US developer Apex Clean Energy has signed a memorandum of understanding (MoU) to explore construction of a gigawatt-scale green hydrogen generation, storage, transportation, and export operation in the Texas Port of Corpus Christi that would be powered by future solar and wind projects in the state.
The planned complex could also include production of other unspecified “derivative green fuel products” and development of a new, dedicated green fuels pipeline.
Virginia-based Apex inked the non-binding MoU with Ares Management, a global alternative investment manager with headquarters in Los Angeles; Epic Midstream Holdings, a portfolio company of funds managed by Ares, and the Port of Corpus Christi Authority (PCCA).
“The project demonstrates the type of innovative, broad, and collaborative approach across industries and stakeholders that we believe can deliver novel energy solutions that help accelerate the transition to a low-carbon economy and combat climate change,” said Keith Derman, co-head of Ares Infrastructure & Power.
Apex CEO Mark Goodwin said the four partners would leverage the “highest quality wind and solar resources in Texas” to help decarbonise hard-to-abate sectors including chemical, fertiliser, refining, shipping, and transportation.
The Port of Corpus Christi, located about 211 miles (339 km) southwest of Houston, is the third-largest port in the US in total freight cargo, handling 150 million tons in 2020, mostly aggregates, crude oil, diesel, grain, iron ore, naphtha, and petrol.
The project would also seek to leverage and develop existing storage, processing, and export infrastructure sited on real estate owned by PCCA.
The so-called Texas “chemical coast”, a 350-mile stretch along the Gulf of Mexico from the state line with Louisiana to south of Corpus Christi, has one of the world’s largest concentrations of crude oil processing and petrochemical facilities. It also is one of the leading US sources of greenhouse gas emissions.
“This project seeks to generate and deliver green hydrogen and other clean fuels precisely where they are needed most – at the industrial backbone of our nation,” said Goodwin.
According to Jeff Pollack, chief strategy and sustainability officer for PCCA, the project is part of the port’s ambition to become both a green hydrogen hub and “cultivate world-class” H2 exports as “our part in national decarbonisation and energy balance of trade objectives”.
Today’s announcement follows another unveiled on Friday by Southern California Gas for a plan to produce 10-20GW of green H2 for Los Angeles, powered by 25-35GW of wind and solar.
Last July, Apex announced a 345MW wind off-take deal with Plug Power to supply a new 30 metric ton/day green H2 plant under development by both companies at an undisclosed location. Plug Power, based in Latham, New York, will own the facility set to enter commercial operation by the end of 2023.
President Joe Biden’s administration has encouraged private sector development of both large-scale green and blue H2 (derived from fossil fuels with carbon capture and storage).
Congress last fall passed a $1trn infrastructure bill that included $9.5bn of federal cash to be spent on the nascent industry’s development, including a push to reduce the cost of green H2 to less than $2/kg by 2026 (from more than $5/kg today).
The money would also be applied for creation of at least four regional hubs for the production and usage of green, blue, and pink (nuclear) hydrogen.
The White House proposal for a new 10-year clean hydrogen federal investment tax credit (ITC), a key second piece of Biden’s plan to turbocharge development, was part of the $2trn Build Back Better bill that failed in December to advance in the Senate.
Since then, the window for passage has narrowed considerably with moderates among majority Democrats in both chambers wary another massive spending package could further stoke inflation, now at its highest level in four decades.
Updates with Apex to supply another green H2 facility with wind power
