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EverWind in capital raise for Nova Scotia wind-to-hydrogen complex

EverWind Fuels is soliciting investor bids for a $1bn initial phase of its Point Tupper renewables and hydrogen/ammonia production facility in Atlantic Canada.

EverWind Fuels, the Canada-based renewable fuels developer, is preparing to launch a process to raise an estimated $800m in debt for its Point Tupper ammonia production and export facility near Halifax, according to two sources familiar with the matter.

Citi and CIBC are mandated on the raise.

The company is seeking capital from a variety of investors, one of the sources said. The raise will likely conclude around the middle of the year with Citi stepping up for part of the debt quantum.

EverWind is also in talks with Canadian Infrastructure Bank, one of the sources said.

EverWind, Citi, CIBC and CIB did not respond to requests for comment.

Nova Scotia’s Minister of Environment and Climate Change recently approved the Point Tupper Green Hydrogen/Ammonia Project – Phase 1. Construction should begin this year on phase 1 of the project, consisting of a 300 MW electrolysis plant along with a 600 tonnes-per-day ammonia production facility. The project also involves construction of a liquid ammonia pipeline to a jetty for international shipping and a 230 kW substation that will bring in electricity.

Government support for the project is leading to offtake agreements needed to build out a hydrogen supply chain at scale, a third source said. The project is nearing a $200m offtake agreement for green hydrogen with a large global manufacturer, this source added.

The German groups E.ON and Uniper said in August that they aim to buy up to 500,000 tonnes per year of ammonia each from EverWind, starting in 2025, when the project is set to begin production.

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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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Gevo: equity investors for SAF plant standing by

Gevo executives said equity investors are standing by to finance its proposed alcohol-to-jet facility in Preston, South Dakota, pending finalization of a loan guarantee from the Department of Energy.

Equity investors are standing by for Gevo’s Net-Zero 1 alcohol-to-jet fuel facility to reach terms on a DOE loan guarantee that would help finance construction of the plant in Preston, South Dakota.

Colorado-base Gevo is working with the DOE and independent experts to structure the guarantee, and once terms are finalized, the company will “ramp up the third-party equity capital raise and work towards a close of funding necessary to finance the project construction budget and all the project finance elements such as interest during construction, various reserves, and transaction costs,” Gevo CEO Patrick Gruber said on an earnings call last week.

“Equity investors are standing by for a clear line of sight to the debt terms, which is underway and will be announced when the DOE term sheet is agreed,” he said.

Gruber said the company plans to spend between $125m and $175m of additional capital to reach FID on the project, in addition to over $100m already spent. He added that the capital from Gevo will be reimbursable upon FID, but that the company would likely reinvest that money to take a big chunk of the equity in the project.

Gevo expects that Net-Zero 1 would have the capability to produce approximately 60 million gallons per year (MGPY) of liquid hydrocarbons in the form of jet fuel and renewable gasoline, using corn as feedstock. It plans to use green hydrogen produced onsite as well as CCS that flows out through the proposed Summit Carbon Solutions CO2 pipeline. Executives at the company have previously said the Net-Zeto 1 project would not work if the Summit pipeline is not built.

The company is partnered with Zero6, a Minneapolis-based renewables developer, which in February 2024 launched a process to raise $340m in project capital for its portion of the project: 20 MW of green hydrogen production adjacent to Net-Zero 1 powered by a 99 MW wind farm located 10 miles from the SAF site.

Gruber, citing a report from McKinsey, emphasized that the alcohol-to-jet pathway is the cheapest form of carbon abatement, at about $450 per ton of carbon abated, compared to the next-cheapest HEFA process fuels at between $600 – $700 per ton (all before federal and state incentives).

Publicly listed Gevo in February received notice it was not in compliance with NASDAQ listing requirements as its stock price has remained below $1 for 30 consecutive business days.

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HSB joining Green Hydrogen and Technology Alliance

The engineering and technical risk insurer will focus on inspection test plans and storage and transportation solutions.

HSB has joined the Clean Energy Holdings Renewable Energy and Technology Alliance Platform, according to a press release.

The engineering and technical risk insurer, based in Hartford, Connecticut, has been a member of Munich Re’s Risk Solutions family since 2009. Its role in the group will be to focus on inspection test plans and storage and transportation solutions.

The Alliance comprises Clean Energy Holdings (with ING Americas as financial advisor), Bair Energy, Chart Industries, Equix, RockeTruck, Coast 2 Coast Logistics, and The Eastman Group.

“As the largest Authorized Inspection Agency (AIA) accredited by the American Society of Mechanical Engineers (ASME), HSB’s contribution to the Renewable Energy and Technology Alliance will focus on defining safe plans for this clean energy emerging industry,” the release states.

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Exclusive: Waste-to-fuels developer preparing capital raise

A waste-to-fuels developer has lined up an advisor and is planning a capital raise for a project in West Texas, in what is expected to be the first of up to 20 similar fundraising efforts totaling $500m in external capital needs.

Recover, Inc., a Calgary-based waste-to-fuels project developer, is preparing to launch a capital raise for its first US-based projects in West Texas.

The company has lined up CIBC to assist with the capital raise while a large Canadian Crown Corporation is expected to sign on as a lending partner for the debt portion of the cap stack, CFO Shane Kozak said in an interview.

Kozak said he will need to raise $70m – $75m for the West Texas project, which will process waste from oil and gas drilling fluids and recover 800 barrels per day of low carbon intensity diesel fuel from 800 tons of waste.

Existing equity backers Azimuth Capital and BDC will participate in the capital raise, but the company is seeking additional project equity investors to take part in a 60% debt to 40% equity capital structure, Kozak said.

While the cost of the West Texas project is estimated at $55m, the company needs to raise approximately $70m to account for debt servicing and underwriting fees, he added.

Recover has mapped out a strategy to build 20 projects in oil and gas basins across the US, and estimates it will need to raise $500m in external capital over 10 years to fully develop those projects.

Project model

The company already operates a similar facility in Alberta that became operational in 2018, at a cost of CAD 20m and producing about half of what the West Texas project will produce.

“This has been commercially proven in Canada, and we’re going to a better market with a lot more drilling waste production” in the US, Kozak said.

The waste stream from oil and gas drilling contains large amounts of diesel fuel: a typical well will create 400 – 500 tons of waste, 30%-40% of which is recoverable low carbon intensity diesel, Kozak said.

In Texas, the drilling fluid waste often ends up in pits near drilling rigs or in industrial landfills, where it biodegrades over time and emits CO2 and methane into the atmosphere.

“We significantly reduce GHG emissions and create a fuel source that can be reused, and every barrel that we recover is a barrel of fuel that would otherwise have to come from a fossil fuel source,” he said.

Recent changes to Texas policy regarding oil and gas drilling waste could increase the availability of feedstock for the company. The Texas RailRoad Commission, which oversees the state’s oil and gas industry, is seeking to modernize disposal practices that would redirect waste from drilling pits to more centralized industrial landfills.

“The good thing for us is that, in the Permian Basin, about 70% – 80% of the wells use these pits, and our strategy is to build our facility directly on industrial landfills,” Kozak said.

Recover is working with a large landfill management company with operations across the US to develop its facilities, he added. The company does not pay for feedstock, given the synergistic relationship between Recover and the landfill management company.

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exclusive

Green ammonia provider looking to US for growth

A European green ammonia solutions provider is considering a number of strategies to grow in the US, including capital raising, strategic partnerships and a spinoff.

Proton Ventures, a provider of small-scale green ammonia solutions based in Holland, is considering several possibilities for growing its presence in the US, founder Hans Vrijenhoef said on the sidelines of the World Hydrogen Summit in Rotterdam.

Vrijenhoef, who also serves as president of the Ammonia Energy Association, founded Proton Ventures in 2000 after speaking to John Holbrook, an early proponent of ammonia as a fuel and a founder of the AEA.

Today Vrijenhoef is a minority shareholder owning one-third of the company, he said. The majority shareholder is Kees Koolen, the former CEO of Booking.com and a founding partner of EQT Ventures.

In the US the firm’s concept is to deploy its technology – small scale ammonia production – at wind farms in Midwestern states like Iowa, Kansas and the Dakotas to make fertilizer for regional farms and replace grey hydrogen in US agribusiness.

The company’s technology has also been deployed to convert flare gas at shale oil production sites in Saskatchewan into ammonia, Vrijenhoef said, adding that any energy source is applicable.

“We are in a position to deploy multiple hundreds of units in the US,” he said. “We need liquidity to do projects. We need a shareholder to come in.”

The company may have a need for a US-based M&A advisor, Vrijenhoef said. Multiple capital strategies, including a spinoff of the North American subsidiaries, are possible.

The technology is proven through a pilot project in Morocco, which has reached FID, he said. Modular ammonia units can produce between 1,000 and 20,000 tonnes, with the option to put multiple units at one site.

The company partly contracts its manufacturing in The Netherlands but could find new partnerships in the US, Vrijenhoef said. He highlighted an existing relationship with Northwest Mechanical in Davenport,Iowa.

The US subsidiary of Proton Ventures is an LLC based in Cheyenne, Wyoming, Vrijenhoef said. A Calgary-based subsidiary is called NFuelTechnologies.

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exclusive

TC Energy executive talks hydrogen strategy

Canadian midstream giant TC Energy recently unveiled it was pursuing 10 hydrogen projects across North America. To learn more we caught up with Omar Khayum, a vice president at the company in charge of hydrogen project development.

TC Energy is evaluating 10 blue and green hydrogen hubs across North America, viewing incumbency as a significant competitive advantage.

The company is looking to use hydrogen as a means of providing a larger basket of low-carbon solutions to customers, according to Omar Khayum, a TC Energy vice president who is in charge of hydrogen project development. That basket includes mature power generation assets like wind, solar and pumped hydro, Khayum said in an interview, as well as additional firming resources, renewable natural gas, and carbon capture.

“We have a continental platform of customers that are in oil & gas and heavy industry that are looking to decarbonize their existing feedstock,” he said.

TC Energy is partnering with end-use customers, adding capabilities into the partnerships, and sharing in both the risk and benefit of the projects, he said.

“Our incumbency really allows us to partner with end users, and identify customer solutions,” Khayum said. “That’s our business model around de-risking what is a newer form of energy solution.”

Khayum declined to specify where the 10 hydrogen projects are located, other than to say they are proximate to industrial load – existing steelmaking, power plants, chemical facilities and refineries – and are not on the Gulf Coast. TC Energy has announced one project in Alberta which involves an evaluation of its Crossfield gas storage facility and would entail generating 60 tonnes of hydrogen per day with capacity potentially increasing to up to 150 tonnes per day.

In some cases, TC Energy is partnering with the end-use customer to jointly develop the hydrogen projects, Khayum said. “We are the lead developer in most cases but we’re not managing all of the risk ourselves – we’re putting together coalitions with organizations that have upstream and downstream capabilities to make sure we de-risk effectively.”

While conducting project management, TC will use external EPC firms and OEMs to deliver projects, depending on the location and technology in use, Khayum said.

Project funding

As for funding the projects, Khayum said the business model for hydrogen looks similar to the model for liquefied natural gas projects. “We have a wide degree of flexibility in how we can finance projects,” he said, noting the availability of project financing as well as the option to fund projects from TC Energy’s balance sheet.

“We have a number of financial advisors engaged to ensure that as we develop the projects from the offtake agreements to the supply chain agreements – and everywhere in between – those contracts are bankable to provide us the optionality to use project financing,” he said.

Khayum believes that the project finance market is still about 12 months away from being ready to finance hydrogen projects. “That’s because we are one of the early movers in hydrogen development and, as such, we’ll be bringing forward to the marketplace some of the first bankable offtake and supply chain contracts along with risk management tools and activities.”

He noted there was still work to be done among underwriters to validate those contracts for bankability. “We are working over the next year to not only get our projects to FID but working in tandem with our financial advisors to enable the banking system to accommodate those transactions.”

Much of the underwriting requirements have already been well-established in LNG, he noted. “If we can manage risk in a similar fashion,” he added, “we think it will be much more expeditious to achieving a positive FID.”

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