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KBR wins FEED contract for Shell and Eneco offshore hub

KBR and Shell will design and develop facilities off the coast of the Netherlands that integrate lithium-ion battery storage and green hydrogen electrolysis production at megawatt scale.

KBR has been awarded a contract to provide engineering services for an offshore energy storage project for CrossWind, a joint venture (JV) between Shell and Dutch utility company, Eneco, according to a news release.

KBR will perform a front-end engineering design of the baseload power hub (BLPH) for the Hollandse Kust (north) wind farm located offshore Netherlands.

KBR and Shell will design and develop facilities that integrate lithium-ion battery storage and green hydrogen electrolysis production at megawatt scale. The design will enable hydrogen production and electricity storage in periods of high-power production and will convert hydrogen to electricity, via a fuel cell, during periods of lower power production.

“KBR is extremely pleased to be involved in this sustainable energy project,” said Jay Ibrahim, president of KBR Sustainable Technology Solutions. “To solve the current global ‘energy trilemma,’ the world needs an energy mix that relies more on wind, solar and nuclear power. With our deep expertise in engineering and energy solutions, KBR is positioned to help our valued customers — partners like the CrossWind JV —drive the energy transition.”

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BlackRock’s Navigator CO2 pipeline files updated permit application

Facing local opposition, BlackRock’s $3.4bn Navigator CO2 pipeline has filed an updated permit application with the Illinois Commerce Commission.

BlackRock-backed Navigator CO2 Ventures has filed an updated permit application with the Illinois Commerce Commission.

The new proposal reflects an expanded scope of the carbon capture, utilization, and storage project, Heartland Greenway, and includes the addition of 42 miles of proposed pipeline that will connect to additional permanent storage locations in central Illinois.

The Navigator CO2 pipeline has faced pushback from residents and local authorities across its footprint. Proponents previously withdrew an application for eminent domain powers in Illinois after state regulators said the filing was incomplete. The company then announced it would reapply with an expanded route.

The project scope includes 21 carbon dioxide collection points – at midwestern biofuel plants – along with 1,350 miles of new pipeline and four booster stations across Illinois, Iowa, Minnesota, Nebraska, and South Dakota.

Project costs, including capture and sequestration facilities, are projected at approximately $3.4bn.

The proposed pipeline is contracted with industrial producers to capture, transport, and store up to 10 million metric tons of CO2 annually. When fully expanded, the system will be able to transport up to 15 MMT of CO2 annually, according to documentation. Construction of the project is expected to commence in 2Q24 pending receipt of regulatory approvals.

Equity funding for the project is primarily sourced from BlackRock’s Global Energy & Power Infrastructure Fund III, which has committed equity of $5.1bn.

Development capital cost is estimated at $245m, which includes detailed engineering, property survey work, and acquisition of real property interests for the pipeline system and the sequestration facilities to be utilized in the construction phase. The development phase of the project is funded through equity commitments from BlackRock, the Navigator management team, and other investors.

The construction phase of the project will be funded by incremental equity sourced from GEPIF III and other investors, along with a project financing facility sourced by a consortium of lenders. The project has commitments from GEPIF III and other investors for incremental equity required for the construction phase.

On or near the commercial operation date of the project, a long-term debt facility will be put in place to refinance the construction loans, according to the application.

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Ameresco begins construction on Sacramento biogas co-generation project

The firm has entered a nearly $140m contract to develop and construct an advanced technology biogas cogeneration facility for the Sacramento Area Sewer District.

Ameresco, Inc., a cleantech integrator specializing in energy efficiency and renewable energy, has entered a nearly $140m contract to develop and construct an advanced technology biogas cogeneration facility for the Sacramento Area Sewer District located at the EchoWater Resource Recovery Facility (EchoWater Facility) near Elk Grove, California, according to a news release.

This on-site renewable energy facility will beneficially utilize biogas (methane), a byproduct of the EchoWater Facility’s solids treatment process, to produce renewable electricity and heat for the EchoWater Facility through an integrated 13.4 MW cogeneration plant that will utilize fuel cell and engine technology.

Construction of the new facility is expected to be completed by July 2026.

By incorporating the fuel cell system, the project will have exceptional efficiency and reduced pollutant emissions, making it a clean, reliable baseload dispatchable resource. Additionally, the system will allow for the expandability to produce hydrogen in the future.

“SacSewer is committed to being a leader in environmental stewardship. Through our sustainable efforts in resource recovery, we maximize the reuse of treatment process by-products such as biogas,” shared Christoph Dobson, SacSewer’s General Manager. “This project is yet another example of how we’re working every day to fulfill our mission of protecting public health and the environment by collecting, treating, and recovering resources from sewage.”

“We are thrilled to partner with SacSewer, supporting their efforts to optimize the use of the biogas that is generated as a byproduct of the sewage treatment process,” said Michael Bakas, Executive Vice President of Ameresco. “Capturing and repurposing biogenic methane, that is already in our environment and produced by society, to displace fossil fuel is a powerful example of the circular economy in action, where waste is not discarded, but turned into a valuable asset. This voluntary act by SacSewer, backed by a material investment into this advanced renewable energy center, speaks volumes to their commitment to our environment and their surrounding community.”

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Gas separations provider raises $11m seed round

An industrial separations technology company that purifies gases has raised an oversubscribed VC round in addition to funding from the DOE.

Osmoses, an industrial separations technology company that purifies gases, has raised an oversubscribed $11m seed round led by Energy Capital Ventures, according to a news release.

Additional participating investors include Engine Ventures, Fine Structure Ventures, New Climate Ventures, Collaborative Fund, Little Green Bamboo, BlindSpot Ventures and several prominent angel investors, including Martin Madaus, the former CEO of Millipore Corporation.

In addition to its venture capital funding, Osmoses recently received a $1.5m grant from the US Department of Energy (DOE), as well as additional grant support from ARPA-E and NSF, among other organizations.

Osmoses will use the funding to develop commercial scale membrane modules for field deployment and establish pilot partnerships.

“In the coming months, Osmoses will double its full-time employee headcount, increase its pilot programs with chemical and petrochemical companies, utilities, and alternative energy companies, and develop partnerships with engineering and manufacturing firms,” the release states.

Gas molecules like hydrogen, biomethane, and oxygen are essential ingredients for alternative, low-carbon energy production, the release states. Because these gases don’t naturally occur in a form pure enough for direct use, they must first be separated, but their size and volatility makes doing so energy-intense, and expensive.

Today’s industrial separation processes, including cryogenic processes, distillation, and solvent absorption, account for 15% of the world’s energy consumption, the release states. CO2 emissions from energy combustion and industrial processes accounted for 89% of energy-related greenhouse gas emissions in 2022.

“Membrane technology, which operates as molecular filters to separate gas molecules from one another, has the potential to reduce energy consumption, but widespread implementation remains limited due to product loss and high operating costs,” the release states. Osmoses has developed a patented novel membrane technology that purifies gas molecules with unprecedented flux and selectivity, meaning lower capital requirements and operating costs for customers, with a significantly smaller physical footprint than today’s traditional separation processes – all while reducing industrial energy consumption by up to 90%.”

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Renewable hydrogen developer to launch series A round next month

A Colorado-based renewable hydrogen developer has hired an advisor and will launch a series A funding round next month.

NovoHydrogen, the Colorado-based renewable hydrogen developer, will launch a series A capital raise in the middle of March to take on a new investor for project development and hiring, CEO Matt McMonagle said in an interview.

The company has hired GreenFront Energy Partners to run the process, McMonagle said.

NovoHydrogen builds its projects onsite with customers, as close to end use as possible, he said. The company serves transportation (heavy road transport, shipping and aviation), industrial (cement, glass, metal, steel, food, etc.) and power (peaking power and diesel generator replacement). Most of Novo’s customers are users of grey hydrogen looking to decarbonize. In the case of cement, they are looking to replace diesel for their trucks and coal and natural gas for their kilns.

“We first look to see if we can put our projects on our customer sites and make it there,” McMonagle said. “If we can’t do that, we’ll do offsite, but we still try to be as close to customers as possible to minimize that midstream component or distribution component.”

About 30 projects are in development in the US, ranging from a few megawatts to hundreds of megawatts, McMonagle said. NovoHydrogen’s most active markets are the West coast, Northeast, Appalachia, Texas and the Rocky Mountains, though the company is not geographically constrained.

The company aims to begin construction on its first projects by the end of this year, possibly early next year, McMonagle said. The first project could reach COD in 2024.

NovoHydrogen recently announced that it has closed its seed funding round and appointed four executives to its board of directors. Each of those executives represent an investor that participated in the seed round, McMonagle said.

The new board appointees are: Jeremy Avenier, an active investor at Ohmium International; Peyton Boswell, managing partner at Woodfield Renewable Partners; Bruno Franco, partner at Pacífico Energia and managing partner at PWR Capital; and Joseph Malchow, a managing partner at Hanover (a Silicon Valley VC), board member and investor in Enphase and board member and investor in Archaea.

More money

“We will certainly need more money as our projects mature,” McMonagle said. “I do not have the hundreds of millions of dollars on my balance sheet to build these projects.”

An ideal investor will bring accretive capabilities in hydrogen, in a field like value chain equipment or delivery, to the table, McMonagle said.

NovoHydrogen plans to be a long-term owner-operator of its projects, McMonagle said. That is an important point for customers: that the company is not going to sell the project and not care how the next owner operates.

“We want to earn future business from these customers,” McMonagle said, adding that most of them are transitioning piecemeal.

NovoHydrogen and TigerGenCo in November said they would advance development of green hydrogen capacity to reduce reliance on natural gas at the Bayonne Energy Center located in New Jersey. NovoHydrogen will develop and operate the hydrogen production facility to reduce Bayonne’s carbon emissions.

TigerGen owns the power plant and is the offtaker in that project. Ohmium International is providing the PEM electrolyzers in that project. McMonagle said the company may use other electrolyzer providers for future projects.

The company is also a partner in the Aliance for Clean Hydrogen Energy Systems (ARCHES) for the California DOE Hydrogen Hub submission.

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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.”

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Exclusive: California IPP considering hydrogen options for gas generation portfolio

A California-based IPP is considering burning hydrogen in the thermal plants it acquires, as well as in a portfolio of gas peaking assets it is developing in Texas and the western US.

Nightpeak Energy, the Oakland-based IPP backed by Energy Spectrum Capital, is planning to have wide optionality to burn hydrogen in the gas plants it acquires, as well as in quick-start peaking natural gas assets it is developing in Texas and the western US, CEO Paris Hays said in an interview.

“There’s just not a lot of places in this country where you can procure enough hydrogen at a reasonable price to actually serve wholesale electricity customers,” Hays said of the existing hydrogen landscape.

Still, OEMs are figuring out in real time which of their deployed fleet can burn hydrogen, he said. Studies on blending seem to be yielding positive results.

“That’s great news for a business like ours, because we can have optionality,” Hays said. When interacting with equipment providers, conversion to hydrogen is an important, if expensive, discussion point.

“We want to be in a position to be able to do that for our customers,” Hays said. “We can offer a premium product, which is kind of rare in our business.”

Nightpeak recently purchased Saguaro Power Co., which owns a 90 MW combined cycle power plant in Nevada. That facility is a candidate for hydrogen repowering, Hays said, though that’s just one option for an asset that is currently cash-flowing well.

The Nevada facility is close to California, which notably is a market with a demonstrated appetite for paying green premiums, Hays said.

“We wouldn’t manufacture hydrogen ourselves, we would be a buyer,” he said. “This is one path that any plants we own or develop could take in the future.”

Nightpeak has yet to announce any greenfield projects. But Hays said the company is developing a portfolio of “quick-start” natural gas generation projects in ERCOT and WECC. Those assets, 100 MW or more, are to be developed with the concept of hydrogen conversion or blending in mind.

Proposition 7, which recently passed in Texas, could present an opportunity for Nightpeak as the legislation’s significant provisions for natural gas development has pundits and some lawmakers calling for the assets to be hydrogen-ready.

Investor interest in being able to convert gas assets to burn hydrogen reflect an important decision-making process for Nightpeak, Hays said.

“Does it makes sense to just buy a turbine that only burns natural gas and may be a stranded asset at some point, or would we rather pay and select a turbine that already has the optionality?” Hays said. “Putting price aside, you’re always going to go for optionality.”

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