Babcock & Wilcox and Black Hills Energy Receive State of Wyoming Grant to Develop a Low-Carbon Hydrogen Facility Using BrightLoop™ Technology

Rhea-AI Summary

Babcock & Wilcox (BW) and Black Hills Energy have received a $16 million grant from the Wyoming Energy Authority to fund the development of a clean hydrogen generation facility with CO2 capture and sequestration at Black Hills Energy’s Neil Simpson Power Plant in Wyoming. The plant will use B&W’s BrightLoop™ technology to produce 15 tons of clean hydrogen per day, supporting Wyoming’s clean energy efforts. The project aims to combat climate change and create jobs in the energy industry.

Insights

Energy Sector Analyst

The $16 million grant awarded to Babcock & Wilcox and Black Hills Energy by the Wyoming Energy Authority is a significant investment in clean energy technology. The development of a clean hydrogen generation facility using B&W's BrightLoop™ technology at the Neil Simpson Power Plant represents a strategic move towards diversifying energy sources and enhancing energy security. This initiative could potentially reduce reliance on traditional fossil fuels and align with global carbon reduction goals.

From an energy sector perspective, the integration of carbon capture and sequestration (CCS) in hydrogen production is a forward-looking approach that addresses environmental concerns associated with coal-based energy. The capacity to produce 15 tons of clean hydrogen per day indicates a substantial scale that could influence the hydrogen market, potentially lowering costs and increasing the competitiveness of clean hydrogen as an alternative fuel.

The project also signals a broader industry trend where traditional energy companies are transitioning towards low-carbon technologies. This shift could have long-term implications for the energy sector, including changes in market dynamics, regulatory policies and investment patterns. Stakeholders could see a reshaping of the energy landscape with new opportunities in the clean technology space.

Environmental Policy Expert

The commitment to clean hydrogen production with CO2 capture at the Neil Simpson Power Plant is a noteworthy example of how policy incentives can stimulate innovation in the energy sector. The grant from the Wyoming Energy Authority underscores the role of state-level initiatives in fostering technologies that aim to mitigate climate change. By supporting such projects, policymakers can drive the adoption of clean energy and demonstrate the feasibility of transitioning away from carbon-intensive energy sources.

Moreover, the project's emphasis on CO2 sequestration is aligned with international climate targets, such as those set by the Paris Agreement. It showcases how regional efforts can contribute to broader environmental objectives. The success of this project could serve as a model for other states and countries, potentially influencing environmental policies and accelerating the deployment of CCS technologies.

However, it is essential to consider the environmental trade-offs of utilizing coal, even with CCS, as the full lifecycle impacts need to be evaluated. The project's long-term environmental benefits will hinge on the effectiveness of the CO2 sequestration process and the overall sustainability of the hydrogen production lifecycle.

Market Research Analyst

The investment in clean hydrogen production technology could have a ripple effect on the energy market, particularly within the hydrogen sector. As demand for sustainable energy solutions grows, the market for clean hydrogen is expected to expand. The project's potential to produce hydrogen at a commercial scale with a patented chemical looping technology positions B&W and Black Hills Energy as innovators in a burgeoning market.

Hydrogen has diverse applications, ranging from industrial processes to fuel cell vehicles and the development of cost-effective, clean hydrogen production methods is crucial for market growth. The project's success could stimulate further research and development in clean hydrogen technologies, attract additional investments and possibly lead to a decrease in hydrogen prices due to economies of scale.

For investors and stakeholders, the key factors to monitor would include the project's progress towards construction and operation, the cost-effectiveness of the BrightLoop™ technology and the market's response to an increase in clean hydrogen supply. The project's impact on Black Hills Energy's and B&W's financial performance will depend on the operational efficiency and market adoption of the produced hydrogen.

• Planning and design will use B&W’s BrightLoop™ technology for a plant that would produce clean hydrogen with CO₂ capture.

AKRON, Ohio--(BUSINESS WIRE)-- Babcock & Wilcox (B&W) (NYSE: BW) and Black Hills Energy announced today that the companies have received a $16 million grant from the Wyoming Energy Authority to fund the permitting, engineering and development activities for a clean hydrogen generation facility with carbon dioxide (CO₂) capture and sequestration at Black Hills Energy’s Neil Simpson Power Plant in Gillette, Wyo.

The plant design intends to use B&W’s BrightLoop™ technology to produce clean energy from coal, while CO₂ emissions will be sequestered, or put to beneficial use. As designed, the plant will be capable of producing 15 tons of clean hydrogen per day utilizing the BrightLoop process, which is a patented chemical looping technology.

“We’re excited that this important project is advancing to the next phase of development, and we thank the State of Wyoming and the Wyoming Energy Authority for supporting our efforts,” said B&W Chief Technology Officer, Brandy Johnson. “We look forward to working closely with our partner, Black Hills Energy, as we complete engineering, begin construction, and move toward completion of this commercial-scale project. This project supports Wyoming’s efforts to utilize an abundant and affordable natural resource to produce clean energy, while showing the flexibility and versatility of B&W’s BrightLoop technology.”

“We’ve successfully worked with Black Hills Energy on many projects over the years and appreciate the opportunity to work with them again on what will be one of the most impactful collaborations our companies have ever undertaken,” Johnson said. “Together we will be forging a new path for Wyoming’s and America’s clean energy future, helping combat climate change while supporting jobs in Wyoming’s energy industry.”

“Black Hills Energy is proud to partner with B&W and we’re excited about this project’s potential,” said Mark Lux, Vice President of Power Delivery for Black Hills Energy. “We’re committed to supporting the advancement of emerging technologies that create solutions for a reliable, cost-effective, cleaner energy future.”

B&W’s BrightLoop chemical looping technology is part of its ClimateBright™ suite of decarbonization and hydrogen technologies. The BrightLoop process uses a proprietary, regenerable particle and has been demonstrated to effectively separate CO₂ while producing hydrogen, steam and/or syngas.

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

About Black Hills Energy

Black Hills Energy is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.3 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. More information is available at www.blackhillsenergy.com.

Forward-Looking Statements

B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the receipt of a grant from the State of Wyoming to fund development of a project to produce clean hydrogen from coal and capture CO₂ emissions at a power plant in Wyoming. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties. For a more complete discussion of these risk factors, see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and we undertake no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124290340/en/

Investor Contact:

Investor Relations

Babcock & Wilcox

704.625.4944

investors@babcock.com



Media Contact:

Ryan Cornell

Public Relations

Babcock & Wilcox

330.860.1345

rscornell@babcock.com

Source: Babcock & Wilcox Enterprises, Inc.

FAQ

What is the purpose of the $16 million grant received by Babcock & Wilcox (BW) and Black Hills Energy?

The grant is intended to fund the development of a clean hydrogen generation facility with CO2 capture and sequestration at Black Hills Energy’s Neil Simpson Power Plant in Wyoming.

What technology will be used in the plant to produce clean hydrogen?

The plant will use B&W’s BrightLoop™ technology to produce 15 tons of clean hydrogen per day.

What is the goal of the project in terms of combating climate change?

The project aims to combat climate change by producing clean energy and supporting jobs in Wyoming’s energy industry.