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Verdagy and Samsung sign green hydrogen joint development and marketing agreement

Verdagy and Samsung Engineering will collaborate to jointly provide green hydrogen project developers with engineering and project management solutions.

Verdagy, a green hydrogen electrolysis company, has entered into a joint development and marketing agreement with Samsung Engineering, an engineering solutions and project management company, according to a news release.

Verdagy and Samsung Engineering will collaborate on infrastructure-scale projects for the production of green hydrogen to jointly provide green hydrogen project developers with preeminent engineering and project management solutions.

“Verdagy is accelerating the adoption of green hydrogen by providing customers the most capital-efficient, reliable and scalable electrolyzer solutions. Coupling Verdagy’s products with Samsung’s engineering expertise and track record of executing infrastructure scale projects is a win for green hydrogen developers,” explains Verdagy CEO Marty Neese.

“Samsung Engineering is excited about this agreement, since Verdagy has commercialized high efficiency, reliable, cost-competitive electrolyzers,” said Wonsik Cho, Vice President of Samsung Engineering. “Verdagy’s flexible architecture is also well suited for a broad set of applications and geographies, making it an ideal solution for our projects across the globe.”

The partnership is imperative to accelerate the adoption of green hydrogen; society has recognized green hydrogen as the most attractive solution to reduce 25% of global energy-related carbon dioxide emissions by decarbonizing difficult-to-abate sectors such as fertilizers, oil and gas, mining, transport and steel.

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Infinium to purchase Permian CO2 for e-fuels

e-fuels firm Infinium will purchase CO2 captured in the Permian Basin for utilization as feedstock for e-SAF.

eFuels firm Infinium has reached an agreement with a subsidiary of midstream energy company  Kinetik Holdings Inc. to purchase carbon dioxide captured from Kinetik’s gas gathering and processing system in the Permian Basin for use as a feedstock in the production of ultra-low carbon electrofuels, according to a news release.

Infinium eFuels are created through a proprietary process using waste CO2 and green hydrogen derived from renewable power.

The agreement is unique in its long-term nature and broad decarbonization benefits, providing measurable impacts for transportation alternatives. It provides a model for the industry to rethink how to contract waste streams such as CO2 for use in solutions that provide beneficial reuse of emissions.

“There are many roles to be played in the energy transition, and this partnership shows that eFuels production and utilization is truly a win-win for all in the energy industry,” said Infinium CEO Robert Schuetzle. “It’s great to welcome Kinetik into our community of companies seeking beneficial reuse solutions for its CO2. The agreement demonstrates major progress and shows Kinetik’s leadership relative to the existing traditional oil and gas sector’s carbon emissions strategies.”

Under the terms of the agreement, a subsidiary of Kinetik will dedicate CO2 from one of its amine gas processing facilities in West Texas to Infinium for use at its previously announced second eFuels project called Project Roadrunner. Project Roadrunner will deliver products into both U.S. and international markets. It will primarily produce Infinium eSAF, a sustainable aviation fuel with the potential to significantly reduce the lifecycle greenhouse gas emissions associated with air transportation.

“Our partnership with Infinium reinforces Kinetik’s commitment to sustainability and our role as an agent for change. As the first step of Kinetik’s New Energy Ventures, I am excited to announce our participation in Project Roadrunner and strongly support Infinium’s mission to significantly reduce carbon emissions. Kinetik remains committed to further decarbonize our footprint and advance new low carbon technologies as part of our strategy of ‘energy for change,'” said Jamie Welch, Kinetik’s President and CEO.

Infinium previously announced a $75m equity commitment from Breakthrough Energy Catalyst for investment in Project Roadrunner, the first for the novel Bill Gates-founded platform that funds and invests in first-of-a-kind commercial projects for emerging climate technologies. American Airlines is the first announced offtake partner for eSAF produced at Project Roadrunner with emission reductions going to Citi, further modeling how long-term, innovative agreements contribute to decarbonization across multiple industries’ value chains.

Infinium operates the world’s first commercial scale eFuels facility in Corpus Christi, Texas and has more than a dozen projects in various stages of development globally.

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HyTerra raising money for Kansas geologic hydrogen activities

Funds will finance drilling exploration for geologic hydrogen on the Nemaha Ridge in Kansas.

Australia-based HyTerra is raising AUD 6.1m for geologic hydrogen activities along the Nemaha Ridge in Kansas, according to an investor release.

Ther firm “is undertaking a capital raising of approximately AUD $6.1 million (before costs) through a placement to sophisticated
and professional investors and a subsequent fully underwritten non-renounceable rights issue to eligible shareholders,” with the funds allocated to execute a multi-well drilling program in Kansas.

HyTerra’s exploration acreage covers over 9,600 acres and is 100% owned and operated.

Hydrogen and helium occurrences have been recovered previously from wellbores within these leases. They are near agricultural and manufacturing facilities that are connected by rail, road and/or pipelines. Within these areas, the Company has identified multiple drilling targets covering a diverse range of geological plays.

HyTerra plans to continue leasing of high-priority acreage and drill two exploration wells. The timing of the drilling program is subject to regulatory and landowner approvals, as well as third-party contractor availability. However, it is HyTerra’s goal to commence drilling in 3Q24, according to the release.

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Hydrogen tech firm looking for distribution partners with eye on Series B

A Florida-based hydrogen technology company is hoping to find strategic partners with distribution networks as part of its impending Series A capital raise, with an eye on a much larger Series B later.

BoMax Hydrogen, the Florida-based hydrogen production technology firm, is searching for strategic partners with distribution networks as part of its soon-to-launch Series A capital raise, CEO Chris Simuro said in an interview.

BoMax, founded in 2014 and headquartered in Orlando, will launch a $15m Series A on November 1, Simuro said. The company has hired Taylor DeJongh to run the process, as recently reported by ReSource.

Greenberg Traurig is the company’s law firm, Simuro said. They use a regional accountant in Florida.

Taylor DeJongh is looking for three to five investors to put in between $3m and $5m each. BoMax is in discussions with French container shipping company CMA-CGM as a potential investor, he said.

“We are truly searching for distribution partners,” Simuro said, adding that company doesn’t envision itself touching the end-use customer.

The Series A funds should provide up to 24 months of runway and expand the company’s manufacturing capacity, Simuro said. A follow-on Series B capital raise will likely be $100m or more.

BoMax has raised some $5m to date, including from state government aerospace economic development agency Space Florida.

Funds from the Series A will be used to make a beta prototype, scale operations at the company’s labs in Orlando and prepare for commercial production.

No electrolysis

The company touts a novel technology making hydrogen from visible light without the need for solar electrolysis, according to a pre-teaser marketing document seen by ReSource. An alpha prototype has been awarded by the US Department of Energy.

Requiring a larger footprint, electrolysis can ultimately produce 38 liters of hydrogen per hour per square meter, Simuro said. BoMax believes it can reach 50 liters per hour in six months time.

“It replicates how hydrogen is made in the natural world,” Simuro said. “In order to do this globally, we are going to need partners.”

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EnergyTag and the hourly matching ideal

The London-based non-profit EnergyTag has come to the forefront with its framework for global renewable energy hourly matching standards – what it views as a crucial substructure underpinning the future of green product commerce.

When Killian Daly was working for Air Liquide in Paris, sourcing renewable power for the industrial gas producer’s enormous energy needs, he noticed a mismatch in the way power is purchased and the way its green credentials are counted.

“When you buy power, you do hourly batching – you have to respect that electricity can’t just fly across the country,” he said. “And then you look at green power accounting and it’s detached, it’s completely different,” he said, referring to the practice of issuing renewable energy credits for grid power on an annual basis. This allows power consumers to claim they are using clean power produced any time of the year. 

“You can be 100% solar powered all night long, or 100% renewable using Texas wind, even if you’re located in the Northeast,” said Daly, a native of Ireland who is now based out of Brussels as EnergyTag’s executive director. “So for me it was inevitable that someone was going to sort of raise their hand and say, ‘What’s going on here?’”

EnergyTag, a London-based non-profit, was founded in 2020 to address this issue: to make electricity carbon accounting more granular and tied to the reality of the power system. While the organization does not issue or sell renewable energy credits – or even offer its own software – its set of voluntary standards known as Granular Certificates (GCs) have become a leading framework for more systematic carbon accounting across the globe.

The GC scheme has been employed by projects and system-level REC providers internationally, amounting to 5 million MWh of tracking, which, according to Energy Tag, shows that hourly tracking is already a technical reality. In the U.S., it is the basis of the Granular Certificate Trading Alliance, which is led by LevelTen Energy and includes major partners AES, Constellation, Google, and Microsoft. And it underpins systems employed by U.S.-based REC providers like M-RETS and others.

Global hourly matching case studies: EnergyTag

By most accounts, the small-budget outfit has achieved outsize success in its stance on a niche issue that has had a cross-cutting, global impact. Its advisory committee consists of multi-national representation from other non-profits, governmental agencies, and corporates that are aligned on the hourly matching problem. “It’s a global topic and I suppose it gives us a global voice,” said Daly, adding that Energy Tag’s independence allows it to be more to the point than other organizations.

Its chairman, Phil Moody, helped write the rules of energy tracking in Europe, “the only standardized system in the world for certificates,” according to Daly. “That’s a pretty unique set of skills that I suppose we bring to the table that is not really coming from another organization on this specific topic.” When it comes to policy, the organization has homed in on areas like green hydrogen, “where there’s a clear need for proper electricity accounting to avoid massive consequences and massive waste of taxpayer funding,” Daly said.

Time matching for renewable energy tied to green hydrogen production has become an existential issue for many proposed projects and their developers, particularly in the U.S. Under guidance issued by the IRS, project developers would be required to match renewable generation to green hydrogen production on an hourly basis starting in 2028, a requirement that has divided the green hydrogen sector into opposing camps and has been called, by those opposed to it, the death knell of the nascent industry.

More to do

The majority of U.S. renewable energy credit (REC) tracking systems can implement hourly matching akin to the standards put forth by EnergyTag in just a few years, according to a report from the Center for Resource Solutions issued last year. WREGIS, the system covering the western U.S., estimated it would take between three and five years but could cut it closer to three with state and federal support.

“A lot of the foundational aspects of how you set up a tracking system – they’re already there,” Daly said. EnergyTag’s granular certificate standards are focused on building systems as an extension of existing programs. “We’re not reinventing the wheel,” Daly said. “We’re taking standard definition television and making it HD.”

Although many of the U.S. registries are well on their way to being ready for hourly matching by 2028, Daly said there’s some work to be done in the phase-in period “to have a standardized approach across the REC registries, just so they can talk to each other, so that they can be audited.”

Even so, the implementation of a federal standard through 45V – even if it is an energy policy administered through tax authorities – is the only comprehensive federal policy that “can help move the environmental attribute markets to where they want to go,” M-RETS CEO Ben Gerber said during a panel discussion at Clean Power in Minneapolis on May 7.

Gerber said that some concessions might need to be made to appease industry concerns. “I wouldn’t be surprised if they moved the [hourly matching implementation] date back to 2030” from 2028, he said.

In an interview, Gerber added that he would like to see the establishment of a more robust market for trade in RECs, such as a platform advanced by Incubex, allowing developers to buy credits when they are short and sell when they are long.

EnergyTag itself also notes that the ideal of reaching 100% hourly matching might not be possible, at least not in the near term. “If you’re a hydrogen producer and you are hourly matching at a high level, but then you do not match hour by hour for 2% of your hours right now, under the current proposed rules it would look like you would then be bumped out of that top tier threshold” for tax credits, Alex Piper, EnergyTag’s head of U.S. policy, said.

This functional issue has been flagged by many in the pro-hourly matching camp, Piper said, “as a risk that is pretty existential and should be reevaluated by Treasury to determine if there are different flexibility mechanisms that can be included that would allow a project to miss a number of hours without being on that brink of in and out of the money, which could absolutely undermine the entire project.”

Devraj Banerjee of Ambient Fuels, a green hydrogen developer that has been vocal about the need to modify the proposed guidance, said that, while he agrees that a more granular matching scheme makes sense once renewable portfolios and banking systems are more advanced, allowing for flexibility now would help the industry get off the ground.

“What would be a significant fix in the [45V] policy would be allowing early mover projects to have either complete annual matching for the life of the tax credit, or barring that, some kind of pro rata share of annual matching in tandem with hourly matching to not only reduce overall economics but mitigate the need to over procure and provide the ability to be a bit more flexible with renewable generation to avoid falling out of 45V compliance if there’s performance issues, etc,” he said on the Clean Power green hydrogen panel earlier this month. “So some kind of annual carve out for early movers for the life of the tax credit would be a big change, and very helpful.”

In spite of the policy progress and advancements in hourly matching certification schemes, Daly said it’s still early days for accounting standards for global green commerce. “I fundamentally do believe what we’re seeing here on hydrogen in Europe and also now in the U.S. is only the beginning of a much broader discussion and framework around creating clean trade, marketplaces that are trading clean products, because that’s rule number one: is it clean, and that’s where we need to get into these details around accounting and three pillars,” he said.

“So I think it’s just a microcosm of actually a much broader set of discussions and actions over the coming years as we look to set up Transatlantic clean trade and in other parts of the world as well.”

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Developer Profile: Green hydrogen developer finds strength in numbers

Clean Energy Holdings is assembling a coalition of specialized companies as it seeks to break into the novel green hydrogen market.

Nicholas Bair draws a direct line from his childhood on an Oregon dairy farm to the coalition of specialized companies that, as the CEO of Clean Energy Holdings, he is now assembling in pursuit of key-player status in the green hydrogen industry.

“We created our own milk from our own hay,” he says, of his family’s organic dairy farm in Klamath Falls, near the California border. He adds, using an expression he often repeats: “Everything was inside the battery limits.”

This phrase – “inside the battery limits” – represents what Bair, who is forty-one and a chemist by trade, is trying to achieve with The Alliance: a broad, self-contained battery of partners with specialized competencies working in coordination on the challenges of developing and operating groundbreaking green hydrogen projects.

“We’re doing everything from soup to nuts,” he says.

CEH and The Alliance are planning to build roughly $1bn worth of projects per year over the next ten years, Bair says. As a launching point, the parties are advancing a green hydrogen facility – called Clear Fork – near Sylvester, Texas that would churn out 30,000 kg per day in phase 1 starting in 4Q24. The hydrogen would be produced using electrolyzers powered by a 325 MW solar farm, while ancillary facilities at the site would be powered by a gas turbine capable of blending up to 70% hydrogen.

As members of The Alliance, Equix Inc. is acting as the EPC for the solar and gas turbine portion of the project, while Chart Industries is providing tankers, trailers, and liquefaction to transport hydrogen from the site in northwest Texas. Meanwhile, Hartford Steam Boiler – an original contributor to standards written by the American Society of Mechanical Engineers – will provide quality assurance and control; Coast 2 Coast Logistics is responsible for trucking; and The Eastman Group provides permitting and facilities management.

‘First-of-kind’

Although a renewable project, the green hydrogen concept is similar to most refinery EPC contracts, since many of them are first-of-kind with significant liquidated damages, Bair says. Additionally, the green hydrogen projects are “married to renewables, and you need the cryogenics and the distribution in between.”

Before starting Clean Energy Holdings, Bair was the founder and CEO of Bair Energy, a program and construction manager for infrastructure and energy projects – a service that Bair Energy is providing as a member of the Alliance. A period of low natural gas prices made Bair Energy’s specialty – geothermal power – less competitive, and Bair, seeking to develop his own projects instead of managing projects for others, sought to branch out into new types of energies.

Bair Energy itself consists of professionals that have been cherry-picked from the industry, Bair says. Candice McGuire, a veteran of Shell and Technip, is Bair’s chairman; chief operations officer John Strawn recently joined from Technip; and wind-industry veteran Peder Hansen has joined as VP and chief engineering manager.

“Our experience on the team is taking first-of-kind, developing it, and getting it to market,” he says. With The Alliance, “We went out and found the best at what they do, put them on lump-sum order, and brought them to the table early to figure out how to make their product talk to the other person’s product, so we can have a guarantee,” he says.

What distinguishes Clean Energy Holdings from other green hydrogen developers is, in fact, the coalition it is building, says Elizabeth Sluder, a partner at Norton Rose Fulbright who is CEH’s legal advisor.

“It’s intended to be one-stop shopping in a vertically integrated structure such that as and when needed for future CEH projects or third party projects that are identified, you have all the various players you need to take it from point A to point B,” she adds.

Because the parties are on standby with a common goal, CEH and its partners can provide lump-sum turnkey services, with some element of bulk pricing potentially factored in, because savings are generated through not having to issue RFPs for partners in future projects.

“The savings in time and money is, I would expect, very valuable,” Sluder says. “And when you apply those principles to long-term strategy and equity investment-type opportunities, the lower capex spend should theoretically benefit the project at large.”

Keeping the pieces moving

Bair runs CEH alongside Co-Founder and President Cornelius Fitzgerald. The two met as children – Fitzgerald was raised on a nearby cattle farm in southern Oregon – and enjoy the uncommon chemistry of childhood friends.

In something of classic pairing, “I’m much more the trumpet, paving the path,” Bair says, while Fitzgerald “usually keeps the pieces moving.”

“Sometimes Cornelius has had the best cup of coffee and takes the lead in meetings. And sometimes I do,” he says. “It’s that ability to rely on each other that set the basis of design in my mind for what a good partner looks like.”

Fitzgerald says they approach the challenge of breaking new ground in green hydrogen with “quiet confidence and humility.” By having a big picture vision as well as “credible and tangible fundamentals for the project” – like land, resource, and water control – the project moved from an idea to a reality, he adds.

“And really we’ve been driving at how to get the best experience and expertise at the table as early as possible,” Fitzgerald says.

Equix, Inc, a civil engineering firm, joined the grouping to build the solar and gas generation portion of the facility, representing the company’s first-ever foray into a hydrogen project, says Tim LeVrier, a vice president of business development at the firm.

“There are many challenges integrating all these types of power sources and energy into creating hydrogen,” Levrier says. “From an electrical engineering standpoint it is extremely challenging to coordinate power switching from one source to another. Another consideration we are having to work through is what to do in regards to producing hydrogen at night. Will there be a battery portion to the project or do we just not produce hydrogen when it is dark? These are all things we are considering and will have to find creative solutions for.”

‘Pathological believer’

CEH recently added Chart Industries to The Alliance, which in addition to furnishing liquefaction, tanks and trailers to move hydrogen, will provide fin fans for cooling and a reverse osmosis system for cleaning water. “We don’t want to give away all our secrets,” Bair says, “but it’s a very efficient process.”

The unique perspective and expertise of partners in The Alliance makes for a fulsome ecosystem around any CEH project, says Jill Evanko, CEO of Chart Industries. With respect to CEH’s projects, Evanko says they are “very targeted, which, with focus, will continue to help evolve the hydrogen economy.”

“Chart’s hydrogen liquefaction process as well as associated hydrogen equipment including storage tanks and trailers” – which the company has been manufacturing for over 57 years – “will be sole-source provided into the project. This will allow for efficient engineering and manufacturing to the CEH Clear Fork project schedule,” she says.

In any molecule value chain, hydrogen included, Chart serves customers that are the producers of the molecule, those who store and transport it as well as those who are the end users, Evanko adds. “This allows us to connect those who are selling the molecule with those who need it.”

Looking ahead, CEH is preparing to meet with investors in the lead-up to an April, 2023 final investment decision deadline for the Texas project. And it is being advised by RockeTruck for another RFP seeking fuel cell vehicles to transport hydrogen from the site as the trucks become available – a design that will likely include hydrogen fueling stations at the production facility as well as at the Port of Corpus Christi, Bair says.

CEH also has plans to develop its own geothermal plants and explore the role that nuclear energy can play in green hydrogen. Bair Energy recently hired Eric Young as its VP of engineering and technology from NuScale, where he worked on the research team that received approvals from the U.S. Nuclear Regulatory Commission for a small modular nuclear reactor.

“We’re a technology-driven owner-operator,” Bair says. “We’re all technologists, which means we’re pathological believers in technology. We’re all looking for transformational energy.”

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California renewables developer taps advisor for capital raise

Utility-scale solar and storage developer RAI Energy has tapped an advisor for a capital raise. The company is evaluating co-development conversion for green ammonia production at projects in Arizona and California.

RAI Energy, the utility-scale solar and storage developer, has hired an advisor as it pursues a capital raise.

The company is working with Keybanc Capital Markets in a process to raise up to $25m, according to two sources familiar with the matter.

In an interview, RAI Energy CEO and owner Mohammed S. Alrai said the company “is excited about having [Keybanc] act as our financial advisors on this fundraising round.” He noted that RAI is first a solar-plus-storage developer and is approaching investors as such.

However, RAI is evaluating co-development conversion for green ammonia production at two of its project sites in Arizona and California, he said.

“Hydrogen is a natural next step,” Alrai said of his company, adding that the end-product would be green ammonia for use in fertilizer production and industrial sectors. Pure hydrogen could also be kept for use in transportation.

A variety of partnerships would be required to develop hydrogen at RAI’s solar sites, Alrai said. The company could need advisory services to structure those partnerships.

RAI is working with engineers on the hydrogen question now and is open to additional technology and finance advisory relationships, he said. The company is also evaluating several electrolyzer manufacturers.

“It’s an open book for us right now,” Alrai said of hydrogen production. “We’re always open to talking to people who can help us.”

For hydrogen project development, RAI would seek project level debt and equity similar to its solar developments, Alrai said. Early-stage project sites in Colorado and New Mexico could also be candidates for hydrogen co-development.

Keybanc delined to comment for this story.

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