Resource logo with tagline

CF Industries and POSCO forming Louisiana ammonia JV

A clean ammonia plant adjacent to CFI’s Blue Point Complex in Louisiana would supply POSCO’s decarbonization efforts in South Korea.

CF Industries Holding, the global ammonia producer, and South Korean steelmaker POSCO Holdings, are evaluating a joint venture to construct a clean ammonia plant at CFI’s Blue Point Complex in Ascension Parish, Louisiana, according to a news release.

The arrangement would include long-term ammonia offtake into South Korea.

As part of the evaluation, CFI and POSCO will initiate a front-end engineering and design (FEED) study on autothermal reforming (ATR) ammonia production technology, which when combined with carbon capture and sequestration is expected to reduce CO2 emissions from the ammonia production process by more than 90% compared to conventional ammonia plants without CCS.

The FEED study is expected to be completed in the second half of 2024, with a final investment decision by CF Industries and POSCO to follow.

POSCO expects to import low-carbon clean ammonia from the facility to South Korea to support decarbonization of POSCO’s own and third-party coal-based power generation facilities. Additionally, POSCO intends to convert low-carbon clean ammonia into hydrogen in order to use low-carbon hydrogen in gas-based power plants and in the steel-making process itself.

“The United States is one of the key strategic regions for POSCO Group as it is actively pursuing the establishment of an economically and reliably overseas hydrogen and ammonia supply network through the IRA support policy,” Yoo Byeong-ok, Chief Green Materials & Energy Business Officer at POSCO Holdings, said in the release. “We plan to establish a production hub for clean ammonia in the United States in collaboration with CF Industries, the largest ammonia producer, and secure a stable supply network to timely provide clean hydrogen necessary for domestic power generation and hydrogen reduction steelmaking.”

CFI is constructing a CO2 dehydration and compression facility to enable CCS of up to 2 mmtpy with ExxonMobil, starting in 2025.

The Company has also commenced a FEED study with Mitsui & Co. to construct a greenfield low-carbon clean ammonia facility utilizing steam methane reforming (SMR) ammonia technology along with CCS at the Blue Point Complex in Louisiana.

Additionally, CF Industries is constructing North America’s first commercial scale green ammonia capacity at its Donaldsonville Complex, enabling up to 20,000 tons of green ammonia production beginning in 2024.

Unlock this article

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

You might also like...

Hydrogen investors like patents, IEA says

More than half of the USD 10bn of venture capital investment into hydrogen firms in 2011-2020 went to start-ups with patents, according to an IEA study.

More than half of the USD 10bn of venture capital investment into hydrogen firms in 2011-2020 went to start-ups with patents, according to a joint study of patents by the European Patent Office (EPO) and the International Energy Agency (IEA).

Start-ups with patents represented less than a third of companies in the report’s data set, according to a news release summarizing the findings.

The study found that holding a patent is also a good indicator of whether a start-up will keep attracting finance, noting that “more than 80% of late-stage investment in hydrogen start-ups in 2011-2020 went to companies that had already filed a patent application in areas such as electrolysis, fuel cells, or low-emissions methods for producing hydrogen from gas.”

The percentage increases to 95% when funding acquired in the IPO/post-IPO stage is taken into consideration.

Overall, the report found that hydrogen technology development is shifting towards low-emissions solutions such as electrolysis. Global patenting in hydrogen is led by the European Union and Japan, which account for 28% and 24% respectively of all IPFs filed in this period, with significant growth in the past decade. The leading countries in Europe are Germany (11% of the global total), France (6%), and the Netherlands (3%).

The United States, with 20% of all hydrogen-related patents, is the only major innovation center where international hydrogen patent applications declined in the past decade. International patenting activity in hydrogen technologies remained modest in South Korea and China but is on the rise. In addition to these five main innovation centers, other countries generating significant volumes of hydrogen patents include the United Kingdom, Switzerland and Canada.

Read More »

CleanBay Renewables signs LOI for SPAC takeover

The proposed transaction values CleanBay, a producer of RNG, green hydrogen and controlled-release fertilizer, at $330m.

CleanBay Renewables, a producer of RNG, green hydrogen and controlled-release fertilizer, has signed a letter of intent for a potential business combination with NASDAQ-listed SPAC BurTech Acquisition Corp., according to a news release.

Under the terms of the letter, CleanBay’s existing equity holders would convert 100% of their equity into the combined public company. The proposed transaction values CleanBay at $330m. The BurTech trust account currently holds approximately $294m in cash.

“BurTech expects to announce additional details regarding the proposed business combination when a definitive merger agreement is executed in the second quarter of 2023,” the release states.

CleanBay’s process converts agricultural byproducts into fertilizer. CleanBay’s Chief Executive Officer Donal Buckley said in the release that the company is pursuing new facility developments for that purpose.

“We are excited to partner with CleanBay and believe that access to capital markets will enable CleanBay to commercialize and scale its proprietary and patented processes,” BurTech Chairman and CEO Shahal Khan said in the release. “CleanBay’s ‘shovel-ready projects’ present an attractive investment opportunity for existing and future shareholders.”

The release also highlights Maryland and California state policies to assist in financing such plants and produce RNG, hydrogen and natural fertilizer on an industrial scale.

“With nine identified facilities and eight potential future facilities in the pipeline, we believe that CleanBay will become a significant player in the North American RNG and natural fertilizer market,” Khan said.

According to CleanBay’s management, at full capacity, each CleanBay bioconversion facility can recycle more than 150,000 tons of poultry litter annually. By repurposing a potential source of excess nutrients, each facility can generate more than 750,000 MMBtus of sustainable RNG, 100,000 tons of natural, controlled-release fertilizer, and up to an estimated 1,000,000 tons of CO2 equivalent carbon credits that can be available for monetization in global carbon markets.

As an alternative to renewable natural gas, the facilities can also produce clean hydrogen at an estimated rate of 20,000 tons per year. CleanBay has accumulated proprietary intellectual property covering its conversion process to include trade secrets, a U.S. patent and pending patent applications in the U.S. and Europe.

Read More »

Energy Vault appoints United Airlines executive to board

The appointee, Theresa Fariello, has served as senior vice president of Government Affairs & Global Public Policy for United Airlines since 2017.

Energy Vault Holdings, a provider of sustainable grid-scale energy storage solutions, has appointed Theresa Fariello to the company’s Board of Directors effective February 1.

She replaces Henry Elkus, founder and CEO of Helena, a strategic partner and Series B-1 investor in Energy Vault, upon his concurrent departure from the Board.

Fariello has served as senior vice president of Government Affairs & Global Public Policy for United Airlines since 2017. In this role, she leads United Airlines’s federal, state, local, and international government engagement, including environmental affairs. Prior to her role at United Airlines, Fariello served a 16-year tenure at ExxonMobil, where she advised executive leadership on key governmental and policy matters. Prior to her time at ExxonMobil, Fariello served as deputy assistant secretary for International Energy Policy in the Office of International Affairs at the US Department of Energy and held senior leadership positions at Occidental Petroleum Corporation.

“We are honored to welcome Theresa, who brings extensive and valuable experience in government affairs and public policy at leading public companies to Energy Vault’s Board of Directors,” said Robert Piconi, chairman and chief executive officer, Energy Vault. “The recent passage of the IRA is one example of a significant accelerator for our industry and our customers in the United States. Theresa’s leadership and experience will help us fully leverage the opportunities associated with this landmark legislation while strategically optimizing our global approach to working with government organizations in an increasingly complex regulatory and public sector environment. I look forward to working with her as we execute our global growth plans.”

“It is a distinct privilege to join Energy Vault’s Board of Directors,” said Theresa Fariello. “I am inspired by Energy Vault’s mission and commitment to creating a cleaner, more sustainable future. As the need to address and combat climate change becomes ever more urgent, so too does the need to shape environmental and climate policy to accelerate the deployment of innovative solutions, such as Energy Vault’s energy storage technologies. I welcome the opportunity to work alongside the rest of my fellow board members, and I look forward to lending my voice and experience to the company as it continues to grow.”

Read More »
exclusive

Carbon-negative materials firm in $40m equity raise

A Texas-based manufacturer of renewable plastics is developing its first plant in the Midwest, with a commercialization date set for 2026.

Citroniq Chemicals, a maker of renewable and carbon-negative plastics, is undergoing a $40m equity raise, according to two sources familiar with the matter.

The process has launched and is being led by Young America Capital, the sources said. The company’s projects account for about $1bn in CapEx.

Based in Houston, Citroniq uses bio-based feedstocks to produce plastics at scale. The company recently signed a Letter of Intent with Lummus Technology for the development of Citroniq’s green polypropylene projects in North America.

“With a projected investment of over $5bn and a combined polypropylene annual capacity of over 3.5 billion pounds, Citroniq is prepared to execute a rapid expansion plan of its E2O process, to meet the market’s growing need for sustainable, carbon negative polypropylene at a competitive price,” Mel Badheka, Principal and Co-Founder of Citroniq Chemicals, said in a press release announcing the LOI. “Located in the Midwest, Citroniq’s first plant is scheduled to start production in 2026 and provide identical, drop-in products that can be directly certified as biogenic through physical testing.”

In January Citroniq announced a separate LOI with Mitsui Plastics for a large-scale supply agreement for sustainable polypropylene.

Citronia and Young America Capital did not respond to requests for comment.

Read More »
exclusive

Electrolysis start-up seeking seed money

A two-man hydrogen electrolysis and storage startup based in the southeastern US is seeking an equity investment from a strategic or venture capital investor.

Green Fuel, an early-stage hydrogen technology start-up, is seeking USD 2m in seed money from a strategic or venture capital investor to get its technology off the ground, CFO William Green said in an interview.

The Alabama LLC is comprised of the two founders: Green and inventor Gordon Marsh. Green is based in Missouri.

A patented electrolysis and storage tank system (200 psi) is currently being used for grilling on site of storage, Green said. That prototype application could be scaled up, but the company is interested in pursuing licensing applications in HVAC, fuel cell vehicles, and methanol production.

Green Fuel said in a news release that the atmospheric pressuring system can reduce the cost of hydrogen by 60% by eliminating the need for transportation and compression.

The technology can be scaled to on-site production and tank storage of between 5,000 psi and 10,000 psi, Green said. Proving out that use case is part of the investment need.

“This is a real world solution,” Green said of the invention, which addresses problems in hydrogen transportation and storage. The company is also presenting its technology to the military.

Read More »

Exclusive: Biofuels developer interviewing bankers for capital raise

The developer of a renewable diesel and SAF plant in East Texas is seeking a banker for assistance raising development and FID capital.

Santa Maria Renewable Resources, a biofuels developer with a project in East Texas, is interviewing bankers for an upcoming capital raise.

The Houston-based firm is seeking a banker to help it raise some $40m in development capital, in a role that would then pivot to arranging project finance for a final investment decision, CEO Pat Sanchez said in an interview.

The company recently announced its selection of Topsoe as technology provider for the 3,000-barrels-per-day facility, which will produce renewable diesel and sustainable aviation fuel. It also tapped Chemex to conduct the FEED study.

Sanchez is the former COO of Sanchez Midstream Partners, having left in 2020 after preferred shareholder Stonepeak took over the company.

He perceives headwinds for capital raising in the biofuels space, but believes the project profile he is promoting is superior to peers due to its hedged profile and the incorporation of a sustainable agriculture component that extracts additional value from an oilseed.

The superior returns, which he claims are north of 25% on an unlevered basis, “come from the integration of two industries” – biofuels and agricultural commodities – “on one site.”

Using Topsoe technology, the proposed plant can swing between 100% SAF to 100% renewable diesel, depending on the needs of the offtaker.

The project has an agreed-upon term sheet for offtake with an oil major. Under the agreement, the oil major is required to deliver feedstock in the form of camelina, canola, and soybean, he said.

Only one company in the U.S. closed on a development capital raise for a bio-based fuel project in 2023. That company was DG Fuels, and it raised up to $30m in development capital for a woody biomass-based Louisiana SAF plant expected to cost $4.2bn and reach FID in 2024.

“There seems to still be some headwinds in some companies on the biofuels side that are struggling to raise development capital,” Sanchez said, noting that the biofuels and clean energy sectors were some of the worst performers in 2023.

Read More »

Welcome Back

Get Started

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