ENGlobal Issues Update on Progress of Modular Hydrogen Plant and Developing Green Energy Opportunities

Rhea-AI Summary

ENGlobal Corporation (NASDAQ:ENG) has provided a progress report on its contract to engineer and fabricate the first modular hydrogen production facility in the U.S., valued at approximately $25 million. The project is on schedule and within budget, with engineering completed and fabrication underway. Utilizing a hydrogen reforming technology that consumes 20% less feed gas, the facility promises reduced operating costs and a lower carbon footprint. ENGlobal is also pursuing various projects valued between $20 million and $120 million, expanding its role in green energy technologies.

Positive

• Project valued at approximately $25 million is on schedule and within budget.
• Engineering phase completed; fabrication of process modules is underway.
• Technology used in the facility consumes 20% less feed and fuel gas, lowering operational costs.
• Increased market demand for hydrogen products could drive future revenues.

Negative

• None.

HOUSTON, TX / ACCESSWIRE / January 20, 2021 / ENGlobal Corporation (NASDAQ:ENG), a leading provider of engineered modular solutions, today issued a progress report on the company's contract, signed in November 2019, to engineer and fabricate a complete modular hydrogen production facility. This facility, the first of its kind constructed in the U.S., will utilize a hydrogen reforming technology developed by our collaboration partner that consumes 20 percent less feed and fuel gas than that of conventional hydrogen plants, thereby substantially lowering operating costs and the related carbon footprint. In this application the carbon intensity of the hydrogen plant is further lowered by recycling gasses produced by the adjoining renewal diesel unit.

The project, valued at approximately $25 million, remains on schedule and within the company's estimated cost budget, said ENGlobal. To date, the company has completed the engineering and design phase of the facility and is currently involved in the fabrication phase of its 24 process modules and supporting structure. Thus far, all major components necessary for the module completion have been received and are being installed. Following this step, the modules are expected be tested and shipped to the customer in stages between now and June 1, 2021.

CEO William A. Coskey, P.E. said he believes that, due to the number and diversity of end products produced via hydrogen reformer technology, there exists significantly increased market demand for the company's modular plant project delivery. These end products include fuel grade hydrogen for use in fuel cells; hydrogen for use in the hydrotreating process that produces renewable fuels; and hydrogen to generate products including ammonia and methanol, which have common applications around the globe.

ENGlobal is currently pursuing projects with typical scopes of work ranging between $20 and $120 million with a variety of applications and end uses.

In addition, said the CEO, "the company has the ability to provide carbon capture equipment that will remove a significant percentage of the carbon dioxide from the steam methane reforming process - thus further reducing harmful greenhouse gas emissions. Carbon capture applied in this manner results in what the industry has defined as 'blue' hydrogen".

"We are extremely proud of our work in the hydrogen and renewable fuels sector," said Mr. Coskey. "In a world facing increasingly urgent environmental and climate change challenges, I can think of no more vital role for ENGlobal than to develop and implement these groundbreaking green energy technologies."

The company will continue to release further details on the status of its green energy projects as events develop.

About ENGlobal

ENGlobal (NASDAQ:ENG) is a provider of engineering and automation services primarily to the energy sector throughout the United States and internationally. ENGlobal operates through two business segments: Automation and Engineering. ENGlobal's Automation segment provides services related to the design, fabrication and implementation of distributed control, instrumentation and process analytical systems. The Engineering segment provides consulting services for the development, management and execution of projects requiring professional engineering, construction management, and related support services. Within ENGlobal's Automation segment, ENGlobal Government Services, Inc. provides engineering, design, installation, operations, and maintenance of various government, public sector, and international facilities, specializing in turnkey automation and instrumentation systems for the U.S. Defense industry worldwide. Further information about the Company and its businesses is available at www.ENGlobal.com.

Safe Harbor for Forward-Looking Statements

The statements above regarding the Company's expectations, its operations and certain other matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties. For a discussion of risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ENGlobal's filings with the Securities and Exchange Commission, including the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.

Click here to join our email list: https://www.englobal.com/investors/email-alerts/

CONTACT:

Mark A. Hess
Phone: (281) 878-1000
E-mail: ir@ENGlobal.com

Market Makers - Investor Relations
Jimmy Caplan
512-329-9505
Email: jimmycaplan@me.com

Market Makers - Media Relations
Rick Eisenberg
212-496-6828
Email: eiscom@msn.com

SOURCE: ENGlobal

View source version on accesswire.com:
https://www.accesswire.com/624883/ENGlobal-Issues-Update-on-Progress-of-Modular-Hydrogen-Plant-and-Developing-Green-Energy-Opportunities

FAQ

What is ENGlobal's recent project related to hydrogen production?

ENGlobal is working on a modular hydrogen production facility, the first of its kind in the U.S., valued at approximately $25 million.

How does ENGlobal's hydrogen facility reduce costs?

The facility uses hydrogen reforming technology that consumes 20% less feed gas, thus lowering operating costs.

What is the timeline for the completion of ENGlobal's hydrogen project?

The project is on schedule, with testing and shipping of modules expected to begin by June 1, 2021.

What potential market opportunities does ENGlobal see in the hydrogen sector?

ENGlobal anticipates increased demand for products from its hydrogen technology, such as fuel-grade hydrogen and renewable fuels.

What is the significance of carbon capture in ENGlobal's operations?

ENGlobal's carbon capture technology aims to reduce greenhouse gas emissions, contributing to the production of 'blue' hydrogen.