Electrolysis-based projects progress in USA & Canada
By on April 17, 2023
KBR to provide synthesis technology in Texas, Washington
KBR has been selected as technology provider for two future production projects. In Texas, Avina Clean Hydrogen will utilise K-GreeN® technology at its electrolysis-based, 100% renewables powered plant on Texas’ Gulf Coast. In Washington state, Atlas Agro has selected the same technology for use at its billion-dollar, electrolysis-based fertiliser plant planned near the Port of Benton. Local media reports that a land purchase agreement has been reached, and that a FEED study led by Técnicas Reunidas has just commenced. A supply of renewable electricity is yet to be secured for the plant.
Texas Green Fuels
An electrolysis-based fuels project at the Port of Galveston, Texas Green Fuels’ export complex will supply ammonia, methanol and hydrogen fuel to domestic & global markets. In March, a pre-FEED study led by Technip Energies commenced, with FID expected in 2025 and operations beginning in 2028. In a new update, a deal has been reached with Calpine Energy (the largest generator of gas-based electricity in the US) to assist with procurement and sourcing of newly-developed wind and solar electricity to power the Galveston complex. Texas Green Fuels currently plans for 1.4 GW of renewable electricity to be delivered to the site, and is already working with Japanese power utilities & trading houses to secure offtake.
Bear Head Energy – Nova Scotia
Environmental approval has been granted for Bear Head Energy to proceed with development of an ammonia production, storage and export project in Point Tupper. 2 GW of installed electrolysers will drive the production of up to 2 million tonnes of ammonia per year, with the facility to be located south of Port Hawkesbury on the Straits of Canso. The site was originally intended as an LNG complex, with $130 million already spent on engineering & site development (including foundations for LNG tanks).
The Bear Head project will leverage the newly-announced Clean Hydrogen Investment Tax Credit, included in Canada’s 2023 federal budget. A 40% investment credit for clean hydrogen and a 30% investment credit for clean technology will be offered at the highest tier, assuming the carbon intensity is <0.75 kg CO2 per kg hydrogen produced.
Through smart initiatives like the Clean Hydrogen Investment Tax Credit, the Government of Canada is acting on climate change by supporting the development of a sustainable and prosperous low-carbon future. Budget 2023 aims to position Nova Scotia and indeed all of Canada as a global clean energy hub, establishing conditions to develop green projects like Bear Head Energy.
Mike Kelloway, Parliamentary Secretary to the Minister of Fisheries, Oceans and the Canadian Coast Guard and Member of Parliament for Cape Breton–Canso in Bear Head Energy’s official press release, 12 Apr 2023