The Port of Corpus Christi Authority (PCCA) has entered into a non-binding memorandum of understanding with Apex Clean Energy, funds managed by the Infrastructure and Power strategy of Ares Management Corporation, and EPIC Midstream Holdings, to explore the development of a green hydrogen production, storage, transportation and export operation. The project would include a new dedicated pipeline and a green fuels hub to be located at the port on the Texas Gulf Coast.
The parties are looking to produce green hydrogen and other derivative green fuels in volumes not yet seen in the US, with additional scale possible by the end of the decade.
The development could see Apex utilise its portfolio of wind and solar projects in Texas to power facilities producing green hydrogen and derivative green-fuels products, EPIC leverage its pipeline construction and operating expertise to accelerate the development of a new, dedicated green fuels pipeline, and the PCCA develop existing and new storage, processing and export infrastructure on its site.
Ares and PCCA executed a separate non-binding MOU in May 2021, with the intention of developing renewable energy infrastructure on PCCA-owned property to support the production of green hydrogen and optionality to provide renewable power directly to the port and its customers. The new MOU builds on that effort, specifically with respect to the development of green fuels projects.
“The project demonstrates the type of innovative, broad and collaborative approach across industries and stakeholders that we believe can deliver novel energy solutions that help accelerate the transition to a low-carbon economy and combat climate change,” said Keith Derman, Partner and Co-Head of Ares Infrastructure and Power.
“Together [we] would leverage the highest-quality wind and solar resources in Texas to help decarbonise difficult-to-abate industries – including the transportation, shipping, fertilizer, chemical and refining sectors – and include optionality for global export,” said Mark Goodwin, President and CEO of Apex Clean Energy. “This would be green fuel production at gigawatt scale.”