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Spain’s ACCIONA planning large-scale green hydrogen projects in the US

A JV between Spain’s ACCIONA and Germany’s Nordex has big plans for the US.

ACCIONA & Nordex Green Hydrogen (ANGH) is developing gigawatt-scale green hydrogen projects in the United States.

The firm, a JV between Spanish renewables and infrastructure firm ACCIONA and German wind turbine maker Nordex, has several projects in development in rural America as part of a global portfolio of green hydrogen projects with targeted installed wind and solar capacity of 50 GW.

In comments to the IRS regarding 45V tax credits, the firm’s Vice President of Development Scott Baron wrote that the firm was seeking to reach FID by 2027 and complete construction by 2030 on at least one of the projects.

“Each project represents multiple billions of capital investment and gigawatts of incremental renewable energy capacity. Developing projects of this scale takes time and considerable investment, which we have committed,” Baron wrote.

In making the case for maintaining strict standards for green hydrogen production under 45V, Baron noted that Nordex has a separate business unit, Nordex Electrolyzers, that is developing an alkaline electrolyzer designed to operate under variable electricity output from renewable sources.

“Prototyping will be complete in 2025 with commercial scale-up to follow,” he said. “This experience has given us confidence that the technology (in general) will be ready and scalable in time to support the projects we and others intend to build within this decade.”

Baron declined to comment further on the projects.

Business model

Further making the argument for strict green hydrogen rules, Baron writes that there are zero emissions impacts to the grid under the business model that ANGH is pursuing, whereby renewable energy resources are directly connected to the electrolyzers.

“Our support [of strict rules] is predicated on a business model that ANGH and others are pursuing globally, which focuses on building very large-scale projects (typical projects are 1,000- 3,000 MW electrolyzer capacity, with capital cost expectations of $3-10 billion) in the best renewable energy resource areas of the world but are remote and currently lack transmission infrastructure,” the letter reads. “These projects are exclusively or primarily ‘behind-the-meter’ or ‘off-grid’ and rely on system designs that optimize sizing of the various key pieces of equipment given the wind and/or solar profile of the site. “

Baron goes on to write that the challenge of remotely sited projects is transporting the final end-product to its end user. “Within the United States, there is tremendous potential to utilize and/or develop low-cost pipelines, which is a proven successful and low-cost method of transporting molecules,” he said. “The scale of the projects ANGH is developing can support the capital costs associated with new longer distance pipelines.”

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Hyzon and partners complete commercial deliveries with liquid H2

Hyzon Motors completed deliveries to eight customers of Performance Food Group in Texas, traveling over 540 miles on a 16-hour continuous run in a liquid hydrogen fuel cell electric vehicle.

Hyzon Motors, Performance Food Group, and Chart Industries, have completed Hyzon’s first commercial run with a liquid hydrogen fuel cell electric vehicle (LH2 FCEV), according to a news release.

Starting in Temple, Texas, the truck completed deliveries to eight PFG customers near Dallas, travelling over 540 miles on a 16-hour continuous run including over 100-degree Fahrenheit temperatures.

“The run – further than the distance from Sacramento to San Diego – demonstrates the viability of on-board liquid hydrogen to fuel long-distance, zero-emission transport,” the release states.

Compared to gaseous hydrogen, liquid hydrogen allows Hyzon to increase the amount of fuel on board significantly thanks to increased energy density. Hyzon partnered with Chart Industries to develop a tank system capable of storing liquid hydrogen at extremely cold temperatures and delivering it to the fuel cell system at the necessary pressure.

Liquid hydrogen as a fuel source has been estimated to be up to $5 per kilogram less expensive all-in to dispense than high-pressure gaseous hydrogen1, which would provide meaningful benefits to fleet owners.

For vehicle testing and the demo run, liquid hydrogen transportation, storage and dispensing was provided by Certarus, with liquid hydrogen produced by Air Liquide.

It was previously reported that Hyzon is partnered with Raven SR and Chevron New Energies to commercialize operations of a green waste-to-hydrogen production facility in Richmond, California.

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Air Products to build commercial-scale hydrogen refueling station in Edmonton

The hydrogen refueling station will be Air Products’ first in Canada and the first commercial-scale hydrogen refueling station in Alberta.

Air Products, the world’s largest producer of hydrogen, plans to build a multi-modal hydrogen refueling station near its new net-zero hydrogen energy complex under construction in Edmonton, Alberta, Canada.

The hydrogen refueling station will be Air Products’ first in Canada and the first commercial-scale hydrogen refueling station in Alberta. The station plans were announced today at the Canadian Hydrogen Convention during a fireside chat with Eric Guter, Air Products’ Global Vice President, Hydrogen for Mobility.

“This station is the next step in Air Products’ commitment to Edmonton and the province of Alberta and will serve as a model that can be replicated throughout Canada to grow the hydrogen economy, reduce emissions and assist Canada on its path to achieving net-zero by 2050,” said Guter. “Canada is well-positioned to be a leader in the clean energy future, and we are proud to build on Air Products’ investment in Western Canada to help accelerate the use of hydrogen as an emissions-free transportation fuel across the nation.”

The hydrogen refueling station is supported in part by $1 million (CAD) in funding from Natural Resources Canada’s Zero Emission Vehicle Infrastructure Program.

The new station will include two hydrogen refueling lanes with dispensers for heavy-duty vehicles such as commercial and municipal trucks, and Air Products’ own truck fleet, with a filling time on par with conventionally fueled heavy-duty trucks. In addition, the station also will have two fueling positions for light-duty hydrogen fuel cell cars. The state-of-the-art, high-capacity, high-efficiency station is scheduled to open in early 2025 and will be available to retail customers. Using proprietary compression technology, the station will have a capacity of up to six tonnes of hydrogen per day. It will be located in Northeast Edmonton near Air Products’ transformative new $1.6bn (CAD) net-zero hydrogen energy complex.

The complex will use an advanced process technology that enables the cost-effective capture of more than 90 percent of carbon emissions for permanent sequestration safely underground. In addition, to avoid the indirect emissions associated with using grid electrical power, the project includes a 100 percent hydrogen-fueled power generation unit. This unit is oversized to power the production facility and supply clean power to the Alberta grid.

The complex also will be integrated with neighboring Imperial Oil Limited’s new renewable diesel facility, using innovative engineering. Imperial will produce renewable diesel from locally sourced non-petroleum feedstocks, using a process that produces a biogenic renewable off-gas (ROG) by-product. This ROG will be used as a feedstock within the Air Products hydrogen complex, displacing natural gas and further enhancing the overall carbon emissions profile. The combination of utilizing a renewable feedstock and power export more than offset the remaining 10 percent needed to achieve net-zero at the new hydrogen production facility.

The net-zero facility will connect to Air Products’ existing 55-kilometer pipeline network in the Alberta Heartland to help refining and petrochemical customers reduce the carbon intensity of their operations and products.

Air Products also has announced plans to open a new project delivery office in Edmonton. The Global Engineering and Manufacturing Technology Equipment office will be a cross-functional space including engineering, product, process gas, and air separation unit product line functions.

Air Products currently operates three hydrogen production facilities in Alberta, and also operates a hydrogen production facility, a 30-kilometer pipeline network and a liquefaction facility in Sarnia, Ontario.

Air Products works across all facets of the hydrogen value chain, including production, distribution, storage and dispensing and has been a pioneer in hydrogen fueling for decades.

The company operates the world’s largest hydrogen pipeline system, located in the U.S. Gulf Coast, and is a world-class liquid hydrogen supplier. Air Products has hands-on operating experience with over 250 hydrogen fueling station projects in 20 countries and the company’s technologies are used in over 1.5 million fueling operations annually.

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H2B2 to go public in $750m SPAC deal

The Madrid-based hydrogen platform H2B2 Electrolysis Technologies has reached a deal to go public in a SPAC deal with RMG Acquisition Corp. III.

H2B2 Electrolysis Technologies, Inc. (H2B2), a global green hydrogen platform that provides bespoke integrated solutions across the hydrogen value chain, and RMG Acquisition Corp. III (Nasdaq: RMGC) (RMG III), a publicly-traded special purpose acquisition company, have entered into a definitive agreement to take H2B2 public via a business combination, according to a news release.

Under the terms of the proposed transaction, H2B2’s stockholders will roll 100% of their equity holdings into the combined public company.

The base purchase price of $750m is subject to adjustment based on the results of the proposed capital raise transaction described below. H2B2 is separately undertaking a capital raise transaction, which is expected to close prior to the proposed transaction. The capital raise transaction is being led by Natixis Partners Iberia S.A. and BCW Securities LLC, an affiliate of RMG III. Subject to the terms and conditions of the merger agreement for the business combination, post-capital raise transaction stockholders of H2B2 will roll 100% of their equity into the surviving corporation.

Cohen & Company Capital Markets is acting as capital markets advisor to RMG III.

Skadden, Arps, Slate, Meagher & Flom (UK) LLP is acting as legal advisor to RMG III.

Pérez-Llorca is acting as Spanish counsel to RMG III.

Natixis Partners Iberia S.A. and BCW Securities LLC are acting as co-private placement agents to H2B2.

Latham & Watkins LLP is acting as legal advisor to H2B2.

Since its founding in 2016, H2B2 has become a key player in the green hydrogen energy sector, the news release states. H2B2 is focused primarily on the United States and European markets, but is also expanding in Latin America and Asia-Pacific, where H2B2 has secured a role in several strategic projects. In particular, H2B2 has been selected as a participant in the IPCEI Hy2Tech (Important Projects of Common European Interest) program, through which it has been approved by the European Commission to receive up to € 25 million in connection with H2B2’s development and manufacturing capacity for both stacks and electrolyzers.

In 2019, the California Energy Commission awarded H2B2 a grant for the development of a green hydrogen production facility, SoHyCal plant, in Fresno, California. This 3 MW plant is to begin production in May 2023, with an additional 6 MW of hydrogen capacity and 15 MW of associated solar PV to be constructed during Phase II. In addition, in 2022, Ecopetrol, the leading oil company in Colombia, began working with H2B2 and recently welcomed it into its group of strategic partners as part of its broader plan to decarbonize and develop green hydrogen energy. H2B2 has also recently entered the Indian market through a joint venture with GR Promoter Group and the creation of GreenH.in Electrolysis.

Key Investment Highlights

  • A leading global green hydrogen platform: Capabilities spanning the entire value chain of green hydrogen production, including R&D, manufacturing proprietary electrolyzer technology, project development, EPC, O&M, green hydrogen production, storage and delivery.
  • Customer-centric business model: H2B2 provides tailor-made and scalable solutions worldwide, with a one-stop-shop approach, offering design, development, EPC, electrolyzers, offtake agreements, financing, and O&M services.
  • Proprietary and flexible electrolysis technology: Currently utilizing proven PEM technology in the supply of its manufactured electrolyzers but is also developing next generation technologies (AEM & SOEC) in-house.
  • Global company with the ability to identify and deliver unique projects of different scale across its target markets: A robust and diversified pipeline of over 260 projects, with an expected aggregate capacity of approximately 5.6 GW of identified potential projects. H2B2 is currently working with significant customers such as Ecopetrol, GP Joule, Cepsa and Tecnicas Reunidas.
  • Industry leading management team: The H2B2 management team has over 200 years of combined experience in engineering and financing renewable energy projects and have worked together as a team for more than 20 years in renewable hydrogen.

Bob Mancini, CEO of RMG III, commented that “RMG III and H2B2 are dedicated to accelerating the energy transition through the advancement of next-generation energy infrastructure. As a pioneer in the development of green hydrogen production facilities, and supported by an industry leading team, we are confident that H2B2 is well positioned to further expand and execute on its impressive pipeline of opportunities.”

Anselmo Andrade, CEO of H2B2 has confirmed that “With the operations that we have underway, we are seeking to strengthen not only the international business that we are currently developing, but our operational capacity worldwide. The business and technological development of H2B2 will be bolstered as a result of this transaction with RMG III, thus making the energy vector of hydrogen key to decarbonization.”

Antonio Vázquez, President of the Board of Directors of H2B2, has indicated that “The proposed business combination with RMG III that has been announced to the investor community reaffirms our letter of intent announced in January earlier this year, and together with the capital raise transaction on which we are working, gives us confidence to move forward with the goal of obtaining the necessary funds from the markets and visibility to finance the future growth of H2B2.”

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EverWind in capital raise for Nova Scotia wind-to-hydrogen complex

EverWind Fuels is soliciting investor bids for a $1bn initial phase of its Point Tupper renewables and hydrogen/ammonia production facility in Atlantic Canada.

EverWind Fuels, the Canada-based renewable fuels developer, is preparing to launch a process to raise an estimated $800m in debt for its Point Tupper ammonia production and export facility near Halifax, according to two sources familiar with the matter.

Citi and CIBC are mandated on the raise.

The company is seeking capital from a variety of investors, one of the sources said. The raise will likely conclude around the middle of the year with Citi stepping up for part of the debt quantum.

EverWind is also in talks with Canadian Infrastructure Bank, one of the sources said.

EverWind, Citi, CIBC and CIB did not respond to requests for comment.

Nova Scotia’s Minister of Environment and Climate Change recently approved the Point Tupper Green Hydrogen/Ammonia Project – Phase 1. Construction should begin this year on phase 1 of the project, consisting of a 300 MW electrolysis plant along with a 600 tonnes-per-day ammonia production facility. The project also involves construction of a liquid ammonia pipeline to a jetty for international shipping and a 230 kW substation that will bring in electricity.

Government support for the project is leading to offtake agreements needed to build out a hydrogen supply chain at scale, a third source said. The project is nearing a $200m offtake agreement for green hydrogen with a large global manufacturer, this source added.

The German groups E.ON and Uniper said in August that they aim to buy up to 500,000 tonnes per year of ammonia each from EverWind, starting in 2025, when the project is set to begin production.

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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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US gas compression firm raising $432m

A Houston-based CNG company is raising money to develop a virtual marine pipeline between the US Gulf Coast and the Caribbean.

Andalusian Energy, a natural gas compression, export and transportation company, is undergoing a $432m capital raise to develop and build a compression and filling station in Plaquemines Parish, Louisiana and export line to Honduras, according to two sources familiar with the matter.

Whitehall & Co. is advising on the transaction, the sources said. Capital allocation will also support the purchase of CNG containers and destination port improvements in Puerto Cortes, Honduras.

Targeted initial equity is $168m, or 40%, according to a teaser seen by The Hydrogen Source. Targeted COD of the project is 2H25.

Gross-cumulative investment could exceed $2bn. The phase I estimated project cost of approximately $421m is expected to be split 40% to permanent equity capital ($168m) and 60% to structured debt ($253m).

Andalusian uses lightweight composite cylinders to ship compressed natural gas (CNG) at ambient temperature to the Caribbean, Central America and eastern Mexico. Marketing materials state the process is lower cost than shipping liquefied natural gas (LNG).

The company has installed a demonstration facility in Choloma, Honduras to import natural gas from CNG.

The Louisiana compression facility will be constructed with two adjacent docks and a site with utility connections. Natural gas will be supplied using a combination of regional pipeline networks including Southern Natural Gas pipeline and High Point Gas Transmission Pipeline. An agreement has been reached to provide interconnection and construction of a 1.5 mile lateral.

Andalusian completed its development capital raise with a strategic investment by MAN Energy Solutions USA, a division of Volkswagen AG, and equity investments by HBG, Progressive Energy and Grupo IDC.

Additional marine engineering, consulting, and ship classification services are being provided by DNV GL and confirmed by the Norwegian Maritime Authority.

Additionally, to monetize spare ship capacity and based on a contract to deliver CNG to an IPP in Honduras, Andalusian has reached an agreement with a global shipping company to transport commercial container cargo between Louisiana and Honduras, the teaser states.

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