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Downstream hydrogen firm adds Chevron to investor group

Hydrogen distribution and fueling business OneH2 has closed an investment round led by Chevron and existing investors Trafigura and The Papé Group.

Hydrogen distribution and fueling business OneH2 has closed its latest funding round with investments led by Chevron U.S.A. Inc. and current investors Trafigura and The Papé Group, according to a news release.

Terms of the transactions were not disclosed.

Funds from the round will be used to help accelerate the development and deployment of mid-scale hydrogen generators and fuel distribution solutions, which will enable OneH2 and its channel partners provide lower carbon solutions to its customers.

“We welcome Chevron’s investment and eagerly anticipate collaborating with one of the world’s largest vertically integrated energy companies,” said Paul Dawson, OneH2’s president and CEO. “The OneH2 team deeply appreciates the steadfast support from our existing investors as we continue to invest in hydrogen infrastructure across the United States. Each of our investors will play a pivotal role in shaping the trajectory of OneH2 and contributing to the advancement of the broader hydrogen industry.”

Chevron’s decision to lead the round demonstrates its ongoing commitment to exploring diverse energy sources and technologies. By investing in OneH2, Chevron aims to play a key role in driving hydrogen as a viable, pragmatic and economical energy source.

“At Chevron, we believe affordable, reliable and ever-cleaner energy is essential to enabling human progress, and we believe the use of lower carbon intensity hydrogen as a fuel source can help reduce emissions,” said Nuray Elci, Chevron’s general manager of Renewables. “We are excited to work with the team at OneH2 and other partners to help build the fueling infrastructure for hydrogen vehicles, moving this technology forward.”

Additional investment by Trafigura and The Papé Group represent their continued confidence in OneH2’s strategic direction and their commitment to bringing practical, hydrogen fueling technology to the market.

“This is our third equity investment in OneH2, showing our support for the progress that they’re making and scalability of their business, we are encouraged about the growth inflection point OneH2 is reaching and what it means for hydrogen adoption in the US,” said Julien Rolland, Head of Renewables and Strategic Investments for Trafigura.

Jordan Papé, president and CEO of The Papé Group, added, “Papé provides solutions that maximize our customers’ uptime while staying abreast of regulatory trends in the lower carbon energy sector. Our investment in OneH2 will allow us to continue to provide solutions for our customers both today and into the future.”

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GE Gas and Svante to develop carbon capture technology for gas power applications

The companies will develop and evaluate carbon capture technology for natural gas power applications.

GE Gas Power, part of GE Vernova and Svante announced a joint development agreement (JDA) to develop and evaluate solid sorbent-based carbon capture technology for natural gas power generation applications, according to a news release.

In addition, GE has made an equity investment in Svante as a part of Svante’s $318-million Series E fundraising round in December 2022.

In 2022, GE announced that GE Vernova would spin off from GE in 2024 as a business purpose-built to lead the energy transition. This builds on GE’s sustainability commitments and position in the energy industry, where GE technology provides approximately 30% of the world’s electricity. GE is developing and commercializing a number of breakthrough technologies to drive the energy transition including carbon capture through industrial and technology research collaborations, including the agreement with and investment in Svante.

“The climate crisis and our world require immediate and sustained action and investment into crucial technologies like carbon capture which can deliver meaningful reductions in emissions and play a key role in the energy transition,” said Scott Strazik, CEO of GE Vernova. “We are excited to work with a technology innovator like Svante to drive collective progress on developing carbon capture solutions for the energy industry aiming to deliver more sustainable, affordable, and reliable electricity for more people.”

“We are pleased to welcome GE both as a strategic commercial collaborator and an investor in Svante, alongside our other strategic value chain partners and investors,” said Claude Letourneau, Svante’s president and CEO. “GE’s 130+ years of experience in energy applications will be invaluable to us as we rapidly scale our operations and manufacturing capacity to be able to capture millions of tonnes of CO2 from diverse industrial sites around the world.”

Svante’s novel carbon capture filters are made by coating solid adsorbents, including metal-organic frameworks (MOFs), onto thin sheets of laminate that are stacked to become the company’s nano-engineered filters. These filters can be used in multiple applications for capturing CO2 at refineries, cement, steel, aluminum, lime, boilers, pulp & paper, and more. The technology can be used for point-source post-combustion carbon capture in which the filters take CO2 out of industrial flue gas (the source of the emission) and prevent it from reaching the atmosphere. Because of the wide array of industries the company serves, Letourneau says Svante’s technology can be applied to 85% of the total carbon capture and removal segment.

The JDA between GE Gas Power and Svante will focus on further development and commercialization of novel solid sorbent technologies “aimed at decarbonizing natural gas-fired turbines in a cost-effective, environmentally responsible manner,” said Letourneau. “We are excited about the potential we have to open up an entirely new array of opportunities, aiming to provide carbon-free electricity in the future through the deployment of projects across gas-fired power generation facilities.”

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BayoTech appoints new CFO

BayoTech has appointed Jeff Wood as its new CFO.

BayoTech, a provider of hydrogen production and transportation solutions, has appointed Jeff Wood as its new chief financial officer (CFO).

With a wealth of experience spanning 25 years in the energy value chain, Jeff is a highly skilled finance executive who brings to the role vast expertise in strategic planning, financial analysis, and capital raising, according to a news release.

Jeff has served as CFO for three public companies over a decade, including his most recent role as President and CFO of Black Stone Minerals, the largest publicly traded mineral and royalty company in the US. Prior to that, Jeff was the SVP and CFO of Eagle Rock Energy Partners until its acquisition, and served as a private company CFO for Siluria Technologies, a technology company that produces fuels and chemicals from natural gas.

Earlier in his career, Jeff was SVP and Portfolio Manager for Lehman Brothers Investment Management division, where he managed over a billion dollars and raised over $400m in capital. Before that, he was in Lehman Brothers’ Investment Banking division, where he led the execution of numerous initial public offerings, follow-on equity offerings, and debt issuances. Jeff started his career with PricewaterhouseCoopers in the audit and compliance advisory practice.

“I’m delighted to welcome Jeff Wood into BayoTech’s executive leadership team,” said BayoTech President and CEO Mo Vargas. “Jeff is an experienced leader in the energy sector who will bring strategic depth and strong oversite to BayoTech as the organization fully commercializes the deployment of BayoTech Hydrogen Hubs. He is a fantastic leader and person and will be a great cultural fit for BayoTech.”

“I am excited to be part of such a dynamic and innovative company,” Jeff Wood adds. “As the market for hydrogen expands, investor interest in hydrogen-related projects is rapidly increasing. I look forward to working with the team to drive growth and create value for BayoTech’s stakeholders.”

BayoTech’s current CFO, Wendy Rollstin, is retiring but will remain available until year-end to ensure a smooth transition. During her five-year tenure as CFO, Wendy was instrumental in shaping BayoTech’s go-to-market strategy, building scale, and accelerating growth by securing more than $160m in equity investments.

“I want to thank Wendy for her dedication to BayoTech as not only CFO but a great business partner who leaves a strong impact on the company,” said Mo Vargas. “On a personal note, she’s been a trusted adviser to the Board and me; we will miss her partnership and wish her all the best in what will be an exciting and active retirement.”

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Mining giant Vale partners with Wabtec on alternative fuels study

The deal includes an order for three of Wabtec’s FLXdrive battery locomotives and a collaboration to test ammonia as a potential clean, alternative fuel to replace diesel.

Vale has agreed a partnership with Wabtec Corporation to advance the decarbonization of the company’s rail operations.

The deal includes an order for three of Wabtec’s FLXdrive battery locomotives and a collaboration to test ammonia as a potential clean, alternative fuel to replace diesel.

The three 100% battery powered FLXdrive locomotives will be used on the Carajás Railroad (EFC), which runs the world’s largest iron ore train consisting of 330 railcars transporting 45,000 tons. Today, three to four diesel locomotives pull the train. Once delivered, the FLXdrives will join the diesel locomotives to form Brazil’s first hybrid consist pulling the train uphill for 140 kilometers in Açailândia, in the state of Maranhão, where fuel consumption is the highest. The FLXdrives will replace the two diesel locomotives, known as “dynamic helpers”, that are used to pull the train uphill today.

Wabtec will build the FLXdrive locomotives at its plant in Contagem (state of Minas Gerais). The locomotives’ delivery is forecast for 2026.

“Initially, we are maximizing energy efficiency, replacing the diesel locomotives in the dynamic helper with battery ones, but the idea is that, in the future, the other locomotives on the train can be fueled by ammonia. This way, we would have a clean operation at EFC,” explains Vale’s Director of Energy, Ludmila Nascimento. “This agreement is the first of many that we are seeking in order to accelerate the decarbonization of our railway operation,” she adds.

Vale and Wabtec will work together on a study to use ammonia as a clean alternative fuel, which does not emit CO2. The study will initially be carried out as lab tests to validate performance, emission reductions, and feasibility. Among the advantages of ammonia is the fact that it allows the locomotive a longer range than other carbon-free fuels. In addition, ammonia has a high-octane rating and an established large-scale distribution infrastructure. The two companies will carry out the study in a laboratory over the next two years.

The FLXdrive locomotive’s energy management system recharges the batteries along the route as the train brakes. “It’s what we call regenerative energy produced by dynamic braking. Today, that energy is lost when a traditional locomotive brakes. In the downhill sections, we will be able to recharge the batteries, without having to stop the train’s operation,” said Alexandre Silva, manager of Vale’s Powershift Program. Vale introduced the Powershift Program to study alternative technologies to replace fossil fuels with clean sources in the company’s operations.

The FLXdrive locomotives are estimated to save 25 million litres of diesel per year, considering the consumption of all the railway’s trains that use the dynamic helper. This savings would reduce carbon emissions by approximately 63,000 tons, the equivalent emissions of around 14,000 passenger cars per year.

“Technological advances in battery power and alternative fuels are accelerating the decarbonization journey for railroads,” said Danilo Miyasato, president and general manager of Wabtec for Latin America. “Vale’s innovative approach to adopting alternative fuels for its locomotives will benefit its customers, shareholders, and communities. The FLXdrive provides Vale productivity, safety, fuel economy, and emission reductions for its rail network.”

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Brookfield-owned renewables developer planning hydrogen co-location

An IPP and developer of wind, solar and storage projects is in early discussions with potential partners to co-locate electrolysis with its operating assets and projects in development.

Scout Clean Energy, the Boulder, Colorado-based IPP and renewables developer, is laying the groundwork to co-locate electrolysis for green hydrogen with its wind and solar assets, CEO Michael Rucker said in an interview.

The company’s Power2X team is charged with looking for alternative strategies, Rucker said.

“We are actively trying to match project opportunities with the future hydrogen economy,” he said, noting that the company’s operating wind portfolio provides a crucial piece of that. “Wind is an especially good fit for hydrogen production just in terms of pricing.”

Scout, which is owned by Brookfield Renewable, sees itself as producing green electrons and doesn’t want to get into marketing and distribution of hydrogen, Rucker said.

Brookfield acquired Scout in 2022 for $1bn, with the potential to invest an additional $350m to support development activities.

Scout has its first solar project in development in ERCOT, a market where shipping of hydrogen would make for a promising project, Rucker said. The company has also looked at the Midwest, where a robust SAF production ecosystem is forming, as well as the Pacific Northwest.

The company is already working with one hydrogen developer to match production to one of its wind farms, Rucker said. An exact location has not been selected.

Pricing diligence has been promising, Rucker said. But the offtake market in the US remains slow to develop despite regulatory encouragement.

“The IRA has given us maybe the most subsidized hydrogen production market in the world but it’s really being production-driven not demand-driven, so we really need to see more of the economy using hydrogen,” Rucker said. “I trust that will come, it’s just going to take longer than we think.”

Scout is not ready to take anything to market related to hydrogen, but ultimately there will be a need for financial advisory, Rucker said.
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Exclusive: Ambient Fuels options land in Texas

Ambient Fuels recently entered into an option agreement to purchase land in Texas. Among only a handful of green hydrogen developers to attract equity capital last year — from Generate Capital — Ambient has not yet made public announcements about its projects or locations. 

Ambient Fuels, a green hydrogen developer backed by Generate Capital, recently signed a 24-month option to purchase a plot of land in Chambers County, Texas, according to filings made with the clerk there.

A memorandum outlines the option to purchase land in Mont Belvieu, to the east of Houston. The agreement is effective as of October 2, according to the filing.

Ambient declined to comment.

According to the ReSource project tracker, Ambient has been involved in three Gulf Coast hydrogen hub efforts: The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) hub; the Port of Corpus Christi Green Hydrogen Hub; and the Horizons Clean Hydrogen Hub (HCH2). ARCHES was selected for DOE funding.

ReSource reported in June that Ambient Fuels had begun to evaluate potential acquisitions of hydrogen projects that are under development.

In May, 2023, Generate Capital, a sustainable infrastructure investment and operating company, made an investment into Ambient, including a commitment to fund up to $250m of green hydrogen infrastructure.

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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.

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