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Hydrogen liquefaction provider looking for growth equity

An emerging liquid hydrogen and liquefaction management company is seeking equity to support manufacturing expansion in Europe and the US.

Absolut Hydrogen, a French liquid hydrogen and liquefaction company based in Grenoble, is looking for equity to scale up production following operations of their demonstration project in France, CEO Jerome Lacapere said in an interview.

Absolut has a partnership with SAF firm ZeroAvia to develop refueling infrastructure for aircraft, and is primarily focused on serving the mobility sector.

A subsidiary of Groupe Absolut, the company offers a full LH2 product range with an entry small-scale hydrogen liquefaction system (< 50 kg/day), a 100 kg/day Turbo-Brayton based H2 liquefier and a 1T/day liquefier based on the same technology.The company's liquefaction demonstration plant in France should produce 100 kg per day, Lacapere said. After that Absolut will need new investment to scale production.Longer term the company has its sites on the US transport market, Lacapere said.“We need to grow in the United States,” Lacapere said. The company will need US-based advisory services and offices in the country to do that, he said.

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Capital Power appoints new CEO

The Canadian-based power producer has appointed Avik Dey as its next CEO.

Capital Power Corporation’s board of directors has unanimously selected Avik Dey to be its next President and CEO and become a member of the board of directors, effective May 8, 2023.

The appointment follows the planned retirement of Brian Vaasjo who will support Dey to ensure a seamless transition, according to a news release.

The selection follows a rigorous North American search process conducted by a special committee of the Board, with the support of a leading executive recruiting firm. The board met with a wide range of high-quality internal and external candidates.

“Avik is a highly capable leader with deep experience in the energy and power sectors and has built a number of successful companies and teams,” said Board Chair, Jill Gardiner. “I am confident that through his knowledge, passion, and creativity he will inspire the Capital Power team to accelerate the company’s current strategic drive towards net zero. The Board looks forward to working with Avik as we continue to engage with our stakeholders and grow shareholder value. Avik will champion the team, driving the vision with our people who will own the outcomes well into the future.”

Dey spent more than two decades in executive, operational, investing and strategic advisory roles. He has invested over $12bn in growing long term value for energy and energy transition companies. Most recently Mr. Dey held key executive leadership roles with The Carlyle Group, NOVA Chemicals, and Canada Pension Plan Investment Board. Prior to these roles, he was President & CEO of Remvest Energy Partners in Houston, Texas and a Founder serving as Chief Financial Officer of Remora Energy.

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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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EverWind Fuels reaches agreement for CAD 125m loan

Export Development Canada has reached an agreement in principle for a CAD $125m loan for a proposed green hydrogen facility in Nova Scotia.

EverWind and Export Development Canada have reached an agreement in principle on terms for a $125m debt facility to support the project, pending final due diligence, according to a news release.

This loan will support clean power generation and clean hydrogen production that will be able to be exported to markets in Germany and around the world, as well as for domestic consumption.

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Mobility solutions provider to raise up to EUR 200m

Quantron, the German and US-based mobility solutions provider, is set to launch a capital raise that could entail the sale of up to 20% equity.

Quantron, the German and US-based mobility solutions provider, is set to launch a capital raise that could entail the sale of up to 20% equity, according to three sources familiar with the matter.

The company is seeking between EUR 150m and EUR 200m in the process, the sources said, implying a valuation of up to EUR 1bn.

Quantron, which recently expanded into North America with the opening of an office in Detroit, will also consider debt as a part of the raise, one of the sources said.

At a ceremony at the Delegation of German Industry and Commerce (DGIC) in Washington D.C. on 12 October, Quantron signed a deal to supply TMP Logistics with 500 Class 8 trucks. The trucks will be operated by Quantron’s as-a-service (QaaS) vertical; they are scheduled for delivery in 2024.

Quantron AG CEO Michael Perschke told ReSource at that event that the company is in discussions with US investors about the capital raise, which has not formally launched but is tentatively scheduled to wrap up in 2Q23. Quantron is also in pre-closure discussions with several US law firms.

A fourth source said Quantron has worked with Danish consulting firm Ramboll Group on past deals.

Perschke said his company has relationships with PwC and EY, the latter especially on IPO readiness.

Quantron in September closed on a EUR 50m Series A with NASDAQ-listed Ballard Power Systems and German machinery manufacturer Neuman & Esser as investors.

Looking forward the company would like to work with a US strategic or private equity interest committed to hydrogen.

Utilities or corporates investing in hydrogen production but still building out the offtake structure would be of interest to Quantron, Perschke said. He noted that private equity interest like Ardian’s HY24 and Beam Capital are also active in the space.

Quantron is in the final stages of a deal with an oil company that Perschke declined to name, but said the company has 2,000 fueling stations across Europe that they are considering for conversion to hydrogen.

Perschke said his company plans to build out its presence in California and then could look for expansion in the northeast, Gulf Coast or Canada. The company aims to be an early mover in US hydrogen-fueled long-haul trucking along with peer Nikola Motor.

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Pennsylvania blue hydrogen DevCo planning project equity raise

A natural gas company has tapped an advisor and is planning to launch a process to raise project equity in the fall for a blue hydrogen production facility with contracted offtake in Pennsylvania.

KeyState Energy, a Pennsylvania-based development company, has engaged a financial advisor to launch a $60m equity process in September, according to two sources familiar with the matter.

Young America Capital is advising on the forthcoming process, the sources said.

The capital raise is for the company’s marquee Natural Gas Synthesis blue hydrogen project in Clinton County, one of the sources said. CapEx for the project is estimated at $1.5bn. OCGI is a pre-FEED investor in the project and the coming equity raise is meant to attract a FEED investor.

The 200 mtpd project has contracted offtake with Nikola Corporation, one of the sources said. In October it was reported that Nikola and KeyState were working towards a definitive agreement to expand the hydrogen supply for Nikola’s zero-emissions heavy-duty fuel cell electric vehicles.

The 7,000-acre natural gas and geologic storage site was formerly known for coal, iron and rail, according to the company’s website.

KeyState Energy did not respond to a request for comment. YAC declined to comment.

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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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