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IFM acquires majority interest in South Carolina RNG firm

IFM Investors has acquired a majority interest in GreenGasUSA, a South Carolina-based developer, owner and operator of renewable natural gas assets.

IFM Investors via the IFM Net Zero Infrastructure Fund (NZIF) has signed a definitive agreement to acquire a majority interest in GreenGasUSA (GreenGas), a US-based renewable natural gas (RNG) developer, owner and operator, according to a news release.

GreenGas is a fully integrated renewables platform headquartered in Charleston, South Carolina with a track record of originating, developing and operating RNG projects. The company utilizes mature technologies to capture, purify and transport biogas from existing organic waste streams for its end use as pipeline quality RNG. GreenGas sells the RNG and associated environmental attributes under long-term offtake contracts with investment grade commercial & industrial customers, such as Mercedes-Benz, Berkshire Hathaway Energy and Duke University.

RNG projects operated by GreenGas can deliver significant emission reductions from waste streams by capturing methane, which has a 25 times more harmful impact on atmospheric warming than CO2 per the Environmental Protection Agency, demonstrating strong alignment with the net zero energy transition.

CEO and Founder Marc Fetten will continue to lead GreenGas alongside the existing management team. The acquisition marks a significant milestone for the company and secures long-term investment capital to expand its footprint of renewable natural gas projects and continue delivering on its mission to help food processors, farmers and industrial manufacturers capture greenhouse gas emissions from their operations.

“Our new partner IFM will be investing in GreenGas as a platform to meet the growing demand for renewable energy solutions across the United States,” said Fetten. “Our projects not only reduce greenhouse gas emissions, but help RNG buyers decarbonize their energy intensive operations. We look forward to working with IFM to grow the platform.”

Launched in 2022, IFM NZIF is an open-ended fund targeting essential infrastructure assets that seek to accelerate the world’s transition to a net-zero emissions economy. GreenGas represents NZIF’s first investment in the low carbon fuels sector, a core target sector of the fund.

“We are excited to welcome GreenGas into the IFM NZIF portfolio and support its next phase of growth,” said Kyle Mangini, global head of infrastructure at IFM Investors. “RNG projects operated by GreenGas can deliver significant emissions reductions, which is well aligned with IFM’s net zero commitments and our purpose to protect & grow the long-term retirement savings of working people.”

Transaction close is targeted for Q1 2023 and subject to customary closing conditions and regulatory approvals. Marathon Capital, LLC acted as exclusive financial advisor to GreenGas on the transaction.

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Lummus launches ethanol-based SAF technology

The company has made its ethanol to SAF process technology commercially available.

Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced the commercial availability of its ethanol to sustainable aviation fuel (SAF) process technology, according to a news release.

The technology provides operators with a large-scale, commercially demonstrated solution to reduce the aviation industry’s greenhouse gas emissions.
“Lummus’ extensive commercial experience in all steps, including conversion of ethanol feedstock and production of the SAF process, gives us a unique advantage to help our customers produce sustainable fuels,” said Leon de Bruyn, president and Chief Executive Officer of Lummus Technology. “Our process leverages proven, commercial-scale technologies that we integrate to meet the aviation industry’s growing demand for SAF and support its decarbonization efforts.”

Lummus’ ethanol to SAF technology offers a safe and reliable solution by integrating ethanol to ethylene (EtE), olefin oligomerization and hydrogenation technologies in a process configuration that maximizes the final yield to SAF while minimizing CAPEX, OPEX and carbon emissions.
Central to this process is Lummus and Braskem’s technology partnership for producing green ethylene, which accelerates the use of bioethanol and supports the industry’s efforts towards a carbon neutral economy. Since 2010, Braskem has been operating an ethanol dehydration unit in Brazil. Using EtE EverGreen™ technology, the unit provides a proven and reliable foundation for producing 260 kilotons per year of ethylene from ethanol. Lummus has integrated this world-scale dehydration process with its light olefins oligomerization and advanced hydroprocessing technologies through Chevron Lummus Global, a joint venture with Chevron.

This integrated offering makes the entire ethanol to SAF value chain available for exclusive licensing by Lummus.

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Cement plant being decarbonized by TotalEnergies and Holcim

TotalEnergies and Holcim in Belgium have signed an MOU to work on the decarbonization of a cement production facility in Obourg, Belgium.

TotalEnergies and Holcim in Belgium have signed an MOU to work on the decarbonization of a cement production facility in Obourg, Belgium, according to a news release.

Various energies and technologies will be assessed for the efficient capture, utilization, and sequestration (CCUS) of around 1.3 million metric tons of CO2 per year.

The partnership will implement a new air-oxyfuel switchable kiln to capture and CO2 in the flue gases and TotalEnergies will use that CO2 for an e-fuel producing scheme and/or deposit it in geological storage in the North Sea.

“TotalEnergies will assess the development of renewable projects to power a new electrolyzer, which would generate the green hydrogen needed to produce e-fuels,” the release states. “This new renewable energy production capacity would also power Holcim’s new oxyfuel kiln, thus contributing to the decarbonization of the cement plant. Finally, the oxygen emitted by the electrolyzer would be used to fuel the new kiln.”

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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: Morgan Stanley mandated for green ammonia facility

Morgan Stanley is the mandated investment banker for a green ammonia developer that’s raising debt and equity for its first facility in Texas.

First Ammonia is working with Morgan Stanley as its investment banker as it seeks to raise debt and equity for a flagship green ammonia project in Texas.

The New York City-based developer is moving toward financial close this year on the first 100 MW train of a 300 MW project at the Port of Victoria, Texas. Morgan Stanley has held the mandate since last year, but it has not been previously reported.

First Ammonia did not respond to requests for comment. Morgan Stanley declined to comment.

In an interview last year, First Ammonia CEO said the 100 MW train of the Port of Victoria project is estimated to cost $300m, while the full 300 MW will cost between $900m – $1bn. Each 100 MW module will produce up to 100,000 MTPA of green ammonia.

The project is expected to be the first in First Ammonia’s global pipeline of green ammonia facilities that will eventually add up to 5 million MTPA of production within 10 years.

The firm has contracted with Haldor Topsoe for 5 GW of solid-oxide electrolysis for its project portfolio. It is seeking a partner to provide 45V-compliant renewable energy to power electrolysis at Port of Victoria, as reported exclusively by ReSource.

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Exclusive: Hydrogen adoption and production firm prepping capital raise

A decarbonization services provider is in development on multiple utility-owned hydrogen adoption projects in the Northeast, Texas and Georgia and is preparing to launch a capital raise in 3Q24.

Celadyne, a Chicago-based decarbonization and hydrogen solutions company, will launch a Series A this year as it continues its role in the development of several utility-owned hydrogen adoption projects in the US, founder and CEO Gary Ong told ReSource.

A $20m to $30m capital raise will likely launch in 3Q24, Ong said. The company is relying on existing investors from its recent seed round to advise, and the amount could change based on grants.

While the $4.5m seed round allowed the company to focus on transportation mobility, the Series A will be used to do more work on hydrogen production, so the company will be looking for strategics in oil and gas, renewable energy, and utilities.

DLA Piper is the company’s legal advisor, Ong said.

Celadyne has a contract signed with a utility in the Northeast for a small electrolysis demonstration and, following that, a multimillion-dollar project. Discussions on how to finance that latter project are underway.

Additional electrolysis projects in Texas and Georgia are in later discussions, while less mature deals are taking shape with a nuclear customer in Illinois and another project in Southern California, Ong said.

Fuel cell customers (typically OEMs that use hydrogen) to which Celadyne ships equipment are clustered mostly in Vancouver, Michigan and California.

Meanwhile, Celadyne has generated revenues from military contracts of about $1m, Ong said, a source of non-recurring revenue that has prodded the company to look for a fuel cell integration partner specific to the defense application.

‘Blocking hydrogen’

The company, founded in 2019, is focused on solving for the demand and supply issues for which the fledgling US hydrogen market is notorious. Thus, it is split-focused between hydrogen adoption and production.

Celadyne has developed a nanoparticle coating that can be applied to existing fuel cell and electrolyzer membranes.

On the heavy-duty side, such as diesel generators or back-up power, the company improves durability of engines between 3X and 5X, Ong said.

On the electrolysis side, the technology improves rote efficiency by 15%. In production, Celadyne is looking for pilot projects and verification studies.

“We’re very good at blocking hydrogen,” he said. “In a fuel cell or electrolyzer, when you have hydrogen on one side and oxygen on the other side, you need something to make sure the hydrogen never sees the oxygen,” noting that it improves safety, reduces side reaction chemistry and improves efficiency.

Hydrogen adoption now will lead to green proliferation later should the economics prove out, according to Ong. If not, blue hydrogen and other decarbonized sources will still pave the way to climate stability.

The only negative for that is the apparent cost-floor for blue hydrogen in fuel cell technologies, Ong said, as carbon capture can only be so cost efficient.

“So, if the price floor is say, $3.25 or $3.50 per kg, it doesn’t mean that you cannot use it for things like transportation, it just means that it might be hard to use it for things like shipping, where the fuel just has to be cheaper,” Ong said.

Three companies

Celadyne is split into three focus applications: defense, materials, and production. If only one of those wings works, Ong said he could see selling to a strategic at some point.

“If any of those things work out, we ought to become a billion-dollar company,” he said.

If all three work out, Ong will likely seek to do an IPO.

An acquisition could be driven by an acquiror that can help Celadyne commercialize its products faster, he said.

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Siemens Energy planning new US electrolyzer capacity

The company is targeting expansion in the U.S. given the favorable policy environment following passage of the Inflation Reduction Act (IRA).

Siemens Energy North America is laying the groundwork for new electrolyzer manufacturing capacity in the United States, President Richard Voorberg said during a panel discussion recently.

Siemens Energy, a global energy technology company, makes an 18 MW PEM electrolyzer, one of the largest in the world, and is targeting expansion in the U.S. given the favorable policy environment following passage of the Inflation Reduction Act (IRA), Voorberg said.

The company is building its first gigawatt factory in Berlin, Germany via a joint venture with France’s Air Liquide. The Berlin factory is expected to produce 1 GW of PEM electrolyzers per year starting in mid-2023.

“As soon as we get that first one up and running… I’ve got a plan already to put a 1,000 MW line in the US,” Voorberg said, speaking during an event at the Delegation of German Industry and Commerce in Washington D.C. last month.

Siemens’ existing manufacturing capacity in the US could expand to accommodate that new line, or the company could look to build an entirely new facility, Voorberg said. He added that the recently passed IRA helps makes the business case to do so.

Following the IRA, customers went from asking for fractions of a megawatt to seeking 2 GW in a single order, Voorberg said. His 18 MW line is now insufficient.

“We’ve got to scale up,” he said. “Scale is everything.”

Voorberg said his company sees hydrogen being used in electricity production around 2035, but mobility can use it now.

The planned move by Siemens underscores the extent to which the IRA legislation has trained the hydrogen industry’s focus on the U.S. Norway-based electrolyzer producer Nel is speeding efforts to expand electrolyzer capacity in the U.S. And Cummins announced last month that it would add electrolyzer production space at its existing facility in Fridley, Minnesota.

Siemens Energy is independent of Siemens AG, having spun off in 2020. The company has about 10,000 employees in the US and roughly 2,000 in Canada.

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