Resource logo with tagline

PowerTap to partner on California hydrogen hub

The Vancouver-based hydrogen and fuel dispensing firm has been named as an industry partner in the ARCHES hydrogen hub consortium. PowerTap, a hydrogen production and fuel dispensing firm, has been named as one of the industry partners in the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), California’s public-private hydrogen hub consortium to accelerate the development and deployment of clean, renewable  projects and infrastructure.

“PowerTap is extremely pleased to be partnering with ARCHES with a goal to deliver clean hydrogen production to current and future California hydrogen transport users. These clean energy projects are essential elements in the process of decarbonization of the transportation sector,” said PowerTap CEO Mr. Raghu Kilambi in a news release.

PowerTap Hydrogen Capital Corp., through its wholly owned subsidiary, PowerTap Hydrogen Fueling Corp., is focused on installing hydrogen production and dispensing fueling infrastructure in the United States. PowerTap’s patented solution has been developed over 20 years. PowerTap is now commercializing its third-generation blue hydrogen product that will focus on the refueling needs of the automotive and long-haul trucking markets that lack hydrogen fueling infrastructure.

As reported in a press release on November 23, 2022, the PowerTap/T2M Global team submitted a proposal to the Air Quality Mitigation Fund (AQMF) of the Harbor Benefit Community Foundation (HBCF) in the Port of Los Angeles to produce a barge-based fuel cell power cold ironing project, including the production of hydrogen.

At its November Board Meeting, the HCBF published the results of its evaluation, and the PowerTap/T2M Global submission was well received. The HCBF, noting that the PowerTap/T2M Team approach completely avoids the creation of emissions from ships in the port, emphasized the importance of maximizing emission reduction from ships during the demonstration period, particularly in the upcoming Round 3 of funding rounds as the HBCF moves to award the remaining $2m in the AQMF. The Company is pleased to announce that the HBCF has released the Round 3 AQMF Request for Proposal with a due date of February 24, 2023, to which the PowerTap/T2M Team intends to submit a proposal.

In addition to any potential award of government grants to the projects noted above, additional capital may be required for those projects and these funds would be secured by a combination of equity, debt possibly backed by the US Department of Energy, other state subsidies and/grants and subsidiary project financing. The Company has not, as yet, secured such additional financing for the above-mentioned projects. The Company will comment further when additional disclosure is appropriate and/or necessary.

Unlock this article

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

You might also like...

Fortescue and Tree Energy to develop global H2 network

Fortescue will make an investment of EUR 30m in TES and EUR 100m in a German import terminal.

Fortescue Future Industries and Tree Energy Solutions have agreed to develop the world’s largest green hydrogen integrated project in Europe.

The first phase of this partnership is to jointly develop and invest in the supply of 300,000 tonnes of green hydrogen with final locations being currently agreed. The target for a Final Investment Decision (FID) is in 2023.

FFI and TES have agreed terms for FFI to make an equity investment of EUR 30m to become a strategic shareholder in TES and to invest EUR 100m for a significant stake in the construction of the TES import terminal in Wilhelmshaven, Germany.

First deliveries of green hydrogen into the TES terminal in Wilhelmshaven are expected to take place in 2026.

FFI joins a group of international strategic investors in TES, including E.ON, HSBC, UniCredit, and Zodiac Maritime.

The two companies plan to develop industrial scale green hydrogen production globally with an initial focus on Australia, Europe, Middle East and Africa. They also plan to develop large-scale renewable energy generation, using TES’s business model and access to the European green hydrogen market.

The German Federal Ministry of Economics and Climate Protection recently selected TES to jointly develop and implement Germany’s fifth Floating Storage Regasification Unit in Wilhelmshaven. In parallel, the TES terminal will serve as the primary entry point for energy in Europe. TES will import hydrogen in the form of renewable natural gas.

Read More »

Plug Power and Olin launch hydrogen production and marketing JV

Plug Power and Olin Corporation have launched Hidrogenii, a joint venture to provide green hydrogen throughout North America.

Plug Power and Olin Corporation have launched Hidrogenii, a joint venture to provide green hydrogen throughout North America, according to a press release.

Hidrogenii’’s first project will be a a 15 ton per day hydrogen plant in St. Gabriel, Louisiana.

Plug will be the exclusive marketer of the joint venture’s hydrogen and provide logistical support for delivery, while Olin, North America’s largest producer of electrolytic hydrogen headquartered in Missouri, will provide reliable hydrogen supply and operational expertise.

The Louisiana plant will benefit from state and local tax subsidies. It joins Plug’s growing national network of hydrogen plants in various planning and construction phases in New York, Tennessee, Georgia, Texas and California.

By 2025, Plug expects to produce 500 tons per day of liquid green hydrogen.

Read More »

Clean Seas investing $50m in Arizona plastic-to-hydrogen project

The subsidiary of the Clean Vision Corporation is working to secure “stages of necessary capital” for the project in Phoenix.

Clean-Seas, Inc. has signed an MOU with the Rob and Melani Walton Sustainability Solutions Service to establish a plastic waste to hydrogen facility in Phoenix, Arizona, according to a press release.

Clean-Seas Arizona, a subsidiary of the Clean Vision Corporation, intends to invest at least $50m in the project. The company will “work towards securing the various stages of necessary capital to finance the innovative facility in phases,’ the release states.

Clean-Seas Arizona will source waste plastic feedstock from the Phoenix metro area for a global network of clean hydrogen hubs and recycle it into AquaH, Clean-Seas’ brand of hydrogen.

RMWSSS, an institute at Arizona State University, will provide scholarly, technical, and sustainability advisory services.

Read More »
exclusive

Renewables developer exploring move into green hydrogen

North Carolina-based Strata Clean Energy is engaged with engineers and consultants in preparations for a potential move into the production of green hydrogen.

Strata Clean Energy, the North Carolina-based utility-scale renewables developer, is researching locations in the U.S. where it could potentially build a green hydrogen production plant, executives said in an interview.

“We’ve been doing some hydrogen work for the past few years,” said Tiago Sabino Dias, former CEO of Crossover Energy, which was acquired by Strata in a deal announced this week. That forward momentum on green hydrogen and other areas of the energy transition was part of the reason the deal with Strata was made, he said.

Sabino Dias is now the senior vice president of origination at Strata following the takeover.

“We’ve done a lot of work thinking about where the high-value locations are,” Strata’s Chief Development Officer Josh Rogol said in a separate interview.

Hydrogen is adjacent to Strata’s core competencies in energy storage, Rogol said. The company is confident it could supply the green kilowatt hours for hydrogen production and is researching offtake scenarios in transportation and industrial uses.

Strata has a 13 GW project pipeline of standalone and combined solar and storage, according to its website, with 4 GW under management.

The company’s IPP has about 1 GW with ambitions to grow, Rogol said. It’s go-forward pipeline comprises more than 100 projects across 26 states.

Strata is now engaged with several consultants and engineers to explore green hydrogen opportunities, Rogol said. The company is open to new advisory relationships across verticals.

“We think we are really well positioned to be both the energy supplier, as well as the molecule producer,” Rogol said. The capabilities and intellectual property acquired through Crossover put the firm six to 18 months ahead of other nascent developers.

Early-stage development in green hydrogen can be funded with Strata’s balance sheet, similar to Strata’s bilateral takeover of Crossover, Rogol said. Later stage development and EPC will require “an ecosystem of partners” potentially both financial and strategic, he added.

Read More »
exclusive

Analysis: Premium for clean hydrogen unlikely

A group of hydrogen offtakers say they have every intention of decarbonizing their fuel intake, but barring the implementation of a carbon-pricing mechanism, paying a premium for it is unrealistic.

Passage of the Inflation Reduction Act ignited investor interest in the global market for clean hydrogen and derivatives like ammonia and methanol, but offtake demand would be better characterized as a flicker.

And while many questions about the nascent market for green hydrogen remain unanswered, one thing is clear: offtakers seem uninterested in paying a “green premium” for clean fuels.

That doesn’t mean offtakers aren’t interested in using clean fuels – quite the opposite. As many large industrial players worldwide consider decarbonization strategies, hydrogen and its derivatives must play a significant role.

Carbon pricing tools such as the Carbon Border Adjustment Mechanism in Europe could introduce a structural pricing premium for clean products. And industry participants have called for carbon levies to boost clean fuels, most recently Trafigura, which released a white paper today advocating for a carbon tax on fossil-based shipping fuels.

But the business case for clean fuels by itself presents an element of sales risk for potential offtakers, who would have to try to pass on higher costs to customers. Even so, there is an opportunity for offtakers to make additional sales and gain market share using decarbonization as a competitive advantage while seeking to share costs and risks along the value chain.

“It’s a very difficult sell internally to say we’re going to stop using natural gas and pay more for a different fuel,” said Jared Elvin, renewable energy lead at consumer goods company Kimberly-Clark. “That is a pickle.”

Needing clean fuels to reach net zero

Heavy-duty and long-haul transportation is viewed as a clear use case for clean fuels, but customers for those fuels are highly sensitive to price.

“We’re very demand focused, very customer focused,” said Ashish Bhakta, zero emission business development manager at Trillium, a company that owns the Love’s Travel Shop brand gas stations. “That leads us to be fuel-agnostic.”

Trillium is essentially an EPC for fueling stations with an O&M staff for maintenance, Bhakta said.

As many customers consider their own transitions to zero-emissions, they are thinking through EV as well as hydrogen, he said. Hydrogen is considered better for range, fueling speed and net-payload for mobility, all of which bodes well for the clean fuels industry.

One sticking point is price, he said. Shippers are highly sensitive to changes in fuel cost – and asking them to pay a premium doesn’t go far.

Alessandra Klockner, manager of decarbonization and energy solutions manager at Brazilian mining giant Vale, said her employer is seeking partnerships with manufacturers, particularly in steel, to decarbonize its component chain.

In May Vale and French direct reduced iron (DRI) producer GravitHy signed an MoU to jointly evaluate the construction of a DRI production plant using hydrogen as a feedstock in Fos-sur-Mer, France. The company also has steel decarbonization agreements in Saudi Arabia, the UAE and Oman.

In the near term, 60% of Vale’s carbon reductions will come from prioritizing natural gas, Klockner said. But to reach net zero, the company will need clean hydrogen.

“There’s not many options for this route, to reach net zero,” she said. “Clean hydrogen is pretty much the only solution that we see.”

Elvin, of Kimberly-Clark, noted that his company is developing its own three green hydrogen projects in the UK, meant to supply for local use at the source.

“We’re currently design-building our third hydrogen fueling facility for public transit,” he said. “We’re basically growing and learning and getting ready for this transition.”

The difficulty of a “green premium

The question of affordability persists in the clean fuels space.

“There are still significant cost barriers,” said Cihang Yuan, a senior program officer for the World Wildlife Fund, an NGO that has taken an active role in promoting clean fuels. “We need more demand-side support to really overcome that barrier and help users to switch to green hydrogen.”

Certain markets will have to act as incubators for the sector, and cross-collaboration from production to offtake can help bring prices down, according to Elvin. Upstream developers should try to collaborate early on with downstream users to “get the best bang for your buck” upstream, as has been happening thus far, he added.

Risk is prevalently implied in the space and must be shared equitably between developers, producers and offtakers, he said.

“We’ve all got to hold hands and move forward in this, because if one party is not willing to budge on any risk and not able to look at the mitigation options then they will fail,” he said. “We all have to share some sort of risk in these negotiations.”

The mining and steel industries have been discussing the concept of a green premium, Klockner said. Green premiums have actually been applied in some instances, but in very niche markets and small volumes.

“Who is going to absorb these extra costs?” she said. “Because we know that to decarbonize, we are going to have an extra cost.”

The final clients are not going to accept a green premium, she said. To overcome this, Vale plans to work alongside developers to move past the traditional buyer-and-seller model and into a co-investment strategy.

“We know those developers have a lot of challenges,” she said. “I think we need to exchange those challenges and build the business case together. That’s the only way that I see for us to overcome this cost issue.”

Read More »

Exclusive: Appalachian biogas firm seeking project debt

An RNG developer based in Appalachia with projects across the US is seeking project debt financing.

Northern Biogas, the West Virginia-based developer and operator of anaerobic digester and RNG facilities, is independently seeking debt for its project pipeline, according to two sources familiar with the matter.

Backed by HIG Capital, Northern Biogas serves diary, landfill, food waste and municipal projects. The company has raised some $200m in debt with assistance from alternative energy finance provider Pathward National Association, one source said. Project debt has typically been raised in tranches of $20m to $30m for individual projects.

Northern Biogas’ portfolio includes five dairy farm projects under construction in Wisconsin and one in Michigan, according to the company’s website. The company has a presence in Texas and Colorado as well.

Representatives of the company did not respond to requests for comment.
Read More »

Welcome Back

Get Started

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