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Regulatory: Construction permit issued for largest planned ammonia plant

A permit to construct a clean ammonia facility much larger than any in the world has been issued by West Virginia regulators.

The State of West Virginia has issued a permit to construct the world’s largest planned ammonia facility.

The Adams Fork Energy project in Mingo County, jointly developed by TransGas and the Flandreau Santee Sioux Tribe, is slated to reach COD in 2027. When fully built out, the six ammonia production plants would pump out 6,000 mtpd for domestic and international use.

ReSource previously reported on the issuance of the draft permit to construct, released by the West Virginia Department of Environmental Protection.

Offtakers in agriculture, shipping, and energy generation are all being explored for the project, according to a source familiar with the situation. Onsite electricity production for off-grid data centers is another possibility stakeholders are taking seriously.

Hydrogen produced by Adams Fork could produce up to 5,000 MW of electricity, the source said. Six Sigma could power co-located data centers without requiring a grid interconnection.

Coal mine waste methane is planned as a fuel source for the plant, which has access to the largest fresh water mine pool in the eastern US adjacent to the site.

The site is near Gilbert Creek, West Virginia, on a reclaimed coal mine.

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Rolls-Royce and easyJet test hydrogen jet engine

The UK ground test was conducted on an early concept demonstrator using green hydrogen created by wind and tidal power.

Rolls-Royce and easyJet today have successfully tested an aero engine on hydrogen, according to a press release.

The ground test was conducted on an early concept demonstrator using green hydrogen created by wind and tidal power.

The companies have ambition to carry out flight tests, the release states.

The test took place at an outdoor test facility at MoD Boscombe Down, UK, using a converted Rolls-Royce AE 2100-A regional aircraft engine. Green hydrogen for the tests was supplied by the European Marine Energy Centre, generated using renewable energy at their hydrogen production and tidal test facility on Eday in the Orkney Islands.

Following analysis of the ground test the partnership plans a series of rig tests leading up to a full-scale ground test of a Rolls-Royce Pearl 15 jet engine.

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Data: Japanese Companies in North American Clean Fuels Projects

A look at the Japanese firms that are making investments and forging project partnerships as that island nation seeks a North American footing for low-carbon fuels.

Japan is one of the largest importers of hydrogen worldwide, and it’s betting big on clean hydrogen for its decarbonization, planning to spend over $20 billion over the next 15 years to subsidize its production and supply chain.

In addition to investing to increase local capacity, Japanese firms are also focusing on importing clean fuels, with an eye on North America and the United States specifically, where project developers are increasingly looking to South Korea and Japan as buyers.

Many Japanese companies are actively participating in clean fuels projects across North America, including hydrogen, ammonia, methanol, and biofuel projects.

Around 4% of all clean fuels projects in North America have one or more Japanese firms involved as co-developers, equity investors, or off-takers. The investments are mostly in the United States, and companies like Mitsubishi and Mitsui, which have a long history of US investments, are the most active.

Without committing to specific projects yet, developers like Sempra Infrastructure and 8 Rivers have signed MoUs with Japanese counterparts to promote the development of a clean energy supply chain, while others, like Intersect Power or Hydrogen Canada, are explicitly targeting Japan as an end market for their hydrogen products.

See a full list of North American projects with Japanese involvement.

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Glenfarne’s Texas LNG moving to project finance execution phase

Glenfarne has appointed lawyers and is moving into the execution phase for financing its Texas LNG project.

Texas LNG, a four million tonnes per annum liquefied natural gas export terminal to be constructed in the Port of Brownsville, and a subsidiary of Glenfarne Energy Transition, LLC, a global energy transition leader providing critical solutions to lower the world’s carbon footprint, has received sufficient expressions of interest from leading project finance banks to move to the execution phase of project financing.

Glenfarne has also appointed Latham & Watkins as Borrower’s counsel and Milbank as Lenders’ counsel for the issuance.

These lenders have been key supporters of Glenfarne, having led over $4 billion of financing to Glenfarne’s businesses over the last 10 years, supporting the acquisition and/or construction of various energy transition focused assets, the company said in a news release. Furthermore, these banks are active in LNG, having participated in approximately $44 billion of project finance debt to the U.S. LNG sector alone over the last 24 months.

“Texas LNG’s financing consortium will be comprised of the world’s leading institutions that recognize the attributes of the project and Glenfarne’s excellent history of building energy transition infrastructure,” said Brendan Duval, CEO and Founder of Glenfarne Energy Transition.

ReSource recently interviewed Glenfarne Senior Vice President Adam Prestidge about Texas LNG as well as the company’s hydrogen plans.

Today’s news follows Texas LNG’s recent announcement that it signed a Heads of Agreement with EQT Corporation for natural gas liquefaction services for 0.5 MTPA of LNG. Texas LNG also recently announced partnerships with Baker Hughes and ABB to help develop the terminal, representing more than half a billion dollars’ worth of equipment selections for Texas LNG to date.

The first LNG exports from Texas LNG are expected to be shipped in 2028.

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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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Waste-to-hydrogen developer to close $100m capital raise this month

Raven SR’s C-round of financing is being run by two bulge-bracket banks, and the firm has received widespread interest from private equity and corporate strategics.

Raven SR, a US waste-to-hydrogen developer, is working on a $100m capital raise that’s expected to wrap up this month, according to four sources familiar with the matter.

Raven’s C-round of financing is being run by Barclays and Bank of America. The firm has received widespread interest from private equity and corporate strategics.

Raven CEO Matt Murdock said on the sidelines of the Hydrogen Americas event in Washington D.C. that he was hoping to have the raise done by Thanksgiving.

Headquartered in Wyoming with projects in California and Spain, the company uses a steam/CO2 reforming process that transforms municipal solid waste, organic waste and methane into clean fuels.

In August, 2021, Raven closed on a $20m strategic investment from Chevron U.S.A., ITOCHU Corporation, Hyzon Motors Inc. and Ascent Hydrogen Fund. Samsung Ventures made a strategic investment earlier this year, allowing the company to expand into the Asia-Pacific market.

The company has partnered with INNIO to use its Jenbacher engines to provide renewable power and heat to Raven SR’s first waste-to-hydrogen production facility at the Republic Services West Contra Costa Sanitary Landfill in Richmond, California.

Raven SR plans to bring the plant online in the first quarter of 2023, initially processing up to 99.9 tons of organic waste per day and producing up to 2,000 metric tons per year of hydrogen.

In Aragón, Spain, Raven SR is aiming to bring a second project online in 2023 that will produce 1,600 metric tons per year of renewable hydrogen from approximately 75 tons of organic solid waste per day.

Raven SR recently announced the election of Mark Gordon of Ascent Fund and Michael Hoban of Chevron New Energies to its Board of Directors.

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AIMCo-backed midstream infrastructure firm in refi

The company, whose asset footprint includes Gulf Coast hydrogen production, today priced a debt refinancing transaction with an 8.875% coupon.

Howard Energy Partners today priced $550m of senior unsecured notes to refinance amounts outstanding on its revolving credit facility.

The company, which is majority owned by the Alberta Investment Management Corporation (AIMCo), will pay 8.875% on the notes, inside of price talk of between 8.75% – 9%, according to sources familiar with the matter.

RBC Capital Markets and TD Securities are joint active bookrunners on the deal, the sources said.

Howard in 2021 closed on the acquisition of the Javelina Facility in Corpus Christi, Texas — a treating and fractionation plant that extracts olefins, hydrogen, and natural gas liquids from the gas streams produced by local refineries.

Starting in Jan of 2023, a strategic technology partner began producing a low-carbon diesel substitute using Javelina’s hydrogen and CO2 as feedstocks, making it one of the first merchant “clean” hydrogen facilities on the US Gulf Coast, according to the company. HEP is also pursuing carbon capture and sequestration opportunities with its Javelina assets through a joint venture with TALOS Energy and the Port of Corpus Christi.

AIMCo acquired an initial 28% stake in HEP in 2017, and brought its ownership stake to 87% last year following the purchase of Astatine Investment Partners’ stake in the company.

Howard operates in two key segments in the US and Mexico: natural gas and liquids. The natural gas segment includes 1,175 miles of pipelines and approximately 4.3 Bcf/d of throughput capacity and 600 MMCf/d of cryogenic processing capacity.

The liquids segment includes terminalling and logistics services for refined products as well as refinery-focused off-gas handling, treating, processing, fractionation and hydrogen supply services.

Spokespersons for the company, RBC, and TD did not respond to emails seeking comment.

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