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LNG developer signs MoU for carbon capture and sequestration

Commonwealth LNG will capture and store carbon emissions from its 9.3 million tonnes per annum LNG facility under development in Cameron, Louisiana.

Commonwealth LNG has entered into a memorandum of understanding with OnStream CO2 LLC, a joint venture between Carbonvert Inc. and Castex Carbon Solutions, LLC, for a carbon capture and storage solution at Commonwealth’s 9.3 million tonnes per annum LNG facility under development in Cameron, Louisiana.

Under the agreement, OnStream CO2 will design, construct, own, and operate carbon dioxide (CO2) capture equipment near the Commonwealth LNG site, according to a news release. The captured CO2 will be permanently sequestered at the Cameron Parish CO2 Hub. Commonwealth will dedicate CO2 emitted from the LNG facility for a 20-year term.

The Carbonvert-Castex joint venture recently announced an operating agreement with the State of Louisiana to develop a 24,000-acre tract of land offshore Cameron Parish, where it will permanently store CO2 in a hub with capacity for more than 250 million metric tons.

Commonwealth LNG Founder and Executive Chairman Paul Varello said, “Adding carbon capture technology complements our comprehensive goal of achieving best-in-class environmental standards through measures that also include a focus on responsibly sourced gas and the installation of the highest efficiency gas turbines.”

Carbonvert Founder and CEO Alex Tiller said, “Commonwealth’s commitment to our storage site is a great first step and instills confidence in the Lake Charles industrial corridor to launch CO2 capture initiatives and enhance resilience amidst carbon-related global trade requirements and customers’ increasing demand for low-carbon products.”

Castex will serve as the operator for the Cameron Parish CO2 Hub. Castex EVP and CFO Aaron Killian said, “We are pleased to work with Commonwealth LNG to achieve the shared vision of safely, permanently and economically reducing CO2 emissions. OnStream’s tailored CO2 capture, transportation, and storage solution will allow Commonwealth LNG to achieve key environmental initiatives while focusing on its core LNG business.”

Commonwealth LNG anticipates a final investment decision on its LNG project in the first half of 2024, with first cargo deliveries expected in 2027. Commonwealth will be able to achieve an accelerated construction schedule by using a modular approach with major components being fabricated offsite. Final terms of the carbon capture arrangement remain subject to negotiation of a definitive agreement between the parties.

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LIFTE H2 acquired by US and Canadian strategics

The US-based operations of LIFTE H2 will become the US subsidiary of a Canadian utility, while its custom Asset Performance Management platform has been acquired by a separate US hydrogen strategic.

The US-based operations and infrastructure solutions of LIFTE H2 will become the US subsidiary of Canada’s Powertech Labs, according to the companies.  

Headquartered in British Columbia, Powertech Labs is a subsidiary of the government-owned BC Hydro.

Separately, the company’s digital Asset Performance Management platform has been acquired by Massachusetts-based Electric Hydrogen.

Resource reported in April that Energy & Industrial Advisory Partners had been hired to help LIFTE H2 conduct a Series A.

Powertech USA, the new subsidiary, will serve the US and Canadian markets.

“Powertech USA will provide a family of infrastructure solutions including hydrogen export systems, high-capacity transport trailers, mobile refuelers, and fueling stations,” a post on LinkedIn states. “Together, these solutions form the market’s first end-to-end hydrogen fueling solution – integrating the movement of hydrogen from the production outlet to the vehicle inlet.”

Powertech USA will be led by Angie Ackroyd, LIFTE’s co-founder and chief technology officer, according to Lifte’s website. Jeremy Maunus, LIFTE’s COO, along with Matthew Blieske, LIFTE’s CEO, will continue to support the Powertech USA team in advisory roles.
The post describes the management platform as a synchronized workspace designed to manage hydrogen data, assets, and people. 

LIFTE H2 will continue operations in Europe. The company has offices in Berlin.

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New Fortress Energy planning five industrial-scale hydrogen plants

The company is building a pure-play clean hydrogen business, known as Zero, which it plans to capitalize separately in the near future.

New Fortress Energy is planning to build five industrial-scale hydrogen production hubs as part of its pursuit of a pure-play clean hydrogen infrastructure business.

The liquefied natural gas company has started construction on its first plant in Beaumont, Texas, where it is expected to produce 50 tons per day of green hydrogen, the company said on its 3Q22 earnings call today.

New Fortress Energy is taking learnings from the construction of the Beaumont plant to scale up its hydrogen business via additional projects that will produce a combined 90,000 tons per year, according to a presentation.

The company is building a pure-play clean hydrogen business, known as Zero, which it plans to capitalize separately in the near future.

Plug Power will provide electrolyzers while Entergy will provide renewable power to the Beaumont plant, which is set to begin operations in 2024.

The location of the project in southeast Texas is near refineries with an anticipated demand of 1,000 tons per day – over 20 times what the Beaumont plant will produce initially, said Patrick Hughes, managing director and chief commercial officer of NFE Zero.

“So plenty of demand and plenty of growth potential in the immediate region,” the executive said, who noted the company was focused on optimizing offtake for the first phase of the project.

In addition to nearby refineries, the Beaumont project could also supply for an Entergy power plant known as Orange County Advanced Power station. Existing pipeline networks could also ship green hydrogen around the region.

“The good thing about electrolyzers is that it’s fairly straightforward to scale,” Hughes said.

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H2 Green Steel raising debt and equity for hydrogen-powered steel plant

H2 Green Steel has received support from multiple European financial institutions for its EUR 3.5bn debt financing and will build a green steel plant through a combination of equity and debt.

H2 Green Steel has received support from multiple European financial institutions for its EUR 3.5bn debt financing and will finance the construction of a green steel plant through a combination of equity and debt, according to a news release.

Conditional commitment letters for EUR 3.3bn in senior debt have been secured from AB Svensk Exportkredit and the commercial banks BNP Paribas, ING, UniCredit, Societe Generale and KfW IPEX-Bank.

Societe Generale is acting as lead financial advisor on senior and junior debt facilities. KfW IPEX-Bank is acting as joint financial advisor on a senior debt facility. BNP Paribas, ING and UniCredit are acting market, documentation and technical banks, respectively.

The money supports the company’s hydrogen-powered green steel plant in Northern Sweden through debt and credit guarantees.

The European Investment Bank has received board approval for EUR 750m of senior debt funding for the project as well, while eading export credit agencies, including Euler Hermes, have issued letters of intent to provide export credit-linked guarantees of EUR 1.5bn of H2 Green Steel’s intended senior debt.

The Swedish National Debt Office has issued a letter of intent to provide a green credit guarantee of EUR 1bn of H2 Green Steel’s senior debt.

H2 Green Steel has executed a conditional commitment letter with a leading infrastructure fund comprising large Nordic investors in connection with their lead participation in a circa EUR 500m junior debt facility.

This milestone has been enabled by a due diligence process that was initiated in 4Q21.

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Waste-to-hydrogen developer hires advisor for equity raise

A California developer of waste-to-hydrogen projects has mandated a boutique advisor to raise equity for early-stage project development and is planning a larger funding round in early 2024.

Clean Energy Enterprises, the holding company of awaste-to-hydrogen project developer based in Long beach, California, hasmandated a financial advisor to raise equity for early-stage development, CEO Jean-LouisKindler said in an interview.

Costigan Capital Partners, of Vancouver, Canada, has beenretained to raise an early round of $5m, Kindler said. That liquidity, split evenlybetween a demonstration project in California and operations, will last aboutone year.

Clean Energy is the holding company of WaysH2, which is thecompany developing the projects.

Next year Clean Energy will conduct a raise of equity anddebt between $30m and $50m, Kindler said.

Clean Energy, which is owned by five founding partners and earlyfriends-and-family backers, is also narrowing options for the first WaysH2 commercialproject in the US, Kindler said. The company has a client that will use hydrogenfor municipal transportation in the southwest.

The group has a relationship with Spanish EPC firm TechnicasReunidas and plans to pursue another demonstration project in either Spain or Portugal.

The technology play is waste-to-hydrogen at landfillprojects to serve end users in local mobility and waste processing energyrequirements.

He pointed to California’s SB 1383 regulations, which mandatesa reduction of organic waste disposal by 75% by 2025.

“It will be used locally,” Kindler said of the hydrogen. Thecompany is also in discussions with foreign ammonia producers. “We want to beclose to our clients.”

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Aemetis capitalized for hydrogen and biofuel development plans

Aemetis CEO Eric McAfee said in an interview that the company has lined up financing to complete the $1.2bn in biogas and sustainable aviation fuel projects it has in development.

Aemetis is well capitalized to complete the $1.2bn in biogas and sustainable aviation fuel (SAF) projects it has in development, CEO Eric McAfee said in an interview.

Founded by McAfee in 2006 and listed on the NASDAQ in 2014, Aemetis plans to produce more than 60 million gallons per year of SAF and capture and sequester 125,000 mtpy of carbon in 2025. This is a diversification from existing ethanol, RNG and biodiesel operations in the US and India.

The company recently released an updated five-year plan including plans to generate $2bn of revenues, $496m of net income, and $682m of adjusted EBITDA by 2027.

McAfee, noting that Aemetis is well capitalized and has locked in financing for much of its plans, said, “The only thing we really need to do is just execute.”

For example, the company closed $25m of USDA loan guarantees in October at a 6.2% interest rate, McAfee said. The company has also signed a $125m USDA commitment letter for its Riverbank Biofuels Project in California, also called CarbonZero 1, which will produce SAF.

“We’ll be expanding that relationship with [the USDA],” McAfee said. “Everything else is financed.”

The Riverbank Biofuels Project has signed offtake agreements with major airlines, and the SAF segment is expected to be the biggest contributor to Aemetis’ revenues once the project is online in 2025, according to a presentation. Renewable diesel and SAF will add $348m of revenues in 2025 and $693.3m of revenues in 2026.

For its carbon sequestration projects, referring to upgrades at the existing Keyes ethanol plant in California and other operational assets, the company has an existing $100m line of credit provided by Third Eye Capital, $50m of which remains unused, McAfee said.

Projected revenues will allow the company to self-fund without new credit facilities, McAfee said. Revenues from Aemetis’ debt-free operations in India will also be available to fund new developments.

The Riverbank SAF plant will be fully engineered and permitted this year, McAfee said. Baker Hughes and ATSI are the company’s EPC partners on the new developments.

Aemetis has no plans to divest existing operational assets but could acquire California biogas assets, McAfee said. The company regularly talks to investment bankers.

McAfee is the largest single shareholder in Aemetis. JackBlock, the former US Secretary of Agriculture, sits on the company’s board. The largest institutional shareholder is BlackRock.

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Exclusive: E-fuels developer raising $500m

A developer of green hydrogen for e-fuel products is looking for a more diverse set of backers for a recently launched Series C capital raise.

Ineratec, the German power-to-liquid fuels developer and technology provider, has launched a $500m Series C and could take on a US-based financial advisor to help, CEO Tim Boeltken said in an interview.

German boutique Pava Partners helped Ineratec on its $129m Series B, which was led by Piva Capital. The Series B raise, which was announced in January, also included participation from HG Ventures, TDK Ventures, Copec WIND Ventures, RockCreek, Emerald, Samsung Ventures as well as the increased support from current investors, including global corporates like ENGIE New Ventures, Safran Corporate Ventures and Honda.

The Series C can include equity, debt and project finance, Boeltken said.

The company, which takes a modular approach to fuels production, serves customers in Switzerland, Spain and Finland. Its e-fuels process involves two main steps: first, turning CO2 and hydrogen into synthesis gas, then using a second reactor to turn the synthesis gas into liquid and solid hydrocarbons, according to its website.

Growth in the US would include eventual rollout of its 100 MW commercial unit, none of which have been built to date. Now the company is focused on its 10 MW commercial units, following completion of a 1 MW industrial plant operating now.

In the next month Ineratec will be scouting locations in the US, Boeltken said, adding the the company is “hoping for many, many US installations” with eyes on additional applications in South America and Japan. The company also intends to establish a US headquarters.

Sites in New York and California are of first interest but there are also growth intentions in Texas, Washington state and Appalachia.

Ineratec is currently raising project finance for a “triple-digit” million capex project in the Europe, he said.

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