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New Fortress Energy, a US energy company, aims to shift its emphasis away from green hydrogen technology and toward blue ammonia and renewable fuels.
New Fortress Energy executives announced that the company plans to form a joint venture with Fortress Transportation and Infrastructure (FTAI), which is owned by Fortress Investment Group, New Fortress Energy’s parent company.
During the company’s 7 May earnings call, Edens said the company had looked into green hydrogen technology and had invested in an Israeli electrolyzer company, but that “green hydrogen companies, in my view today, are not commercially viable.”
Although governments are supportive of green hydrogen, which is exciting, New Fortress wants to focus on two renewable fuels initiatives, he said.
According to Edens, New Fortress’ new subsidiary, Zero Parks, will concentrate on developing renewable fuels and a blue ammonia project, all of which could reach a final investment decision (FID) in the next two to three months.
The sustainable fuels project will make renewable diesel from repurposed materials like animal fats, used cooking oil, and other biomass, while the blue hydrogen project will use steam methane reforming (SMR) and carbon capture instead of renewable energy to make blue hydrogen.
The ventures will take place at FTAI’s terminal in Beaumont, Texas. The cost of capital is expected to be between $200 million and $300 million. Each have a two-year development timeline.
On the call, Nicholson said that New Fortress claimed the shipping industry would be the largest customer base for blue ammonia.
“The transition will be to over half their fuel needs over the next 20-30 years, at least by the IMO standards being implemented,” Nicholson said.
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