Resource logo with tagline

Nova Scotia sets out green hydrogen action plan

The Canadian province has set out a green hydrogen action plan that identifies seven primary goals and 23 actions focused on establishing a sustainable and prosperous sector.

Nova Scotia is actively advancing the development of a green hydrogen sector, aiming to position itself as a leader in clean economic growth and environmental stewardship. The Green Hydrogen Action Plan, formulated by the Province, features seven primary goals and 23 actions focused on establishing a sustainable and prosperous sector that provides local benefits from both domestic and export opportunities​​.

Central to the initiative is the Province’s commitment to local benefits, combating climate change, and protecting the environment. A significant part of this effort involves exploring the potential of offshore wind energy to produce green hydrogen.

EverWind Fuels and Bear Head Energy have projects in development in Point Tupper, Nova Scotia, which have received environmental approvals.

In 2022, the Province announced a target to offer licenses for 5 GW of offshore wind energy by 2030. It is anticipated that most of the renewable electricity produced by these projects will support the production of green hydrogen.

Another action calls on the Province to create a Nova Scotia Clean Fuels Fund to support industries and businesses in adopting low-carbon and renewable fuels like green hydrogen. This fund will help Nova Scotian businesses and communities find and adopt lower-carbon fuels to replace fossil fuels in heating, transportation, and industrial processes. More information about the Nova Scotia Clean Fuels Fund will be available in 2024.

The Province is also working to enable early-stage green hydrogen production, distribution, and end uses in Nova Scotia through the Hydrogen Innovation Program. The forthcoming Program will enable smaller-scale project proponents to connect to utility electricity grids and access power to make green hydrogen for domestic use.

Unlock this article

The content you are trying to view is exclusive to our subscribers.
To unlock this article:

You might also like...

Montana Renewables completes startup, gets bridge loan from I Squared

Calumet Specialty Products Partners said this week that its Montana Renewables subsidiary completed the startup of its sustainable aviation fuel and pretreatment units.

Calumet Specialty Products Partners, L.P. said this week that its its Montana Renewables subsidiary completed the startup of its sustainable aviation fuel and pretreatment units.

Calumet and its SAF off-taker plan to hold a ribbon cutting ceremony on May 10, 2023 to recognize this important milestone.

“We are pleased to report that our leading Sustainable Aviation Fuel, Renewable Diesel, and Renewable Hydrogen platform is fully complete and operating,” said Bruce Fleming, CEO of Montana Renewables. “As we ramp up our pre-treater and draw down existing safety stock of clean feed, we reconfirm go-forward EBITDA guidance of $1.25 to $1.45 per gallon based on local sourcing of untreated feedstocks.”

On April 19, MRL closed a $75 million bridge loan with I Squared Capital. The bridge loan bears a variable rate of interest at SOFR plus 6.0 to 7.3% per annum and we have the flexibility to prepay 50% of principal under the bridge loan from free cash flow by the end of 2024. “Our capital markets strategy remains unchanged,” said Fleming. “This transaction provides strategic optionality as we continue to build North America’s largest SAF business.”

Calumet’s CEO Todd Borgmann added “Following a year in which we’ve demonstrated the power of Calumet’s legacy Specialty business, we can now add the full earnings power of Montana Renewables. Over the past two years, our Montana Renewables team has quickly launched a leading renewables platform and created a first mover advantage in SAF. This major accomplishment is the most recent step in our transformational plan to unlock value for Calumet’s unitholders.”

Read More »

Deutsche Bahn and Fortescue developing ammonia-hydrogen engine

Deutsche Bahn and Fortescue Future Industries are working on modifying diesel engines for locomotives and traction vehicles for ammonia and hydrogen.

Deutsche Bahn and Fortescue Future Industries are working on modifying diesel engines for locomotives and traction vehicles so that they can be operated with ammonia and hydrogen, according to a press release.

Both sides have signed a corresponding Letter of Intent. In addition to the development of emission-free propulsion technologies, the agreement also provides for cooperation in logistics and supply chains for green fuels.

Deutche Bahn and Siemens Mobility recently developed a hydrogen system for rail through the EUR 13.74m (USD 14.47m) H2goesRail project, funded by Germany’s Federal Ministry for Digital Affairs and Transport (BMDV) as part of the country’s National Innovation Programme for Hydrogen and Fuel Cell Technology.

Read More »

Electric Hydrogen agrees 1 GW electrolyzer supply with AES

The supply reservation agreement includes commercial requirements for AES to order up to 1  GW of 100 MW electrolyzer plants from Electric Hydrogen.

Electric Hydrogen has reached a comprehensive framework supply agreement with The AES Corporation for up to 1 GW of large-scale electrolyzer plants to produce low-cost, green hydrogen from renewable energy, according to a news release.

This supply reservation agreement includes commercial requirements for AES to order up to 1  GW of fully integrated, low-cost 100 MW electrolyzer plants from Electric Hydrogen.

“AES’ expertise in power markets, project development and new technology integration are best-in-class,” said Raffi Garabedian, CEO of Electric Hydrogen. “We’re excited to help AES deliver on the promise of green hydrogen and look forward to partnering with them on their future hydrogen projects.”

Electric Hydrogen’s 100 MW high-tech electrolyzer plants feature the capability to follow variable renewable energy resources allowing customers to optimize energy use and maximize project returns, the release says. The plants are designed and manufactured in the US, and the company is presently pre-fabricating its first customer-sited plant in Texas and has two operating plants in California.

“Electric Hydrogen’s innovative technology and large-scale product enables AES to offer cost effective decarbonization solutions for our customers in the most difficult to decarbonize sectors,” said Ashley Smith, Chief Innovation Officer, AES. “AES is taking steps to secure our supply chain proactively as we strategically grow our green hydrogen business.”

Electric Hydrogen’s roadmap to scale high-rate manufacturing in the US is intended to make green hydrogen competitive with fossil fuel resources by 2030. That roadmap also will allow US electrolyzer manufacturing to outstrip low-tech electrolyzer alternatives, such as alkaline products currently mass-produced in China.

The procurement reservation agreement enables AES to develop additional green hydrogen projects, capitalizing on EH2’s project scale, efficiency and low capital costs.

Read More »

Exclusive: Hydrogen adoption and production firm prepping capital raise

A decarbonization services provider is in development on multiple utility-owned hydrogen adoption projects in the Northeast, Texas and Georgia and is preparing to launch a capital raise in 3Q24.

Celadyne, a Chicago-based decarbonization and hydrogen solutions company, will launch a Series A this year as it continues its role in the development of several utility-owned hydrogen adoption projects in the US, founder and CEO Gary Ong told ReSource.

A $20m to $30m capital raise will likely launch in 3Q24, Ong said. The company is relying on existing investors from its recent seed round to advise, and the amount could change based on grants.

While the $4.5m seed round allowed the company to focus on transportation mobility, the Series A will be used to do more work on hydrogen production, so the company will be looking for strategics in oil and gas, renewable energy, and utilities.

DLA Piper is the company’s legal advisor, Ong said.

Celadyne has a contract signed with a utility in the Northeast for a small electrolysis demonstration and, following that, a multimillion-dollar project. Discussions on how to finance that latter project are underway.

Additional electrolysis projects in Texas and Georgia are in later discussions, while less mature deals are taking shape with a nuclear customer in Illinois and another project in Southern California, Ong said.

Fuel cell customers (typically OEMs that use hydrogen) to which Celadyne ships equipment are clustered mostly in Vancouver, Michigan and California.

Meanwhile, Celadyne has generated revenues from military contracts of about $1m, Ong said, a source of non-recurring revenue that has prodded the company to look for a fuel cell integration partner specific to the defense application.

‘Blocking hydrogen’

The company, founded in 2019, is focused on solving for the demand and supply issues for which the fledgling US hydrogen market is notorious. Thus, it is split-focused between hydrogen adoption and production.

Celadyne has developed a nanoparticle coating that can be applied to existing fuel cell and electrolyzer membranes.

On the heavy-duty side, such as diesel generators or back-up power, the company improves durability of engines between 3X and 5X, Ong said.

On the electrolysis side, the technology improves rote efficiency by 15%. In production, Celadyne is looking for pilot projects and verification studies.

“We’re very good at blocking hydrogen,” he said. “In a fuel cell or electrolyzer, when you have hydrogen on one side and oxygen on the other side, you need something to make sure the hydrogen never sees the oxygen,” noting that it improves safety, reduces side reaction chemistry and improves efficiency.

Hydrogen adoption now will lead to green proliferation later should the economics prove out, according to Ong. If not, blue hydrogen and other decarbonized sources will still pave the way to climate stability.

The only negative for that is the apparent cost-floor for blue hydrogen in fuel cell technologies, Ong said, as carbon capture can only be so cost efficient.

“So, if the price floor is say, $3.25 or $3.50 per kg, it doesn’t mean that you cannot use it for things like transportation, it just means that it might be hard to use it for things like shipping, where the fuel just has to be cheaper,” Ong said.

Three companies

Celadyne is split into three focus applications: defense, materials, and production. If only one of those wings works, Ong said he could see selling to a strategic at some point.

“If any of those things work out, we ought to become a billion-dollar company,” he said.

If all three work out, Ong will likely seek to do an IPO.

An acquisition could be driven by an acquiror that can help Celadyne commercialize its products faster, he said.

Read More »
exclusive

DG Fuels charting path to be SAF powerhouse

The company has retained advisors and is mapping out a plan to build as many as 50 production facilities in North America for a “gigantic” sustainable aviation fuel market.

DG Fuels is charting a plan to build a proprietary network of 30 to 50 sustainable aviation fuel (SAF) production facilities in North America, CEO Michael Darcy said in an interview.

The Washington, D.C.-based company will pursue a combination of debt and equity on a case-by-case basis to fund the projects, Darcy explained, with financings underway now for the firm’s initial project in Louisiana and a second facility in Maine. The Louisiana facility recently inked a USD 4bn offtake agreement with an undisclosed investment grade industrial buyer.

The company is working with Guggenheim and Stephens as financial advisors, Darcy said. About 60 people hold equity in the company; Darcy and the founding team hold a majority stake.

In the coming months DG Fuels will likely make announcements about more SAF plants in the US and British Columbia, Darcy said. Site negotiations are underway and each project is its own subsidiary of the parent company.

“There’s clearly a good return of what we refer to as the ‘project level,’ and then we have the parent company,” Darcy said. “We have strategic investment at the parent and now we’re looking at strategic investment at the project level.”

Huge demand, low supply

DG Fuels produces SAF from cellulosic biomass feedstock, a technology that does not need sequestration of CO2 because natural gas is not used.

“We like to say it’s the corn cob, not the corn,” Darcy said. The company can also use timber waste, waxes, and renewable power as an important source of energy.

The company gets about 4.5 barrels of SAF for every ton of biomass feedstock, which is roughly three to four times the industry average, Darcy said.

“Practical scale” for a facility is 12,000 to 15,000 barrels a day, Darcy said. That’s big enough to be commercialized without stressing the electrical grid with power demand.

Despite the company’s advantages, there is “plenty of room” for other producers to come into the SAF space, Darcy said.

“Right now, the market for SAF is gigantic and the supply is minimal,” Darcy said. “Companies like us are able to pick and choose high-quality offtakers.”

DG Fuels includes Delta Airlines, Air France and General Electric as committed offtakers.

Multi-tasking

DG Fuels is “always engaged in some level of capital raise for construction of facilities and detailed engineering,” Darcy said. “There’s always more engineering to be done.”

Some of the financing has already been completed, but Darcy declined to go into additional detail. After Louisiana, the company will quickly follow up with Maine.

HydrogenPro AS recently announced that it would join Black & Veatch and Energy Vault in financing the remaining capital requirements of DG Fuels’ project in Louisiana, which is expected to be completed in mid-2022.

Most of the engineering work in Louisiana is transferable to the company’s project in Maine. Darcy likened the facilities’ build-out to a class of ships: once the first is completed, the second and third can be built almost concurrently.

“There will be a point where we won’t be building one at a time,” Darcy said.

The opportunity for funders to participate is broad in the SAF space, Darcy said. There is a crossover of good economics and ESG, so strategics, industrials, private equity and other pure financial players can all be involved.

The broad base of capital eager to participate in companies that are innovative — but not too innovative as to scare investors — is indicative of the industry’s ability to secure offtakers and feedstock.

Storing power

It’s one thing to acknowledge the need for reduction of carbon, but hard work is required ahead, Darcy said.

“The low-hanging fruit has been done,” he said of the renewables industry. “Now it’s not really about the power, it’s about the storage of power.”

DG Fuels is an offtaker of non-peak renewable power to displace fossil fuel energy. But baseload renewable power is becoming available almost anywhere.

The Maine project will use stranded hydroelectric power, Louisiana will use solar, and projects in the Midwest will use wind, Darcy said. Additionally, geothermal power is “starting to become a very real opportunity,” he added.

Deploying broadly with renewable power gets past the issues of variability of renewable power at a reasonable cost, he said.

Read More »

Exclusive: Seattle biomass-to-chemical firm planning equity round

A firm with plans for a biorefinery in Washington state will raise its first large equity round early next year.

Planted Materials, a Seattle-based biomass-to-chemicals company, is in early design stages for its first biorefinery in eastern Washington state and planning to raise an equity round in early 2025, co-founders Noah Belkhous and Greg Jenson said in an interview.

The company will seek to raise between $10m and $20m ahead of FID on the biorefinery, Belkhous said. The four-year-old company has raised $500k from angel investors to date and is currently raising another $1m from high net worth individuals in the Seattle region.

Planted Materials does not have a relationship with a financial advisor but is open to one, Belkhous said.

The company’s recycling model takes municipal landfill waste and converts it to chemical materials for pharmaceutical, paper, plastic and other manufacturing industries.

The proprietary recycling process is something the company would like to license to municipalities in the US and abroad, in addition to building biorefineries in the Pacific Northwest, Belkhous said. The company’s lab is currently based in the Ballard neighborhood of Seattle.

Early design work on the first biorefinery is underway. The duo expects CapEx to cap at $50m, reaching FID in 2026 and beginning construction that year.

While the majority of the company’s feedstock will likely come from the major metropolitan regions in the western PNW, refining capacity is more attractive in the east for reasons of space and existing waste management infrastructure. Jenson noted the presence of the relevant research campus of Washington State University in Pullman, as well as the Pacific Northwest National Laboratory in Richland.

Recently, the team accompanied Washington Governor Jay Inslee and members of the Washington State Department of Commerce on a trip to Sydney and Melbourne in Australia. The company has applied to a pair of $350k grants from the state.
Read More »

Welcome Back

Get Started

Sign up for a free 15-day trial and get the latest clean fuels news in your inbox.