HydrogenPro AS (OSE: HYPRO) – HydrogenPro Joins Key Suppliers and Investors in Providing Convertible Loan to DG Fuels’ Sustainable Aviation Fuel Facility in Louisiana.
29th October 2021. HydrogenPro AS (OSE: HYPRO) – HydrogenPro Joins Key Suppliers and Investors in Providing Convertible Loan to DG Fuels’ Sustainable Aviation Fuel Facility in Louisiana.
HydrogenPro AS (OSE: HYPRO) (“HydrogenPro”) today announced that it will join Black & Veatch and Energy Vault, Inc. (“Energy Vault”) in financing the remaining capital requirements of DG Fuels, LLC’s (“DG Fuels”) sustainable aviation fuel (SAF) project in Louisiana, which is expected to be completed in mid-2022.
“HydrogenPro has been supporting DG Fuels’ landmark project for several years and we are pleased to see that the financing process is nearing completion. We strongly believe in DG Fuels’ mission to contribute to cleaner transportation industries, and the scope of this project will be greater for HydrogenPro than previously communicated due to increased production capacity. Furthermore, we see this as a great opportunity to partner with DG Fuels on additional projects in the US,” says Mårten Lunde, CEO of HydrogenPro.
HydrogenPro injects a convertible loan of USD 3 million in DG Fuels’ recently completed capital raise, which, together with co-investors, funds all expected cash requirements up to the planned financial close. DG Fuels is expected to raise additional equity and debt to fund the construction of its production facility currently designed with a production capacity of 10,355 barrels per day. This in turn, will require a water electrolyzer capacity of up to 839 megawatts (MW), with HydrogenPro being the exclusive provider, which is a significant increase compared to the 120 MW previously announced.
DG Fuels aims to develop several facilities in North America and Europe, designed to produce low-carbon sustainable aviation fuel by combining carbon from waste feedstock with green hydrogen from renewable sources. The Louisiana facility is the company’s first major project. Each facility will produce low-emissions fuel in a process that converts agricultural and timber waste feedstock into fuel with a carbon efficiency of approximately 93 percent or more, which means the project can produce more fuel with less feedstock than other processes.
Due to the high demand for sustainable aviation fuel, DG Fuels has received several firm commitments and nonbinding letters of intent for offtake agreements for a material portion of its expected production. These long-term agreements have attractive terms with brand name airlines and other companies interested in purchasing SAF.
Black & Veatch, one of North America’s largest engineering, procurement, consulting and construction companies, will conduct a Front-End Loading (FEL) 2 study in the coming months. Once the FEL2 study is completed, the project will initiate the financing process of the construction phase.
“HydrogenPro is a key relationship vendor due to its high-performance and scalable technology, which fits well with our system, allowing us to produce green hydrogen in a cost-effective manner. Attaining scale is critically important for our project. HydrogenPro’s technology will enable us to achieve these ambitions,” says Michael Darcy, CEO of DG Fuels LLC.
Gary Martin, vice president of Black & Veatch added, “This important agreement enables the DG Fuels project to proceed in developing cleaner fuel for the critical transportation and mobility marketplace. It will accelerate the green economy, strengthen our country’s economic, environmental, and renewable energy infrastructure as well as create high paying jobs in construction and equipment manufacturing.”
Robert Piconi, CEO and Co-Founder of Energy Vault commented: “We are proud to collaborate with DG Fuels and its partners in its mission of economically enabling 24/7 renewable power – an important component in delivering SAF to the transportation industry. Maximizing the use of local materials and local job creation is a key differentiator of the Energy Vault storage solution that supports the overall sustainability goals of the project.”
The project is progressing on the award of key contracts and engineering plans. DG Fuels expects the SAF facility to be placed into service by 2025.
Jennifer Beck, +1 202 649-0145, jbeck(at)dgfuels.com
HydrogenPro designs and supplies customized hydrogen plants in cooperation with global partners and suppliers, all ISO 9001 certified.
The Company was founded in 2013 by individuals with background from the electrolysis industry which was established in Telemark, Norway by Norsk Hydro in 1927. We are an experienced engineering team of leading industry experts, drawing upon unparalleled experience and expertise in the hydrogen and renewable energy industry.
Our core product is the alkaline high-pressure electrolyzer. With the new electrode technology, we are able to increase the efficiency of each unit by 14% to reach 93% of the theoretical maximum. This is a significant step forward as the cost of electric power, depending on market prices, amounts to 70-90% of the cost of producing hydrogen, the value of such increased efficiency equals approximately the investment cost for the entire plant in a Total Cost of Operation perspective. The Company is targeting a production cost for green hydrogen of USD 1.2 per kg in 2022.
About DG Fuels:
DG Fuels is building a zero-CO2 life cycle emissions synthetic fuel system based on high carbon conversion technology reaching 93% efficiency. The DG Fuels’ technology does not require the development of new engines or an expanded hydrogen transportation and storage infrastructure. DG Fuels’ innovative technology produces a hydrogen via water electrolysis and biomass derived carbon replacement fuel for aircraft, and potentially for locomotives, vessels and trucks as well.
DG Fuels delivers a significant value proposition to end-customers, including meaningful environmental benefits and the ability to materially address sustainability goals. If successful, DG Fuel’s carbon efficient solution will tie together all critical elements to power, fuel, and provide SAF to its customers. Learn more at www.dgfuels.com.
About Energy Vault:
Energy Vault develops sustainable energy storage solutions that are transforming the world’s approach to utility-scale energy storage for grid resiliency. Our proprietary Energy Management System software and Gravity-based Energy Storage Technology help utilities, independent power producers and large industrial energy users to significantly reduce their levelized cost of energy while maintaining power reliability. Utilizing eco-friendly materials with the ability to integrate waste materials for beneficial re-use at unprecedented economics, Energy Vault is accelerating the shift to a circular economy and a fully renewable world. Energy Vault previously announced an agreement for a business combination with Novus Capital Corporation II (NYSE: NXU), which is expected to result in Energy Vault becoming a public company listed on the New York Stock Exchange in the first quarter of 2022, subject to customary closing conditions. Learn more at www.energyvault.com.
About Black & Veatch:
Black & Veatch is an employee-owned global engineering, procurement, consulting and construction company with a more than 100-year track record of innovation in sustainable infrastructure. Since 1915, we have helped our clients improve the lives of people around the world by addressing the resilience and reliability of our most important infrastructure assets. Our revenues in 2020 exceeded US$3.0 billion. Follow us on www.bv.com and on social media.
This information is subject to the disclosure requirements pursuant to the Market Abuse Regulation (MAR) Article 17 no. 1 and section 5-12 of the Norwegian Securities Trading Act.