Investment decisions

Zero Parks – The hydrogen JV of New Fortress Energy

New Fortress Energy intends to launch Zero Parks, a Joint Venture with Fortress Transportation and Infrastructure ($FTAI), which is managed by Fortress Investment Group, the same parent company as New Fortress Energy. 

In the last 12 months, NFE has launched Zero, its division focused on hydrogen alternatives to fossil fuels.  At the beginning, NFE looked mainly at green hydrogen technologies and invested in an Israel-based electrolyser company. Although, in parallel, it also worked on blue hydrogen. In the last conference call (1Q21), Wes admitted that “green hydrogen businesses are not commercially viable today.” So, NFE it is going to focus on Blue Hydrogen, announcing two initiatives for clean fuels

But before getting into more details about the hydrogen initiatives of NFE, let’s explain a little bit about the different ways of producing hydrogen.

Ways of producing hydrogen

Brown hydrogen is created through coal gasification. 

Grey hydrogen is the process of producing hydrogen from natural gas throwing off carbon waste. 

Blue hydrogen uses carbon capture and storage for the greenhouse gases produced in the creation of grey hydrogen. Related to this type of hydrogen is Ammonia fuel, which can be burned in thermal power stations without releasing carbon emissions. … Blue ammonia is a feedstock for blue hydrogen, a version of the fuel made from fossil fuels with a process that captures and stores C02 emissions

Green hydrogen is the ultimate clean hydrogen resource – uses renewable energy to create hydrogen fuel. For example, water electrolysis used to produce long-duration hydrogen energy storage requires a lot of energy. That energy could come from renewables.

Aligned with that view, Wood Mackenzie has predicted that green or low-carbon hydrogen / green hydrogen will become cost-competitive by 2040

feedstocks to produce hydrogen

Regarding the picture, Brown and Grey hydrogen would come from coal, Blue hydrogen from gas and Green hydrogen from water.

What is Zero Parks – New Fortress Energy

 

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