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United Airlines launches $100m+ SAF fund

The fund is open to additional investment from corporations across industries and will prioritize SAF technology, production and sourcing.

United Airlines has launched the United Airlines Ventures Sustainable Flight Fund to support start-ups focused on decarbonizing air travel, according to a press release.

The fund starts with more than $100m in investments from United and inaugural partners Air Canada, Boeing, GE Aerospace, JPMorgan Chase, and Honeywell to invest in SAF technology and production start-ups identified by United. Customers buying a ticket on the United website or app will also have the option to contribute to the fund.

The Sustainable Flight Fund is open to investment by corporations across industries and will prioritize investment in new technology, advanced fuel sources and proven producers.

“Partners of the fund also have the potential to gain preferential access to environmental attributes associated with United’s supply of SAF,” the release states.

In the past two years UAV has invested in start-ups such as Cemvita, Dimensional Energy, and NEXT Renewable Fuels.

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German IPP secures €500m financing facility from EIG

The facility is expected to support ILOS’s plans to generate more than 2 GW of power through solar and battery projects by 2026, but also contemplates the deployment of capital to co-located battery storage and hydrogen.

ILOS Projects, a Pan-European Independent Power Producer (IPP) sponsored by Omnes, today announced the signing of a €500m structured credit facility with EIG, an institutional investor in the global energy and infrastructure sectors.

The facility is expected to support ILOS’s plans to generate more than 2 GW of power through solar and battery projects by 2026. The facility comprises an initial tranche of €250m and includes an accordion that would increase the loan amount by an additional €250m. Additional financing terms were not disclosed.

The facility is intended to accelerate ILOS’s growth toward becoming a leading Pan-European IPP, with loan proceeds available to provide construction equity and acquisition capital for ready-to-build assets. Initially, ILOS intends to focus on projects in Ireland, the UK, the Netherlands, Greece and Italy, but the facility also contemplates the deployment of capital in other OECD jurisdictions as well as in co-located battery storage and hydrogen.

Akereos Capital acted as sole bookrunner, structurer and exclusive debt advisor to ILOS. Allen & Overy served as legal advisor to ILOS and Milbank served as EIG’s legal advisor.

Rob Johnson, managing director and global head of direct lending at EIG, said, “We’re thrilled to support ILOS in these exciting growth initiatives as they work to expand their footprint across Europe. This transaction is a testament to our confidence in the management team, their strategy and ILOS’s sponsors, and it underscores EIG’s commitment to investing in high-quality assets and energy infrastructure that support a low-carbon future.”

Michael Pollan, partner at Omnes, said, “ILOS has seen tremendous growth over the last two years. We are proud to continue supporting the company as it works toward this ambitious IPP project. We also look forward to partnering with EIG, a leader in the energy infrastructure sector that shares our common values and strategic view.”

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GIC and Carlyle invest in green ammonia developer Eneus

Global investment firm Carlyle and GIC have invested in green ammonia developer Eneus Energy Limited

Global investment firm Carlyle and GIC have invested in green ammonia developer Eneus Energy Limited to support the development of a more than 14 GW pipeline, , according to a news release.

Founded in 2013, Eneus has industrial scale production plants in a global market for green ammonia and green hydrogen in the US ad the UK.

The comapny was advised by A. Brown + Company Ltd. and Wilson, Sonsini, Goodrich & Rosati. Carlyle and GIC were advised by Allen & Overy and Ashurst.

The capital will finance Eneus’s development of a portfolio of green ammonia projects globally.

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ZeroAvia forms hydrogen aviation fuel partnership with Masdar

The UAE-owned renewable energy company will work with the aviation firm to build aircraft refueling infrastructure.

ZeroAvia has signed a partnership agreement with the UAE’s Masdar to explore hydrogen production and supply, initially in North America and Europe, in order to establish hydrogen-powered commercial flights, according to a news release.

The partnership will also try to establish clean flight operations in the UAE.

Masdar is targeting 1 million tons of green hydrogen production per year by 2030. The state-owned company’s Green Hydrogen division is already involved in aviation projects targeting the production of green hydrogen.

ZeroAvia, based in the UK and US, is backed by American Airlines and recently acquired California-based fuel cell stack innovator HyPoint.

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Exclusive: Carbon capture firm raising $1.2bn for ammonia facility

A carbon capture and technology firm is conducting a FEED study for a blue ammonia facility it expects will cost some $1.2bn in traditional project finance. The company also has a pipeline of biomass-to-electricity (or “biome”) projects in the works.

8 Rivers Capital, the North Carolina-based carbon capture and technology firm backed by South Korea’s SK, Inc., is planning to raise some $1.2bn for its first ammonia production facility in Texas, Chief Development Officer Damian Beauchamp said in an interview.

The firm is conducting a FEED study for its Cormorant blue ammonia facility in Port Arthur, Texas, which will be finished in October, Beauchamp said. The firm is not using a financial advisor.

The money will be raised in a 30/70 split between equity and debt, he said. SK will take 100% of the facility’s production. 8 Rivers anticipates bringing the facility online in 2027 or 2028.

The company will seek to maintain significant ownership in its ammonia facilities. Once the FEED is finished on one the firm will start another until the company has completed between 10 and 20 of these facilities, Beauchamp said.

“We have the ambition to dominate the ammonia/zero carbon fuels space,” Beauchamp said.

‘BIOME’

In a new vertical start of electricity generation production, 8 Rivers is now scouting locations to develop its first biomass-to-electricity generation facilities in the US, Beauchamp said.

The projects, referred to as “biome” by the firm, will use forestry biomass as a feedstock in plants up to 250 MW in size. Unlike ammonia, 8 Rivers will not seek to keep ownership in an IPP play, but rather solicit co-investment from utility and industrial offtakers.

The southeastern US is a region of particular interest, Beauchamp said, because of a long growing season, the abundance of feedstock from timber, lumber and paper product producers, and proximity to existing CO2 management and transport infrastructure.

“That’s our general focus area for that first project,” he said of the deep south of Texas, Mississippi, Louisiana and Alabama.

The strategy is to take on strategic ownership partners – utilities and industrial powers users — as early as possible to finance development, he said. Large entities, including foreign utilities, could also take ownership interest in projects, not dissimilar from investment in LNG facilities.

Projects will likely cost $1bn and up, and the firm anticipates having the first progressing in earnest by 2029. Eventually 8 Rivers seeks to develop a portfolio of four or five of these projects at 250 MW each along with additional projects of a smaller size, Beauchamp said.

The first project should also be able to sell 2.7m tonnes of carbon credits per annum, Beauchamp said.

8 Rivers’ Calcite technology was announced as a winner of the Department of Energy’s Direct Air Capture (DAC) Hub grant, as an anchor technology in the Alabama regional DAC hub led by Southern States Energy Board.

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Exclusive: TransGas CEO talks mega ammonia project

The owners of a proposed colossal ammonia production facility in Appalachian coal country are in the beginning stages of seeking liquidity, EPC contracting, and advisory services for a project they say will ultimately be financed akin to an LNG export terminal.

It’s an appeal often made in modern US politics – doing right by those left behind.

Perhaps no place is more emblematic of that appeal than West Virginia, and perhaps no region in that state more so than the southern coal fields. It’s there a fossil developer is proposing the architecture of the ruling coal industry be used to build a $10bn decarbonized ammonia facility and is gathering the resources to do so.

“It’s world class, and it makes southern West Virginia, Mingo County, the catalyst for the 21st century’s energy revival,” said Adam Victor, the CEO of TransGas Development Systems, the developer of the project. “The people [here] are the heirs and descendants of the people that mined the coal that built the steel that built the Panama Canal.”

The Adams Fork Energy project in Mingo County, jointly developed by TransGas and the Flandreau Santee Sioux Tribe, is slated to reach commercial operations in 2027. Six identical 6,000 mtpd ammonia manufacturing plants are being planned on the site of a previously permitted (but not constructed) coal-to-gasoline facility.

ReSource exclusively reported this week that the state has issued a permit to construct the facility. TransGas owns 100% of the project now, though if the Tribe comes through with federal funding then it will become the majority owner.

TransGas itself could take on a liquidity partner to raise up to $20m in development capital for the project, Victor said. The company is not using a financial advisor now but will hire one in the future.

White & Case is TransGas’ legal advisor. The company is in discussions with Ansaldo Energia, of Italy, about construction.

“The project is not averse to talking to private equity or investment bankers, because nothing has been decided right now,” Victor said, noting that the company is just beginning talks with infra funds and is eager to do so. “The project will be looking for an EPC.”

The first of the six plants will cost about $2bn, but each one will get successively less expensive, Victor said. Total capex is about $10bn, though there is discussion of acquiring adjacent land to double the size of the project – or 12 plants in all producing 6,000 mtpd each.

TransGas has the support of West Virginia politicians like Sen. Joe Manchin and Gov. Jim Justice, Victor said. Financing the project will be a function of the offtake.

Electricity for data centers, or ammonia for export?

The company is conducting a market analysis to determine avenues for offtake, Victor said. They could do partial electricity generation onsite to power a data center, with the remainder of the hydrogen being used to make ammonia for shipment overseas.

Depending on the needs of offtakers, the facility could also do one or the other entirely, he said.

The project, if configured at current size, could support about 6,000 MW of non-interruptible power generation, 2,000 MW of that for cooling.

“This could basically become a 6,000 MW campus to become the center of data centers in the United States,” Victor said, noting that the region is much less prone to natural disasters than some others and is high enough in elevation to escape any flooding. “I think we could rival Loudoun County [Virginia] as where data centers should be located.”

Adams Fork sits on the largest mine pool reservoir in the eastern US, Victor noted. Data centers need constant cooling, particularly new chip technology that requires liquid cooling.

TransGas will know in a matter of weeks if it’s going to go the electrical route, Victor said. There are only five companies in the world with data centers large enough to efficiently offtake from it: Amazon, Microsoft, Google, Meta and Apple.

If not, the facility will continue down the path of selling the decarbonized ammonia, likely to an oil company or international ammonia buyer like JERA in Japan.

Partnering with a tech company will make it easier to finance the project because of high credit ratings, Victor said. International pressure on oil companies could affect those credit ratings.

“We think the investor world could be split,” he said, noting tech and fuels investors could both be interested in the project. “You’re doubling the universe of investors and offtakers.”

He added: “Once we have the offtake, we think we could have a groundbreaking this year.”

Two ways of shipping

For ammonia production the facility could use the same shipping channels the coal industry uses – either to the Big Sandy River to be sent by barge on the Ohio to New Orleans, or rail to ports in Baltimore; Norfolk, Virginia; and Savanna, Georgia.

By rail, two 40-car trains per day would take ammonia to port. Norfolk Southern and CSX both operate in the region.

Another option is to have a fleet of 50 EV or hydrogen-powered trucks to transport ammonia to the Big Sandy where electric-powered barges can take it to the Gulf, Victor said. That latter option could mean a lower CI score because it will eliminate rail’s diesel power.

Mercedes-Benz and Volvo both make the kind of trucks used for this work in Europe and Asia, he said. Coal mines in the region use diesel trucks in fleets as numerous as 500, and the original TransGas coal plant was permitted for 250 trucks per day.

“This is something that our offtake partner is going to determine,” he said. Japan would likely want the ammonia in the Gulf of Mexico, whereas European shipping companies would want it on an Atlantic port.

The LNG financial model

The offtakers themselves could fund the facility, Victor said.

“The financial model for this is the financial model for funding LNG terminals,” he said. “The same teams that put those large facilities together, financial teams, would be the same teams that we’re talking to now.”

The offtakers may also dictate who they want to be the financial advisor, he said.

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Exclusive: Methanol electrolyzer start-up gearing up for seed capital raise

An early-stage technology company seeking to commercialize an electrolyzer that produces methanol from CO2 at ambient temperature and pressure is preparing its first capital raise.

Oxylus Energy, a methanol technology and project development start-up, is preparing to kick off its first capital raise later this month.

The Yale-based firm is seeking to raise $4m in seed funding, with proceeds funding the advancement of a production-scale CO2-to-methanol electrolyzer cell and its first commercial agreements for offtake, CEO Perry Bakas said in an interview.

Oxylus aims to commercialize an electrolyzer that creates methanol from CO2 at room temperature and pressure, and also plans to develop and operate its own methanol production plants, he said.

The technology, which will scale to larger versions in coming years, recently hit a key milestone with the validation of a 5cm2 platform.

The seed capital raise would provide approximately 26 months of runway, according to Bakas. The company would then raise between $20 – $30m in a follow-on Series A in late 2026.

“What we’re gonna do with the Series A is put that first electrolyzer into the ground,” he said. “It’ll be our first revenue-producing methanol.”

Oxylus is currently owned by Bakas and his fellow co-founders. The company has been entirely grant funded to this point. DLA Piper is advising as the law firm on the seed capital raise.

“I think the most important thing about the technology is it’s the most energy-efficient pathway to making renewable methanol,” he said. “At the right energy prices, you’re below cost parity with fossil-derived methanol. When that happens, I think it’ll become a very interesting development scenario.”

Oxylus is focused on bringing the so-called green premium down to zero, Bakas said, noting that it requires achieving scale in electrolyzer production or partnering with established electrolyzer manufacturers.

Methanol for shipping

Oxylus will seek to introduce its technology into target markets that are already using methanol as a feedstock, like high-value petrochemicals. In the longer term, shipping and aviation are likely to become attractive markets. Taken together, the company believes methanol has the potential to decarbonize 11% of global emissions.

Methanol will compete with ammonia for primacy as a shipping fuel in the future, but Bakas believes methanol is the better option.

“These are massive markets – they need a lot of solutions, and quickly,” he said. “But ammonia is not energy dense, and it doesn’t integrate with existing infrastructure.”

The International Energy Agency recently projected that while ammonia will be cheaper to make, methanol is easier to handle, resulting in roughly similar cost profiles for e-methanol and green ammonia. The added cost for methanol production, the report found, is likely to come from a scarcity of biogenic CO2.

On that topic, Bakas acknowledged that the methanol pathway still requires combustion of carbon, but emphasized his technology’s ability to displace existing fossil fuel-based methanol production.

“The distinction we need to make is: are these virgin hydrocarbons or are they recycled hydrocarbons? If you’re just continuously pumping new CO2 out of the ground into the atmosphere, you’re gonna continue to cause climate change,” he said.

“The technologies that we are building in this suite of technologies that cover direct air capture, point source capture, carbon conversion, that whole CCUS world,” he added, “are really working to monitor and create a homeostasis in the atmospheric balance of CO2.”

Oxylus recently completed a lifecycle assessment of greenhouse gas emissions, Bakas said, finding that its fuels are expected to reduce CO2 emissions by 95% at optimal voltage compared to natural gas steam methane reforming.

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