![Hydrogen-powered Refinery, Power Plant](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/06/hydrogen-powered-refinery-power-plant.jpg?itok=dYrQt6sw)
A rendering of a low-carbon power facility. Element Fuels Holdings' complex will transform shale oil into lower carbon fuels, hydrogen and electricity. (Source: Shutterstock)
With a construction start in sight, a complex that will transform shale oil into lower carbon fuels, hydrogen and electricity is moving into the detailed engineering phase following completion of site preparation and preconstruction work.
Texas-based Element Fuels Holdings on June 6 said it has received the permitting it needs to construct and operate the planned facility, which is located on a 240-acre site inside the Port of Brownsville. When the first-of-its-kind complex, billed as a “hydrogen-powered clean fuels refinery and combined-cycle power plant” comes online in 2027, it will be capable of producing more than 160,000 bbl/d of finished gasoline, diesel and jet fuel.
“A permit for a greenfield refinery of this size, scope and functionality has not been granted in the United States since the 1970s,” Element Fuels Co-CEO John Calce said in a statement. “This speaks to the innovative approaches we are taking to address climate and sustainability concerns in cleaner, greener ways that are new to the refinery space.”
McDermott will provide front-end engineering design services, including offsites and utilities, for the project.
Element Fuels told Hart Energy that it will use naphtha reforming to produce hydrogen, which will also be recycled. The process involves use of high-gravity U.S. shale oil—such as the light crude produced in the Permian’s Delaware Basin.
Hydrogen is mostly used today for oil refining, fertilizer production and metals treatment. However, it has potential to decarbonize sectors such as steel, maritime and aviation; power fuel cells; generate electricity; and serve as a transportation fuel. The U.S. and other parts of the world see hydrogen as a key decarbonization tool to reduce global greenhouse gas emissions.
“The refinery, as designed, will reduce CO2 emissions in excess of 500,000 tons per year,” Element Fuels said.
It is designed to “produce and recycle hydrogen using advanced technologies that will generate and deliver significantly cleaner, higher-quality fuels, including much-needed high-octane gasoline and electricity for commercial and consumer consumption.”
The facility is expected to produce enough hydrogen to meet all of the refinery’s needs. Excess hydrogen will be used to generate electricity, which Element Fuels said will be made available to the Electric Reliability Council of Texas (ERCOT). The company anticipates it will generate more than 100 megawatts of excess electricity.
“Element Fuels is not only ushering in the next generation of clean fuels, we’re also proving that, without a doubt, there is a way to produce higher quality, cleaner, higher-octane fuels that significantly advance the energy transition,” Calce said. “This changes everything—for the industry, for consumers, and for the well-being of the planet.”
Construction is expected to begin in first-quarter 2025.
Recommended Reading
Golden Pass LNG’s not so Golden Days
2024-07-10 - The $9.25 billion Golden Pass LNG project is arguably not having a golden moment at eight months behind schedule and some $2 billion over budget. Owners QatarEnergy and Exxon Mobil Corp. have begun damage control.
QatarEnergy, Exxon Seek to Remove Contractor from Texas Gas Project
2024-06-19 - Golden Pass LNG, a joint venture between QatarEnergy and Exxon Mobil, asked a U.S. bankruptcy court late on Tuesday to sever Zachry Industrial's $5.8-billion contract within five days, or allow it to take possession and control of the facility, which is about 75% complete.
Clean Energy Fuels Adds Third LNG Train at California Plant
2024-06-11 - Clean Energy Fuels Corp. said adding a third train to its LNG plant would increase its capacity by 50%, a move an analyst said could reduce the company’s reliance on third-party suppliers and increase annual EBITDA by $2 million.
The Biden Effect: LNG SPAs Fall 15% in First Half 2024 After Pause
2024-07-03 - Poten & Partners data show that the total volumes associated with LNG sale and purchase agreements fell by 15% in the first half of 2024 compared to the same period in 2023 following the Biden administration’s LNG pause.
Despite Sanctions Russia Still World’s Fourth Largest LNG Exporter
2024-05-23 - Russia ranked as the world’s fourth-largest LNG exporter in 2023, sending out cargoes of 30 mtpa. Russia’s LNG capacity could surpass 74 mtpa capacity by 2030, according to details published by Flex LNG.