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New York financial firm partners with Houston O&G co. to turn natural gas into blue hydrogen

The new initiative will take stranded natural gas and turn it into hydrogen. Photo via Getty Images

A new partnership between an energy and sustainability investor and a Houston-based company that focuses on cleaner solutions in the oil and gas industry will look into turning stranded natural gas into blue hydrogen.

New York-based Double Zero Holdings and SJ Environmental announced their new partnership this week in an effort to move forward the energy transition. According to the companies, stranded natural gas — mostly methane — usually remains unused where it is not economically viable to transport. By turning these gasses into into blue hydrogen, "the partnership mitigates methane and CO2 emissions while producing hydrogen—a clean fuel that could revolutionize multiple industries," reads the news release.

The initiative will use existing technologies, which can be reduced to the size of a standard shipping container, per the release.

"We're thrilled to partner with SJ Environmental to tackle one of the most pressing environmental issues today," Raja Ramachandran, managing partner of Double Zero Holdings, says in the release. "This collaboration allows us to turn stranded natural gas—a significant environmental liability—into a valuable resource, supporting the global shift toward cleaner energy."

The plan is to lower the amount of natural gas left wasted and provide a low-carbon alternative across transportation, manufacturing, and power generation.

"Our collaboration with Double Zero Holdings reflects our commitment to innovative, sustainable solutions," SJ Environmental Director John Chappell adds. "Together, we're setting a new standard for energy production, delivering hydrogen and food-grade CO₂ where natural gas would typically be flared."

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A View From HETI

HYCO1 has signed an agreement to convert 1 million tons per year of raw CO2 into industrial-grade syngas at a new carbon capture project in Malaysia. Photo via Getty Images.

Houston-based CO2 utilization company HYCO1 has signed a memorandum of understanding with Malaysia LNG Sdn. Bhd., a subsidiary of Petronas, for a carbon capture project in Malaysia, which includes potential utilization and conversion of 1 million tons of carbon dioxide per year.

The project will be located in Bintulu in Sarawak, Malaysia, where Malaysia LNG is based, according to a news release. Malaysia LNG will supply HYCO1 with an initial 1 million tons per year of raw CO2 for 20 years starting no later than 2030. The CCU plant is expected to be completed by 2029.

"This is very exciting for all stakeholders, including HYCO1, MLNG, and Petronas, and will benefit all Malaysians," HYCO1 CEO Gregory Carr said in the release. "We approached Petronas and MLNG in the hopes of helping them solve their decarbonization needs, and we feel honored to collaborate with MLNG to meet their Net Zero Carbon Emissions by 2050.”

The project will convert CO2 into industrial-grade syngas (a versatile mixture of carbon monoxide and hydrogen) using HYCO1’s proprietary CUBE Technology. According to the company, its CUBE technology converts nearly 100 percent of CO2 feed at commercial scale.

“Our revolutionary process and catalyst are game changers in decarbonization because not only do we prevent CO2 from being emitted into the atmosphere, but we transform it into highly valuable and usable downstream products,” Carr added in the release.

As part of the MoU, the companies will conduct a feasibility study evaluating design alternatives to produce low-carbon syngas.

The companies say the project is expected to “become one of the largest CO2 utilization projects in history.”

HYCO1 also recently announced that it is providing syngas technology to UBE Corp.'s new EV electrolyte plant in New Orleans. Read more here.

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