Maersk chooses supplier of green methanol for its ships
Transition Risk or Climate Risk: Transition Risk
Areas Impacted: Hydrogen, Technology CO2
Timing: Short Term
August 16th, 2021
Bakken Energy has agreed to purchase the assets of the Dakota Gasification Company (Dakota Gas), a subsidiary of Basin Electric, and the owner of the Great Plains Synfuels Plant. This plant has been operating for 25 years converting coal to synthetic natural gas. CO2 from the process is captured and sent to the Weyburn oil field in Saskatchewan, Canada for enhanced oil recovery.
Bakken and Mitsubishi Power Americas have entered into a strategic partnership to create a world-class clean hydrogen hub in North Dakota to convert the existing plant from producing synthetic natural gas to producing 310 Ktonnes/yr of blue hydrogen by capturing and sequestering 95 per cent of the CO2 produced. Startup is expected in 2026.
To access the press release, click here.
Analyst comment: Low-carbon hydrogen will be a key input to the energy transition. By repurposing an existing coal gasification plant with existing disposition for the CO2, Bakken Energy appears to have a winning strategy for making large amounts of low-cost low-carbon hydrogen that can be used in many ways. Although North Dakota is far from existing energy and chemicals markets, ample transportation exists.