Apex Clean Energy, funds managed by Ares Management Corporation’s Infrastructure and Power strategy, EPIC Midstream Holdings, and the Port of Corpus Christi Authority have entered into a non-binding memorandum of understanding to explore the development of a leading green hydrogen production, storage, transportation, and export operation, including a newly constructed dedicated pipeline and a green fuels hub at the Port of Corpus Christi on the Texas Gulf Coast.
As proposed by the parties, the project would produce green hydrogen and other derivative green fuels in quantities not previously seen in the United States, with additional scale achievable by the end of the decade. Apex aims to power facilities manufacturing green hydrogen and derivative green fuels products with its industry-leading portfolio of wind and solar projects now under development in Texas. Additionally, EPIC will consider utilizing its experience in pipeline building and operation to expedite the establishment of a new, dedicated green fuels pipeline. Additionally, the project would leverage and expand existing and new storage, processing, and export infrastructure located on PCCA-owned real estate.
Ares and PCCA previously signed a separate nonbinding memorandum of understanding in May 2021 with the intention of developing renewable energy infrastructure on PCCA-owned property to support green hydrogen production and the option to provide renewable energy directly to the port and its customers. This MOU builds on that work, particularly in terms of green fuels project development.
“We are excited to build on our existing relationship with PCCA to develop and build what we believe will be one of the largest green hydrogen projects in the country to date,” said Keith Derman, Partner and Co-Head of Ares Infrastructure and Power. “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. Further, this underscores Ares’ leading capabilities in providing differentiated solutions to a growing asset class as we seek to drive returns for our investors through opportunities aligned with their sustainability goals.”
“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 Mark Goodwin, Apex Clean Energy President and CEO. “Together with Ares, EPIC, and the Port of Corpus Christi, Apex would leverage the highest-quality wind and solar resources in Texas to help decarbonize difficult-to-abate industries—including the transportation, shipping, fertilizer, chemical, and refining sectors—and include optionality for global export. This would be green fuel production at gigawatt scale.”
“This initiative is exactly the type of interdisciplinary collaboration that would enable scalable projects that move the needle on diversification of the energy marketplace,” said Jeff Pollack, Chief Strategy and Sustainability Officer for the Port of Corpus Christi. “This monumental potential project would directly contribute to the burgeoning clean hydrogen hub at the Port of Corpus Christi and would directly support our ambitions to cultivate world-scale hydrogen exports as our part in national decarbonization and energy balance of trade objectives.”
The nonbinding MOU is Apex’s second important achievement in the green hydrogen sector, following the announcement in 2021 of a 345 MW wind power purchase deal and development services agreement for a hydrogen production facility in Texas.
