Resource logo with tagline

Verso and Rayonier sign e-SAF MOU

The companies will explore the feasibility of using Biogenic CO2 produced at RYAM’s Tartas France plant along with green hydrogen to produce eSAF.

Florida-based Rayonier Advanced Materials and France’s Verso Energy have entered an MOU to explore e-fuels, specifically e-SAF, from renewables, according to a news release.

The companies will explore the feasibility of using the Biogenic Carbon Dioxide (Biogenic CO2) produced at RYAM’s Tartas France plant along with Green Hydrogen to produce eSAF. The companies expect to qualify for grants from the French government to help fund the cost of this multi-year feasibility study.

Unlock this article

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

You might also like...

Hydrogen investment fund launches pure-play platform

The recently established outfit, called Avina Clean Hydrogen, has an advanced portfolio of green ammonia and hydrogen plants that are expected to become operational in 2024.

Principals of Hydrogen Technology Ventures, a firm established in 2019 to invest across the clean hydrogen value chain, have launched Avina Clean Hydrogen Inc, a pure-play clean hydrogen platform, according to a press release.

The recently established outfit has an advanced portfolio of green ammonia and hydrogen plants that are expected to become operational in 2024.

Avina has recently concluded multiple strategic partnerships, customer off-takes and investment agreements with leading industry players and is well capitalized to advance development of 250 MW of green ammonia and hydrogen plants in multiple locations within the United States.

The platform plans to invest $1 billion in green ammonia and hydrogen plants by 2025 and has a pipeline of an additional 1.5 GW of renewable energy assets that can be converted into green hydrogen projects under various stages of development.

The platform is developing proprietary, modularized solutions to deploy low-cost distributed green hydrogen at scale and is well equipped with industry experts that have decades of experience in green hydrogen, industrial gas and renewable energy sectors, according to the release.

“Today, even though gray hydrogen production costs in the United States are about $1.50/kg, delivered gray hydrogen costs to the end customer in many instances are still a multiple of production costs and this problem is likely to become much larger as new applications for hydrogen get developed in locations where supply is not easily accessible,” said Vishal Shah, Avina’s Founder and CEO.

“Moreover, intermittency of renewable power and increasing transmission and distribution costs will continue to remain a challenge for the hydrogen industry even as electrolyzer costs continue to decline. Our platform is uniquely positioned to offer proprietary system level solutions to multiple stakeholders – renewable developers that are dealing with the grid congestion problem, hydrogen customers that are dealing with unsustainable distribution costs as well as customers that want to bring production costs down by solving the renewable power intermittency problem.”

Read More »

OCOchem advancing CO2 electrolyzer cell

The startup has complete phase II of a project with the US Army to develop and scale a formate electrolyzer cell.

OCOchem has completed its Phase II project with United States Army to develop and test its 15,000cm2 formate electrolyzer cell.

The company scaled up from 10 to 15,000 cm2 over four steps in three years to achieve an industrial scale form factor. As a result of this new benchmark, OCOchem’s CO2 electrolyzer is 650% larger than other platforms, its final industrial scale cell size and is now scaling out into multi-cell stacks in a larger scale pilot plant, according to a news release.

ReSource previously interviewed OCOchem CEO Todd Brix, who said that the firm would seek to raise money later this year or early in 2025, and that its first commercial plant in Richland, Washington will cost “multiple tens of millions of dollars.”

OCOchem specializes in making an organic platform molecule known as hydrogen formate through CO2 electrolysis, leveraging clean electricity and advanced engineering technologies, instead of sunlight and plant biology, to transform carbon dioxide and water into valuable carbon-based molecules. Formate serves as a crucial precursor chemical, providing both carbon and hydrogen together in a single liquid molecule instrumental in synthesizing a diverse array of derivative materials, chemicals, and fuels. It is the liquid form of energized CO2 ready for use. OCOchem’s process to make formate is known as “electro-formation” and is designed for high (104%) carbon-to-product efficiency, high (85%) energy efficiency, room temperature and pressure operation, and lack of waste by-products.

The CO2 electrolyzer produces a safer and sustainable liquid platform chemical, hydrogen formate, which can be made at a lower cost than existing fossil-based pathways as it uses CO2, water, and clean electricity as its only raw materials. Formate is also used as a platform molecule to make many other molecules, which constitute more than 20% of the $3.5 trillion/year global chemical market.

Read More »
Featured

Chevron to study ammonia carriers with Greek shipper

The initial study will evaluate the ammonia transportation market, existing infrastructure, safety aspects, potential next generation vessel requirements and a preliminary system to transport ammonia between the U.S. Gulf Coast and Europe.

Chevron Corporation, through its subsidiary Chevron Shipping Company LLC, and the Angelicoussis Group, through its Energy Transition division, Green Ships, announced a Joint Study Agreement (JSA) to explore how tankers can be used to transport ammonia, a potential lower carbon marine fuel, according to a news release.

The initial study will evaluate the ammonia transportation market, existing infrastructure, the safety aspects of ammonia, potential next generation vessel requirements and a preliminary system to transport ammonia between the U.S. Gulf Coast and Europe. Future opportunities will focus on additional global markets.

Ammonia is a carrier of hydrogen and is believed to have potential to lower the carbon intensity of the marine industry. Through the JSA, the Angelicoussis Group and Chevron aim to advance ammonia’s technical and commercial feasibility at scale, particularly as an export for petrochemicals, power, and mobility markets.

“We are pleased to collaborate with the Angelicoussis Group on this study, help advance lower carbon energy at scale and progress marine transportation of ammonia,” said Mark Ross, president of Chevron Shipping Company. “I’m proud of the collaboration between Chevron Shipping, Chevron New Energies and the Angelicoussis Group and look forward to driving progress toward our energy transition goals.”

“Global value chain solutions are critical for growing the hydrogen market, and we believe shipping will play a crucial role. Chevron is leveraging its international functional marine expertise and collaborating with the Angelicoussis Group to pursue the delivery of lower carbon proof points to the market,” said Austin Knight, Vice President, Hydrogen, Chevron New Energies.

“Through collaborating with Chevron Shipping Company on this study, we aim to make a meaningful contribution to prepare our industries for the transition towards lower carbon operations,” said Maria Angelicoussis, CEO of the Angelicoussis Group. “Combining our many years of experience in seaborne transport of liquid and gaseous energy sources with Chevron’s vast experience in the energy business provides a solid basis for this endeavor.”

“Ammonia has potential as a hydrogen vector and is considered one of the alternative fuel options to decarbonize shipping. We believe this study will contribute towards identifying the technical, operational and commercial challenges of carrying ammonia at scale and using it as a fuel in a safe and sustainable way,” said Stelios Troulis, green Ships and energy transition director for the Angelicoussis Group.

Chevron and the Angelicoussis Group have a long-standing relationship dating back to 2000. Since then, the partnership has grown from conventional vessels to include multiple LNG carriers, as well as joint work on energy transition initiatives. The teaming of Chevron Shipping, Chevron New Energies and the Angelicoussis Group on this study supports and accelerates both organizations’ ambitions to become leading, global clean energy providers by focusing on all aspects of the hydrogen supply chain.

Read More »
exclusive

California biomass-to-hydrogen firm in Series A

A woody biomass-to-hydrogen firm in California is conducting an in-house Series A for engineering and design on its first project, one that will need more than $800m of debt and equity in the future.

Mote Inc. is aiming to finish a Series A round, raising between $12m and $15m, by the end of the year, CEO Joshuah Stolaroff said in an interview.

The company does not have a relationship with a financial advisor and has been conducting the raise in-house, he said. Moving forward the company will need a financial advisor.

The Series A will provide some 18 months of technology development runway, plus engineering and design on the first project in Bakersfield, Kern County. That will require some $800m in debt and project equity to start in the next year.

A second project in Sacramento is in the pre-Feed stage. That development is the subject of a recently secured grant from the Sacramento Municipal Utility District.

“We need big partners to do it on any meaningful scale,” Stolaroff said of biomass-to-hydrogen. Investors tend to be technology VCs with little or no knowledge of project finance, and infra funds looking for no-risk projects. “We fall somewhere in between.”

Part of the Arches H2 hub in California, Mote has ambitions to expand to other areas of the US with good biomass supply and CO2 storage, like the southeast and Gulf Coast, Stolaroff said. The company would also like to expand internationally.

“We are a great deal right now,” he said of the Series A,” adding that a Series B or project equity round will follow shortly.

Majority equity is held by the company’s six employees, Stolaroff said. There are also seed investors that hold equity.

Abundant feedstock and a growing offtake market

Mote’s three primary feedstocks are agricultural and forestry reside and urban green waste. California produces some 45m tons of it per year and the number nationwide is about half-a-billion, Stolaroff said.

Mote is confident for demand from hydrogen customers, Stoaroff said. Transportation is expected to be a strong demand source by the time Mote is operational. The Arches hub also has connections with municipal users, filling stations and the ports of LA and Long Beach.

“We are all planning for growth,” he said.

Read More »

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.”

Read More »

Exclusive: Biomethane firm planning funding round

A biomethane solutions provider with projects in Europe and the US is planning a fifth round of funding to launch early next year, with a need to raise additional project debt.

Electrochaea, the US- and Europe-based biomethane developer, will go to market in 1Q24 for a new round of equity funding, with a near term need for project debt as well, two executives told ReSource.

The company, which was spun out from an incubator at The University of Chicago with offices in Denmark, has projects in Denmark, Colorado, New York and Switzerland. It is backed by Baker Hughes and, from early fundraising efforts, Munich Venture Partners, senior director Aafko Scheringa said. The former investor participated in its most recent (fourth) $40m funding round.

Electrochaea uses a patented biocatalyst that converts green hydrogen and carbon dioxide into BioCat Methane, a pipeline-grade renewable gas.

The average size of a project is roughly $25m, Scheringa said.

Funds from the next round will provide three years of working capital, CEO Mitch Hein added.

Electrochaea has not worked with a financial advisor to date, Hein said, adding that he may have need for one for new processes but has not engaged with anyone.

Scheringa said he is working to achieve commercialization on a pipeline of projects, with a 10 MWe bio-methanation plant in Denmark being farthest along with a mandatory start date before 2026.

Electrochaea has a bio-methanation reactor system in partnership with SoCalGas at the US Department of Energy’s National Renewable Energy Laboratory (NREL) Energy System Integration Facility in Golden, Colorado, though Hein said a project in New York is as advanced in its development.

Bio-methane can be burned in place of natural gas with no systems degradation issues, so gas offtakers are a natural fit for Electrochaea, Scheringa said. Cheap clean electricity paired with available CO2 is critical, so the company will look to places like Texas, Spain, Scandinavia, Quebec and the “corn states” of the US Midwest, for new projects.

Read More »

Welcome Back

Get Started

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