The U.S. Energy Department will back Monolith Materials Inc.'s plans for a major expansion of its innovative hydrogen and carbon black manufacturing facility in Hallam, Neb., with a $1.04 billion loan guarantee, the agency's Loan Programs Office announced Dec. 23.
"Advanced, clean production technology like Monolith's are the types of impactful projects that support not just sustainability, but economic growth and clean energy jobs for the American people," Energy Secretary Jennifer Granholm said in a statement.
The project marks the relaunch of the DOE's loan program, expanded through the $1.2 trillion bipartisan infrastructure bill that President Joe Biden signed in November. The Loan Programs Office is reviewing more than 66 applications, totaling $53.6 billion, for projects ranging from advanced nuclear energy and biofuels to offshore wind energy, energy storage and electric vehicle charging, according to the DOE.
Monolith's methane pyrolysis technology converts natural gas into two distinct feedstocks: hydrogen and carbon black. The company plans to produce hydrogen for ammonia fertilizer used in agriculture and carbon black for use in the automotive and industrial sectors, including tire manufacturing.
Top executives at The Goodyear Tire & Rubber Co. and Michelin North America Inc. applauded the DOE's conditional approval and called Monolith's technology key to their decarbonization efforts.
"As the only U.S.-headquartered tire manufacturer, it's especially rewarding to be at the connection point of significant U.S. innovation with Monolith and the commitment of the Department of Energy to sustainable outcomes," Richard Kramer, Goodyear's chairman, president and CEO, said in a statement.
Monolith plans to start construction in 2022 and complete the project by 2025, a company spokesperson said in an email.
Expansion of the facility, known as Olive Creek, is expected to create roughly 1,000 jobs during construction and another 75 positions to support ongoing operations. Kiewit Corp. is providing engineering, procurement and construction services.
Renewable energy purchases
Monolith's methane pyrolysis process relies on electricity to super-heat and split natural gas molecules into hydrogen and carbon components. The company is working with the Nebraska Public Power District, or NPPD, to purchase 2,000 GWh of renewable energy annually for the expansion.
Under its agreement with Monolith, the utility has solicited solar, wind and energy storage resources to offset the Olive Creek facility's entire electricity demand.
"We're still in the process of vetting those projects," NPPD CEO and President Tom Kent said in interview.
Initially, 28 companies responded to the NPPD's request, proposing nearly 4,000 MW of wind, approximately 5,800 MW of solar and 2,200 MW of energy storage.
The NPPD will sell renewable energy credits associated with the purchases to Monolith, while the Norris Public Power District, a wholesale customer of the NPPD, will deliver the actual energy.
NextEra Energy Resources LLC, the competitive generation arm of NextEra Energy Inc. and a major renewable energy developer, is an investor in Monolith. Other financial backers include Mitsubishi Heavy Industries America Inc., Azimuth Capital Management, Cornell Capital LLC, Imperative Ventures, SK Inc., Warburg Pincus & Co. and Perry Creek Capital.