Energy Transition in Motion (Week of April 28, 2023): Advancing Projects, Investment

NextEra Energy is planning to move deeper into hydrogen, having announced this week a partnership with ammonia producer CF Industries to develop a hydrogen project in Oklahoma.

Located at CF Industries’ Verdigris Complex, the proposed project includes a jointly-owned 100-megawatt (MW) electrolysis plant powered by a 450-MW renewable energy facility developed by NextEra, the company said on April 24.

Hydrogen produced at the facility would be used by CF Industries to produce up to 100,000 tons per year of zero-carbon green ammonia.

The shift to cleaner ammonia—comprised of nitrogen and hydrogen atoms—is expected to help remove up to 130,000 metric tons of CO₂ emissions annually from the supply chain of the agriculture sector.

“The use of decarbonized ammonia in agriculture offers the most certain, quantifiable and verifiable way to reduce the lifecycle carbon footprint of the food we eat,” CF Industries Holdings Inc. CEO Tony Will said in a statement.

The proposed project is part of the three-state HALO Hydrogen Hub, which is among the projects seeking federal hydrogen hub dollars to jumpstart the hydrogen economy in Arkansas, Louisiana and Oklahoma.

Here’s a look at some of this week’s other renewable energy news.

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Hydrogen

Air Products to Build Commercial-scale Hydrogen Refueling Station in Canada

Hydrogen producer Air Products said April 25 it plans to build a multimodal hydrogen refueling station near the hydrogen energy complex it is constructing in Alberta, Canada.

Supported in part with funding from Natural Resources Canada’s Zero Emission Vehicle Infrastructure Program, the station will be the company’s first hydrogen refueling station in the country.

“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,” Eric Guter, Air Products’ global vice president, hydrogen for mobility, said in a news release.

The station will have two hydrogen refueling lanes for heavy-duty vehicles and two fueling positions for light-duty hydrogen fuel cell cars. It is scheduled to open in 2025.

Ohmium Raises $250 Million in Latest Funding Round

Startup electrolyzer designer and manufacturer Ohmium International said it has closed on $250 million Series C growth equity financing its latest funding round.

The U.S.-based startup said funding will go toward increasing its annual manufacturing capacity to 2 gigawatts (GW); deploying projects in regions  including Europe, India, the Middle East and the U.S.; and accelerating its R&D programs aimed at lowering green hydrogen production costs.

“We are on track to deliver our PEM electrolyzer systems to customers worldwide operating across multiple sectors,” said Ohmium CEO Arne Ballantine. “This capital raise is a validation of Ohmium’s strategy and technology leadership and provides our organization with the kind of investment needed to deliver on our ambitious plans for international growth.”

The funding round was led by TPG Rise Climate, with participation from Hanover Technology Investment Management, and investors Energy Transition Ventures and Fenice Investment Group.

Aurora Hydrogen Lands Funding from Energy Companies

Aurora Hydrogen, the company developing technology that converts natural gas to hydrogen using microwave energy, has landed $10 million in funding from a group of investors that includes energy companies and an early stage venture capital fund.

The funds will support Aurora’s efforts to scale-up and commercialize its technology, according to an April 25 news release.

“Aurora Hydrogen’s technology supports the role that natural gas can play in decarbonizing the energy value chain,” said David Clouse, managing director of the EIC Rose Rock fund, which participated in the fund raise. “Our corporate partners produce, store and transport natural gas, and this investment will allow them to continue supporting the world’s energy needs while participating in the development of a zero-carbon energy source.”

The investment marked EIC Rose Rock’s first since the fund’s October 2022 launch.

Others in deal included Energy Innovation Capital, Williams, Chevron Technology Ventures and Shell Ventures, the release stated.

Brookfield Renewable to Invest $1B in Avaada Group

Avaada Group on April 26 said it raised $1.07 billion to fund its green hydrogen and green ammonia ventures in India.

Brookfield Renewable, through Brookfield Global Transition Fund (BGTF), will invest up to $1 billion in Avaada Ventures Private Ltd., the company said in a statement.

Global Power Synergy Public Company Ltd. will invest $68 million in Avaada Energy Private Ltd. to cut debt and support growth. The Avaada Group is also in advanced discussions with potential investors to raise another $200 million, it said.

Avaada currently operates a renewable energy portfolio of 4 GW with plans to reach 11 GW by 2026.

Solar

US House Votes to Repeal Biden Solar Tariff Waiver

The U.S. House of Representatives on April 28 voted to repeal President Joe Biden’s suspension of tariffs on solar panels from four Southeast Asian nations, a move aimed at supporting a domestic supply chain, but that solar project builders say would stall clean energy development.

The resolution passed in a 221-202 vote. It will now be sent to the Democratic-controlled Senate for consideration, where its fate is uncertain. The White House has warned that it opposes the legislation, saying in a statement that Biden would veto it.

The measure passed with the help of 12 Democrats. Eight Republicans voted against it.

The bipartisan effort to restore tariffs on solar imports from Malaysia, Cambodia, Thailand and Vietnam is aimed at boosting domestic solar manufacturers who say they cannot compete with cheap products made overseas. Panels from the four nations, which host manufacturing facilities owned by Chinese companies, account for about 80% of U.S. supplies.

“Today’s bipartisan vote holds China accountable for violating our trade laws and scores a big win for American solar manufacturers and workers,” Florida Rep. Bill Posey, a Republican who sponsored the resolution, said in an emailed statement.

Biden last year waived tariffs on solar products from the four nations as the Commerce Department was considering whether those imports were dodging duties on goods made in China and violating U.S. law.

Months later, the department issued a preliminary decision to impose tariffs on solar products Chinese companies make in those countries that match current tariffs on goods they make in China. The agency is expected to issue its final decision next week.

Wind

BOEM Seeking Comment on Proposed Gulf of Maine Wind Area

The U.S. Bureau of Ocean Energy Management (BOEM) said April 25 it has finalized a nearly 10 million-acre area in the Gulf of Maine for potential wind development.

The publication of the final “call area” is part of the commercial planning and leasing process. The Biden administration is targeting 30 MW of offshore wind capacity by 2030.

“We are still early in the planning and leasing process, and we look forward to the multiple future opportunities for engagement,” BOEM Director Elizabeth Klein said.

BOEM is accepting comments and commercial nominations in the lease area—which spans offshore Maine, New Hampshire and Massachusetts—during a 45-day comment period that ends June 12. It is specifically seeking feedback on Lobster Management Area I, Platts Bank, Atlantic Large Whale Take Reduction Plan Restricted Areas and Georges Bank (the immediately adjacent area along the southern boundary of the Call Area).

BOEM will then review the nominations and comments as it evaluates the area for offshore wind energy development.

AWS, WindEurope, Accenture Partner to Streamline European Wind Permitting

Amazon Web Services (AWS) has teamed up with WindEurope and Accenture to roll out a digital permitting solution prototype, aiming to streamline and accelerate the wind permitting process in Europe.

“The solution prototype is a single platform to help permitting authorities and developers automate workflows, streamline approvals and provide process transparency for a faster and better outcome for all stakeholders, including the permitting agent, the wind farm developer, as well as the community member,” AWS said in a news release.

Using AWS services, the tech company said the prototype enables agencies to automatically extract data from documents to reduce processing time; automate checklists, workflow triggers and notifications to increase accuracy of wind permit applications; collect, manage and process all documents in a single repository; and incorporate transparency throughout the permitting process.

The companies behind the prototype have called on industry players to help improve the pilot by giving feedback.

Gazelle Wind Unveils Upgraded Floating Wind Technology

Platform developer Gazelle Wind has released an updated version of its module floating offshore wind platform, the company said April 25.

The third-generation technology uses less steel than traditional offshore platforms, and it does not require specialist cranes or vessels for assembly.

“The platform’s unique geometry provides reduced draft in port, which means it floats higher in the water, enabling the use of shallow ports with high stability in towing and wet storage,” Gazelle said in a news release. “Pivoting arms allow the platform to move with the wind, waves and tides that result in lower forces, enabling a lighter—and therefore cheaper—structure.”

The platform uses a dynamic mooring system, with a “natural, passive system that balances forces and motions through a counterweight.”

This, the company said, keeps the turbine pitch low and improves efficiency. The platform’s footprint is smaller due to vertical mooring lines attached to the pivoting arms. The result is a 75% reduction in mooring length compared to semisubmersibles with catenary mooring in depths of 100 m or more, Gazelle said.

“Through industrial innovation, the platform components can be adjusted to accommodate all forecasted offshore wind turbine sizes, including the current 15 MW or greater capacities,” Gazelle CTO Jason Wormald said.

Reuters contributed to this article.