Houston global engineering firm McDermott will design a Louisiana project to produce millions of tons of clean ammonia. Image via cleanhydrogenworks.com

Houston-headquartered McDermott has received a new contract on a Louisiana clean ammonia project.

Clean energy development company Clean Hydrogen Works tapped McDermott for the front-end engineering and design contract for the Ascension Clean Energy Project. ACE — located in Ascension Parish, Louisiana — is jointly developed by CHW with strategic shareholders ExxonMobil, Mitsui O.S.K. Lines, and Hafnia and is expected to initially produce 2.4 million metric tons per annum of clean ammonia and expand to total 7.2 million metric tons per annum production down the road.

“We are thrilled to partner with McDermott, a company renowned for its extensive experience in mega module construction, demonstrated by a remarkable track record of on-time, on-budget execution of major energy and chemicals projects," Johnny Cook, CHW senior vice president of engineering, procurement, and construction, says in a news release. "This collaboration further strengthens key competitive advantages of our project, including being a mega module capable site with ready infrastructure access to gas, shipping and CCS, an unmatched shareholder base with expertise in CCS and maritime transport, and an experienced team with demonstrated success in executing mega module projects.”

The project has carbon capture and sequestration contracts with ExxonMobil and expects regulatory approvals by early 2025. ACE is expected to reach its final investment decision by late 2025 and start production in 2029. McDermott’s Houston office will lead the project with support from its Gurugram, India, office.

“This FEED award is testament to McDermott’s industry-leading mega-module delivery and installation expertise, and the breadth of our capabilities across the energy transition,” Rob Shaul, McDermott’s senior vice president of Low Carbon Solutions, adds. “Our integrated delivery model, with self-perform construction capabilities and portfolio of McDermott-owned, globally diversified, module fabrication yards means we can offer CHW a repeatable modular implementation solution that is expected to maximize value, reduce risk and provide quality assurance.”

Earlier this year, Houston-based Element Fuels completed the pre-construction phase of its hydrogen-powered clean fuels refinery and combined-cycle power plant in the Port of Brownsville — a project that McDermott is also providing FEED services for.

Also recently, McDermott secured an agreement to work on Canada's first commercial green hydrogen and ammonia production facility.

The facility, once completed, will be able to produce 165 kilo tons per Annum of hydrogen and 5,000 metric tons per day of ammonia. Photo via Getty Images

Houston company scores agreement to work on Canadian green hydrogen project

contract secured

Houston-headquartered McDermott has reported that it secured an agreement to work on Canada's first commercial green hydrogen and ammonia production facility.

The Early Contractor Involvement agreement is from Abraxas Power Corp. to work on the Exploits Valley Renewable Energy Corporation (EVREC) project located in Central Newfoundland and will include developing a wind farm with up to 530 turbines that will have the ability to generate 3.5 gigawatts of electricity and 150 megawatts solar photo voltaic. Additionally, the facility, once completed, will be able to produce 165 kilo tons per Annum of hydrogen and 5,000 metric tons per day of ammonia.

"The agreement is testament to McDermott's industry-leading delivery and installation expertise, and the breadth of our capabilities across the energy transition," Rob Shaul, McDermott's senior vice president, Low Carbon Solutions, says in a news release. "Our century of experience, from concept to completion, and integrated delivery model, means we can offer Abraxas a repeatable modular implementation solution that is expected to drive cost savings, reduce risk and provide quality assurance."

Per the agreement, the company will provide front-end engineering design, engineering, procurement, and construction execution planning services, and more for the project. According to McDermott, the company's contribution to the project will be led from McDermott's Houston office with support from its office in India.

Recently, another collaboration McDermott is working on reached a new milestone. Houston-based Element Fuels has completed the pre-construction phase of its hydrogen-powered clean fuels refinery and combined-cycle power plant in the Port of Brownsville. McDermott is providing front-end engineering design services for the project.

In October, McDermott announced that it signed a lighthouse agreement with United Kingdom-based industrial software company AVEVA and Massachusetts-based product lifecycle management platform provider Aras. With the new software, McDermott plans "to develop its asset lifecycle management capability across the energy transition, oil and gas, and nuclear sectors," per the news release.

Element Fuels has designed the plant to produce and recycle hydrogen that will generate and deliver cleaner, higher-quality fuels. Photo via Getty Images

Houston clean fuels producer reaches milestone on South Texas hydrogen-powered refinery

hi to hydrogen

Houston-based Element Fuels has completed the pre-construction phase of its hydrogen-powered clean fuels refinery and combined-cycle power plant in the Port of Brownsville.

Element Fuels, which has contracted with Houston-based McDermott to provide front-end engineering design services for the project, has designed the plant to produce and recycle hydrogen that will generate and deliver cleaner, higher-quality fuels, including much-needed high-octane gasoline and electricity for commercial and consumer consumption.

“Element Fuels has received the necessary permitting to construct and operate a refinery capable of producing in excess of 160,000 barrels, or approximately 6.7 million gallons, per day of finished gasoline, diesel, and jet fuel,” Founder and Co-CEO of Element Fuels John Calce says in a news release. “A permit for a greenfield refinery of this size, scope, and functionality has not been granted in the United States since the 1970s. This speaks to the innovative approaches we are taking to address climate and sustainability concerns in cleaner, greener ways that are new to the refinery space.”

The project is expected to go online in 2027 and will produce enough low-carbon hydrogen to supply approximately 100 percent of the refinery’s fuel requirements, essentially eliminating CO2 emissions, per the news release. More than 100 megawatts of excess electricity generated from the power plant will be provided to the Energy Reliability Council of Texas for the surrounding community’s needs.

“Element Fuels is not only ushering in the next generation of clean fuels, we’re also proving that, without a doubt, there is a way to produce higher quality, cleaner, higher-octane fuels that significantly advance the energy transition," Calce continues. "This changes everything – for the industry, for consumers, and for the well-being of the planet.”

The plant is located in South Texas and built on more than 240 acres within the Port of Brownsville. Element Fuels is reportedly collaborating with local and Port officials "to advance the Justice40 initiative established by the U.S. Department of Commerce to contribute to a climate-positive environment that provides residents of the Brownsville area and Rio Grande Valley with clean energy and affordable and sustainable housing," per the release.

“Building on our successful collaboration during early project phases, we believe we are uniquely positioned to leverage our expertise and knowledge to further support Element Fuels throughout the next stages of this unique project,” adds Rob Shaul, senior vice president at Low Carbon Solutions at McDermott. “We remain focused on the delivery of low carbon pathway projects and are committed to advancing the landscape of energy production.”

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Houston American Energy shares details on Baytown recycling facility, new innovation center

coming soon

Houston American Energy Corp. (NYSE: HUSA) plans to break ground on its new advanced recycling facility in the Cedar Port Industrial Park in Q4, the company shared in an announcement this week.

The company acquired a 25-acre, $8.5 million site for development in July from TGS Cedar Port Partners, which handles approximately 5 billion pounds of plastic resin annually. HUSA also plans to build the Abundia Innovation Center on the site.

HUSA named Houston-based Corvus Construction Company the design and construction partner on both projects.

“The site at Cedar Port is in the largest master-planned rail and barge served industrial park in the United States with direct access to the Houston Ship Channel and the Port of Houston,” Ed Gillespie, CEO of HUSA, said in a news release. “It provides robust logistical advantages for the transportation of both feedstock and our low-carbon drop-in fuels and chemical products. Critically, the region has a deep pool of engineering and operations talent. HUSA looks forward to working with local communities and adding economic growth in the Gulf Coast region.”

The new advanced recycling facility will convert plastic waste into pyrolysis oil and will serve as a hub for a five-year development plan designed to scale production capacity.

The facility will be built around New York-based Abundia Global Impact Group LLC’s technologies and proprietary pyrolysis process, which converts plastic and certified biomass waste into high-quality renewable fuels.

HUSA acquired AGIG this summer. At the time, the combined company shared that it planned to serve a multi-billion-dollar global demand for renewable fuels, Sustainable Aviation Fuel (SAF) and recycled chemical feedstocks.

The Abundia Innovation Center is planned to serve as a state-of-the-art research and development facility for the renewable energy sector, aiding in the commercial and technical validation of new technologies. HUSA previously announced that Nexus PMG, also based in Houston, will provide strategic support and guidance in the development of the innovation hub.

According to HUSA, the recycling facility and innovation center will “create the foundation for HUSA’s long-term vision to be a leader in the low-carbon fuels sector by driving collaborative innovation.”

UH researchers make breakthrough in cutting carbon capture costs

Carbon breakthrough

A team of researchers at the University of Houston has made two breakthroughs in addressing climate change and potentially reducing the cost of capturing harmful emissions from power plants.

Led by Professor Mim Rahimi at UH’s Cullen College of Engineering, the team released two significant publications that made significant strides relating to carbon capture processes. The first, published in Nature Communications, introduced a membraneless electrochemical process that cuts energy requirements and costs for amine-based carbon dioxide capture during the acid gas sweetening process. Another, featured on the cover of ES&T Engineering, demonstrated a vanadium redox flow system capable of both capturing carbon and storing renewable energy.

“These publications reflect our group’s commitment to fundamental electrochemical innovation and real-world applicability,” Rahimi said in a news release. “From membraneless systems to scalable flow systems, we’re charting pathways to decarbonize hard-to-abate sectors and support the transition to a low-carbon economy.”

According to the researchers, the “A Membraneless Electrochemically Mediated Amine Regeneration for Carbon Capture” research paper marked the beginning of the team’s first focus. The research examined the replacement of costly ion-exchange membranes with gas diffusion electrodes. They found that the membranes were the most expensive part of the system, and they were also a major cause of performance issues and high maintenance costs.

The researchers achieved more than 90 percent CO2 removal (nearly 50 percent more than traditional approaches) by engineering the gas diffusion electrodes. According to PhD student and co-author of the paper Ahmad Hassan, the capture costs approximately $70 per metric ton of CO2, which is competitive with other innovative scrubbing techniques.

“By removing the membrane and the associated hardware, we’ve streamlined the EMAR workflow and dramatically cut energy use,” Hassan said in the news release. “This opens the door to retrofitting existing industrial exhaust systems with a compact, low-cost carbon capture module.”

The second breakthrough, published by PhD student Mohsen Afshari, displayed a reversible flow battery architecture that absorbs CO2 during charging and releases it upon discharge. The results suggested that the technology could potentially provide carbon removal and grid balancing when used with intermittent renewables, such as solar or wind power.

“Integrating carbon capture directly into a redox flow battery lets us tackle two challenges in one device,” Afshari said in the release. “Our front-cover feature highlights its potential to smooth out renewable generation while sequestering CO2.”

As electric bills rise, evidence mounts that data centers share blame

Data Talk

Amid rising electric bills, states are under pressure to insulate regular household and business ratepayers from the costs of feeding Big Tech's energy-hungry data centers.

It's not clear that any state has a solution and the actual effect of data centers on electricity bills is difficult to pin down. Some critics question whether states have the spine to take a hard line against tech behemoths like Microsoft, Google, Amazon and Meta.

But more than a dozen states have begun taking steps as data centers drive a rapid build-out of power plants and transmission lines.

That has meant pressuring the nation's biggest power grid operator to clamp down on price increases, studying the effect of data centers on electricity bills or pushing data center owners to pay a larger share of local transmission costs.

Rising power bills are “something legislators have been hearing a lot about. It’s something we’ve been hearing a lot about. More people are speaking out at the public utility commission in the past year than I’ve ever seen before,” said Charlotte Shuff of the Oregon Citizens’ Utility Board, a consumer advocacy group. “There’s a massive outcry.”

Not the typical electric customer

Some data centers could require more electricity than cities the size of Pittsburgh, Cleveland or New Orleans, and make huge factories look tiny by comparison. That's pushing policymakers to rethink a system that, historically, has spread transmission costs among classes of consumers that are proportional to electricity use.

“A lot of this infrastructure, billions of dollars of it, is being built just for a few customers and a few facilities and these happen to be the wealthiest companies in the world,” said Ari Peskoe, who directs the Electricity Law Initiative at Harvard University. “I think some of the fundamental assumptions behind all this just kind of breaks down.”

A fix, Peskoe said, is a “can of worms" that pits ratepayer classes against one another.

Some officials downplay the role of data centers in pushing up electric bills.

Tricia Pridemore, who sits on Georgia’s Public Service Commission and is president of the National Association of Regulatory Utility Commissioners, pointed to an already tightened electricity supply and increasing costs for power lines, utility poles, transformers and generators as utilities replace aging equipment or harden it against extreme weather.

The data centers needed to accommodate the artificial intelligence boom are still in the regulatory planning stages, Pridemore said, and the Data Center Coalition, which represents Big Tech firms and data center developers, has said its members are committed to paying their fair share.

But growing evidence suggests that the electricity bills of some Americans are rising to subsidize the massive energy needs of Big Tech as the U.S. competes in a race against China for artificial intelligence superiority.

Data and analytics firm Wood Mackenzie published a report in recent weeks that suggested 20 proposed or effective specialized rates for data centers in 16 states it studied aren’t nearly enough to cover the cost of a new natural gas power plant.

In other words, unless utilities negotiate higher specialized rates, other ratepayer classes — residential, commercial and industrial — are likely paying for data center power needs.

Meanwhile, Monitoring Analytics, the independent market watchdog for the mid-Atlantic grid, produced research in June showing that 70% — or $9.3 billion — of last year's increased electricity cost was the result of data center demand.

States are responding

Last year, five governors led by Pennsylvania's Josh Shapiro began pushing back against power prices set by the mid-Atlantic grid operator, PJM Interconnection, after that amount spiked nearly sevenfold. They warned of customers “paying billions more than is necessary.”

PJM has yet to propose ways to guarantee that data centers pay their freight, but Monitoring Analytics is floating the idea that data centers should be required to procure their own power.

In a filing last month, it said that would avoid a "massive wealth transfer” from average people to tech companies.

At least a dozen states are eyeing ways to make data centers pay higher local transmission costs.

In Oregon, a data center hot spot, lawmakers passed legislation in June ordering state utility regulators to develop new — presumably higher — power rates for data centers.

The Oregon Citizens’ Utility Board says there is clear evidence that costs to serve data centers are being spread across all customers — at a time when some electric bills there are up 50% over the past four years and utilities are disconnecting more people than ever.

New Jersey’s governor signed legislation last month commissioning state utility regulators to study whether ratepayers are being hit with “unreasonable rate increases” to connect data centers and to develop a specialized rate to charge data centers.

In some other states, like Texas and Utah, governors and lawmakers are trying to avoid a supply-and-demand crisis that leaves ratepayers on the hook — or in the dark.

Doubts about states protecting ratepayers

In Indiana, state utility regulators approved a settlement between Indiana Michigan Power Co., Amazon, Google, Microsoft and consumer advocates that set parameters for data center payments for service.

Kerwin Olsen, of the Citizens Action Council of Indiana, a consumer advocacy group, signed the settlement and called it a “pretty good deal” that contained more consumer protections than what state lawmakers passed.

But, he said, state law doesn't force large power users like data centers to publicly reveal their electric usage, so pinning down whether they're paying their fair share of transmission costs "will be a challenge.”

In a March report, the Environmental and Energy Law Program at Harvard University questioned the motivation of utilities and regulators to shield ratepayers from footing the cost of electricity for data centers.

Both utilities and states have incentives to attract big customers like data centers, it said.

To do it, utilities — which must get their rates approved by regulators — can offer “special deals to favored customers” like a data center and effectively shift the costs of those discounts to regular ratepayers, the authors wrote. Many state laws can shield disclosure of those rates, they said.

In Pennsylvania, an emerging data center hot spot, the state utility commission is drafting a model rate structure for utilities to consider adopting. An overarching goal is to get data center developers to put their money where their mouth is.

“We’re talking about real transmission upgrades, potentially hundreds of millions of dollars,” commission chairman Stephen DeFrank said. “And that’s what you don’t want the ratepayer to get stuck paying for."