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Denbury inks CO2 services agreement with Clean Hydrogen Works

Denbury has invested USD 10m into the Ascension Clean Energy hydrogen-ammonia complex in Louisiana with another USD 10m pledged.

Denbury Carbon Solutions has executed a CO2 Services Agreement with Clean Hydrogen Works, according to a press release.

The subsidiary of Denbury Inc. will transport and sequester CO2 captured from Clean Hydrogen’s planned hydrogen-ammonia complex in Ascension Parish, Louisiana, which is anticipated to be built less than two miles from Denbury’s existing CO2 pipeline network.

The planned clean hydrogen-ammonia complex, Ascension Clean Energy (ACE), is expected to include two ammonia blocks with estimated production totaling 7.2 million tons of ammonia per year. Approximately 75% of the planned ammonia production volume is supported by letters of intent offtake agreements.

Denbury has invested USD 10m into the ACE project through an investment in Clean Hydrogen and has committed to invest another USD 10m when certain project milestones are achieved.

The proposed facilities are to be constructed on a 1,700-acre site on the west bank of the Mississippi River in Donaldsonville, Louisiana. The two ammonia blocks are currently projected to start up in a staged approach, with Block 1 production anticipated to commence in 2027. A final investment decision on the project is anticipated in 2024.

Denbury has the exclusive right to transport and sequester all of the CO2 captured at ACE for a period of 12 years following startup, with multiple extension options.

Captured CO2 volumes are estimated to be approximately 12 million metric tons per year (mmtpa), comprising 6 mmtpa from each of the two ammonia blocks.

Underground storage of the CO2 is anticipated in one or more of Denbury’s sequestration sites located in close proximity to Denbury’s CO2 pipeline infrastructure.

With this agreement, the cumulative volumes of CO2 transportation and storage services agreements entered into by Denbury total 20 mmtpa, double the company’s cumulative goal to reach 10 mmtpa by the end of 2022.

Denbury recently agreed to transport and store CO2 for a planned blue methanol project in Lake Charles, Louisiana.

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NET Power and Rice Acquisition garner additional $275m PIPE commitments

The original transaction in December concerns NET Power’s 300 MW Serial Number 1 project near Odessa, Texas.

ET Power and Rice Acquisition Corp. II have announced an additional $275m of PIPE commitments in connection with their proposed business combination, according to a news release.

Occidental has increased its commitment to the PIPE by $250m, bringing its total investment to $350m, while the Rice family has committed an additional $25m, bringing their total investment to $125m.

“We believe NET Power’s technology can accelerate emissions reductions in our existing operations and ultimately supply emissions-free power to the Direct Air Capture facilities and sequestration hubs we are developing, the release states.”

The new commitments bring the expected gross proceeds of the business combination to $845m for NET Power, consisting of approximately $345m from RONI’s trust account (assuming no redemptions), and approximately $500m from the PIPE raised entirely at $10 per share of common stock.

Assuming no RONI shareholders exercise their redemption rights, the combined company is expected to have a market capitalization in excess of $2bn.

“Since announcing the transaction in December 2022, NET Power has continued to make excellent progress towards commercialization of its utility-scale power plant, including FEED commencement on the Occidental-hosted Serial Number 1 (“SN1”) project near Odessa, Texas,” the release states. “In support of the plant, NET Power expects Occidental will be a key offtaker of the clean power generated by SN1.”

It is anticipated that Occidental will manage the transportation, storage, and utilization of the captured CO2 from SN1.

“We believe NET Power’s technology can accelerate emissions reductions in our existing operations and ultimately supply emissions-free power to the Direct Air Capture facilities and sequestration hubs we are developing,” Vicki Hollub, president and CEO of Occidental, said in the release.

Following this additional commitment, Occidental’s ownership stake in the combined company will increase to approximately 39%, assuming no redemptions.

NET Power expects $200m of net proceeds from the business combination and the PIPE to fully fund corporate operations through commercialization of SN1, which is expected to be operational in 2026.

The net proceeds above $200m are expected to support SN1 capital needs and future commercial origination efforts.

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Klean Industries agrees German partnerships for containerized hydrogen facilities

The arrangement will allow Vancouver-based Klean to add hydrogen production to its tire recycling operations in Oregon and beyond.

Klean Industries has signed a partnership agreement with H2 Core Systems to distribute and build green hydrogen projects around the globe, according to a press release.

H2 Core Systems develops, manufactures, and maintains modular and configurable electrolysis systems that are expandable and scalable at any time.

The combination of this partnership in deploying hydrogen at scale is being built on the foundation of Enapter AG’s anion exchange membrane (AEM) electrolysers. Enapter provides this partnership with modular electrolyzers which can be deployed individually or at scale for any amount of on-site hydrogen and for any application. Inspired by the mind-blowing cost reduction of solar panels and microchips through standardization and mass production, the release states, Enapter has developed plug-and-play electrolysers that can be manufactured at scale.

“Klean, H2 Core, and Enapter share synergistic values and the understanding of what the world needs to achieve Net Zero, in a Circular Economy that supports the development of a sustainable society. The KleanTeam has conducted extensive due diligence on the hydrogen production marketplace, and we believe that H2 Core’s technology applications combined with Enapter’s AEM Electrolysers’ and energy management system offer the perfect design for both Klean’s internal projects and our customers’ projects. The uniqueness of these designs also compliments the integration of our KleanLoop™ technology, which together represent a game changer for combined applications of alternative energy production”, said Marc Schwarzlose, Director of Project Development for Klean Industries Inc.

Over the course of the next few months, Klean is planning the development of a modular and scalable 40’ containerized pilot project with the integration of an AEM MultiCore 1 MW electrolytic production unit designed by H2 Core for Klean’s flagship facility in Boardman, Oregon. This site is the perfect location for creating green hydrogen onsite from cost-effective, clean, reliable, and environmentally friendly hydroelectric power as Boardman has one of the lowest costs for electricity in North America.

The hydrogen produced at the Boardman facility is being engineered for its potential application and use in Klean’s modular oil upgrading units. The carbon emissions-free hydrogen produced can be utilized to upgrade recovered fuel oil and pyrolysis oil into highly valuable, drop-in replacement fuel known as e-fuels to produce significantly lower CO2 gasoline and diesel to meet the needs of California’s Low Carbon Fuels Standards.

Additionally, Klean and H2 Core see an opportunity for a number of Klean’s projects to have their own hydrogen-generating plants for producing 100% renewable green hydrogen, which could be used in Klean’s fleet vehicles for the collection and transportation of feedstock and output products. This alone offers a significant environmental advantage to its projects and the communities in which Klean operates, according to the release. This concept is further reinforced by the ability to also integrate fuel cells, engines, and boilers that are powered by green hydrogen to offset energy costs in terms of electrical demand, with the added benefit of also providing both heating and cooling applications in various projects.

Beyond Klean’s internal applications, H2 Core and Klean see increasing market demand for green hydrogen produced by electrolysis. Together through this partnership, Klean plans to work with its project partners in Canada, the United States, and Australia to deploy H2 Core’s fully integrated containerized solutions. By doing so, they aim to unlock hydrogen’s true potential in reducing pollution and climate change by building hydrogen supply solutions and station networks to support the rollout of fuel-cell electric vehicles and decentralized renewable energy plants.

“Partnerships make what we do at H2 Core Systems possible. Enapter, H2 Core Systems, and Klean Industries are aligned in our commitment to both deploying and developing a renewable hydrogen value chain. We believe this partnership is a great first step in what we hope will become a long and successful relationship”, said Ulf Joergensen, CEO H2 Core Systems.

“We believe Enapter’s mass-produced AEM Electrolysers will enable low-cost green hydrogen to be deployed at a massive scale in the shortest amount of time. It is partnerships like this that illustrate the demand and opportunity throughout various industries for green hydrogen worldwide. By combining technologies and applications, this partnership offers integrated solutions that address both climate protection and decentralized energy generation. To make all of this happen, we must act with urgency, opt for simplicity, and insist on transparency and global partnerships.\”, said Sebastian-Justus Schmidt, CEO Enapter GmbH.

“Developing clean energy projects in partnership with leading technology providers such as Enapter and H2Core Systems supports Klean’s strategic focus and enables our companies to create a symbiosis between waste, resources, and energy, while simultaneously creating a circular low carbon economy,” said Jesse Klinkhamer, CEO of Klean Industries Inc.

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Developer inks supply agreement for Kansas CO2 utilization facility

The facility will produce green syngas from CO2 to be used for making products such as hydrogen, synthetic base oils, low-carbon jet fuels, green methanol, and others.

HYCO1, Inc.  announces that it has entered into a 20-year carbon dioxide supply agreement with Kansas Ethanol, located in Lyons, Kansas for the planned construction of the world’s largest biogenic carbon dioxide utilization facility, Green Carbon Synthetics Kansas, LLC.

HYCO1 is a Houston, Texas (USA) based technology company that has created a disruptive CO2 conversion catalyst and related low-cost CO2 process technology. HYCO1 CUBE™ Technology (Carbon Utilization, Best Efficiency) cost-effectively utilizes carbon dioxide and various methane source feedstocks to create low-cost, low-carbon chemical grade syngas in a single pass.

The syngas produced is used to produce low carbon intensity (CI) downstream products.   HYCO1 technology not only lowers the resultant carbon score of the downstream products by 50% to 100% but does so at a competitive cost compared to fossil feedstock derived products and without the requirement of incentives like many other technologies.  HYCO1 technology enables green syngas to be used for making products such as hydrogen, synthetic base oils, low-carbon jet fuels, green methanol, and many others.

The new HYCO1 project to be co-located with Kansas Ethanol will utilize all of their 800 tons per day of CO2 to produce approximately 60 million gallons per year of low-carbon and zero-carbon products.

Kurt Dieker, chief development officer and co-founder of HYCO1, stated, “While there are many paths that an ethanol facility can take to improve sustainability and margins, ranging from additional energy efficiencies to protein separation, in my opinion CO2 utilization represents the leading value-added step for an ethanol production facility.”

The Lyons HYCO1 project is in the engineering stage with plans to complete the pre-construction engineering in 2024. The facility will produce approximately 4,000 barrels per day of first-of-a-kind synthetic Base Lubricating Oils and Low-Carbon Jet Fuel made from CO2. High-performance products include four centistoke base oil for use in the highest grade synthetic motor oils; and a two centistoke base oil currently being tested by EV manufacturers for its ideal battery and drive-train heat transfer and lubrication properties.

The projects’ products are produced with more than 80% reductions in carbon footprints versus traditional fossil-derived products.   Approximately half of the weight of these new sustainable products will consist of biogenic CO2 that would have previously been emitted into the atmosphere.

Mike Chisam, CEO of Kansas Ethanol, said of the project, “Although most ethanol producers are considering or pursuing underground carbon sequestration in our industry to decarbonize, we believe that carbon utilization, which supports a circular carbon economy, represents the best use of our CO2, and positions us more competitively in the market. Value added products made from CO2 that displace fossil derived products represents a win for us at Kansas Ethanol, a win for the U.S. Ethanol Sector, and a win for the global environment. We are looking forward to the construction of the HYCO1-based Green Carbon Synthetics Kansas, LLC facility next to ours. The co-location benefits: carbon dioxide utilization, natural gas offset through waste heat steam production, and additional electricity offsets will position our facility as a world leader of low-carbon ethanol resulting in significant shared savings.” Chisam also noted “HYCO1’s carbon utilization technology enables us to sustainably produce all products, even if, or when, government support incentives are no longer available. That is incredibly important to us.”

HYCO1 is currently evaluating additional project sites and partners to mirror the Green Carbon Synthetics Kansas, LLC project, while also collaborating with downstream technology providers to produce other low-carbon products.

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Low-carbon tech company targeting hydrogen at 35 cents per kilogram

A North Carolina net-zero solutions company has plans to raise capital and is scouting for a location in the US Gulf Coast for its first clean hydrogen production facility.

8 Rivers Capital, the North Carolina net zero solutions company and technology commercialization platform, will need to raise capital and is scouting for a location in the US Gulf Coast for its first clean hydrogen production facility, Chief Technology Officer and Co-founder Bill Brown said on the sidelines of CERAWeek in Houston.

Brown declined to elaborate on the capital raise, but said he is well connected to finance from previous roles he held at Goldman Sachs and Morgan Stanley. The company received a $100m investment from South Korea-based SK Group last March.

8 Rivers has technology for power generation, hydrogen production, gas processing, and direct air capture. Through its involvement with affiliate Net Power, 8 Rivers has developed the Allam-Fetvedt Cycle, a power cycle that uses the oxy-combustion of carbon-based fuels and a high-pressure CO2 fluid in a highly recuperated cycle that captures emissions. Net Power was recently acquired in a SPAC deal with Rice Acquisition Corp. II, which valued the company at $1.459bn.

In hydrogen, 8 Rivers has developed 8RH2, a process to make hydrogen from natural gas that produces lower emissions and higher efficiencies, according to its website.

8 Rivers announced in November that it signed an MoU with Japan-based JX Nippon to evaluate the US Gulf Coast for “commercial-scale deployment of 8 Rivers technologies across ammonia and other net-zero projects, including potential projects using CO2-rich natural gas.”

Hydrogen at 35 cents?

Brown isn’t too concerned with the source, or color, of hydrogen. He’s much more concerned with the price per kilo, and says his goal is to make low or zero-carbon-intensity hydrogen without concern for its provenance.

“If we can get hydrogen at 35 cents, you would never build a new power plant, because you’ve got hydrogen cheap enough to use a traditional hydrogen turbine,” Brown said. “I can make the cheapest hydrogen from methane, or coal for that matter. I can’t make it from electricity without subsidy.”

Hydrogen at 35 cents is USD 3 per MMBtu, making it competitive with gas.

“One-dollar hydrogen, to me, is worthless,” he said. “Let’s face it, right now, we have one-dollar hydrogen in the world, not clean, but we have seen the full demand already.”

“8 Rivers does not want to be the company that says ‘here, take my technology,’” Brown said. “8 Rivers wants to be the company that says ‘come to us and we will give you the cheapest hydrogen and we’re agnostic as to where it came from, but we can tell you it’s green.’”

Target markets include customers that are blending hydrogen, Brown said. With USD 50bn of hydrogen assets already deployed in the US, he’s not concerned about offtake.

“It’s the system,” Brown said. “The system is the offtake.”

For ammonia, island nations in transition, commercial shipping and coal replacement all present large potential markets, Brown said. If ammonia can be produced at USD 100 per ton, it will be more competitive than coal as an export fuel.

But Brown is adamant that hydrogen blending in existing infrastructure presents the best and most immediate use for hydrogen.

“All it takes is offtake,” Brown said. “The easiest thing to do with hydrogen is not converting it to ammonia to ship it overseas with some supply contract, the easiest thing to do is put it in a pipeline.”

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It’s an electrolyzer – but for CO2

A New Jersey-based start-up is seeking to commercialize an electrocatalytic technology that transforms CO2 into a monomer for the plastics industry.

RenewCO2 is developing and seeking to commercialize a modular technology that converts waste CO2 into a usable product.

The New Jersey-based company is advancing a pilot project at an Ace Ethanol plant in Wisconsin that will take CO2 and convert it to monoethylene glycol, which can be used by the plastics industry.

The project was recently selected by the US DOE to receive a $500,000 grant. It seeks to demonstrate the technology’s ability to reduce the ethanol plant’s carbon footprint and produce a carbon-negative chemical.

In an interview, RenewCO2 co-founders Anders Laursen and Karin Calvinho said their technology, which was developed at Rutgers University, is geared toward carbon emitters who can not easily pipe away their CO2 and who may have use for the resulting product.


“It’s a matter of economics,” said Calvinho, who serves as the company’s CTO. Using the RenewCO2 technology, the ethanol plant or other user is able to keep 45Q tax incentives for capturing CO2 while also creating a product that generates an additional revenue stream.

Additionally, the modular design of the technology prevents emitters from having to build expensive pipeline infrastructure for CO2, she added. “We want to help to facilitate the use of the CO2 on site,” she said.

One of the goals of the project is to measure the carbon intensity of these technologies in combination, which ultimately depends on the electricity source for the electrochemical process, similar to an electrolyzer, Laursen, who is the CEO, said.

“The main constraint from a location point of view is the availability of reliable and affordable green power,” Laursen added.

Creating a market

The principal target market for RenewCO2’s technology is existing producers of monoethylene glycol (MEG), which is used to make recycled plastics, as well as ethanol producers and other emitters with purified CO2 streams.

Producers of polyethylene terephthalate (PET) – one of the most recycled plastics globally – are also potential customers since they use MEG in their production process and have CO2 sources on site.

“Right now, MEG produced in the US is, for the most part, not polymerized into PET – it’s shipped overseas for making PET plastics used in textiles, and then made into fibers or shipped further,” Laursen said. “So if you can shorten that transport chain, you can reduce the CO2 emissions associated with the final product.”

RenewCO2 is looking for partners to help build the modular units, and is evaluating the purchase of existing PEM electrolyzer units that can be reconfigured, or having the units custom manufactured.

“We’re talking to potential manufacturing partners and evaluating whether we should do the manufacturing ourselves,” Calvinho said. And if they choose the latter route, she added, “we will have to build our own facilities, but it’s early to say.”

The company has raised a total of $10m in venture investment and grant funding, including a pre-seed round of over $2m from Energy Transition Ventures, a Houston-based venture capital fund.

While not currently fundraising, Laursen said they are always taking calls to get to know the investors that are interested in the space. He added that the company may need to raise additional capital in 12 to 18 months.

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Cutting the electricity out of electrolysis

Milwaukee-based start-up Advanced Ionics is seeking to commercialize an electrolyzer that cuts electricity needs for hydrogen production to as low as 30 kWh per kilogram.

Advanced Ionics is seeking to ramp manufacturing capacity and raise capital as it begins to commercialize an electrolyzer promising to reduce electricity needs, CEO Chad Mason said in an interview.

The Milwaukee-based company is working to demonstrate its low-cost electrolyzer technology through a partnership with the Repsol Foundation.

The technology will be tested locally, but could grow to include additional tests and, eventually, a commercial relationship with the Spain-based energy and petrochemical company.

Advanced Ionics is looking to move into a larger facility in Milwaukee to advance early-stage production of the electrolyzer, which uses steam from process and waste heat to reduce the amount of electricity required in electrolysis.

The company last year raised $4.2m in a seed round led by Clean Energy Ventures, with participation from SWAN Impact Network. It has also received financial support from Repsol and $500,000 from the DOE.

As it scales, Mason said, the company will also need to raise additional capital, but he declined further comment.

Going to market

The Repsol arrangement is part of the company’s early access program allowing potential end users to take a first look at the technology.

“Repsol is just the tip of the iceberg here,” Mason said. “We’re talking to some really amazing partners at some of the largest energy companies in the world. People who use hydrogen today and want to make it green immediately understand what we’re doing.”

Given the concentration of hydrogen use in petrochemicals and ammonia, Advanced Ionics is targeting these sectors for deployment of its electrolyzers to produce clean hydrogen, Mason added.

Mason noted that, as the traditional petrochemical industry dies off over time, it will be replaced by green materials and green fuels like sustainable aviation fuel and biofuels that require hydrogenation to be useable.

“You’ll see a bit of a replacement happening on the petrochemical side, towards a green chemical,” he said, adding that a third potential key market is green steel production using hydrogen.

Thermodynamically favored

The company’s Symbiotic electrolyzers use steam by tapping into excess heat from industrial settings, thereby lowering electricity needs for water splitting to 35 kWh per kg, with 30 kWh per kg possible. That compares to industry averages over 50 kWh per kg.

Advanced Ionics’ water vapor electrolyzer

“We set out to build an electrolyzer specifically that would operate at intermediate temperatures,” he said. “And that allows you to have the synergy with those processes, and the downstream effect is the most cost-effective hydrogen you can get.”

The resulting hydrogen could be available for less than $1 per kg – but, Mason notes, the underlying power price math assumes an abundance of cheap, clean power. The models are usually pricing in two cents per kWh, the availability of which, Mason added, is “extremely geographically dependent.”

“If you’re in Texas, you have a system with wind, solar, and some amount of clean energy grid back-up, it’s pretty attractive,” he said. “Or if you hook up to a hydroelectric facility in the Northwest or in the Quebec area.”

Mason added, “Electrolysis rides on the coattails of cheap, clean electricity. What we have under our control is to make sure we’re using as little electricity as possible.”

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