Paul Rodden • Season: 2024 • Episode: 286
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In episode 286, A new turquoise hydrogen plant begins producing in Australia. Could this holy grail of hydrogen production become a reality sooner than we hoped? And plug continues to build momentum with more stellar news on new projects and deliverables? I’ll go over the stories and give my thoughts on today’s hydrogen podcast.
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A new turquoise hydrogen plant begins producing in Australia. Could this holy grail of hydrogen production become a reality sooner than we hoped? And plug continues to build momentum with more stellar news on new projects and deliverables? I’ll go over the stories and give my thoughts on today’s hydrogen podcast.
So the big questions in the energy industry today are, how is hydrogen the primary driving force behind the evolution of energy? Where’s capital being deployed for hydrogen projects globally? And where are the best investment opportunities for early adopters who recognize the importance of hydrogen? I will address the critical issues and give you the information you need to deploy capital. Those are the questions that will unlock the potential of hydrogen, and this podcast will give you the answers. My name is Paul Rodden, and welcome to the hydrogen podcast.
In a press release on January 31, Hazer, achieves first hydrogen and graphite at commercial demonstration plant hazer Group Limited, a leading clean technology developer is pleased to announce the startup of its commercial demonstration plant CDP, and first production of hydrogen and graphite, the company introduced feed gas to the reactor at hazer process conditions on the 31st and subsequently achieved first hydrogen and hazer produced graphite at the facility. The company expects to ramp up operations through the first half of 2024, safely executing the performance testing program to deliver data that demonstrates its commercial readiness.
The performance testing program will focus on demonstrating continuous operation at a commercial scale and be leveraged into hazers global commercial project portfolio. Hazer will provide updates as key results become available, and a quote from their CEO Glenn Corrie. This is a landmark achievement for hazer as we realize that the successful startup of our CDP and the production of low cost low emissions hydrogen and graphite carbon, utilizing their world’s first pyrolysis technology, as the team strives towards extended continuous operation of the plant in 2024.
He says that they’re excited to build on this momentum for the next scale up of the technology with their global partners and key markets, including North America, Europe and Asia. He continues saying the CDP is the culmination of over 10 years of leading edge Research, Development and Engineering Innovation, and is a testament to the hazer team’s dedication, courage and resilience in reaching this milestone, he says he would like to acknowledge the shareholders, partners and other key stakeholders that supported their journey towards becoming a leading commercial clean technology company. He also says this is an important juncture for the hazer commercialization strategy.
He says their pipeline of opportunities is growing and with their CDP proving their technology can operate at commercial scale. He says that he’s confident that 2024 will open up further demand for their disruptive technology that can provide clean hydrogen to accelerate global decarbonisation. Okay, so I just wanted to start off today’s show with my favorite tech methane pyrolysis. Now, a few episodes ago, I discussed Australia’s attempt to promote solely green hydrogen, and how I thought that to be a bit short sighted, and this is why. My hope is that this demonstration project will open the eyes of government officials in Australia to the positive opportunities of other technologies. Now, obviously, we need to wait and see just how efficient the plant is and the final levelized cost of hydrogen from their facility. I’m also excited to hear further information regarding their North American and European projects. So a big congratulations to hazer on starting production. I cannot wait to see your tech scale up next in an article in ENR.com.
Mary B. Powers, and Debra K. Rubin write green hydrogen pioneer plug power to build a six plants with big US loan. The US Department of Energy is set to finalize by the end of March a $1.6 billion loan to clean energy technology firm plug power to build a six us green hydrogen production plants. This according to company executives when they informed analysts and investors on January 23. Construction would start in the second half of 2024, with plans to produce 500 tons per day domestically by the end of 2025. And a quote from Andy Marsh, the loan can catalyze their ongoing projects expected to generate over 200 tons of hydrogen daily.
The DOE loan and January opening of the Latham New York based firms Georgia hydrogen production plant made some analysts less concerned about the firm’s recently disclosed financial statements. Plug Power is a corporate sponsor of five of seven US hydrogen hubs that the DoE selected last year to share a total of $7 billion in federal funding from the 2021 bipartisan infrastructure law, citing supply chain constraints. The company said in a November federal filing that there is no assurance that their hydrogen production will scale at the rate that they anticipate or that they will complete hydrogen production plants on schedule.
The firm also speculated that it could lack sufficient capital to fund their operations through the next 12 months. BMO Capital Analyst Ameet Thakkar noted an arduous path for the firm until its federal funding is in place. But other analysts were more positive and Marsh was optimistic referring to the filing as a short term technical requirement. He said while the industry growth over the past few years hasn’t met their initial expectation, he says he remains optimistic about its future, especially with increasing government support. He also said the essential role of hydrogen and addressing climate change is undisputed Plug power shares rose 34.3% at their highest point in the week ending January 26.
This according to s&p global market intelligence. The company now is building hydrogen plants in Texas, New York and Louisiana with four sites under development. But what about the Georgia plant the Woodbine Georgia plant is a large proton exchange membrane electrolyzer, coupled with a liquefaction plant that will initially produce 15 tons of fuel per day, which is expected to double. The company plant in St. Gabriel, Louisiana underway in a joint venture with chemical manufacturer Olin is set to start operation later this year. Olin is North America’s largest producer of electrolytic hydrogen, this is going to plug power. Plug Power CFO Paul Middleton, however, told analysts that the US Treasury Department proposed rules last month on federal tax credits for hydrogen projects that were not as favorable as expected.
Marsh turned them disappointing but expected they would loosen up as final rules are negotiated. The added cost of construction for the Georgia plant was a source of concern Marsh told investors. Part of that was really difficult because it was a first of its kind, he said, adding we certainly made design changes. Marsh also said that the EPC was not willing to commit to how much it would cost. project construction took 18 months to complete. S&B Engineers and Constructors Limited was the EPC contractor. The final plant cost was not disclosed and not provided by the publishing of this story. Plug Power expects to get commitment on construction costs for its Texas plant being built by Kiewit. Marsh said and who also added that design changes would actually lower the figure.
The 120 megawatt facility underway for new fortress energy near Beaumont, Louisiana, is that company’s first investment in green hydrogen, it would produce 50 tons a day initially and is scalable to 400 megawatts. This according to plug power and 2022 announcement. Marsh said he expects that expansion of the Georgia plants size will cost 40% less and that the price of its hydrogen would be 1/3 of what it would be if purchased from a third party. Marsh estimated that figure at about $10 million per ton capital investment in the 45 ton per day plant in Texas and 74 tonne per day plant in New York has slowed until quote, we find the right financing solution this according to Paul Middleton during the call.
The letter project in Genesee County, New York is part of what Marsh said during a 2023 November earnings call was an estimated $678 million overall investment in the state. On the latest call. He said Plug Power selected an EPC contractor for the electrolyzer but did not identify the firm. Resolving Plug Power cash management issues is its foremost priority. But growth is critical said the CEO on the January call saying we’re focused on growth that can enhance Cash Generation. Amazon commissioned in December a one megawatt Plug Power electrolyzer system at a Colorado fulfillment center that being the retail giants first that is set to produce green hydrogen for more than 225 hydrogen fuel cell powered forklift trucks at the site. Hydrogen will be compressed on site and stored.
The energy firm said hydrogen used at Amazon sites now is produced off site liquefied and delivered by truck to an onsite storage and dispensing system. According to Marsh this project demonstrates plugs ability to execute across the full hydrogen value chain and how they can design and implement end to end solutions for their customers. The firm also announced last year it would build a three electrolyzer facilities in Finland at an estimated cost of around $6 billion and capacity of 2.2 gigawatts to produce about 850 tons per day of green hydrogen and ammonia for the European market by 2030. Plug Power said technique energies is engineering and technology contractor for the projects with a final investment decision and 2025 or 2026. According to the firm. These projects are expected to represent some of the largest investments and the
European hydrogen market. Okay, so another follow up on plugs ongoing success with his article preceding the news of plugs liquid hydrogen deliveries to Amazon, Walmart and Home Depot. This new cycle is continuing to lift plugs stock price, and according to Eddie Pan’s article and Investorplace news on February 2, plug stock is up about 30% During the past five trading days, likely driven by a combination of encouraging news and a short squeeze as of January 24, plug had a high short interest as a percentage of float of 26.36%.
And an interview on Tuesday, March stated that plugs short sellers could be in for a surprise, as he doesn’t plan on issuing common stock in order to raise capital. So for those who have been holding their plug stock, things are starting to look up. And with the company looking at more aggressive growth to generate revenue, we may be witnessing the turning of the tide for plug stock.
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