Resource logo with tagline

Klean Industries partners with Australian outfit to recover carbon black and biofuel

Vancouver-based Klean plans to complete a detailed feasibility study by the end of December 2022 and finance the project before the end of 1Q23.

Klean Industries Inc, a Vancouver-based waste-to-value technology provider, has partnered with City Circle Group (CCG) to build a fully integrated, continuous tire pyrolysis plant to recover carbon black and biofuel in Melbourne Australia, according to a news release.

Klean and CCG have been working together in the planning of a project in Melbourne for the past twelve months and have been engaged in the final analysis of a Detailed Feasibility Study (DFS) to design and build a fully integrated tire pyrolysis plant. The result thus far has illustrated a significant opportunity and the parties are now in the final phases of contract negotiations with feedstock providers and offtake parties for all the project output products which are being pre-sold.

The parties plan to complete the DFS by the end of December 2022 and anticipate the project being financed before the end of the first quarter of 2023, with construction taking place in 2023 and operations starting in 2024.

Like Klean Industries, CCG is a well-established family-run business. CCG was founded in 1981 and has built a reputation as a leading provider in demolition, decommissioning, remediation, excavation, and recycling in Australia. In doing so, CCG converts all the waste into new building materials and commodities for reuse.

Both CCG and Klean see the prospects of this project playing a significant role in creating a circular economy within the region as it addresses several key issues designated under the United Nations Sustainable Development Goals and will create economic opportunities and environmental benefits for the local economy in Melbourne.

Klean recently agreed to partnerships with several German companies to distribute and build green hydrogen projects around the world.

Unlock this article

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

You might also like...

Blue methanol project developer brings on Macquarie for offtake

The developer of a 550,000 metric ton blue and bio-methanol facility in Shreveport, Louisiana has brought on Macquarie to commercialize production. It has also signed EPC and CO2 capture and transport agreements, with expected financial close this year.

Bia Energy Operating Company is advancing its low carbon methanol production facility at the 4,000-acre Port of Caddo-Bossier industrial multimodal facility in northwest Louisiana.

The facility is designed to be able to reduce carbon emissions by over 92% compared to traditional methanol production by capturing CO2 and utilizing hydrogen as both fuel and feedstock. The Front-End Engineering Design (FEED) study and major permits are complete for the 74-acre, $1.2bn facility designed to produce 550,000 metric tons of blue and bio-methanol per year, according to a news release.

The company is expected to reach financial close in 2024, after which construction will begin. Commercial Operations Date is expected in late 2026.

To support the marketing of the facility’s production, Bia Energy has entered into a 20-year Commercialization and Marketing Services Agreement with Macquarie Commodities Trading, an affiliate of Macquarie Group’s Commodities and Global Markets business. Through Macquarie, the project is currently seeking fixed-price offtake agreements with organizations in the chemical, maritime, manufacturing and industrial sectors looking to switch to low carbon methanol.

Bia Energy is collaborating with CapturePoint LLC to capture and transport the CO2 to a class VI well site in central Louisiana. Bia Energy will utilize the J. Bennett Johnston/Red River Waterway for its barge shipments of finished product.

“We are thrilled to have reached this milestone and update the market on our plans for this low carbon methanol project,” said Dr. Ana Rodriguez, CEO and Cofounder of Bia Energy. “The advancement of this shovel-ready project and its positive environmental impact, coupled with the jobs creation and development at the Port and in Caddo and Bossier Parishes, underscores our commitment to the region and our ability to deliver low carbon solutions to our prospective customers across a wide range of industries.”

The methanol production and processing facility will include state-of-the-art docks, tank farms and piping at the Port Complex. It is anticipated that nearly 350 construction jobs will be created at peak construction for the project. Bia Energy expects the facility to create 75 direct new jobs once operational. Louisiana Economic Development (LED), which provided an incentives
package for the project, estimates the project would result in 390 indirect jobs, for a total of 465 new jobs in Louisiana’s Northwest region.

“Bia Energy’s investment has the potential to create a large number of well-paying permanent jobs and stimulate economic activity all across North Louisiana, and that would be a win for the entire state,” said Susan Bonnett-Bourgeois, Secretary of Louisiana Economic Development.

“From the very beginning this project has been a testament to the power of collaborative economic development, and I want to thank and congratulate Dr. Rodriguez and our partners at the Port of Caddo-Bossier, BRF and NLEP for moving it closer to the finish line.”

“For over 40 years, Macquarie’s CGM business has worked with clients to understand their needs and provide tailored marketing and commercialization solutions,” said Aarnoud van Weelderen, Senior Managing Director in Macquarie’s CGM business. “Macquarie is pleased to work with Bia Energy to provide physical offtake, marketing and logistics of low carbon methanol
to end consumers and customers in the US and globally who are focusing on their decarbonization initiatives.”

“Macquarie’s physical commodity business continues to grow to meet the current and future energy needs of our clients,” added Justin Brymer, Head of US Physical Structuring and Origination at Macquarie. “We are excited to work with Bia Energy to extend our terminal and vessel capabilities.”

Tracy Evans, CEO of CapturePoint LLC, commented, “The team at CapturePoint is excited to provide leading-edge carbon management solutions for Bia Energy’s planned low-carbon methanol facility in the Port of Caddo-Bossier. When this project is fully operational, we expect to transport up to 250,000 metric tons of CO2 annually for safe and permanent storage in CapturePoint’s deep underground CENLA Hub carbon storage sites. Capturing that volume of carbon dioxide is a significant demonstration of Bia Energy’s environmental commitments.”

Bia Energy has engaged Houston-based S&B Engineers and Constructors as its Engineering, Procurement and Construction (EPC) contractor.

Read More »

Direct air capture firm launches with venture backing

ZeoDAC, Inc. launches with an international group of investment partners that include: Wilson Hill Ventures, Caltech, Coca-Cola Europacific Partners, Freeflow Ventures and Global Brain.

Direct air capture firm ZeoDAC has launched with backing from venture capital and strategic investors, according to a news release.

The company is founded by industry veterans and technical pioneers Professor Christopher W. Jones, an international expert in direct air capture of carbon dioxide technologies from Georgia Tech, and Mark E. Davis, a chemical engineering Professor from Caltech, who has brought multiple academic innovations to commercial success, including zeolite-based processes.

ZeoDAC, Inc. launches with an international group of investment partners that include: Wilson Hill Ventures, Caltech, Coca-Cola Europacific Partners, Freeflow Ventures and Global Brain.

“ZeoDAC’s CO2 capture process leverages chemically and mechanically robust solid sorbents with established supply chains deployed in an energy efficient temperature-vacuum swing adsorption cycle, leading to a simple yet economically advantaged process,” said Christopher Jones.

By combining these innovations and expertise, ZeoDAC aims to provide a compelling economic advantage for large-scale, commercial carbon capture and use. The company has raised several million dollars from institutional venture capital and strategic investors led by Wilson Hill Ventures.

“ZeoDAC can deliver compelling Net Present Value (NPV) to industrial partners on an international scale, enabling a multibillion-dollar market with positive impacts for the climate,” said Ajay Kshatriya from Wilson Hill Ventures.

ZeoDAC not only captures carbon dioxide but also water, allowing for the production of several valuable end-products that can drive an economic return while delivering an environmental benefit.

“We are excited to embark on this journey with ZeoDAC. We believe that Direct Air Capture offers the potential for us to source sustainable ingredients and materials while reducing our environmental footprint. After extensively reviewing the market, we are confident that ZeoDAC’s novel approach provides the affordability, scalability, and energy efficiency needed to become a major player in the DAC industry,” said Nicola Tongue, Associate Director, Coca-Cola Europacific Partners.

Read More »

Stonepeak acquires 50% stake in Virginia offshore wind farm

The infrastructure fund will acquire a 50% stake in Dominion’s Coastal Virginia Offshore Wind project for $3bn.

Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, today announced that it has reached an agreement with Dominion Energy to acquire a 50% interest in its Coastal Virginia Offshore Wind project through the formation of an offshore wind partnership.

The project is expected to be the largest offshore wind farm in the U.S. and one of the largest offshore wind farms globally upon completion.

CVOW is a 2.6 GW offshore wind project 27 miles off the coast of Virginia Beach, Virginia capable of serving the power needs of 660,000 homes.

Dominion Energy began developing CVOW in 2013 and is scheduled to begin offshore construction this spring. Construction is expected to be completed by year-end 2026. When fully constructed, each year CVOW will avoid carbon emissions equivalent to removing 1 million cars from the road, and will play an important role in supporting energy security and reliability, and lowering fuel costs by diversifying Dominion Energy customers’ energy supply.

Under the terms of the agreement, at closing Dominion Energy expects to receive proceeds of approximately $3bn, representing 50% of the CVOW construction costs incurred through closing less $145m (the initial withholding), Dominion said in a separate press release.

If the final construction costs of CVOW are $9.8bn or less, excluding financing costs, Dominion Energy will receive $100 million of the initial withholding. Such amount is subject to downward adjustment with Dominion Energy receiving no withheld amounts if the total costs, excluding financing costs, of CVOW exceed $11.3 billion. The transaction is expected to improve the company’s estimated 2024 consolidated FFO-to-debt by approximately 1.0% and reduce the company’s overall financing needs during construction.

Following closing, Dominion Energy and Stonepeak will each contribute 50% of the remaining capital necessary to fund construction of CVOW, provided the total project cost, excluding financing costs, is less than $11.3 billion (mandatory capital contributions). This represents 50/50 cost-sharing up to 15%, or nearly $1.5 billion, higher than the project’s current project budget ($9.8 billion) and up to 20%, or nearly $2.0 billion, higher than the project’s current pre-contingency budget ($9.45 billion).

“Having previously partnered with Dominion Energy, we look forward to extending our relationship through CVOW, which is a fitting addition to our global renewables strategy given its potential to provide meaningful renewable capacity to the U.S., advanced stage of development, and downside-protected fundamentals,” said Rob Kupchak, Senior Managing Director at Stonepeak. “Dominion Energy’s impressive track record building and operating large-scale infrastructure projects paired with Stonepeak’s experience successfully constructing offshore wind assets gives us confidence in CVOW’s path forward, and we are excited to partner with Dominion in delivering this critical renewable energy generation resource to its customers.”

Dominion Energy will continue to oversee CVOW’s day-to-day operations and construction at close, supported by Stonepeak’s expertise in investing in and delivering large and complex renewables and energy infrastructure projects including offshore wind. The transaction is subject to customary and regulatory approvals and is expected to be completed by the end of 2024.

Vinson & Elkins LLP served as legal advisor to Stonepeak. Mizuho Securities USA, through its affiliate Greenhill & Co., and Santander US Capital Markets LLC served as co-financial advisors.

McGuireWoods LLP and Morgan Lewis served as legal advisors to Dominion. Citi and Goldman Sachs & Co. LLC acted as sellside co-financial advisors for the transaction.

Read More »
exclusive

Hydra Energy raising equity and debt capital for hydrogen refueling infrastructure

The hydrogen-as-a-service provider for commercial trucking fleets is pursuing an equity raise that will unlock a debt facility for scaling up hydrogen refueling infrastructure in Western Canada.

Hydra Energy, a hydrogen-as-a-service provider for commercial trucking fleets, is in the midst of a CAD 14m equity capital raise.

The Vancouver-based company is pursuing the equity raise in support of its Prince George hydrogen fueling station, which is set to be operational in 2024 and would be the largest in the world, Hydra CEO Jessica Verhagan.

The equity portion of the financing is needed to unlock an additional CAD 150m debt facility to complete initial scale-up of the company’s planned hydrogen corridor along Highway 16 in Western Canada, Verhagan added.

Verhagan said the company is not working with a financial advisor on the capital raise but could issue RFPs for advisory services in the future. She declined to name the provider of the proposed debt facility, apart from clarifying that it was not government-sponsored.

“To date, Hydra has been signing up commercial fleets and building out its initial hydrogen refuelling infrastructure throughout Western Canada, but the company is about to announce expansion throughout the rest of the country via licensing to a national fossil fuel distributor looking to extend its low-carbon alternative fuel offerings,” the executive said via email.

Hydra’s target market to date has been the roughly 5 million Class 8 trucks within North America, Verhagan said, with the company aiming to “conservatively” capture 1% of that market by 2030 through commercial discussions already underway. Hydra is also exploring expansion into the UK as well as Europe, Australia, and the Middle East.

“Hydra’s initial focus has been on proving out its Hydrogen-as-a-ServiceTM (HaaSTM) template which includes the company providing its proprietary hydrogen-diesel, co-combustion conversion kits to commercial fleets at zero cost (in exchange for long-term hydrogen fuel contracts at diesel equivalent prices) as well as an initial hydrogen refuelling station to service 65 Hydra- converted trucks in Prince George, B.C.,” she said.

Verhagan said the company will announce its first electrolysis partner for the Prince George hydrogen refueling station early next year. The station will be able to refuel – as quickly as diesel – up to 24 Hydra-converted trucks each hour across four bays. The station will provide hydrogen from two onsite, 5 MW electrolyzers powered with electricity from BC Hydro.

“The adoption of Hydra’s technology really comes down to availability of low carbon hydrogen – showing fleets it’s possible to go green cost-effectively – and government support to utilize hydrogen to reduce trucking emissions right now,” Verhagan said.

Read More »
Cement hills
exclusive

Ammonia-to-industrial heat provider raising early-stage capital

An early-stage technology provider targeting clients in hard-to-abate industries is engaging investors and financial advisors to raise a seed round, with sites on a Series A in 2025.

Captain Energy, a Houston-based provider of ammonia-to-industrial heat technology, is seeking strategic investors for an early-stage seed round with plans for an eventual Series A, co-founder and interim-CEO Kirk Coburn said in an interview.

The company is developing a single-step process that can create industrial heat from cracked ammonia up to 700 degrees Celsius with zero NOX emissions, with hydrogen as a byproduct, Coburn said. The process uses a ceramic-based tubular solid oxide fuel cell that Captain manufactures in Dundee, Scotland.

“The results from the testing are that we’re 85% efficient,” Coburn said.

He likened the company to Amogy, but serving steel, cement and chemicals instead of transportation. Getting the kind of high-quality heat those industries need in a clean way can only come from a few sources, he noted.
“Ammonia is one of the greatest ways to do it if you can crack it efficiently like we can,” he said.
Past lab

The company is “past the lab stage” and needs to develop a pilot product to showcase to customers, Coburn said. About $5m will get the company to a 100-kilogram-per-day product, up from 25 kilograms now.

“That’s not, probably, big enough for most customers, but we can stack them,” Coburn said. “At this point we need to demonstrate commercially the product… after showcasing it we want to make larger units.”

Captain is owned by three co-founders, including Coburn. They have an 18-month line of site on a “much larger” Series A, Coburn said.

Strategic investors that would be end users of the technology are of interest to the company, particularly in Asian and European markets.

“We’re not getting in the game of making ammonia,” Coburn said. “We have to buy green ammonia.”

The company’s model is at “grid-parity” in Europe now, Coburn said, pointing to Germany in particular.

“We think we’re almost at subsidy-free pricing,” he said.

Read More »
exclusive

Renewables developer exploring move into green hydrogen

North Carolina-based Strata Clean Energy is engaged with engineers and consultants in preparations for a potential move into the production of green hydrogen.

Strata Clean Energy, the North Carolina-based utility-scale renewables developer, is researching locations in the U.S. where it could potentially build a green hydrogen production plant, executives said in an interview.

“We’ve been doing some hydrogen work for the past few years,” said Tiago Sabino Dias, former CEO of Crossover Energy, which was acquired by Strata in a deal announced this week. That forward momentum on green hydrogen and other areas of the energy transition was part of the reason the deal with Strata was made, he said.

Sabino Dias is now the senior vice president of origination at Strata following the takeover.

“We’ve done a lot of work thinking about where the high-value locations are,” Strata’s Chief Development Officer Josh Rogol said in a separate interview.

Hydrogen is adjacent to Strata’s core competencies in energy storage, Rogol said. The company is confident it could supply the green kilowatt hours for hydrogen production and is researching offtake scenarios in transportation and industrial uses.

Strata has a 13 GW project pipeline of standalone and combined solar and storage, according to its website, with 4 GW under management.

The company’s IPP has about 1 GW with ambitions to grow, Rogol said. It’s go-forward pipeline comprises more than 100 projects across 26 states.

Strata is now engaged with several consultants and engineers to explore green hydrogen opportunities, Rogol said. The company is open to new advisory relationships across verticals.

“We think we are really well positioned to be both the energy supplier, as well as the molecule producer,” Rogol said. The capabilities and intellectual property acquired through Crossover put the firm six to 18 months ahead of other nascent developers.

Early-stage development in green hydrogen can be funded with Strata’s balance sheet, similar to Strata’s bilateral takeover of Crossover, Rogol said. Later stage development and EPC will require “an ecosystem of partners” potentially both financial and strategic, he added.

Read More »

Welcome Back

Get Started

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