Executives from New Fortress Energy believe the company will generate $150m of EBITDA from three green hydrogen projects when fully operational.
NFE’s ZeroPark I facility in Beaumont, Texas is the most advanced, having broken ground on construction after securing offtake for green hydrogen from OCI Global and contracting with Electric Hydrogen to install electrolyzers at the site.
The original design for the facility called for 100 MW of capacity or up to 50 tons per day of hydrogen production. The company is now increasing the scope of the facility to 200 MW or 100 tons per day, and expects to have the ability to turn on the facility next year with full operations entering 2025, NFE Managing Director Ken Nicholson said on an earnings call.
The company is pursuing two additional green hydrogen project developments, one in the Pacific Northwest and one in the Northeast that will start construction in the next six months.
“We have a fourth facility also on the Gulf Coast that we think is very interesting and we’re in advanced negotiations to secure that site,” Nicholson said.
The business segment, known as ZeroParks, will provide green hydrogen and hydrogen logistics terminals to customers in the energy, industrial and transportation sectors, he said. The terminals are focused on regional North American demand but are also on waterfront, allowing for expansion into exports to international markets.
“If all we do is build three parks in the Pacific Northwest, Northeast and down in Beaumont, this is a business that will generate $150m of EBITDA annually,” he said.
Meanwhile, the cost to build the facilities comes largely from debt financing with a borrowing rate under 5%, Nicholson said.
The company has said previously — and continues to stress in investor materials — that it will soon spin out ZeroParks into a pure-play green hydrogen business.
