Innovation, Project news, Raising capital

Comstock completes RenFuel investment

Comstock is investing up to $3m to support applications for RenFuel and Comstock complementary renewable fuel technologies, and the continued development of the 100,000 metric ton per year biorefinery joint venture project in Sweden.

April 24, 2024

Comstock Inc. has executed agreements with RenFuel K2B AB under which Comstock is investing up to $3m over three years to support commercialization of joint development applications for RenFuel and Comstock complementary renewable fuel technologies, and the continued development of the 100,000 metric ton per year (TPY) biorefinery joint venture project in Sweden.

The applicable investment agreements require the purchase of up to $3m in 7% senior secured convertible notes funded in quarterly installments of $250,000 for three years. The notes are convertible at pre-money per share valuation equal to the lower of $30m or the post-money valuation used for RenFuel’s then most recent offering at the time of conversion. Comstock has already invested the first $350,000 of this investment.

“RenFuel’s team, technologies, and our now collaborative production joint venture project are highly strategic to our Bioleum commercialization plans,” said Corrado De Gasperis, Comstock’s executive chairman and chief executive officer, in a news release. “RenFuel’s highly specialized chemical and process development expertise strongly adds to the breadth and depth of our own technical team and their patent portfolio complements our own extensive portfolio.”

Comstock’s proprietary technologies are proven to convert lignocellulosic biomass into Cellulosic Ethanol and proprietary Bioleum biointermediate blends at extraordinary yields exceeding 100 gallons per dry tonne of biomass on a gasoline gallon equivalent basis (GGE), and market-leading, extremely low carbon intensity (CI) scores of 15. Comstock is already using RenFuel’s patented catalytic esterification technology to refine its proprietary Bioleum derivatives into Hydrodeoxygenated Bioleum Oil (HBO), for use by advanced biofuel refineries in blending with, diversifying, and extending conventional hydroprocessed fat, oil, and grease feedstocks that can simultaneously produce SAF and Renewable Diesel Fuel. Comstock holds the exclusive license to RenFuel’s refining technologies in North America, Central America, and South America and available for global distribution.

RenFuel previously completed extensive preliminary engineering for a new biorefinery to convert about 75,000 TPY of lignin into a biointermediate for refining into sustainable aviation fuel (SAF) and renewable diesel in Europe. Comstock and RenFuel are evaluating the requirements for inclusion of an additional 25,000 TPY of biorefining capacity based on Comstock’s commercially available Cellulosic Ethanol and Bioleum derived fuels technologies, and several compelling opportunities for deploying our integrated solution.

Sven Löchen, RenFuel’s chief executive officer added, “We are thrilled with this expanding strategic partnership. Comstock’s technologies and proprietary Bioleum products create a vastly expanded market opportunity for our technologies worldwide, where Comstock is rapidly advancing across the Americas. Comstock’s direct investment in RenFuel supports our continued growth and development as we build value for all of our stakeholders.”

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M&A, Project news, Raising capital

LIFTE H2 acquired by US and Canadian strategics

The US-based operations of LIFTE H2 will become the US subsidiary of a Canadian utility, while its custom Asset Performance Management platform has been acquired by a separate US hydrogen strategic.

The US-based operations and infrastructure solutions of LIFTE H2 will become the US subsidiary of Canada’s Powertech Labs, according to the companies.

Headquartered in British Columbia, Powertech Labs is a subsidiary of the government-owned BC Hydro.

Separately, the company’s digital Asset Performance Management platform has been acquired by Massachusetts-based Electric Hydrogen.

Resource reported in April that Energy & Industrial Advisory Partners had been hired to help LIFTE H2 conduct a Series A.

Powertech USA, the new subsidiary, will serve the US and Canadian markets.

“Powertech USA will provide a family of infrastructure solutions including hydrogen export systems, high-capacity transport trailers, mobile refuelers, and fueling stations,” a post on LinkedIn states. “Together, these solutions form the market’s first end-to-end hydrogen fueling solution – integrating the movement of hydrogen from the production outlet to the vehicle inlet.”

Powertech USA will be led by Angie Ackroyd, LIFTE’s co-founder and chief technology officer, according to Lifte’s website. Jeremy Maunus, LIFTE’s COO, along with Matthew Blieske, LIFTE’s CEO, will continue to support the Powertech USA team in advisory roles.

The post describes the management platform as a synchronized workspace designed to manage hydrogen data, assets, and people.

LIFTE H2 will continue operations in Europe. The company has offices in Berlin.

September 13, 2023

Project finance, Project news

Air Products building $500m New York liquid production plant

The investment would support a 35 metric ton per day facility to produce green liquid hydrogen at a greenfield site in Massena, New York.

Air Products plans to invest approximately $500m to build, own and operate a 35 metric ton per day facility to produce green liquid hydrogen at a greenfield site in Massena, New York, as well as liquid hydrogen distribution and dispensing operations, according to a news release.

Commercial operation is targeted in 2026 or 2027.

In support of this project, the New York Power Authority (NYPA) board approved in July 94 MW of low-cost St. Lawrence hydroelectric power to Air Products.

Further to this proposed facility announcement, Pennsylvania-based Air Products is also investigating the feasibility of establishing a hydrogen fueling station network in the United States’ northeast region, including the ability to serve Air Products’ truck fleet. Air Products has announced plans to convert its global fleet of approximately 2,000 trucks to hydrogen fuel cell zero-emission vehicles.

The liquid hydrogen product from the facility is expected to be sold to the mobility market in New York State as well as other potential northeast industrial markets.

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October 6, 2022

M&A

TPG Rise buys Southern California terminals business

TPG Rise has bought Olympus Terminals, which owns and operates two storage terminals in Southern California and an interconnected pipeline network in that region.

TPG Rise Climate has signed a definitive agreement to acquire Olympus Terminals, an independent storage provider for renewable fuels and refined products in Southern California, according to a news release.

Intrepid Partners served as financial advisor and Paul Weiss, Rifkind, Wharton & Garrison served as legal counsel to Olympus. Jefferies served as financial advisor and Kirkland & Ellis served as legal counsel to TPG.

Olympus Terminals is majority owned by an affiliated investment fund of Davidson Kempner Capital Management and an affiliated investment fund of Intrepid Investment Management.

Headquartered in Long Beach, California, Olympus Terminals owns and operates two storage terminals, including one at the Port of Long Beach with deepwater dock access, and an interconnected pipeline network in the region. The company’s assets play a key role in the renewable diesel value chain in California.

RD penetration (of total diesel pool) is expected to increase significantly in California over the next five years, creating a growing need for import and logistics infrastructure. In addition to being well-positioned to capitalize on incumbency and structural advantages in the market, Olympus is also contributing to the growth of cleaner diesel fuels by converting storage capacity from conventional to RD service.

May 7, 2024

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M&A, Project finance, Project news, Raising capital

Pennsylvania blue hydrogen DevCo planning project equity raise

A natural gas company has tapped an advisor and is planning to launch a process to raise project equity in the fall for a blue hydrogen production facility with contracted offtake in Pennsylvania.

KeyState Energy, a Pennsylvania-based development company, has engaged a financial advisor to launch a $60m equity process in September, according to two sources familiar with the matter.

Young America Capital is advising on the forthcoming process, the sources said.

The capital raise is for the company’s marquee Natural Gas Synthesis blue hydrogen project in Clinton County, one of the sources said. CapEx for the project is estimated at $1.5bn. OCGI is a pre-FEED investor in the project and the coming equity raise is meant to attract a FEED investor.

The 200 mtpd project has contracted offtake with Nikola Corporation, one of the sources said. In October it was reported that Nikola and KeyState were working towards a definitive agreement to expand the hydrogen supply for Nikola’s zero-emissions heavy-duty fuel cell electric vehicles.

The 7,000-acre natural gas and geologic storage site was formerly known for coal, iron and rail, according to the company’s website.

KeyState Energy did not respond to a request for comment. YAC declined to comment.

June 20, 2023

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Project news, Raising capital

Hydra Energy raising equity and debt capital for hydrogen refueling infrastructure

The hydrogen-as-a-service provider for commercial trucking fleets is pursuing an equity raise that will unlock a debt facility for scaling up hydrogen refueling infrastructure in Western Canada.

Hydra Energy, a hydrogen-as-a-service provider for commercial trucking fleets, is in the midst of a CAD 14m equity capital raise.

The Vancouver-based company is pursuing the equity raise in support of its Prince George hydrogen fueling station, which is set to be operational in 2024 and would be the largest in the world, Hydra CEO Jessica Verhagan.

The equity portion of the financing is needed to unlock an additional CAD 150m debt facility to complete initial scale-up of the company’s planned hydrogen corridor along Highway 16 in Western Canada, Verhagan added.

Verhagan said the company is not working with a financial advisor on the capital raise but could issue RFPs for advisory services in the future. She declined to name the provider of the proposed debt facility, apart from clarifying that it was not government-sponsored.

“To date, Hydra has been signing up commercial fleets and building out its initial hydrogen refuelling infrastructure throughout Western Canada, but the company is about to announce expansion throughout the rest of the country via licensing to a national fossil fuel distributor looking to extend its low-carbon alternative fuel offerings,” the executive said via email.

Hydra’s target market to date has been the roughly 5 million Class 8 trucks within North America, Verhagan said, with the company aiming to “conservatively” capture 1% of that market by 2030 through commercial discussions already underway. Hydra is also exploring expansion into the UK as well as Europe, Australia, and the Middle East.

“Hydra’s initial focus has been on proving out its Hydrogen-as-a-ServiceTM (HaaSTM) template which includes the company providing its proprietary hydrogen-diesel, co-combustion conversion kits to commercial fleets at zero cost (in exchange for long-term hydrogen fuel contracts at diesel equivalent prices) as well as an initial hydrogen refuelling station to service 65 Hydra- converted trucks in Prince George, B.C.,” she said.

Verhagan said the company will announce its first electrolysis partner for the Prince George hydrogen refueling station early next year. The station will be able to refuel – as quickly as diesel – up to 24 Hydra-converted trucks each hour across four bays. The station will provide hydrogen from two onsite, 5 MW electrolyzers powered with electricity from BC Hydro.

“The adoption of Hydra’s technology really comes down to availability of low carbon hydrogen – showing fleets it’s possible to go green cost-effectively – and government support to utilize hydrogen to reduce trucking emissions right now,” Verhagan said.

December 16, 2022

Project news, Raising capital

Exclusive: Emissions reduction technology firm in Series A capital raise

A technology start-up that uses plasma to reduce emissions from natural gas and methane flaring is seeking an additional $15m to top off its Series A capital raise. One of its principal products converts natural gas into hydrogen and usable graphene with no CO2 emissions.

Rimere, a climate solutions company with proprietary plasma technology, is seeking to raise an additional $15m as part of its ongoing Series A capital raise.

The start-up recently announced an anchor investment of $10m from Clean Energy Fuels Corp, a publicly listed renewable natural gas firm, and is pursuing further investments from strategics and financial players, with an eye on closing the round in 2Q24, CEO Mitchell Pratt said in an interview.

The company is not currently working with a financial advisor on the Series A capital raise, Pratt said. Its legal counsel is Morrison Foerster.

The anchor investment along with additional funds raised will allow Rimere to advance development and field testing of its two principal products, the Reformer and the Mitigator.

The Mitigator is a plasma thermal oxidizer that reduces the greenhouse gas potency of small-scale fugitive methane emissions, while the Reformer transforms natural gas into clean hydrogen and usable graphene without creating any CO2 emissions.

The products are meant to work in tandem to decarbonize natural gas infrastructure and deliver cleaner gas to end users in transportation, power generation, and industry.

“We believe that, overall, what the technology does is revalue natural gas reserves and the long-term viability of natural gas for global future energy,” Pratt said.

Commercial strategy

Rimere will develop a commercial strategy throughout the course of this year for the Mitigator, and plans to deploy the product in the beginning of next year.

“We have quite a bit of interest for this as a solution because of the low cost of the product and the terrific results,” Pratt said, noting that the Mitigator removes CO2 for under $5 per metric ton.

In contrast, the Inflation Reduction Act passed in 2022 introduced the Methane Emissions Reduction Program, a charge on methane emitted by oil and gas companies that report emissions under the Clean Air Act. The charge starts at $900 per metric ton of methane for calendar year 2024, increasing to $1,500 for 2026 and beyond.

To be sure, the Mitigator, as a thermal oxidizer, transforms methane, which is a much more potent greenhouse gas, into hydrogen, water, and CO2 for a net reduction of the global warming impact of 200 metric tons a year of CO2.

The Reformer, a container-style unit, is being scaled up to produce 50 kg per day of hydrogen from natural gas along with 150 kg of graphene, a marketable nano carbon where the CO2 is captured. Graphene is used in batteries, composites, medical devices, and concrete to reduce greenhouse gas emissions, among other applications.

Rimere plans to increase the scale of the Reformer to between 400 – 600 kg per day and raise additional funds next year, Pratt said. The amount of funds needed for that is not yet known, he said.

Pratt envisions an application for hydrogen blending using the two products.

“We see it as a way to decentralize hydrogen production, taking advantage of a cleaner natural gas infrastructure, because we’ve applied the Mitigator to cleaning up those fugitive methane emissions that are occurring in the normal operations of equipment,” Pratt said.

For example, Rimere can tap into a natural gas pipeline, take a slipstream of gas, extract the valuable graphene, and then re-inject hydrogen and natural gas back into the pipeline.

Additionally, the blending application can be positioned at an end-use customer’s facility, allowing the Reformer to start blending hydrogen into the gas stream, going into boilers and burners and reducing the CO2 emissions more effectively and immediately, Pratt said.

$1 per kg

Taking the average cost of delivered natural gas and power to industrial users, the company can already produce hydrogen at $1 per kilogram, Pratt said.

For every four kilograms of end-use product – one being hydrogen, the other three graphene – the energy cost allows hydrogen to be produced at or below $1 per kg.

“The last 12 months of running is less than a dollar,” he said, emphasizing that the graphene production is not subsidizing the hydrogen.

“Although the value of graphene could make hydrogen a throwaway fuel.”

February 26, 2024