The Biden administration has issued its first clean energy loan, guaranteeing up to $1 billion in loans to help a Nebraska company scale up production of “clean” hydrogen to convert natural gas into commercial products including ammonia, according to the Associated Press. Clean energy technology company Monolith Materials, Lincoln, Neb., plans a 275,000 mt/y carbon-free ammonia plant in Hallam, Neb. (GM Oct. 9, 2020).
The ammonia would be produced at Olive Creek 2, (OC2), a $1 billion complex. Ammonia production would be integrated with a new 180,000 mt/y carbon black production facility. Monolith expects to sell its ammonia into the Cornbelt and the carbon black to tire manufacturers. The Goodyear Tire & Rubber Co. and Michelin North America have already stepped up.
Monolith’s Olive Creek 1 plant is already producing carbon black and hydrogen in smaller quantities at the Hallam site.
KBR, Houston, is the technology provider for the planned ammonia plant, and was awarded the contract for the ammonia synthesis loop (GM Dec. 18, 2020). Kiewit Corp., Omaha, was selected for the engineering, procurement, and construction (EPC) for the project.
Monolith said its methane pyrolysis technology would be used to convert conventional and renewable natural gas into carbon black, hydrogen, and ammonia. While DOE was confident in its $1 billion decision, not everyone was on board. Cornell University Professor of Ecology and Environmental Biology Robert Howarth was quoted by the AP as saying he was “highly skeptical that this can be done with low emissions,” and added that he was “very disappointed” in DOE’s decision.
Monolith is backed by Azimuth Capital Management, Cornell Capital LLC, Imperative Ventures, Warburg Pincus, Perry Creek Capital, SK Inc., NextEra Energy Resources Inc., and Mitsubishi Heavy Industries America (GM Dec. 4, 2020).