onto the next step

Houston company gets greenlight for liquid hydrogen storage system

CB&I got the approval it was looking for on its cargo containment system for liquid hydrogen. Photo courtesy

CB&I, the storage business of Houston-based energy contractor McDermott International, has gotten a preliminary green light for its design of a cargo containment system for liquid hydrogen.

DNV, a classification body for the maritime industry, extended the preliminary approval for the system’s design. CB&I is working on the project with Shell International Trading and Shipping, which transports crude oil, gas, carbon dioxide, and other cargo.

The Shell transportation unit operates the Suiso Frontier, the world’s first ship for hauling liquid hydrogen (LH2). The vessel can carry 75 metric tons of LH2. The Suiso Frontier, which completed its maiden voyage between Australia and Japan in 2022, is the key component of a $360 million coal-to-hydrogen venture.

CB&I designs and builds storage facilities, tanks, and terminals for energy companies. McDermott provides engineering and construction services for the energy industry.

Cesar Canals, senior vice president of CB&I, says his company’s collaboration with Shell and DNV is “making large-scale liquid hydrogen storage and transport more economical. This approval is a major milestone in making this groundbreaking technology available to all companies looking to build LH2 carriers, and we look forward to the possibilities this brings to advancing the hydrogen energy supply chain.”

The containment system’s design is based on CB&I’s technology for onshore storage of LH2. Over the past 60 years, CB&I has designed and built more than 130 onshore storage tanks for LH2.

“The combined cargo containment system and hull design effort aims to address the energy density challenge, benefitting from LH2’s properties and achieving more energy onboard,” says CB&I. “The cargo containment system was integrated into a concept vessel design developed by Houlder, which includes a hull that is optimized for the low-density cargo around … three large tanks.”

Today, LH2 is transported primarily via trucks and pipelines. The Getting to Zero Coalition, a proponent of zero-emission vessels, says the Suiso Frontier represents the first step toward commercializing a global LH2 supply chain by 2030.

“Maritime distribution of hydrogen promises much more flexible energy transfer than transmission of electricity generated from renewables, especially for longer distances,” according to a sponsored article published by Nature.com.

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A View From HETI

Lydian Energy has secured financing for three battery storage system projects in Texas. Photo via Getty Images.

The Electricity Reliability Council of Texas’ grid will get a boost courtesy of Lydian Energy.

The D.C.-based company announced the successful financial close of its first institutional project financing totaling $233 million, backed by ING Group and KeyBank. The financing will support three battery energy storage system (BESS) projects in Texas.

Lydian is an independent power producer that specializes in the development, construction and operation of utility-scale solar and battery energy storage projects. The company reports that it plans to add 550 megawatts of energy—which can power approximately 412,500 homes—to the Texas grid administered by ERCOT.

“This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve,” Emre Ersenkal, CEO at Lydian Energy, said in a news release.

The projects include:

Pintail 

  • Located in San Patricio county
  • 200 megawatts
  • Backed by ING

Crane

  • Located in Crane county
  • 200 megawatts
  • Backed by ING

Headcamp

  • Located in Pecos county
  • 150 megawatts
  • Backed by KeyBank

ING served as the lender for Pintail and Crane projects valued at a combined total of approximately $139 million.

KeyBank provided a $94 million financing package for the Headcamp project. KeyBanc Capital Markets also structured the financing package for Headcamp.

The three projects are being developed under Excelsior Energy Capital’s Fund II. Lydian’s current portfolio comprises 20 solar and storage projects, totaling 4.7 gigawatts of capacity.

“Our support of Lydian’s portfolio reflects ING’s focus on identifying strategic funding opportunities that align with the accelerating demand for sustainable power,” Sven Wellock, managing director and head of energy–renewables and power at ING, said in the release. “Battery storage plays a central role in supporting grid resilience, and we’re pleased to back a platform with strong fundamentals and a clear execution path.”

The facilities are expected to be placed in service by Q4 2025. Lydian is also pursuing additional financing for further projects, which are expected to commence construction by the end of 2025.

“These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth U.S. markets,” Anne Marie Denman, co-founding partner at Excelsior Energy Capital and chair of the board at Lydian Energy, added in the news release. “We’re proud to stand behind Lydian’s talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic, and affordable energy.”

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