Innovation, Project finance, Raising capital

Heliogen expecting equity partners for California H2 facility

The company anticipates bringing on additional equity partners to support the project’s construction costs.

November 7, 2022

Heliogen has signed an MOU with the City of Lancaster, California to develop and provide equity for a green hydrogen generation facility there, according to a press release.

“Heliogen expects to bring on additional equity partners to support the project’s construction costs,” the release states.

The City of Lancaster will assist with site identification, review by City Council and the community as required, support for permitting process, and evaluation of economic development potential.

This relationship is expected to accelerate the use of concentrating solar thermal energy for a commercial hydrogen generation facility and builds upon the existing relationship between the City of Lancaster and Heliogen, which sited its demonstration test facility in the city in 2019.

The facility is expected to leverage Heliogen’s patented technology to use AI and advanced computer vision software to concentrate sunlight and could generate up to 1500 metric tons per year of carbon-free hydrogen.

The Heliogen facility could help support other projects within the city and region, including sustainable aviation fuel for hydrogen-powered aircraft, fueling stations for hydrogen-powered vehicles, and sales and distribution of hydrogen fuel for industrial processes such as vertical agriculture, cement, and mining.

This news follows a recent announcement that Heliogen intends to develop a green hydrogen facility on leased land in the Brenda Solar Energy Zone in Arizona. The company also entered into a letter of intent with sustainable fuels-focused Dimensional Energy to produce sustainable aviation fuel.

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Innovation, Project news

Certarus to supply Michigan gas plant with hydrogen

Over a two-week test, Certarus’ mobile energy distribution platform supplied 1,000+ kilograms of hydrogen at blend rates up to 25%.

Certarus, the Calgary-based on-road low carbon energy solutions, has been selected by WEC Energy Group to supply hydrogen and blending equipment to the A.J. Mihm natural gas-fired power plant near Pelkie, Michigan, according to a press release.

WEC is joined by partners Wärtsilä Corp., Mostardi Platt, the Electric Power Research Institute, and EPC firm Burns & McDonnell.

Over the course of a two-week test, Certarus’ mobile energy distribution platform successfully supplied more than 1,000 kilograms of hydrogen at blend rates up to 25% in an 18 MW Wärtsilä natural gas engine.

During that test, the hydrogen blend generated efficient power to support full engine capacity and produced fewer carbon dioxide and methane emissions compared to natural gas.

EPRI supported the development of the project and led the technical implementation. That company will share a complete analysis of the project in early 2023.

Certarus has supported more than 20 hydrogen customers to date.

November 2, 2022

Personnel moves

Energy Vault appoints United Airlines executive to board

The appointee, Theresa Fariello, has served as senior vice president of Government Affairs & Global Public Policy for United Airlines since 2017.

Energy Vault Holdings, a provider of sustainable grid-scale energy storage solutions, has appointed Theresa Fariello to the company’s Board of Directors effective February 1.

She replaces Henry Elkus, founder and CEO of Helena, a strategic partner and Series B-1 investor in Energy Vault, upon his concurrent departure from the Board.

Fariello has served as senior vice president of Government Affairs & Global Public Policy for United Airlines since 2017. In this role, she leads United Airlines’s federal, state, local, and international government engagement, including environmental affairs. Prior to her role at United Airlines, Fariello served a 16-year tenure at ExxonMobil, where she advised executive leadership on key governmental and policy matters. Prior to her time at ExxonMobil, Fariello served as deputy assistant secretary for International Energy Policy in the Office of International Affairs at the US Department of Energy and held senior leadership positions at Occidental Petroleum Corporation.

“We are honored to welcome Theresa, who brings extensive and valuable experience in government affairs and public policy at leading public companies to Energy Vault’s Board of Directors,” said Robert Piconi, chairman and chief executive officer, Energy Vault. “The recent passage of the IRA is one example of a significant accelerator for our industry and our customers in the United States. Theresa’s leadership and experience will help us fully leverage the opportunities associated with this landmark legislation while strategically optimizing our global approach to working with government organizations in an increasingly complex regulatory and public sector environment. I look forward to working with her as we execute our global growth plans.”

“It is a distinct privilege to join Energy Vault’s Board of Directors,” said Theresa Fariello. “I am inspired by Energy Vault’s mission and commitment to creating a cleaner, more sustainable future. As the need to address and combat climate change becomes ever more urgent, so too does the need to shape environmental and climate policy to accelerate the deployment of innovative solutions, such as Energy Vault’s energy storage technologies. I welcome the opportunity to work alongside the rest of my fellow board members, and I look forward to lending my voice and experience to the company as it continues to grow.”

January 19, 2023

M&A, Project finance, Project news, Raising capital

Calumet receiving interest from strategics for SAF business

The specialty products maker is working with a banker as it fields interest from strategics for its sustainable aviation fuel business.

Specialty products maker Calumet is working with Lazard as it evaluates investment inquiries from strategics that are interested in the company’s sustainable aviation fuel (SAF) business.

Calumet has already contracted for 2,000 barrels per day of SAF with a blue-chip offtaker through its subsidiary Montana Renewables, based in Great Falls, Montana. That amount would make Calumet the largest SAF producer in North America once engineering modifications are complete in early 2023, said Louis Borgmann, CFO and EVP at Calumet.

Meanwhile, preliminary engineering work has been done to expand SAF production to as much as 15,000 barrels per day, a “world-class position [that] has generated considerable interest from strategic investors,” Borgmann added on the company’s 3Q22 earnings call.

Calumet had engaged Lazard to conduct a process that culminated in a $250m investment in Montana Renewables from Warburg Pincus in August, 2022. The investment, in the form of a participating preferred equity security, valued Montana Renewables at a pre-commissioning enterprise value of $2.25bn.

“Lazard remains retained. They’re out there. They’re very opportunistic,” Borgmann said. “And inbound honestly picked up with SAF. So, we don’t feel a rush, but there could be an opportunistic deal here that we could consider.”

Borgmann added that Montana Renewables’ SAF capacity was quickly contracted at a premium to renewable diesel prices.

The company is positioned to be a first mover in the high-growth West Coast and Canadian markets for SAF, Borgmann said, noting Montana Renewables’ proximity to western airports.

“Montana Renewables’ proximity to end product markets is exceptional,” he said. “We serve renewable markets on the West Coast with direct BNSF Rail access. And we’re perfectly positioned to support the continuously growing low-carbon markets in Canada.”

The company and other renewable diesel producers “that have invested in the ability to produce SAF could expect a lasting advantage” compared to new, more expensive technologies for producing SAF, he said. “And Montana Renewables is expected to have an additional transportation cost advantage relative to its Gulf Coast competition.”

Montana Renewables reached a supply and offtake agreement with Macquarie, announced last week.

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November 15, 2022

exclusive

M&A

Ambient Fuels evaluating hydrogen project acquisitions

The company is well capitalized following a $250m equity investment from Generate Capital and is now opportunistically reviewing an initial slate of project M&A offerings.

Following an equity investment from Generate Capital, Ambient Fuels has begun to evaluate potential acquisitions of hydrogen projects that are under development, CEO Jacob Susman said in an interview.

“We’ve seen our first project M&A opportunities come through in the last 10 days or so,” Susman said.

Three projects for sale involve land positions, he said. Those that appear most attractive have a clear line of site to offtake or a strong approach to renewable power supply. Two out of three are not on the Gulf Coast.

“In no instance are these brokered deals,” Susman said.

Following the $250m equity investment from Generate Capital, Ambient is capitalized for several years and has no immediate plans to seek debt or tax equity, Susman said. The transaction was done without the help of a financial advisor.

Moving forward Ambient is open to JV formation with a partner that can help access offtake and renewable power, Susman said. Those points will drive future capital investment in the company and were resources that Generate brought to the table besides money.

According to ReSource‘s project tracker, Ambient is involved in at least two of the hubs that were encouraged by the DOE to submit a final application: California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), and the Port of Corpus Christi Green Hydrogen Hub.

In 2021 Ambient completed a funding round led by SJF Ventures. Several other VC funds and angel investors also participated.

In January The Hydrogen Source reported that Ambient was in exclusivity with an equity provider.

June 16, 2023

Innovation, Project finance, Raising capital

Exclusive: Residential microgrid developer to seek electrolysis partner, raise capital

A developer of planned microgrid communities will look for an electrolysis partner to provide green hydrogen for use in agricultural applications and is planning to go to market for platform equity and project debt.

Embark Fund and NOVA Constructors, a group of real estate development interests focused on developing three planned residential communities, will look for an electrolysis partner for its community microgrid development efforts, managing partner Craig McBurney said in an interview.

McBurney, who is also solar development manager for the South Carolina-based renewables developer Alder Energy, said the partners are in the process of acquiring land – between 1,500 and 2,000 acres per parcel – in Virginia, Maryland and Illinois. The latter project is the most advanced.

Each is for a planned residential community including microgrid development, he said. The communities will include renewables, which could be used to power electrolysis during times of low demand. He gave the example of a 30 MW solar ground array.

“We are preparing to announce a [$60m to $80m] equity raise,” McBurney said, adding that between $240m and $300m of debt will also be required. The money will be used for site acquisition, development and EPC. “The whole capital stack is an opportunity.”

The group has not formally engaged with an investment bank or financial advisor, he said. They will be targeting private equity, sovereign wealth funds, and family offices.

McBurney pointed to communities like Whisper Valley in Texas and Babcock Ranch in Florida as examples of his group’s efforts to develop sustainable off-grid communities.

November 20, 2023

exclusive

Project news, Raising capital

Arizona RNG firm seeking equity capital

A renewable natural gas developer with sites proposed in southern California and Arizona is seeking additional equity investors.

True North Renewable Energy Company, a Phoenix-based waste-to-energy developer, is undergoing a Series B equity raise, according to two sources familiar with the matter.

Whitehall & Company is advising, the sources said.

True North develops, builds, and operates organics-to-energy facilities, including large, regional, high solids anaerobic digestion infrastructure, according to its website.

The firm is primarily active in southern California and Arizona. Sites have been announced in Imperial County, Kern County and Mojave (all in California) as well as Yuma County, Arizona. Collectively, these could produce up to 3m mmbtu per annum, using up to 700,000 tons of organic compost from regional farms.

The company is a holding of True North Venture Partners, of Phoenix and Chicago.

TNRE and Whitehall did not respond to requests for comment.

April 12, 2023