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Nel Hydrogen US industrializing PEM platform with GM

General Motors brings experience with fuel cells to advance Nel's PEM line.

Nel Hydrogen US, a subsidiary of Norway’s Nel ASA, has entered into a joint development agreement with General Motors to industrialize Nel’s PEM electrolyzer platform, according to a press release.

The two companies are looking to enable more cost competitive sources of renewable hydrogen, the release states.

“Adding Nel as a strategic collaborator is an important step to help us commercialize fuel cell technology,” Charles Freese, GM executive director, Global HYDROTEC, said in the release. “Nel has some of the most promising electrolyser technology to help develop clean hydrogen infrastructure, and we believe our HYDROTEC fuel cell IP can help them get closer to scale.”

Detroit-based Nel Hydrogen US will be compensating GM for the development work and IP transfer on an ongoing basis and pay a license after successful commercialization dependent on how much of the end product is based on GM technology.

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Iberdrola and BP to collaborate on green hydrogen production

Iberdrola and BP today announced their plan to form a strategic collaboration aiming to help accelerate the energy transition.

Iberdrola and BP today announced their plan to form a strategic collaboration aiming to help accelerate the energy transition.

The companies intend to develop large scale green hydrogen production hubs in Spain, Portugal and the UK, as well as production of derivatives such as green ammonia and methanol, which could be exported to Northern Europe.

This collaboration will combine Iberdrola’s world-class track record in renewables development and its global customer base, with BP’s experience in gas processing, trading and its global customer portfolio, according to a press release.The companies aim to jointly develop advantaged hydrogen production hubs with total capacity of up to 600ktpa, integrated with new renewable power.

The green hydrogen project at bp’s Castellón refinery will be part of the agreement. The two companies, together with the Instituto Tecnológico de la Energía, have submitted the Castellón project to the Spanish government’s hydrogen value chain PERTE call.

Likewise, Iberdrola’s industrial hydrogen projects under development, as well as new projects, will be part of the agreement. Based on this collaboration in Spain, Portugal and the UK, Iberdrola and bp intend to explore potential future opportunities for green hydrogen production in other geographies.

Iberdrola and BP aim to finalize both joint venture agreements by end 2022, subject to regulatory approvals

The companies also intend to collaborate to significantly expand fast EV public charging infrastructure to support the adoption of electric vehicles.

Iberdrola and BP plan to form a joint venture that intends to invest up to €1 billion to roll-out a network of up to 11,000 rapid and ultra-fast EV public charge points across Spain and Portugal, significantly expanding access to charging for consumer and fleet customers thus accelerating electric mobility.

The plan includes installing and operating an initial 5,000 fast charge points by 2025, and up to a total of 11,000 by 2030, including Iberdrola’s existing fast charging hubs.

The companies are also looking at options to jointly serve EV customers in the UK.

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$400bn investment needed in US SAF facilities by 2050: report

The report from SkyNRG identifies a $400bn investment opportunity, but notes SAF industry constraints in the form of policy instability and a lack of available feedstocks.

The US sustainable aviation fuel industry needs to invest $400bn in new production facilities if the country is to reach domestic SAF production of 27 billion gallons – equal to 2019 jet fuel demand – by 2050.

Federal tax incentives included in the Inflation Reduction Act will drive SAF production in the US, and could bring capacity to 3 billion gallons by 2030 and reach a 100% jet fuel replacement rate by 2050, according to a report from SkyNRG, a Dutch-based SAF producer.

The report highlights the available tax credits in the form of the Sustainable Aviation Fuel Blender’s Tax Credit of $1.75 per gallon; the Clean Fuel Production Tax Credit available from 2025 – 2027; and the Hydrogen Producer Tax Credit of up to $3 per kg for 10 years for facilities operation before 2033.

Constraints on industry growth include the lack of long-term policy stability and potential strains on availability of SAF feedstocks, according to the report.

“To meet aspirational goals in the US, more [project] announcements would be needed,” a summary of the report says, noting that most new projects will likely use feedstock from corn ethanol and waste materials like agricultural waste, waste biogas or household waste.

Even so, deployment of bio-intermediate pathways like RNG in early years is constrained by the pace of project development, permitting new facilities, and federal policy adaptation.

Meanwhile, the report says, fats, oils and grease markets are under pressure; for new projects in this segment – known as HEFA, or HVO – to materialize, feedstock needs to be freed up by diverting from renewable diesel and biodiesel plants or by producing more vegetable oils domestically.

“With ambitious goals at the federal level around electric vehicles and with several states implementing zero-emission truck sales requirements, it is possible that additional feedstock is freed up for SAF,” according to the report. “However, incentives currently favoring the production of biodiesel and renewable diesel over SAF would also need to shift for HEFA capacity announcements to be successful.”

The report additionally floats the following policy prescriptions to make more feedstock available:

• Curbing exports of whole soybeans to yet-to-be developed crushing facilities to increase soybean oil production. This would affect the US trade balance as well as impacting global soybean meal trade flows.

• Large-scale government support for novel non-edible oilseed crops suitable for conversion into fuel. Appropriate safeguards would have to be in place to avoid indirect land use change effects.

• Increasing soybean acreage by 40 million acres from 87 million acres today to meet soybean oil needs. This would impact corn and wheat markets as soy would have to largely expand on existing cropland. This could in turn have consequences for corn ethanol availability.

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BayoTech appoints new CFO

BayoTech has appointed Jeff Wood as its new CFO.

BayoTech, a provider of hydrogen production and transportation solutions, has appointed Jeff Wood as its new chief financial officer (CFO).

With a wealth of experience spanning 25 years in the energy value chain, Jeff is a highly skilled finance executive who brings to the role vast expertise in strategic planning, financial analysis, and capital raising, according to a news release.

Jeff has served as CFO for three public companies over a decade, including his most recent role as President and CFO of Black Stone Minerals, the largest publicly traded mineral and royalty company in the US. Prior to that, Jeff was the SVP and CFO of Eagle Rock Energy Partners until its acquisition, and served as a private company CFO for Siluria Technologies, a technology company that produces fuels and chemicals from natural gas.

Earlier in his career, Jeff was SVP and Portfolio Manager for Lehman Brothers Investment Management division, where he managed over a billion dollars and raised over $400m in capital. Before that, he was in Lehman Brothers’ Investment Banking division, where he led the execution of numerous initial public offerings, follow-on equity offerings, and debt issuances. Jeff started his career with PricewaterhouseCoopers in the audit and compliance advisory practice.

“I’m delighted to welcome Jeff Wood into BayoTech’s executive leadership team,” said BayoTech President and CEO Mo Vargas. “Jeff is an experienced leader in the energy sector who will bring strategic depth and strong oversite to BayoTech as the organization fully commercializes the deployment of BayoTech Hydrogen Hubs. He is a fantastic leader and person and will be a great cultural fit for BayoTech.”

“I am excited to be part of such a dynamic and innovative company,” Jeff Wood adds. “As the market for hydrogen expands, investor interest in hydrogen-related projects is rapidly increasing. I look forward to working with the team to drive growth and create value for BayoTech’s stakeholders.”

BayoTech’s current CFO, Wendy Rollstin, is retiring but will remain available until year-end to ensure a smooth transition. During her five-year tenure as CFO, Wendy was instrumental in shaping BayoTech’s go-to-market strategy, building scale, and accelerating growth by securing more than $160m in equity investments.

“I want to thank Wendy for her dedication to BayoTech as not only CFO but a great business partner who leaves a strong impact on the company,” said Mo Vargas. “On a personal note, she’s been a trusted adviser to the Board and me; we will miss her partnership and wish her all the best in what will be an exciting and active retirement.”

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Turnt up about turndown ratios

Optimizing electrolysis for renewables depends not just on how far you can turn the machine up, but how far you can turn it down. We asked electrolyzer makers: how low can you go?

Optimizing electrolysis for renewables depends not just on how far you can turn the machine up, but how far you can turn it down.

A consensus is growing around the importance of turndown ratios for electrolyzers, with a variety of use cases for green hydrogen requiring the machines to be run at low levels during periods of high power pricing.

Proton exchange membrane (PEM) electrolyzers are known for their ability to quickly ramp production up and down, but manufacturers of all stripes have begun to tout their technologies’ turndown ratios, with implications for capital costs and the levelized cost of producing hydrogen from renewable power.

Simply put, some electrolyzer plant operators will likely seek to lower hydrogen production during periods of high power pricing, since the cost of electricity is the largest operating expense. But cycling the electrolyzers completely off and on can lead to added system degradation, giving importance to the ability of the machines to run at low levels.

A study from the National Renewable Energy Laboratory (NREL) analyzes a US grid buildout through 2050, noting favorable locations and seasonality for power pricing as something of a guideline for green hydrogen development. The study notes that the lowest achievable turndown ratio is a main factor in minimizing hydrogen levelized cost along with the number of hours a system can operate at that minimum level – something that applies to all types of electrolyzers.

“When you start to look at hourly costs from the data in different locations, you see that all of this renewable buildout is going to create opportunities in given locations where you going to have a lot of renewable generation and not a lot of load on the system and that’s going to drive the cost for that energy down,” said Alex Badgett, an author of the study at NREL.

To be sure, the fast-moving technological environment for electrolysis leaves open the possibility for efficiency gains and disruptive innovation. And a variety of factors – balance of plant, energy efficiency, system degradation – also influence plant economics. But the lowest possible turndown ratios will drive opportunities for green hydrogen developers, Badgett said.

ReSource reviewed available spec sheets for electrolyzer providers and asked every maker of PEM and SOEC systems to detail the turndown capabilities of their machines. Alkaline electrolyzers were left out of the analysis given their more limited load flexibility, as their separators are less effective at preventing potentially dangerous cross-diffusion of gasses. Some manufacturers are fully transparent regarding turndown ranges while others declined to comment or did not reply to inquiries.

‘Not trivial’

In designing projects, developers are analyzing hourly energy supply schedules and pairing the outlook with what is known about available technology options.

“Some electrolyzers like to operate at half power, and others like to operate at full power, and in any given system, you can have between 10 and 50 electrolyzers wired and plumbed in parallel,” said Mike Grunow, who leads the Power-to-X platform at Strata Clean Energy.

“Our thought process even goes down to: let’s say you have to operate the H2 plant at 25% throughput. Do you operate all of the electrolyzers at 25%, or do you turn 75% of the electrolyzers off and only operate 25% at full power?”

The difference in the schemes, he added, is “not trivial as each technology has different efficiency curves and drivers of degradation.”

Different use cases for the hydrogen derivative, meanwhile, lead to different natural selection of technologies, Grunow said, adding that the innovation cycle is now happening every 12 months, requiring a close eye on advances in technology. 

Electrolyzer start-up Electric Hydrogen, a maker of PEM electrolyzers, is commercializing a 100 MW system that can turn down to 10%, according to Jason Mortimer, SVP of global sales at the company.

HyAxium, another start-up, can turn its system down to 10%, according to its materials. Norway-based Hystar, which recently announced plans to build a plant in the US, also promotes a 10% turndown ratio.

A more established PEM electrolyzer provider, Cummins, advertises turndown ratios of 5% for its machines. Sungrow Power, a China-based manufacturer, similarly advertises 5% for PEM electrolyzers.

Siemens Energy has a minimum turndown ratio per stack of 40%, but for a single system it can be less in exceptional cases, according to Claudia Nehring, a company spokesperson.

“We focus on large systems” – greater than 100 MW – “and currently consider this value to be appropriate, taking into account the optimization between efficiency, degradation and dynamics, but are working on an improvement,” she said via email.

ITM Power declined to provide details but said its turndown capabilities are “to be expected” for a market leader in this technology. Materials from German-based H-Tec Systems note a modulation rate down to 10%.

Additional PEM makers Nel, Ohmium, Elogen, H2B2, Hoeller Electrolyzer, Plug Power, Shanghai Electric, and Teledyne Energy Systems did not respond to requests for information.

PEM alternatives

Other forms of electrolysis can also ramp dynamically. And some project developers point to PEM’s use of iridium, part of the platinum metals family, as a drawback due to potential scarcity issues.

Verdagy, for example, has developed an advanced alkaline water electrolysis (AWE) system called eDynamic that it says takes the best of PEM and alkaline technologies while designing out the downsides.

The company’s technology “addresses the barriers that limited traditional AWE adoption by using single-element cells that can operate efficiently at high current densities,” executives said in response to emailed questions. 

“The ability to operate at very high current densities, coupled with a balance of stack and balance of plant optimized for dynamic operation, allow Verdagy’s electrolyzers to operate across a very broad range spanning 0.1-2.0 A/cm2,” they said.

In other words, the machine can turn down to 5%, part of the design that enables operators “to modulate production to take advantage of time-of-day pricing and/or fluctuations in energy production.”

Meanwhile, German-based Thysenkrupp Nucera, another maker of advanced water electrolyzers, advertises a 10% turndown ratio.

SOEC

A relatively new electrolysis technology, the solid oxide electrolyzer cell has also proven to be capable of low turndown ratios. Solid oxide electrolysis is particularly attractive when paired with high-temperature industrial processes, where heat can be captured and fed back into the high-temperature SOEC process, making it more efficient.

Joel Moser, the CEO of First Ammonia, said he chose SOEC from Denmark-based Haldor Topsoe in part because the machines can be turned completely off with no degradation, as long as you keep them warm.

“Generally speaking we expect to ramp up and ramp down between 100% and 10%,” he said. “We can turn them off as long as we keep them warm, and then we can turn them right back on.”

Still, SOEC systems are not without challenges.

“Low stack power and high operating temperature, which in turn requires more ancillary equipment to operate the electrolyzer, are widely viewed as the main drawbacks of SOEC technology,” according to a report from the Clean Air Task Force, which explores SOEC technology and its commercial prospects. “SOEC systems are also considered to have a shorter operating life due to thermal stress.”

Additional makers of SOEC machines Bloom Energy, Ceres, Elcogen, Genvia, SolydERA, and Toshiba did not respond to inquiries.

At NREL, researchers are watching for more automation and scale in the electrolyzer production process to bring costs down. Increasing efficiency through balance-of-plant improvements is another opportunity to reduce system costs.

In addition, more analysis of how large electrolyzer projects will impact the future electrical grid is required, according to Badgett.

The NREL team modeled the hourly marginal cost at any given time in any location in the US, but the model assumes that the electrolyzer takes energy without impacting the cost of energy.

“When we start to get to gigawatt-scale electrolysis,” he said, “that’s going to significantly impact prices, as well as how the grid is going to build out.”

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Gas-fired peaker sale touts hydrogen blend potential

An equity process for 25% ownership of a California peaker plant includes plans to blend up to 30% hydrogen as part of the sales pitch, according to a teaser.

An opportunity to acquire 25% of the Sentinel Energy Center in California includes decarbonization initiatives like blending 30% hydrogen and installation of on-site battery storage, according to two sources familiar with the matter.

Project Oasis is being run by CIBC, the sources said. Voltage Finance, an entity managed by Guggenheim Partners Investment Management, is exploring the sale of its 25% indirect equity interest in the 850 MW generating facility in Riverside County.

The facility has more than 75% of its capacity contracted through 2027, according to a teaser seen by ReSource. The potential to execute a long-term green hydrogen offtake contract on several of Sentinel’s turbines is being evaluated.

“Sentinel is pursuing the implementation of hydrogen blending capabilities and has advanced the engineering and design through an agreement with a global OEM with beta testing expected in Q1 2025,” the document states.

Sentinel is also co-located with 15 MW of battery storage.

Guggenheim and CIBC did not respond to requests for comment.

Diamond Generating holds a 50% stake in Sentinel. The remaining 25% interest is owned by California-based fund manager Climate Adaptive Infrastructure (CAI), which bought its stake from Partners Group last year.

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Electrolysis start-up seeking seed money

A two-man hydrogen electrolysis and storage startup based in the southeastern US is seeking an equity investment from a strategic or venture capital investor.

Green Fuel, an early-stage hydrogen technology start-up, is seeking USD 2m in seed money from a strategic or venture capital investor to get its technology off the ground, CFO William Green said in an interview.

The Alabama LLC is comprised of the two founders: Green and inventor Gordon Marsh. Green is based in Missouri.

A patented electrolysis and storage tank system (200 psi) is currently being used for grilling on site of storage, Green said. That prototype application could be scaled up, but the company is interested in pursuing licensing applications in HVAC, fuel cell vehicles, and methanol production.

Green Fuel said in a news release that the atmospheric pressuring system can reduce the cost of hydrogen by 60% by eliminating the need for transportation and compression.

The technology can be scaled to on-site production and tank storage of between 5,000 psi and 10,000 psi, Green said. Proving out that use case is part of the investment need.

“This is a real world solution,” Green said of the invention, which addresses problems in hydrogen transportation and storage. The company is also presenting its technology to the military.

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