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Maersk in $3bn green methanol project in Egypt

Owned by A.P. Moller Holding as majority owner and A.P. Moller - Maersk as minority owner, C2X is aiming to build, own, and operate assets to produce green methanol at scale.

C2X today signed a comprehensive Framework Agreement (FWA) with its Egyptian sponsors and partners. The goal of the agreement is to enable and accelerate large scale production of green methanol in Egypt, according to a news release.

Owned by A.P. Moller Holding as majority owner and A.P. Moller – Maersk as minority owner, C2X is aiming to build, own, and operate assets to produce green methanol at scale.

The Framework Agreement is deepening the partnership and joint efforts for C2X to establish the project, which is strategically located close to the Suez Canal, in collaboration with the General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt for Investment and Development (TSFE).

The efforts will include the establishment of projects for generating green energy from wind and solar sources.

The project was initiated in March 2022 with the signing of a Memorandum of Understanding and the FWA moves it to a deeper level of collaboration with more advanced technical and commercial feasibility studies towards the shared objective. Following completion of these studies, the parties will proceed towards final investment agreements for the project.

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Capital Power scraps CCS project

Capital Power has discontinued an Alberta CCS project for a natural gas plant, saying the economics did not add up.

Independent power producer Capital Power is discontinuing plans to build a carbon capture and sequestration facility at its Genesee power generation facility.

“After a detailed review of the project, we have concluded that the economics for CCS at the Genesee site do not meet our targeted risk-return thresholds,” CEO Avik Dey said on a call today, stressing that the company still views CCS as a viable technology.

Dey added that Edmonton-based Capital Power was awarded a grant by the Michigan Public Service Commission to conduct a CCS feasibility study at the Midland Co-Generation facility.

Located west of Edmonton, the Genesee facility consists of three generating units which provide over 1,300 MW of baseload generation. Capital Power is re-powering the first two units that run on coal and natural gas with new natural gas turbines.

The CCS project at Genesee was a $2.4bn initiative that sought to take advantage of Alberta and Canadian federal government incentives.

Commenting further on the economics of the project, Dey said CCS technology needs to improve so costs can come down.

“How do you actually build the kit so that you have higher efficacy and higher capture rates while bringing down the capital costs,” he said.

On the revenue side, Capital Power would have received revenues from contracts for difference while avoiding carbon taxes. “Those are the two contributing factors to establishing the numerator on the NPV calculation.”

“And then on the denominator, it’s really a function of volume, emissions captured and capex per ton captured or a capex per megawatt exposed,” he said.

Dey added that CAPEX per CCS unit will need to decrease, “such that we can work within whatever regulatory framework exists, whether it’s the state of Michigan, the province of Alberta, and work within whatever federal framework exists, whether it’s the CER or working within the IRA.”

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BayoTech appoints CFO

BayoTech has appointed Brian Kellar as chief financial officer.

BayoTech, a provider of hydrogen production and transportation solutions, has appointed Brian Kellar as its new chief financial officer.

Before joining BayoTech, Brian Kellar served as CFO at Northwind Midstream Partners, where he played a crucial role in the company’s formation and strategic financial planning, according to a news release. His leadership at EVX Midstream saw the company’s growth from a startup to the dominant player in the South Texas saltwater disposal landscape.

In his role as CFO, Mr. Kellar will direct BayoTech’s financial strategy and operations, focusing on enhancing financial performance and aligning closely with the company’s strategic goals. His leadership is pivotal in fortifying BayoTech’s financial foundation and supporting its mission to establish a network of localized hydrogen production hubs throughout the United States.

Kellar steps into his new role following Jeff Wood. BayoTech expresses its gratitude to Mr. Wood for his contributions and wishes him the best in his future endeavors.

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Australia’s Frontier Energy appoints MD with hydrogen background

Sam Lee Mohan will help Frontier as it transitions into the next phase of a project in Western Australia.

Australia-based Frontier Energy Limited has appointed Sam Lee Mohan as managing director.

According to a company press release, Lee Mohan has been appointed at a critical stage in Frontier’s evolution, as it transitions through the next stage of development at its 100% owned Bristol Springs Green Hydrogen Project.

During the next 12 months this includes the next level of study work, offtake, project financing and the commencement of construction.

Lee Mohan has over 20 years’ experience in the energy and utilities industry. His previous senior management positions include Global Head of Hydrogen of Xodus Group, a subsidiary of Subsea 7, where he developed and led the company’s overall hydrogen strategy. In this role, he also conceptualized the company’s largest hydrogen project, Project MercurHy.

Prior to Xodus Group, Lee Mohan spent six years at ATCO, where he was instrumental in developing the company’s hydrogen strategy, including the conceptualization, design and construction of Australia’s first, green hydrogen Microgrid, the Clean Energy Innovation Hub.

The Bristol Springs Green Hydrogen Project is located 120km from Perth in Western Australia. The company recently completed a pre-feasibility study that outlined the Project’s potential to be both an earlier mover and one of the lowest cost  green hydrogen assets in Australia, according to the company.

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Waste-to-hydrogen developer to close $100m capital raise this month

Raven SR’s C-round of financing is being run by two bulge-bracket banks, and the firm has received widespread interest from private equity and corporate strategics.

Raven SR, a US waste-to-hydrogen developer, is working on a $100m capital raise that’s expected to wrap up this month, according to four sources familiar with the matter.

Raven’s C-round of financing is being run by Barclays and Bank of America. The firm has received widespread interest from private equity and corporate strategics.

Raven CEO Matt Murdock said on the sidelines of the Hydrogen Americas event in Washington D.C. that he was hoping to have the raise done by Thanksgiving.

Headquartered in Wyoming with projects in California and Spain, the company uses a steam/CO2 reforming process that transforms municipal solid waste, organic waste and methane into clean fuels.

In August, 2021, Raven closed on a $20m strategic investment from Chevron U.S.A., ITOCHU Corporation, Hyzon Motors Inc. and Ascent Hydrogen Fund. Samsung Ventures made a strategic investment earlier this year, allowing the company to expand into the Asia-Pacific market.

The company has partnered with INNIO to use its Jenbacher engines to provide renewable power and heat to Raven SR’s first waste-to-hydrogen production facility at the Republic Services West Contra Costa Sanitary Landfill in Richmond, California.

Raven SR plans to bring the plant online in the first quarter of 2023, initially processing up to 99.9 tons of organic waste per day and producing up to 2,000 metric tons per year of hydrogen.

In Aragón, Spain, Raven SR is aiming to bring a second project online in 2023 that will produce 1,600 metric tons per year of renewable hydrogen from approximately 75 tons of organic solid waste per day.

Raven SR recently announced the election of Mark Gordon of Ascent Fund and Michael Hoban of Chevron New Energies to its Board of Directors.

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Analysis: States with hydrogen use and production incentives

Some states are mulling hydrogen-specific incentives and tax credits as they wait for final federal regulations for clean hydrogen production, Bianca Giacobone reports.

[Editor’s note: Paragraphs six through nine have been modified to clarify that Colorado legislation does in fact include ‘three pillars’ language.]

Final guidelines for the federal hydrogen production tax credits are still a work in progress, but in the meantime, legislatures across the country have been mulling their own incentives to spur production. 

So far, 14 U.S. states have or are considering legislation that includes tax credits or other incentives for the use or production of hydrogen, five of which specify the hydrogen has to be “green,” “clean” or “zero-carbon.” 

The industry is waiting for the final regulations relating to the 45V tax credit for production of clean hydrogen, a draft of which was released last December, and states are similarly waiting to make their own moves. 

“States have interest in developing hydrogen programs, but they will lag the federal initiatives,” said Frank Wolak, CEO of the Fuel Cell and Hydrogen Energy Association. “The new suite of things that the states will do is largely dependent upon the reaction from the federal government, which is brand new.” 

The ones that aren’t waiting opt for vagueness. 

Val Stori, senior program manager at the Great Plains Institute, a non-profit focused on the energy transition, notes that Washington state has a bill supporting renewable electrolytic hydrogen, but it doesn’t specify whether electricity has to be sourced directly from renewables or if it can come from the grid. It doesn’t touch upon the more granular “three pillars” requirements for clean hydrogen which could be included in federal regulations: new supply, temporal matching, and deliverability.

“The lack of specificity is the trend,” she said.

Meanwhile, Colorado’s Advance the Use of Clean Hydrogen Act is the exception to that rule with what’s considered the country’s first clean hydrogen standards, including “matching electrolyzer energy consumption with electricity production on an hourly basis” and requiring that “the electricity used to produce clean hydrogen comes from renewable energy that would otherwise have been curtailed or not delivered to load or from new zero carbon generation.”

The standard will be enforced starting in 2028 or when the deployment of hydrogen electrolyzers in the state exceeds 200 MW.

(Colorado also has a Clean Air Program and a recently launched Colorado Industrial Tax Credit Offering that can offer financial support for industrial emissions reduction projects, including hydrogen projects, but they don’t mention hydrogen use or production specifically.)

“You might see the beginnings of laws that are starting to appear now,  but it might take two or three years before states build the momentum to figure out what they should be doing,” said Wolak. 

Nine out of the 14 states that have hydrogen-specific legislation don’t target clean hydrogen, but hydrogen in general. Kentucky, for example, has a 2018 tax incentive for companies that engage in alternative fuel production and hydrogen transmission pipelines. 

More recently, Oklahoma introduced a bill that proposes a one-time $50m infrastructure assist to a company that invests a minimum of $800m in a hydrogen production facility. According to local news reports, the bill is aimed at Woodside Energy’s electrolytic hydrogen plant in Ardmore. 

“We are an oil and gas state and we will be a primarily oil and gas state for a long time,” Oklahoma Senator Jerry Alvord, the bill’s sponsor, said in an interview. “But we could be at the forefront in our area of hydrogen and the uses that hydrogen puts before us.” 

Depending on the state, general hydrogen incentives could potentially add to federal tax incentives for clean hydrogen projects. 

Meanwhile, other states have been implementing Low Carbon Fuel Standards to encourage the development and use of clean fuels, including hydrogen, in transportation.

Last month, for example, New Mexico enacted its Low Carbon Fuel Standard, a technology-neutral program based where producers and vendors of low-carbon fuels, including clean hydrogen, generate credits to sell in the clean fuels marketplace, where they can be bought by producers of high carbon fuels. 

Similar programs exist in Oregon, Washington, and California, which was early to the game and began implementing its program in 2011. 

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Arizona RNG firm seeking equity capital

A renewable natural gas developer with sites proposed in southern California and Arizona is seeking additional equity investors.

True North Renewable Energy Company, a Phoenix-based waste-to-energy developer, is undergoing a Series B equity raise, according to two sources familiar with the matter.

Whitehall & Company is advising, the sources said.

True North develops, builds, and operates organics-to-energy facilities, including large, regional, high solids anaerobic digestion infrastructure, according to its website.

The firm is primarily active in southern California and Arizona. Sites have been announced in Imperial County, Kern County and Mojave (all in California) as well as Yuma County, Arizona. Collectively, these could produce up to 3m mmbtu per annum, using up to 700,000 tons of organic compost from regional farms.

The company is a holding of True North Venture Partners, of Phoenix and Chicago.

TNRE and Whitehall did not respond to requests for comment.

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