company recently received a letter of exemption for the container from a California air district due to low or no emissions. The product similarly does not require a California state permit and similarly, when off grid, no city permits are required, he added.

Read More »

Welcome Back

Get Started

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