Resource logo with tagline

JAPEX to develop carbon capture and blue ammonia projects

JAPEX has partnered with Invest Alberta to explore CCS, BECCS, and blue ammonia projects in the province.

Japan Petroleum Exploration Co., Ltd. (JAPEX) signed a memorandum of understanding (MOU) with Invest Alberta Corporation (IAC), an investment attraction agency established by the government of Alberta, Canada, to partner together to support JAPEX’s development of projects in the province, according to a news release.

The MOU signifies the intent of both parties to work jointly on potential projects of JAPEX in Alberta, leveraging JAPEX’s extensive experience in petroleum exploration, production and CCS (Carbon dioxide Capture and Storage) / CCUS (Carbon dioxide Capture, Utilization, and Storage), while Invest Alberta will support JAPEX with its in-depth knowledge of the local market and investment landscape.

JAPEX is a global hydrocarbon E&P and transportation company.

On this partnership, JAPEX is seeking to develop the projects in several areas:

  • CCS/CCUS
  • BECCS (Bioenergy with Carbon dioxide Capture and Storage) (*)
  • Blue Hydrogen/Ammonia Business

“We are very excited to start working together with Invest Alberta,” said Tomomi Yamada, executive management officer, president of overseas business division II, JAPEX. “JAPEX had a very long-standing history of business in Alberta in the areas of oil sands (as an operator) and natural gas. We are now aiming to come back to Alberta and contribute to its decarbonization, using our expertise and experiences gained through the participation in CCS demonstration project in Japan by investing in the project company and extensive E&P businesses in Japan as well as overseas.”

Established by the Province of Alberta, Invest Alberta provides high-end tailored support to companies, investors, and major new projects. As one of North America’s leading investment attraction organizations with teams strategically placed around the world, including in Tokyo, Invest Alberta breaks down barriers so businesses can start up, scale up, and succeed without limits.

“Invest Alberta is honoured to partner with JAPEX to help the company seize the opportunities that Alberta offers to investors,” said Rick Christiaanse, Invest Alberta CEO. “As Canada’s energy capital, Alberta has a skilled workforce and renowned researchers capable of advancing major projects forward in a welcoming business environment. JAPEX is a strong and valuable partner for Alberta, bringing extensive experience in the energy sector and a shared dedication to achieving net-zero through environmentally sustainable projects.”

Unlock this article

The content you are trying to view is exclusive to our subscribers.
To unlock this article:

You might also like...

California Resources appoints CFO from Sempra Energy

CRC has appointed Nelly Molina as its new CFO. She most recently held senior finance positions at Sempra Energy.

California Resources Corporation, an independent energy and carbon management company committed to energy transition, today announced that Manuela (Nelly) Molina has been appointed as executive vice president and chief financial officer, effective May 8, according to a news release.

As previously announced, CRC’s prior CFO Francisco Leon was named President and Chief Executive Officer and a member of the Company’s Board of Directors as of April 28, 2023.

Molina is an energy executive with more than 25 years of corporate finance, capital markets and project financing experience and brings an extensive background in the development of energy infrastructure projects in the natural gas and power sectors. She joins CRC from Sempra Energy, where she held various senior finance leadership roles, including most recently as vice president of audit services and vice president of investor relations.

Earlier in her tenure at Sempra Energy, she served as CFO of Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova), a subsidiary of Sempra Energy, which was listed on the Mexican Stock Exchange until October 2021. During her time at IEnova, she completed over $10bn of financing initiatives, including the company’s initial public offering. Previously, Molina served in leadership roles with Kinder Morgan and the former El Paso Corporation in Mexico.

“I am thrilled to welcome Nelly to the CRC team,” said Francisco Leon, president and CEO of CRC. “She has a strong track record of driving growth and expertise in navigating today’s evolving energy industry. With her financial acumen and prior experience in disciplined planning, execution and compliance, I look forward to working together as we continue to advance on our strategic realignment of our business operations and structure and focus on driving cash flow generation, enhancing our financial flexibility and delivering value for our shareholders.”

Molina said, “I am honored to join CRC as its next CFO and build upon the Company’s strong financial foundation. This is a great organization with significant opportunities for sustainable future growth and value creation. As the Company carries on with its energy transition initiatives, I’m excited to work with Francisco and the rest of the team to expand on the carbon management business, safely produce and deliver low carbon intensity energy to the local communities where CRC operates and help California achieve its climate goals.”

Read More »

NOVA Infra and Nopetro Energy form new RNG and biofuels JV

Nopetro Renewables, a newly formed company, will construct one of Florida’s first landfill-gas-to-RNG facilities in Vero Beach.

NOVA Infrastructure, a middle-market infrastructure investment firm, has partnered with Nopetro Energy to create a renewable energy platform focused on renewable natural gas and biofuels, according to a news release.

Nopetro Renewables will construct one of Florida’s first landfill-gas-to-RNG facilities in Vero Beach. In addition to investing in the newly formed Nopetro Renewables’ platform, NOVA also has made an equity investment in Nopetro Energy.

“Our new platform, Nopetro Renewables, seeks to build and operate renewable energy infrastructure, starting with a shovel-ready landfill-gas-to-RNG project in Vero Beach,” Chris Beall, founder and managing partner of NOVA Infrastructure, said in the release.

Nopetro was founded in 2007 with the goal of displacing petroleum consumption with a cleaner, cost-effective and domestic natural gas fuel. Led by Jorge Herrera, the company has developed a strong reputation in the US southeast and currently operates 16 CNG fueling facilities where it serves government, waste, and industrial customers.

In July 2022, NOVA announced the close of its $565m Infrastructure Fund I, which attracted commitments from a diverse group of leading North American and global institutional investors including public and private pension funds, insurance companies, family offices and asset managers.

NOVA’s investment in Nopetro marks its seventh platform investment as part of Fund I and is a continuation of its strategy of targeting middle-market providers across the infrastructure landscape.

Read More »

Florida liquefaction and storage firm raising $125m

A Florida-based hydrogen liquefaction and storage provider is in the middle of a Series A capital raise and has identified a financial advisor for a larger Series B.

GenH2, a manufacturer and installer of hydrogen liquefaction and liquid hydrogen storage systems, is undergoing a $25m Series A raise and has plans to conduct a Series B within 12 months, CEO Greg Gosnell said in an interview.

Young America Capital is advising GenH2 on the Series A, Gosnell said. Two term sheets from lead investors are expected this week for the Series A, he added.

B Riley will likely be conducting the Series B, which will seek to raise about $100m. The company has raised approximately $24m from four seed investors in the last two-and-a-half years.

Gosnell projects the company will generate $10.8m in revenues this year, with a “hockey stick” of revenue growth coming in the next two years. The company’s first one-ton-per-day liquefaction and controlled storage solution will roll out at the end of 2Q24. It will have a 5,600 sq ft. footprint.

The company has a partnership with Chart Industries to collaborate on global sales and marketing opportunities, equipment manufacturing and supply, and the deployment of GenH2’s one-ton-per-day liquefier.

Use of funds from the capital raises will predominantly go toward purchasing components and buildout and expansion of manufacturing facilities, Gosnell said. The company has a 35,000 sq. ft. manufacturing facility adjacent to its headquarters in Titusville, Florida, and is considering another location in Texas or Louisiana.

Currently the company, with 46 employees, has closed three contracts on one-ton-per-day liquefaction and storage systems, each between $10m and $12m, Gosnell said. Two additional sales have been made in Australia and Canada for 20-kilogram liquefaction solutions, each $2.2m with credit-worthy customers.

Facilities capacity in Titusville will probably be filled next year. There is space in Titusville to expand more than 100% and the company will option leases for manufacturing.

Going forward the company is interested in strategic partners, Gosnell said. A lot of VC-type investors want to deploy capital in the space but the difficulty is finding an investor confident enough to do the technology due diligence and take the lead.

Easier with liquid

GenH2 installs closed-loop helium-cooled systems of between one and five tons at ports, manufacturing and trucking facilities. The process is done with no liquid nitrogen (LN2), which eliminates the need for truckloads of LN2 or an adjacent LN2 plant.

“Everywhere you see a liquid hydrogen plant today, there’s an LN2 plant next door that’s about five times bigger,” Gosnell said.

GenH2’s liquid hydrogen storage capabilities were demonstrated with NASA, transferring the liquid from multiple tanks with zero loss, he said.

Liquid hydrogen is more energy-dense than compressed gas, bringing down the cost of transportation. In many cases, liquid hydrogen can be dispensed into compressed gas.

“It seems counterintuitive, but if you’re sitting there storing compressed gas at say 100 psi and you need to get to 900 [psi], that’s a lot of work,” Gosnell said. “That’s heavy-duty compression and probably a two-ton chiller.”

Conversely liquid hydrogen wants to become gas, requiring only that you let it vaporize into a smaller tank and it compresses, he said.

“You don’t need any of that work,” he said. “Believe it or not it’s easier to get to a seven or nine-hundred PSI gas with liquid hydrogen than it is from gaseous hydrogen.”

GenH2 is competing against liquid hydrogen delivered in a truck, Gosnell said. He doesn’t know of anyone else doing standalone refrigerated storage with zero transfer loss.

Efficiency is a core focus in design, Gosnell said. Levelized cost with capex and opex all in is between $3 and $3.50 per kilogram for liquifying and storing. With electrolysis or other H2 sourcing on the front end, the company is at $7 or $8 a kilogram, which will improve as renewables are applied.

Read More »

Exclusive: Monarch Energy targeting green hydrogen FID in 2024

Monarch is moving forward with several green hydrogen projects in the Gulf Coast region, most notably a 500 MW project near Beaumont, Texas and a 300 MW project near Geismar, Louisiana.

Green hydrogen developer Monarch Energy aims to take its first final investment decision as soon as next year, CEO Ben Alingh said in an interview.

Monarch is moving forward with several green hydrogen projects in the Gulf Coast region, most notably a 500 MW project near Beaumont, Texas and a 300 MW project near Geismar, Louisiana.

Alingh said the company is seeking to advance the projects to FID by late 2024 and early 2025. Monarch has not engaged a project finance banker yet, he said.

The company recently announced a $25m preferred equity investment and $400m project equity commitment from LS Power.

The proceeds of the preferred equity raise will fund pre-FID aspects of Monarch’s 4.5 GW green hydrogen development platform: overhead, project development, interconnection, land, permitting, and engineering.

The $400m commitment, meanwhile, is earmarked for project equity investments in Monarch’s pipeline of projects. Under the arrangement, the projects will be dropped into a new entity, Clean Hydrogen Fuels, LLC, where LS Power provides the capital and Monarch provides the project, Alingh said.

“On a project-by-project basis the projects will be transferred to Clean Hydrogen Fuels if they are selected,” he said. The Clean Hydrogen Fuels entity is jointly owned by Monarch and LS Power.

Monarch did not use a financial advisor for the capital raise. Clean Energy Counsel served as Monarch’s law firm.

For both the Beaumont and Geismar facilities, Monarch has signed MoUs with Entergy to supply long-term renewable power. Monarch is engaged with industrial users of hydrogen in each location as potential offtakers. It plans to deliver hydrogen via local Monarch-developed hydrogen pipelines that it is developing with EPC partners, he said.

“We endeavor to be as close to our end user as possible with our electrolyzer project, to limit development and execution risk on delivery,” he said. For the volumes of Monarch’s projects, trucking solutions are not on the table, he said, as it would simply require too many trucks.

The company has additional production facilities under development in Freeport, Texas, as well as four other locations in Texas, according to the ReSource project database.

Monarch is also interested in end markets for hydrogen derivatives like methanol and ammonia, but Alingh notes that every project “starts with one core focus, and that is making the cheapest green hydrogen possible.”

Read More »
exclusive

RNG developer selling landfill gas portfolio

A Texas-based renewable natural gas developer has tapped an advisor and is selling a portfolio of waste-to-energy projects.

Morrow Energy, an RNG developer based in Midland, Texas, is working with a financial advisor to sell off a portfolio of waste-to-energy projects.

Sparkstone Capital Advisors, a boutique advisory firm based in Virginia, is the sellside advisor on the sale, according to three sources familiar with the matter.

Morrow and Sparkstone did not respond to requests for comment.

The Morrow portfolio in the US consists of 12 projects in Texas, Louisiana, Arkansas, Kansas, and Washington, according to its website.

Of note, Morrow has developed the Blue Ridge Landfill High BTU project, which is designed for up to 13,000 SCFM of raw landfill gas and can be expanded to up to 30,000 SCFM. Gas from the facility is sold and delivered to vehicle fuel markets in the US.

The company is led by Paul Morrow, its founder and president, who has worked in the RNG industry for over 20 years. Morrow Energy built its first renewable gas facility in the year 2000.

Read More »

Exclusive: TransGas CEO talks mega ammonia project

The owners of a proposed colossal ammonia production facility in Appalachian coal country are in the beginning stages of seeking liquidity, EPC contracting, and advisory services for a project they say will ultimately be financed akin to an LNG export terminal.

It’s an appeal often made in modern US politics – doing right by those left behind.

Perhaps no place is more emblematic of that appeal than West Virginia, and perhaps no region in that state more so than the southern coal fields. It’s there a fossil developer is proposing the architecture of the ruling coal industry be used to build a $10bn decarbonized ammonia facility and is gathering the resources to do so.

“It’s world class, and it makes southern West Virginia, Mingo County, the catalyst for the 21st century’s energy revival,” said Adam Victor, the CEO of TransGas Development Systems, the developer of the project. “The people [here] are the heirs and descendants of the people that mined the coal that built the steel that built the Panama Canal.”

The Adams Fork Energy project in Mingo County, jointly developed by TransGas and the Flandreau Santee Sioux Tribe, is slated to reach commercial operations in 2027. Six identical 6,000 mtpd ammonia manufacturing plants are being planned on the site of a previously permitted (but not constructed) coal-to-gasoline facility.

ReSource exclusively reported this week that the state has issued a permit to construct the facility. TransGas owns 100% of the project now, though if the Tribe comes through with federal funding then it will become the majority owner.

TransGas itself could take on a liquidity partner to raise up to $20m in development capital for the project, Victor said. The company is not using a financial advisor now but will hire one in the future.

White & Case is TransGas’ legal advisor. The company is in discussions with Ansaldo Energia, of Italy, about construction.

“The project is not averse to talking to private equity or investment bankers, because nothing has been decided right now,” Victor said, noting that the company is just beginning talks with infra funds and is eager to do so. “The project will be looking for an EPC.”

The first of the six plants will cost about $2bn, but each one will get successively less expensive, Victor said. Total capex is about $10bn, though there is discussion of acquiring adjacent land to double the size of the project – or 12 plants in all producing 6,000 mtpd each.

TransGas has the support of West Virginia politicians like Sen. Joe Manchin and Gov. Jim Justice, Victor said. Financing the project will be a function of the offtake.

Electricity for data centers, or ammonia for export?

The company is conducting a market analysis to determine avenues for offtake, Victor said. They could do partial electricity generation onsite to power a data center, with the remainder of the hydrogen being used to make ammonia for shipment overseas.

Depending on the needs of offtakers, the facility could also do one or the other entirely, he said.

The project, if configured at current size, could support about 6,000 MW of non-interruptible power generation, 2,000 MW of that for cooling.

“This could basically become a 6,000 MW campus to become the center of data centers in the United States,” Victor said, noting that the region is much less prone to natural disasters than some others and is high enough in elevation to escape any flooding. “I think we could rival Loudoun County [Virginia] as where data centers should be located.”

Adams Fork sits on the largest mine pool reservoir in the eastern US, Victor noted. Data centers need constant cooling, particularly new chip technology that requires liquid cooling.

TransGas will know in a matter of weeks if it’s going to go the electrical route, Victor said. There are only five companies in the world with data centers large enough to efficiently offtake from it: Amazon, Microsoft, Google, Meta and Apple.

If not, the facility will continue down the path of selling the decarbonized ammonia, likely to an oil company or international ammonia buyer like JERA in Japan.

Partnering with a tech company will make it easier to finance the project because of high credit ratings, Victor said. International pressure on oil companies could affect those credit ratings.

“We think the investor world could be split,” he said, noting tech and fuels investors could both be interested in the project. “You’re doubling the universe of investors and offtakers.”

He added: “Once we have the offtake, we think we could have a groundbreaking this year.”

Two ways of shipping

For ammonia production the facility could use the same shipping channels the coal industry uses – either to the Big Sandy River to be sent by barge on the Ohio to New Orleans, or rail to ports in Baltimore; Norfolk, Virginia; and Savanna, Georgia.

By rail, two 40-car trains per day would take ammonia to port. Norfolk Southern and CSX both operate in the region.

Another option is to have a fleet of 50 EV or hydrogen-powered trucks to transport ammonia to the Big Sandy where electric-powered barges can take it to the Gulf, Victor said. That latter option could mean a lower CI score because it will eliminate rail’s diesel power.

Mercedes-Benz and Volvo both make the kind of trucks used for this work in Europe and Asia, he said. Coal mines in the region use diesel trucks in fleets as numerous as 500, and the original TransGas coal plant was permitted for 250 trucks per day.

“This is something that our offtake partner is going to determine,” he said. Japan would likely want the ammonia in the Gulf of Mexico, whereas European shipping companies would want it on an Atlantic port.

The LNG financial model

The offtakers themselves could fund the facility, Victor said.

“The financial model for this is the financial model for funding LNG terminals,” he said. “The same teams that put those large facilities together, financial teams, would be the same teams that we’re talking to now.”

The offtakers may also dictate who they want to be the financial advisor, he said.

Read More »

Welcome Back

Get Started

Sign up for a free 15-day trial and get the latest clean fuels news in your inbox.