New Energy Development Company
New EnergyDevelopment CompanySTRATEGY PROJECT DEVELOPMENT CAPITALYour GreenER LNG and Hydrogen Development Partner
The New Energy Development Company StoryAlexander “Hap” Ellis III, Managing Partner Served 18 years as General Partner at RockPort Capital Partners, a multi-stage sustainability venture capital firm.40 years of executive experience originating, developing, funding independent power companies and sustainable energy firms.Chairman, The George and Barbara Bush Foundation.Chairman, The Old Westbury Funds ( 44 Billion mutual fund).MPPM, The Yale School of Management and BA, Political Science, Colorado College.Hap EllisThomas G. Quine, PartnerThomas Quine Founder, CEO, & Chairman of Northstar Industries LLC, a prominent and respected North American LNG and natural gas engineering andconstruction business. Revolutionized peak shaving LNG and natural gas midstream industries over 45 years, introducing innovative modular liquefaction designs &patented systems. Leader in the green hydrogen and peak shaving LNG industry and founder of multiple patents, patents pending, and GreenER technologies. Operated Portland Natural Gas System (PNGTS) after designing and constructing all M&R on the system. BS, Electrical Engineering, The Wentworth Institute of Technology and BA, Legal Studies from the University of Massachusetts, Amherst.Scott M. Shields, PartnerScott Shields Founded Morgan Shields Energy LLC in 2009.Co-founder, board member of Oasis Bank SSB before its merger and subsequent IPO in 2018 with 1 billion in assets (NASDAQ: STXB).Served 4 years each at Repsol LNG (VP), Exxon Corporation (finance), and Enron Capital & Trade (BD).Led Investment bank and FINRA-licensed (expired), Series 79, 82, and 63.LNG / commodity & corporate development from Repsol, Pivotal LNG (AGL), Enserco Energy, and many LNG projects.MBA, the University of Chicago Booth School of Business and BS, Finance, the Pennsylvania State University.Active Duty, U.S. Army, flight engineer on Chinook helicopters; trained officer candidates & was Captain in reserve component.For more information, see www.newenergydev.com3
New Energy Development CompanyNew Energy MissionFor ESG-oriented clients and capacity holders,Develop GreenERTM Hydrogen & LNG facilities (peak shaving), to include Pipeline & Process EnergyRecovery (PERTM)- from feasibility study to complete project development and co-investment capital.StrategyProprietary New Energy Development Plant DesignDevelop and design scaled projects, leveraging New Energy technology to further our legacy clients ESG goals by:1.Developing and designing greenfield projects2.Redeveloping, optimizing and monetizing existing assets*Functional: Technical, commercial, financial with Industry; Gas trans, LDC, Muni, IPP. Found many commonalities between peaking LNG and Green Hydrogen, including storage,4commercial structuring, risk, EPC BOP, distribution techniques, other.
New Energy Project Execution Org ChartNew Energy Development CompanyScott Shields, PartnerCommercial & FinanceTom Quine, PartnerProject & OperatingHap Ellis, Managing PartnerDebt & Equity FinancingProjectDirectorPRFirmSubject MatterExpertsNew EnergyO&MNew EnergySenior AdvisorsOperating TeamEPC, LNG Tank& H2 ProcessProvidersCBI, OthersNew EnergyOperatingFERC, RegulatoryKing &SpaldingLocal CounselOwner’sEngineerHDREngineeringNew EnergyNew EnergyNominations & SchedulingAccounting & Billing
Investment Capital Seeking More and More ESG Investments sustainable investments go through the roofSustainable Mutual Funds & ETFs Inflows 3 TrillionTrillionTrillionTrillion2021: 45 funds were launched in the U.S. with sustainable mandates. ds-in-2021. Nat Assoc Plan Advisors; Feb, 2022 Morningstar. Dow Jones Market Data analysis of SPAC Research figures YTD 20216
Debt Capital Accelerating into ESG Investments 1.6 TrillionYE 2021Chief financial officers from 60 companies including beer maker Anheuser-Busch InBev SA, energy company Enel SpA and telecommunications firm Verizon Communications Inc. in October committe7to linking about half of their corporate financing ( 130T), including corporate bond issuances, to ESG targets by 2025. Nat Assoc Plan Advisors; Feb, 2022 Morningstar
“Sustainability” Adapted At All EndsDrivers: First Gov’t, now Gov’t Regulators, Corporate Governance SEC Floating Mandatory Disclosure of Climate-Change Risks,Emissions** Former Chairman Clayton: “SEC’s Climate-ChangeOverreach” .WVa Dem Senator Joe Manchin: “The [FERC] commission went toofar by prioritizing a political agenda over their main mission —ensuring our nation’s energy reliability and security.” FERCimplementing stricter policies (EA obsolescence). 4-20-2022 WSJ:Effective 5-22, new Whitehouse guidelines widen the scope ofenvironmental reviews beyond direct and indirect effects tocumulative effects.*Moody’s: Now measuring ESG in its credit score (“CIS”).Board members: Now compensated, in part, based upon theircompanies’ progress relating to ESG.Goldman Sachs: We really believe that climate risk is a materialinvestment consideration. We’ve been engaging with 271companies since 2020 [in an effort for more disclosure].Methane Capture**3-21/22-22 Chairman Clayton editorial in WSJ . gulation-of-esg-disclosures/ EIA. *New FERC policies were approved in a 3-2 vote, with the threeDemocrats on FERC — Chairman Richard Glick and commissioners Allison Clements and Willie Phillips — outvoting their two Republican colleagues: RBN Climb that hill 3-2-2022; FERC through its statement ofpolicy (SOP)2021 it put renewed emphasis on community effects beyond the PA. However the newest GHG SOP will likely lead to EIS required for more project (100,000 MT/y threshold after comment periodexpires; includes a requirement to assess the downstream impacts! In sum, the largest impacts really are effectively been implemented.8
Making Traditional Pipelines Difficult to Build/ExpandEffect of Greenium, VERs, CERs, FERC, NIMBY Government pushing Green BBB, etc. RECs, Carbon Offsets having an effect,becoming more important FERC, SEC increasing scope of ESGauthority NIMBY “enablement”Result: Very expensive regulation-of-esg-disclosures/ EIA. *New FERC policies were approved in a 3-2 vote, with the three Democrats on FERC — Chairman Glick & commissioners Allison Clements and Willie Phillips —outvoting their two Republican colleagues: RBN Climb that hill 3-2-2022; FERC through its statement of policy (SOP)2021 it put renewed emphasis on community effects beyond the PA. However, the newest GHG SOP will likely lead to EIS requiredfor more projects (100,000 MT/y threshold after comment period expires. Biggy: includes a requirement to assess the downstream impacts! Annualized cost of new FT NE 3.72 z4-69
Continuing Result: Gas Transportation ShortagePipelines They’re Almost Impossible to BuildBloomberg, July 6, 20201.US Court Vacates Federal Permit for 6.2B Mountain ValleyNatural Gas Pipeline (1-25-2022).2.Penn East confirms cancellation of 1 billion pipeline project dueto regulatory and legal hurdles.3.Northeast Supply Enhancement cancelled.4.Northeast Energy Direct KM cancelled (2016)5. 8 billion Atlantic Coast Pipeline is cancelled by Duke andDominion (7-7-2020) .6.Dakota Access has entered service by Energy Transfer, but courtorders shutdown .7.Keystone XL, Great Lakes oil: Cancelled.8.Constitution natural gas pipeline scrapped by Williams after failingrepeatedly to gain a water permit pics/topics/power-plants/power-plant-licensing. MTN Valley: Earlier this month, the project was targeting a summer 2022 in-service date, noting ithad just 20 miles of pipe left to weld. Equitrans, 47.8% ownership interest in Mountain Valley and will operate the pipe, said it has funded about 2.4 billion of the project as of Sept. 30, 2021
Continuing Result: Gas Transportation 3.50/MMBtuProblem: Inaccessible Natural Gas1.New England Current Winter Firm Gas Transportation (FT) 9.00/MMBtu/day*2.New England Annualized Firm Transportation (FT) 3.72/MMBtu/daySolution: New Energy Hub1. Phase I: Natural Gas@ 1.88 /MMBtu: 200,000 MMBtu/day for 10 days (2 Bcf of storage)2. Phase II: GreenER Hydrogen to serve local markets* Tennessee Gas Pipeline FT z6 to z6 quote as of 4-1-2022
New England load duration/gas supply curve at capacity for 2021*Need for 10-day Energy Supply Bypass permitting constraints ofpipelines Complement existing gas pipelinecapacity Required for peak-day/peak-hoursupport Required for current and futuregrowth LDCs Power plants 20% H2 penetration 1.2 Bcfd 9mm kg/d 9,000 MT/d2 Bcfd Storage supplied by New England LNG infrastructure6 Bcf/d4 Bcf/d2 Bcf/d33% of peak day capacity, yet only 2% of annual volumeDaily gas volume delivered to New EnglandGeneral Qualitiesof LNG Peaking Facilities4 Bcfd supplied by New England gas pipelines98% of annual volumes delivered by pipelines2 Bcfd normally supplied by gas pipelines10 40180365Days Per Year*Approximate numbers based upon detailed market and transportation study conducted by New Energy Development Company; 9mm kgs 9,000 MT/d12
Macro Result: Fundamental ShiftNext Stage: Hydrogen will begin to chip away at Nat Gas 75 GWRetired* 2022 EIA forecast. Price elasticity of demand for gas fired gen disappearing as gas prdn growth decreasing and renewables are increasing (Duck curve appearing in14part driven by renewables). Coal mix decreasing 75GW cut over last 10yrs; gas/renewables increasing – Matthew Henderson, Conoco Phillips, Orlando Alverez, BP.
New Energy Market: Green Hydrogen is Being Deployed at Scale 520 large-scale projects announced globally; “ 150B FID ” (November 2021); 90 GW Electrolyzer Capacity Announced 70% from renewables (Green); Europe is leading at 130B, but other regions are catching upSources IEA (2021), Global Hydrogen Review 2021.15
New Energy Market: Green Hydrogen is Being Deployed at Scale 520 large-scale projects announced globally; “ 150B FID ” (November 2021); 90 GW Electrolyzer Capacity Announced 70% from renewables (Green); Europe is leading at 130B, but other regions are catching upOf the total investment, 150 billion, or 30%, can be considered “mature stage” – meaning that the investment is either in a planning stage, has passed a final investment decision, or is associated with a project that is16already under construction, commissioned, or currently operational. Investments are increasing by roughly 1 billion every week. pdates-july2021/.
New Energy Market: Green Hydrogen is Being Deployed at Scale 520 large-scale projects announced globally; “ 150B FID ” (November 2021); 90 GW Electrolyzer Capacity Announced 70% from renewables (Green); Europe is leading at 130B, but other regions are catching up Typical hydrogen blends in natural gas pipelines range from 3% to 15% hydrogen by volume. The highest concentration of hydrogen reported by any U.S. gas utility is in Oahu, Hawaii, where Hawaii Gas’snatural gas pipeline contains approximately 12% hydrogen gas. Several other gas utilities are piloting hydrogen-natural gas blending in pipelines, including Southern California Gas(SoCalGas) and Dominion Energy. Enbridge and others are blending in CanadaGreen Hydrogen Guidebook Second Edition.pdf17
New Energy Market: Green Hydrogen is Being Deployed at ScaleGreen Hydrogen Guidebook Second Edition.pdf18
New EnergyTM GreenER Hydrogen19
Apr 21, 2021: New Energy AnnouncementGreenER Hydrogen Designs 50-MW PlantsNew Energy Development Company LLCGreenER Hydrogen Production, StorageCut-away View 3 acres required for this GreenER Hydrogen production facility20
GreenER Hydrogen Designs 50-MW PlantsNew Energy Development Company LLCGreenER Hydrogen ElectrolyzerCut-away View21
New Energy Focus: Balance of Plant 75% of Project CostBalance of Plant (BOP) and Power Price Drivemajority of Green Hydrogen CostPower price represents 70-80% of the cost of green hydrogen (typically quoted at 20/MW, which is why GreenER Hydrogen is so important in greenhydrogen projects. PTL porous transport layer; CCM Electrolyzer Catalyst Coated Membrane; MEA Membrane electrode assembly 12/dt capital, 7.30 from 20/MWPROPRIETARY AND CONFIDENTIAL24
Big Picture: New Energy Development Company PER 67%www.newenergydev.com25
Example of Pipeline/Storage PER SingleSpectrum of Pipeline Energy WasteOngoing esg-objectives-regulations26
New Energy PER for Better Economics, CarbonPERTMPipeline & ProcessEnergy RecoverySample Usage/OfftakeGreenERTM Hydrogen & LNGGreen LNG – Pipeline BlendingLiquefactionLNG StorageGreen LNG –Turbine or CompressorElectrolysisH2 StorageGreen H2 – Process / PipelineBlendingGreen H2 –Turbine or CompressorPROPRIETARY AND CONFIDENTIAL27
Potential Value-Adders from GreenER H2 and LNGProduction & StorageSource1.2.3.4.5.6.7.8.Uplift in Enterprise Value (Greenium)Lower capital costsOptimize (basket option) offtake of EnergyCarbon Offset Program sales participationOffset to ESG certsPotential AB 32* qualificationsPotential VREC sales, CERs from LCFS** & other qualificationsPermitting facilitation and resulting lower cost/opposition1.2.3.4.5.6.7.Uplift in Enterprise Value (Greenium)Lower capital costsOptimize offtake of EnergyCarbon Offset Program sales participationOffset to ESG certsPotential AB 32* qualificationsPotential VREC sales, CERs from LCFS** & otherqualifications8. BBB Qualification ( 3/Kg PTC expected)TMPERBuyer of GreenER Hydrogen1.2.3.4.5.6.7.8.9.10.Uplift in Enterprise Value (Greenium)RGGI CO2 offset allowancesHigher shareholder returns for stock buybacksLower capital costsPotential VREC sales, CERs from LCFS** & other qualificationsCarbon Offset Program cost reductionReduced cost / effort for ESG certsPotential AB 32* qualificationsPotential CERs from LCFS** & other qualificationsPermitting facilitation and resulting lower cost/oppositionProcess or PipelineBlendingElectrolysisGreenER HydrogenTurbine orCompressor*Global Warming Solutions Act (AB32) is designed to achieve a 40% reduction in emissions to 1990 levels by 2020. **LCFS qualification from California Air Resources Board from CEC determinedby answer from Green Hydrogen Coalition (GHC) letter dated October 13,2021. **So far about 3,000 of DTE’s 1.3 million gas customers have signed up to pay between 4 and 16 a monthdepending on what portion of their emissions they want scrubbed. em-down11629279002?mod series lumbertreescarbon.
Example #1: PER Pipeline Companies Utilizing Waste HeatExample of PERTM : Waste Heat RecoveryPower Revenue1. 25k HP can drive 7.5MW 7.5MW can drive 10k HP of incrementalcompressionHydrogen RevenueGreen Power2.BlendingH2GreenTurbine*TurbineWaste HeatWaste HeatHeatWasteRecoveryGreen PowerElectrolysisFeed lectricCompressionGreen FacilityStorageorFacilityor Pipeline - RevenueStoragePipeline2.2MW/h 150 dt/d H2 (equivalent to 10% of fuel for Mars @1100 dt/d)PROPRIETARY AND CONFIDENTIAL29
Example #2: PER Power GeneratorsGreenPowerRevenuePER Feed GasOfftake enHydrogenH2H2Green Waste Heat Recovery (PER )Offtake RevOfftake RevStoragePipelineGreen /Storage/ Pipeline - RevenueH2 O2 Truck, Rail, Barge - RevenuePROPRIETARY AND CONFIDENTIAL30
GreenER Proprietary Designs & U.S. Patents / Patents PendingExamples Patent Pending* can reduce storage capital O&M up to 20% Smaller exclusion zones, large savings on storagecomponent Applicable to H2 and LNG Patent on designed-build for PECO Energy as a 100,000 dt/dM&R standalone under owned US Patent #6,176,046 Project awarded “American Gas Association EnvironmentalExcellence Award“ for repeatable and sustainable high impactenergy innovation*Being utilized on the GUC GreenER LNG Project31
Compare GreenER Hydrogen Cost to Conventional MethodsPotential Effect of PER on Green Hydrogen*7.006.005.00 /kgh4.003.00GreenER Hydrogen2.001.00GreenER KPMG estimate of Grey, Blue and Green H2; No consideration for highly anticipated efficiency and technology advances33
New Energy Acts as a Value-Add Strategic Development PartnerAchieve carbon-neutralgoalsAchieve hurdle ratesStay within capitalbudgetClientDevelop Projects,Deploypatents & ESGcomponents*Fully subscribed assets with off-take contracts, renewable componentsOfftakeagreementGreenER Projectswww.newenergydev.com36
Sectors We ServeSectors Municipalities, IPPs Local Distribution Companies and their customers Major gathering systems & pipelines Utilities Independent developers Energy intensive industrials, including ammonia, methanol, cement, asphalt andsteel manufacturers (currently buying carbon credits) CHP industrials who are ESG-oriented (defense, European, others)New Sectors Natural gas producers in high pressure regionsPROPRIETARY AND CONFIDENTIAL37
New Energy Projects: Greenville Utilities Commission40
New Energy Projects ExampleSituation 2.5 Bcf 48-inch interstate pipeline Six Solar Titan 250 Turbines in one compressor station Derated to 183,000 HorsepowerAction New Energy leveraged from its GreenER Hydrogen plant designs Manifold for 6 Waste Heat turbine nozzles to create a near continuousflow of power Designed to power Siemens Proton Exchange Membrane electrolyzerstack to most effectively utilize the Waste HeatSolar Titan 250Result Planned high utilization of PEM electrolyzer despite 100% capacityfactor of all turbines Detailed Engineering Estimate 11 / MMBtu cost of GreenER Hydrogen41
New Energy HubSituation1. Local Distribution Company requires security of natural gas supply Constrained gas supply and high prices during times of need Organizational goals include extensive ESG & sustainability, and it plans to derate certain propane injections2. Local power plant may require peaking shaving gas supply and may seek L-T hydrogen blending opportunity3. Nearby pipeline seeks pressure support and Augmented ability to sell park and loan gasNew Energy Development Lofty carbon reduction goalsCompany LLCAction Secured favorable site for GreenER Energy Hub Power plant co-location Sustainability goals including conversion of plant toblend GreenER hydrogen Substantial Logistics in place Significant pipeline proximity Favorable trucking distances Rail – unit trainGreenERTM LNG & Hydrogen Production and Storage42
Project New Energy HubProject New Energy Hub Phase I: Scalable GreenER LNG terminal of 1.0 – 2.0 Bcf of storage; 100,000 – 200,000 MMBtu / day of gas supply Phase II: GreenER Hydrogen production and storage New Energy Development Company SPV, New Energy Hub LLC, will majority own and operateContributing factors Plan incorporates photo voltaic solar on-site; 24-hr backup Evaluating and quantifying PER and other sustainability opportunitiesNew Energy Development Company LLCSchedule Cost and rate model Expect Open Season announcement soonGreenERTM LNG & Hydrogen Production andStorageTypically, Solar takes 7.5 acres/MW43
New Energy Hub: Phase INew Energy Hub Phase INew Energy Development Company LLC 3 acres required; 10 acres per megawatt of solar productionGreenER LNG Liquefaction, Production & Storage46
New Energy GreenER Hydrogen DesignNew Energy Hub Phase IINew Energy Development Company LLC 3 acres requiredGreenER Hydrogen Production & StorageCut-away View47
New Energy Leaps Ahead of Any CompetitionNew Energy HubPhases I & IINew Energy Development Company LLC 7 acres requiredGreenER LNG & HydrogenProduction & Storage48
New Energy Does Things DifferentlyLong-Standing Relationships with Customers and offtakers Capital EPC Technical, othersDifferentiated Product & Service Green focus using GreenER technology and proprietary techniques whileleveraging deep experience in the natural gas and power grid Enables enhanced permitting & acceptance in challenging environmentSeasoned Experience Project development Technical EPC Sustainability Commodity Capital structuring56
Challenges For ParticipantsChallenges Project evaluation should include EV, carbon offsets, volunteer RECs, compliance eligibleRECs, RPS, bump in project offtake price through PPA, utility green power programs, increasein scope of customers Resulting increase in enterprise value potentially dwarfs project valuation ST vs. LT outlookLessons Learned Sustainable LNG is desirable and becoming even more valuable Green Hydrogen is “way more” than about power cost GreenER makes green H2 projects commercially viable Equipment expertiseProject expertise Equipment expertiseBalance of plant expertiseCompliance-eligible RECs (excluding solar RECs) have reached 60 per megawatt-hour (MWh) in some states in the last few years: r-pricing.An increasing number of clean power generators are now separating the power that they sell to power providers from the environmental attributes associated with that power. Theseenvironmental attributes, called green certificates (also known as "green tags," "renewable energy certificates," or "tradable renewable certificates"). ctricity57
New EnergyDevelopment CompanySTRATEGY PROJECT DEVELOPMENT CAPITALYour Green Hydrogen Development Partner
Green Hydrogen Guidebook Second Edition.pdf Typical hydrogen blends in natural gas pipelines range from 3% to 15% hydrogen by volume. The highest concentration of hydrogen reported by any U.S. gas utility is in Oahu, Hawaii, where Hawaii Gas's natural gas pipeline contains approximately 12% hydrogen gas.
on work, power and energy]. (iv)Different types of energy (e.g., chemical energy, Mechanical energy, heat energy, electrical energy, nuclear energy, sound energy, light energy). Mechanical energy: potential energy U mgh (derivation included ) gravitational PE, examples; kinetic energy
Forms of energy include radiant energy from the sun, chemical energy from the food you eat, and electrical energy from the outlets in your home. All these forms of energy may be used or stored. Energy that is stored is called potential energy. Energy that is being used for motion is called kinetic energy. All types of energy are measured in joules.
2. Energy and the environment 3. Energy Production 4. Energy Consumption 5. Energy and Sustainable Development 6. Energy, development and the need for statistics 7. Energy-environment statistics are key 8. Applying the FDES to energy statistics 9. Energy-environment common indicators 1. Cross-cutting issues applications of the FDES Water and .
32 Renewable Energy 33 References To learn more about DOE programs in energy efficiency and renewable energy, visit the Office of Energy Efficiency and Renewable Energy's web site at www.eere.energy.gov "High energy costs can really pinch American families. While the Department of Energy is working hard to develop new technologies to
PT Indika Energy Tbk. ("Indika Energy" or "the Company") listed on the Indonesian Stock Exchange (IDX) in 2008. Established in 2000, Indika Energy has grown to be one of Indonesia's leading integrated energy companies with a portfolio of businesses spanning the energy resources, energy services and energy infrastructure sectors.
reduces Kinetic Energy and increase Potential Energy A: The energy is stored as potential energy. PE is like your saving account. Potential energy gain (mg h) during the rising part. We can get that energy back as kinetic E if the ball falls back off. During falling, Kinetic Energy will increase mg h. Potential energy will reduce mg h.
Energy is often defined as the ability to do work. Pair up and list as many forms of energy as you can. Electrical. Chemical. Nuclear. Magnetic. Elastic. Sound. Gravitational energy. Kinetic energy (energy of motion). Thermal energy (heat energy). Potential energy. Potential energy
kinetic energy and potential energy as the ball moves. The bars in the figure show that the ball's total energy does not change. The Law of Conservation of Energy The total energy in the universe is the sum of all the different forms of energy everywhere. According to the law of conservation of energy, energy can be transformed from one
