New Fortress Energy is working on final offtake agreements for its green hydrogen facility in Beaumont, Texas, CEO Wes Edens said in an earnings call Thursday.
The liquefied natural gas operator previously disclosed it is planning to build five industrial-scale hydrogen production hubs as part of its pursuit of a pure-play clean hydrogen infrastructure business.
Plug Power will provide electrolyzers while Entergy will provide renewable power to the Beaumont plant, which is set to begin operations in 2024.
“We expect to conclude sales of our product in the short term,” Edens said, declining to discuss further but noting more will be disclosed in an upcoming filing.
Big picture, $3 per kilogram under the IRA makes the green hydrogen business profitable, he said. Changes in price and efficiency in the space, he added, will mirror what’s happened with renewables in recent years.
“We think the same kind of things will happen with the influx of capital into this sector,” he said. “We’re meeting with companies all the time that have new and exciting views on how to make things more efficient.”
Addressing a question about the prospect of hourly matching guidance for renewable energy from the IRS in order to qualify for the full IRA benefits for green hydrogen, Edens said he anticipates getting the full production credit, which will flow to the bottom line.
