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Electric Hydrogen to build electrolyzer gigafactory in Massachusetts

The VC-backed company plans to build a 1.2 GW factory, where it will produce its "world's most powerful" 100 MW electrolyzer offering.

Electric Hydrogen Co., a manufacturer of advanced, industrial-scale hydrogen electrolyzer technology, announced the location of its first factory in Devens, Massachusetts.

The company has leased a newly constructed 187,000 ft2 facility and is now hiring production team members. The Devens factory will have an annual manufacturing capacity of 1.2 GW with production of EH2’s 100 MW green hydrogen electrolyzers commencing in Q1 2024.

“Our company has a single purpose: to make molecules to decarbonize our world,” stated David Eaglesham, EH2’s CTO and co-founder. “Industrial sectors such as fertilizer and steel need new ways to reliably replace fossil resources at costs that work. The machines we will produce at our new factory in Devens will have a transformational impact by enabling ultra-low-cost green hydrogen at an industrial scale.”

Green hydrogen, made by breaking the chemical bonds of water using renewable electricity, is a growth industry that can make an immediate impact on the global climate crisis. Electric Hydrogen expects its technology to establish the standard for industry-wide cost reduction to make green hydrogen cheaper than fossil alternatives.

“There are a lot of factory announcements in our industry, but not a lot of real capacity being built,” said Raffi Garabedian, EH2’s Chief Executive Officer and Co-founder. “We have a backlog of customer orders to fulfill and are moving quickly to build and ship the world’s most powerful electrolyzers.”

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FuelCell Energy closes tax equity financings

In a first-of-a-kind transaction, FuelCell Energy will sell to a pair of investors the hydrogen PTCs generated over a 10-year period from a fuel cell “Tri-gen” system in California.

FuelCell Energy, Inc. has closed on transactions with Franklin Park and Group 1001 Insurance Holdings for two of its clean energy projects—the Tri-gen platform in Long Beach, California, and the new fuel cell park in Derby, Connecticut, according to a news release.

These two transactions include one of the first direct transfer agreements that monetizes both the Investment Tax Credits (ITCs) and Hydrogen Production Tax Credits (H2 PTCs) enabled by the Inflation Reduction Act of 2022 and include a tax credit direct transfer agreement and a tax equity partnership totaling net proceeds of $34.2m. These give FuelCell Energy the financial flexibility to further refine its clean energy technology and to participate in clean energy collaborations and transition projects around the world.

“We are at a critical point on the path towards an energy transition, and it is particularly important to leverage these projects’ long-term, recurring cash flow through tax equity investments from firms like Franklin Park and Group 1001. This allows us to maintain a steady pace of investment in innovation and commercialization efforts and signals that our sustainable clean energy solutions are attracting strong interest from the market,’’ said FuelCell Energy’s President and CEO Jason Few.

Long Beach, California

FuelCell Energy and Toyota Motor North America, Inc. recently announced the completion of the first-of-its-kind “Tri-gen system” at Toyota’s Port of Long Beach operations. The Tri-gen system, owned and operated by FuelCell Energy, produces renewable electricity, renewable hydrogen, and water from directed biogas. FuelCell Energy contracted with Toyota to supply the products of Tri-gen under a 20-year purchase agreement. Tri-gen enables Toyota Long Beach to be the company’s first port vehicle processing facility in the world powered by onsite-generated, 100 percent renewable energy.

1. Tri-gen produces a net 2.3-megawatts of renewable electricity for delivery, part of which will support the Toyota Logistics Services (TLS) Long Beach operations at the port, which processes approximately 200,000 new Toyota and Lexus vehicles annually.

2. The FuelCell Energy Tri-gen system can also produce up to 1,270 kg/day of hydrogen which will provide for TLS Long Beach’s fueling needs for its incoming light-duty passenger fuel cell electric vehicle (FCEV) Mirai, while also supplying hydrogen to the on-site heavy-duty hydrogen refueling station to support TLS logistics, drayage operations, and other heavy-duty FCEV commercial vehicles at the port.

3. Tri-gen’s hydrogen production process can co-produce up to 1,400 gallons of water per day which will be used by TLS Long Beach for car wash operations for vehicles that come into port before customer delivery. This will help decrease the use of constrained local water supplies by up to as much as half a million gallons per year.

Group 1001 and Franklin Park purchased the ITCs from a FuelCell Energy subsidiary that owns Tri-gen, which yielded approximately $6.3 million of net proceeds to FuelCell Energy received by the company in October 2023. In addition, in a first-of-a-kind transaction under the agreement, FuelCell Energy will also sell to the investors the H2 PTCs generated over a 10-year period.

Derby, Connecticut

FuelCell Energy is also completing commissioning of two projects in Derby, Connecticut, for which Franklin Park is providing tax equity financing: a 14-megawatt baseload fuel cell project, which consists of 10 fuel cells, and a 2.8-megawatt baseload fuel cell project, which consists of two fuel cells. The two Derby fuel cell parks serve to fill some of the power generation gap impacting the state.

While fuel cells serve a variety of functions, such as creating hydrogen or capturing carbon, in Derby they are being used to deliver competitively priced, Class I Renewable Energy as part of 20-year power purchase agreements with Eversource and United Illuminating. In Connecticut, a Class I renewable energy source is defined by statute as electricity produced from wind power, geothermal power, or fuel cells.

  • The 14-megawatt baseload fuel cell project supplies power to thousands of customers of Eversource and United Illuminating. It is the second largest fuel cell park in North America following only FuelCell Energy’s Bridgeport, Connecticut, park. The location in Derby was selected by the state, which held a competitive bidding process as part of its efforts to foster distributed utility scale power to enhance energy reliability and grid resilience.
  • The 2.8-megawatt baseload fuel cell project was competitively awarded to FuelCell Energy by Eversource under the Shared Clean Energy Facility program in Connecticut.

Group 1001 and Franklin Park’s tax equity financing commitments for these projects will result in approximately $27.9 million of net proceeds to FuelCell Energy of which approximately $7.3 million of net proceeds were received by the company in October 2023 with the balance expected in the first fiscal quarter of 2024.

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Enedym and Toyota converting diesel tuggers

Enedym and Toyota Tsusho Canada have formed a strategic partnership to convert diesel tuggers to battery or hydrogen power.

Enedym and Toyota Tsusho Canada have formed a strategic partnership to convert diesel tuggers to battery or hydrogen power, according to a press release.

Enedym will design and develop SRMs and inverters with rated nominal power of approximately 45kW for use in North America and Japan. The magnet-free electric motors will convert small commercial vehicles, or tuggers, commonly used at airports and manufacturing plants, from diesel fuel to battery or hydrogen power.

The collaboration’s first output, an electric-powered commercial tugger, will be piloted at one of Toyota Tsusho’s affiliates located at one of Toyota Motor’s North American manufacturing plants in 2023.

Enedym’s innovative SRM motor technologies remove the need for rare earth metals, thereby reducing costs by approximately 40%.

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Stonepeak acquires 50% stake in Virginia offshore wind farm

The infrastructure fund will acquire a 50% stake in Dominion’s Coastal Virginia Offshore Wind project for $3bn.

Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, today announced that it has reached an agreement with Dominion Energy to acquire a 50% interest in its Coastal Virginia Offshore Wind project through the formation of an offshore wind partnership.

The project is expected to be the largest offshore wind farm in the U.S. and one of the largest offshore wind farms globally upon completion.

CVOW is a 2.6 GW offshore wind project 27 miles off the coast of Virginia Beach, Virginia capable of serving the power needs of 660,000 homes.

Dominion Energy began developing CVOW in 2013 and is scheduled to begin offshore construction this spring. Construction is expected to be completed by year-end 2026. When fully constructed, each year CVOW will avoid carbon emissions equivalent to removing 1 million cars from the road, and will play an important role in supporting energy security and reliability, and lowering fuel costs by diversifying Dominion Energy customers’ energy supply.

Under the terms of the agreement, at closing Dominion Energy expects to receive proceeds of approximately $3bn, representing 50% of the CVOW construction costs incurred through closing less $145m (the initial withholding), Dominion said in a separate press release.

If the final construction costs of CVOW are $9.8bn or less, excluding financing costs, Dominion Energy will receive $100 million of the initial withholding. Such amount is subject to downward adjustment with Dominion Energy receiving no withheld amounts if the total costs, excluding financing costs, of CVOW exceed $11.3 billion. The transaction is expected to improve the company’s estimated 2024 consolidated FFO-to-debt by approximately 1.0% and reduce the company’s overall financing needs during construction.

Following closing, Dominion Energy and Stonepeak will each contribute 50% of the remaining capital necessary to fund construction of CVOW, provided the total project cost, excluding financing costs, is less than $11.3 billion (mandatory capital contributions). This represents 50/50 cost-sharing up to 15%, or nearly $1.5 billion, higher than the project’s current project budget ($9.8 billion) and up to 20%, or nearly $2.0 billion, higher than the project’s current pre-contingency budget ($9.45 billion).

“Having previously partnered with Dominion Energy, we look forward to extending our relationship through CVOW, which is a fitting addition to our global renewables strategy given its potential to provide meaningful renewable capacity to the U.S., advanced stage of development, and downside-protected fundamentals,” said Rob Kupchak, Senior Managing Director at Stonepeak. “Dominion Energy’s impressive track record building and operating large-scale infrastructure projects paired with Stonepeak’s experience successfully constructing offshore wind assets gives us confidence in CVOW’s path forward, and we are excited to partner with Dominion in delivering this critical renewable energy generation resource to its customers.”

Dominion Energy will continue to oversee CVOW’s day-to-day operations and construction at close, supported by Stonepeak’s expertise in investing in and delivering large and complex renewables and energy infrastructure projects including offshore wind. The transaction is subject to customary and regulatory approvals and is expected to be completed by the end of 2024.

Vinson & Elkins LLP served as legal advisor to Stonepeak. Mizuho Securities USA, through its affiliate Greenhill & Co., and Santander US Capital Markets LLC served as co-financial advisors.

McGuireWoods LLP and Morgan Lewis served as legal advisors to Dominion. Citi and Goldman Sachs & Co. LLC acted as sellside co-financial advisors for the transaction.

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US salt cavern developer selling hydrogen storage project

A US-based developer of salt cavern projects for hydrogen storage has retained a financial advisor to sell its first project and is informally seeking an equity investor.

Phoenix Hydrogen, a salt cavern storage developer based in Berkeley, California, has hired a financial advisor to run a sale of its primary project in Arizona, according to two sources familiar with the matter.

Scotiabank is leading the process, which will launch next week, the sources said. The sale is for 100% of the company’s first project near Kingman, Arizona. The project is expected to reach FID in the next 18 months.

Phoenix CEO Shawn Drost said in an interview that the company is informally seeking a platform equity investment as well but is only willing to take on a minority partner. An equity sale would need to raise an amount in the “low-tens” of millions, he said. It’s a difficult proposition, as equity providers in the space tend to demand majority positions.

The company wants to bankroll projects from beginning to end as an owner operator, he said, but requires capital to do so.

Phoenix, a six-person team, has a relationship with GHD Group for EPC, he said. The company is seeking relationships with production-side developers to sign site and storage leases.

Scotiabank did not respond to requests for comment.

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Gas-fired peaker sale touts hydrogen blend potential

An equity process for 25% ownership of a California peaker plant includes plans to blend up to 30% hydrogen as part of the sales pitch, according to a teaser.

An opportunity to acquire 25% of the Sentinel Energy Center in California includes decarbonization initiatives like blending 30% hydrogen and installation of on-site battery storage, according to two sources familiar with the matter.

Project Oasis is being run by CIBC, the sources said. Voltage Finance, an entity managed by Guggenheim Partners Investment Management, is exploring the sale of its 25% indirect equity interest in the 850 MW generating facility in Riverside County.

The facility has more than 75% of its capacity contracted through 2027, according to a teaser seen by ReSource. The potential to execute a long-term green hydrogen offtake contract on several of Sentinel’s turbines is being evaluated.

“Sentinel is pursuing the implementation of hydrogen blending capabilities and has advanced the engineering and design through an agreement with a global OEM with beta testing expected in Q1 2025,” the document states.

Sentinel is also co-located with 15 MW of battery storage.

Guggenheim and CIBC did not respond to requests for comment.

Diamond Generating holds a 50% stake in Sentinel. The remaining 25% interest is owned by California-based fund manager Climate Adaptive Infrastructure (CAI), which bought its stake from Partners Group last year.

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Hydrogen technology firm hires advisor for capital raise

A firm with a technology to produce green hydrogen from sunlight without electrolysis is prepping a capital raise.

BoMax Hydrogen, a Florida-based hydrogen technology firm, is preparing to launch a capital raise later this month, according to two sources familiar with the matter.

Boutique advisory firm Taylor DeJongh has been retained to run the process, the sources said. Teasers will likely go out in two weeks.

BoMax is seeking to raise around $15m in a Series A round, the sources added.

The company touts e a novel technology making hydrogen from visible light without the need for solar electrolysis, according to a pre-teaser marketing document seen by ReSource. An alpha prototype has been awarded by the US Department of Energy.

The technology, which does not require rare earth minerals, produces hydrogen at point of need and has been reviewed by scientists at Utah State University.

To date the company has raised about $5m, one of the sources said. That came mostly from friends and family and one Japanese investor.

Funds from the Series A will be used to make a beta prototype, scale operations at the company’s labs in Orlando and prepare for commercial production.

BoMax and Taylor DeJonghe did not respond to requests for comment.

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