'Chemical coast' | Apex in deal to build giga-scale Texan green hydrogen port complex
US developer signs MoU with partners to explore construction of giant wind- and solar-powered H2 facility in Port of Corpus Christi as part of ambition to decarbonise industrial Gulf of Mexico petro-infrastructure
The planned complex could also include production of other unspecified “derivative green fuel products” and development of a new, dedicated green fuels pipeline.
“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”.
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).
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.
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.