Resource logo with tagline

CNX Resources pulls out of anchor ARCH2 project

The natural gas producer cited delays in reaching commercial terms and uncertainty over the implementation of 45V tax credits.

CNX Resources, a major proponent of the DOE funding-winning ARCH2 hydrogen hub, has backed out of the Adams Fork project, one of the hub’s anchor projects.

The Pittsburgh-based company cited delays and increasing uncertainty over 45V hydrogen production tax credit provisions along with an inability to reach final commercial terms with project developers.

The company said in a news release that it has “ended coordination with the Adams Fork project and is evaluating several viable alternative sites in southern West Virginia for clean hydrogen projects.”

It remains committed to ARCH2 via use of its local, low cost, low carbon intensity feedstock, the company said.

CNX’s final investment decision remains contingent upon tax credit guidance that unambiguously supports low carbon intensity feedstock projects that will facilitate development of the regional clean hydrogen hubs, including ARCH2, it said in the release.

The Adams Fork Energy clean ammonia project, jointly developed by Adams Fork Energy, LLC and the Flandreau Santee Sioux Tribe, was expected to have initial annual ammonia production capacity of 2,160,000 metric tons, with optional additional production capacity.

Unlock this article

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

You might also like...

Featured

Chevron to study ammonia carriers with Greek shipper

The initial study will evaluate the ammonia transportation market, existing infrastructure, safety aspects, potential next generation vessel requirements and a preliminary system to transport ammonia between the U.S. Gulf Coast and Europe.

Chevron Corporation, through its subsidiary Chevron Shipping Company LLC, and the Angelicoussis Group, through its Energy Transition division, Green Ships, announced a Joint Study Agreement (JSA) to explore how tankers can be used to transport ammonia, a potential lower carbon marine fuel, according to a news release.

The initial study will evaluate the ammonia transportation market, existing infrastructure, the safety aspects of ammonia, potential next generation vessel requirements and a preliminary system to transport ammonia between the U.S. Gulf Coast and Europe. Future opportunities will focus on additional global markets.

Ammonia is a carrier of hydrogen and is believed to have potential to lower the carbon intensity of the marine industry. Through the JSA, the Angelicoussis Group and Chevron aim to advance ammonia’s technical and commercial feasibility at scale, particularly as an export for petrochemicals, power, and mobility markets.

“We are pleased to collaborate with the Angelicoussis Group on this study, help advance lower carbon energy at scale and progress marine transportation of ammonia,” said Mark Ross, president of Chevron Shipping Company. “I’m proud of the collaboration between Chevron Shipping, Chevron New Energies and the Angelicoussis Group and look forward to driving progress toward our energy transition goals.”

“Global value chain solutions are critical for growing the hydrogen market, and we believe shipping will play a crucial role. Chevron is leveraging its international functional marine expertise and collaborating with the Angelicoussis Group to pursue the delivery of lower carbon proof points to the market,” said Austin Knight, Vice President, Hydrogen, Chevron New Energies.

“Through collaborating with Chevron Shipping Company on this study, we aim to make a meaningful contribution to prepare our industries for the transition towards lower carbon operations,” said Maria Angelicoussis, CEO of the Angelicoussis Group. “Combining our many years of experience in seaborne transport of liquid and gaseous energy sources with Chevron’s vast experience in the energy business provides a solid basis for this endeavor.”

“Ammonia has potential as a hydrogen vector and is considered one of the alternative fuel options to decarbonize shipping. We believe this study will contribute towards identifying the technical, operational and commercial challenges of carrying ammonia at scale and using it as a fuel in a safe and sustainable way,” said Stelios Troulis, green Ships and energy transition director for the Angelicoussis Group.

Chevron and the Angelicoussis Group have a long-standing relationship dating back to 2000. Since then, the partnership has grown from conventional vessels to include multiple LNG carriers, as well as joint work on energy transition initiatives. The teaming of Chevron Shipping, Chevron New Energies and the Angelicoussis Group on this study supports and accelerates both organizations’ ambitions to become leading, global clean energy providers by focusing on all aspects of the hydrogen supply chain.

Read More »

Electrolyzer startup EVOLOH raises $20m Series A

The raise for California-based EVOLOH was led by Engine Ventures with participation from NextEra Energy Resources and 3M Ventures.

EVOLOH, Inc., a cleantech company that manufactures electrolyzer stacks for hydrogen production, today announced it has raised an oversubscribed $20 million Series A round led by Engine Ventures. Additional participating investors include a subsidiary of NextEra Energy Resources and 3M Ventures.

The capital will be used to expand the company’s scalable, high-throughput manufacturing technology and introduce additional capabilities for its NautilusTM platform of advanced liquid alkaline electrolyzers, according to a news release.

EVOLOH is making low-carbon hydrogen globally accessible by revolutionizing the manufacturing of electrolyzers. While incumbent electrolyzers are notoriously expensive and difficult to produce, transport and install, and rely on politically and environmentally challenging supply chains, EVOLOH’s manufacturing facility will offer an 80% reduction in capital investment and footprint.

“This round of funding positions EVOLOH to lead the electrolyzer manufacturing market by transforming electrolyzer stacks into affordable, efficient hardware commodities made with 100% local supply chains,” said Dr. Jimmy Rojas, founder and CEO of EVOLOH.

Electrolyzer stacks, the core component of electrolyzers, are offered via EVOLOH’s NautilusTM platform and made from abundant materials like steel, plastic and aluminum and do not require precious metals or rare earth materials. To reduce the CAPEX and OPEX of hydrogen plants using EVOLOH’s Advanced Liquid Alkaline technology, the NautilusTM stacks use low-cost power electronics and do not require corrosive electrolytes. EVOLOH’s NautilusTM stacks are very compact, and can be built into modules of 24 megawatts, making them ideal for large industrial applications.

Katie Rae, CEO and Managing Partner at Engine Ventures and EVOLOH Board member, added, “EVOLOH has a timely and massive opportunity to not only commercialize better and more affordable electrolyzers, but also introduce a faster and more sustainable electrolyzer manufacturing platform. With an impressive founding team and early partnership activity, EVOLOH is a strong addition to Engine Ventures’ portfolio of cleantech and advanced manufacturing companies.”

Read More »

Drax Group reaches carbon removal deal for US projects

The deal, which will occur over a five-year period starting in 2030, is linked to Drax’s planned deployment of bioenergy with carbon capture facilities in the US.

Carbon removals and renewable energy company Drax Group today announced a new carbon removals deal with Karbon-X, a leading environmental company.

Karbon-X will purchase carbon dioxide removals (CDR) credits from Drax representing 25,000 metric tons of permanently stored carbon at $350 per tonne under the terms of the agreement.

The deal, which will occur over a five-year period starting in 2030, is linked to Drax’s planned deployment of carbon negative BECCS in the United States, according to a news release.

“We’re excited to work with organizations like Karbon-X that understand the importance of investing in high-value carbon removals today,” said Laurie Fitzmaurice, President, Carbon Removals at Drax. “The CDR market, which is already maturing at a rapid pace, is expected to experience a supply crunch within the next decade as companies and countries approach their deadlines for carbon reduction targets.”

The agreement with Karbon-X is the latest in a string of previously announced carbon removals memorandums of understanding that have included Respira and C-Zero. Drax also launched a new independent business unit earlier this year that is focused on becoming the global leader in large-scale carbon removals. This business unit will oversee the development and construction of Drax’s new-build BECCS plants in the US and internationally, and it will work with a coalition of strategic partners to focus on an ambitious goal of removing at least 6 Mt of CO2 per year from the atmosphere.

BECCS is a carbon removal technology that uses sustainably sourced biomass to generate renewable energy while permanently sequestering the carbon underground. Measuring the impact of these high-quality carbon removals is more straightforward when compared with other solutions like nature-based removals, resulting in high demand, according to the company.

“This agreement with Karbon-X represents another major step forward in delivering BECCS by Drax in the United States to help meet this growing demand to decarbonize our planet,” said Fitzmaurice.

Karbon-X intends to sell the credits it purchases from Drax on the voluntary carbon market, enabling individuals and organizations to achieve their own emissions reduction targets. It follows a stringent set of guidelines to ensure it selects only high-quality projects and providers, like BECCS by Drax.

As companies, industries, and countries increasingly look to engineered carbon removals to ensure they can meet their climate commitments, CDRs from carbon negative BECCS are becoming an integral piece of this market. Through BECCS, carbon removals are quantifiable and auditable, resulting in a higher quality credit. This separates BECCS-derived CDRs from carbon offsets, allowing organizations to have greater trust in the impact of their investments, according to the release.

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 »
exclusive

Waste-to-energy specialist executes MoU with Nikola

The partnership will encourage the adoption of Nikola Class 8 zero-emission vehicles with Klean Industries’ partners and feedstock suppliers. Nikola will evaluate offtake opportunities from the company’s green hydrogen projects.

Klean Industries, a Vancouver-based waste-to-value technology provider, has executed an MOU with Nikola Corporation to encourage the adoption of Nikola Class 8 zero-emission vehicles with Klean’s partners and feedstock suppliers.

The two companies will also work on developing green hydrogen supply and dispensing infrastructure in the US and Canada, according to a statement seen by ReSource.

Nikola will evaluate offtake opportunities from green hydrogen projects being developed by Klean and its partners involving hydroelectric, wind and solar power in the Pacific Northwest and Canada. Using Klean’s green hydrogen, the companies will convert Klean’s logistics partners’ truck fleet to Nikola Class 8 zero-emission vehicles.

Both Klean and Nikola see a significant opportunity to collaborate on projects where Klean and its partners operate recycling, resource recovery, and waste-to-energy plants, the statement reads.

“We believe Nikola’s hydrogen-electric trucks are going to fundamentally change the ground transportation and logistics landscape. This exciting collaboration will create opportunities that will reinforce the importance of working together as we look to both deploy and develop a renewable hydrogen value chain,” said Jesse Klinkhamer, CEO of Klean Industries Inc., in a statement. “Developing clean energy projects with leading technology companies such as Nikola supports Klean’s strategic focus and enables our respective companies to create a symbiosis between waste, resources, and energy, while simultaneously helping in the creation of a circular low carbon economy. Green hydrogen has the potential to completely transform the energy landscape and drive a cleaner, more sustainable future.”

Klinkhamer said in an interview last year that Klean was in the process of hiring an advisor to raise between $250m – $500m in a strategic capital raise.

Carey Mendes, president, energy at Nikola said, “Klean’s vision of utilizing a green hydrogen fleet of trucks in their tire recycling ecosystem is a clear indication of the company’s commitment to creating a better, more sustainable future. Klean has already brought together like-minded partners to decarbonize their truck fleets which is a testament to their far-reaching commitment and deep knowledge of this sustainability space.”

Klean recently partnered with City Circle Group to build a fully integrated, continuous tire pyrolysis plant to recover carbon black and biofuel in Melbourne Australia. The company also signed a partnership agreement with H2 Core Systems to distribute and build green hydrogen projects around the globe.

Read More »
exclusive

Midstream hydrogen firm to seek capital for projects within one year

The first slate of the company’s salt cavern hydrogen storage and pipeline projects will likely reach FID within six to 12 months, setting the stage for a series of project finance and tax equity transactions.

NeuVentus, the newly formed midstream infrastructure and hydrogen storage company backed by Lotus Infrastructure Partners, will likely seek project financing and tax equity for its first cache of projects in the Gulf Coast region of Texas and Louisiana in six to 12 months, CEO Sam Porter said in an interview.

“It sure looks like 45V and 45Q, and basically everything the IRA just did, is like a brick on the accelerator,” Porter said, explaining that he expects additional federal clarifications for hydrogen to come this year. “We’re looking at FIDing a first batch of projects, which I think are really going to marry up some things that the project finance community loves.”

That includes salt cavern storage and pipelines with a novel ESG twist, Porter said. The company plans to own and operate its developments as a platform. If in time demand for projects becomes overwhelming, the equity holders could sell those projects.

NeuVentus recently launched with Lotus’ backing. The private equity firm’s position is that they are able and ready to fund all project- and platform-level equity, Porter said.

“There’s certainly project level finance requirements, debt, tax equity and sponsor equity,” Porter said. The company will first get its projects de-risked as much as possible.

Pickering Energy Partners was mandated for NeuVentus’ seed raise. Porter said there could be additional opportunities for financial advisors to participate in fundraising, though Lotus has significant in-house capabilities and relationships.

Vinson & Elkins served as the law firm advising Lotus Infrastructure, formerly Starwood Energy, on the launch of NeuVentus.

The company is also open to acquiring abandoned or underutilized infrastructure assets, convertible to hydrogen, Porter said. Assets that connect production and consumption that can be more resistant to embrittlement than newer midstream infrastructure and would be of interest.

Exiting assets in regions that are good for hydrogen production, namely those that are sunny and windy, and are relatively close to consumption, will get the closest look.

Oil & gas in the energy transition

Renewable-sourced hydrogen offers an opportunity for traditional oil and gas operators to continue their work in salt domes.

NeuVentus’ plan is to focus on storage first, and then have the pipeline emanate from that, Porter said. The founding team of the company has a lot of experience in oil & gas and structuring land deals (mineral rights and surface/storage rights) in the Gulf region, where salt caverns are abundant.

The company is also open to an anchor tenant that needs a pipeline segment between production and consumption. But from a developers’ perspective the most prudent play will be around storage sites located with multiple interconnection options, he said.

There are roughly 1,500 miles of pipeline and 9 to 10 million kilograms of daily hydrogen production and consumption in the Texas and Louisiana Gulf region, Porter said.

“I think we’re going to see a significant need for more midstream build-out,” he said. “The traditional fee-for-service model is going to be appealing to a lot of the new entrants.”

A molecule-agnostic approach

Hydrogen is “a Swiss army knife” of a feedstock for numerous use cases, Porter said. That all of those use cases will prevail is uncertain, but NeuVentus ultimately only needs one or two of them to grow.

“Additional hydrogen infrastructure is going to be required,” whether it’s for ammonia as fertilizer or methanol as fuel or something else, Porter said. “We don’t necessarily care: all of them are going to require clean hydrogen.”

Equity owners in NueVentus will be opportunistic when it comes to an eventual financial exit, Porter said.

“The beauty of this is that I can see a number of potential buyers,” he said.

An offtaker that wants to vertically integrate, like foreign consumers of hydrogen products, could want to acquire a midstream platform for purposes of national energy security. Industrial gas companies could want to acquire the infrastructure as well. Large energy transfer companies that move molecules are obvious acquirers as well, and finally the company could remain independent or list publicly under its own business plan.

Read More »

Welcome Back

Get Started

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