NewGen Energy is hoping that its new project, a carbon-neutral/green hydrogen production facility, will create a new revenue stream for the country.
Hydrogen development was a key area of discussion at the second day of the Energy Chamber of TT's virtual Energy Efficiency and Renewables Conference.
NewGen Energy managing director Philip Julien said the project enables tangible benefits through avenues that would facilitate energy-efficient and green hydrogen power for the petrochemical sector.
“One that stands out in particular is the project’s creation of a new revenue stream to T&TEC from NewGen. This is achieved through recovery and monetisation of previously untapped heat – some might say excess heat – generated by simple cycle power plants.
“This additional source of hydrogen is generated from an existing and unused heat source that does not require a single extra molecule of natural gas in its production – and will displace about 5.5 billion cubic feet of natural gas annually, or 137 billion cubic feet of gas over the project’s 25-year period, that can be redeployed (and sold) by NGC elsewhere. This is the equivalent of a small pool of gas, and we have plans to expand further.”
A move into carbon-neutral/green hydrogen production would mean the use of heat and other carbon-neutral or “green” energy sources to produce hydrogen. Other sources include wind and water.
Julien noted that TT has an established and integrated hydrogen market through the steam methane reforming of natural gas and the work it is soon to engage in can result in significant carbon-dioxide emission reductions.
“What’s also significant is that the project realises approximately 180,000-250,000 tonnes per year of carbon dioxide emission reduction. This would be a 15 per cent carbon-footprint reduction of the TrinGen facility.”
The energy sector has embarked on new deals for hydrogen development, with international partnerships that would construct the facility.
Last year, the company embarked on a feasibility study that would support development of the proposed facility. It was done by io consulting (io) and HDF Energy in France.
The next step, Julien said would be the additional engineering design work required for the financial investment decision, targeted for the first quarter of 2022.
“NewGen is currently on target to enter into the preliminary front-end engineering design (pre-Feed) phase of a US$300 million greenfield Point Lisas project in the second quarter of this year 2021, and the Feed phase of the project in the third quarter of 2021.”
Julien said benefits for the local sector included 100 per cent local ownership by NewGen and locally based investors and investments.
Kenesjay Systems, from which NewGen was conceptualised, also has plans to explore a number of decarbonisation and green project opportunities.
To assist with the project, NewGen-Kenesjay Green has partnered with Spanish company Fisterra Energy, a subsidiary of the Blackstone Group.
“Over the coming months, Fisterra and KGL will work together to finalise the technical and commercial arrangements for the NewGen project. NewGen cannot do this on our own. It will take private sector, approval agencies, state enterprises, government – all of us – to pull in the same decarbonised direction that this project needs."
He said the NGC MOU signed last week with Kenesjay Green was "a positive example of that public/private-sector partnership that is needed to progress and accelerate the green industrial evolution-revolution that this country requires.”