In the United States (US), CleanBay Renewables Inc. (CleanBay), an enviro-tech company focused on the production of carbon-negative renewable natural gas (RNG), low-carbon renewable hydrogen, and natural controlled-release fertilizer, has announced it has been invited to submit a Part II loan application to the US Department of Energy’s (DOE) Loan Programs Office (LPO).
According to a statement, the invitation comes after LPO determined the project’s eligibility and readiness to proceed through its Part I application review. The company is requesting more than US$750 million to fund utility-scale bioconversion facilities in three states.
The DOE invitation to continue this process is further validation of the environmental and economic benefits that will be provided by each one of our facilities. Our process is an innovative way to reduce greenhouse gas (GHG) emissions and provide a low-to-negative carbon solution for vehicle fuel, residential and maritime use, EV charging, and hydrogen production, said Thomas Spangler, Executive Chairman at CleanBay.
Spangler noted that CleanBay is a logical choice for a potential public/private partnership because its proposed projects support US climate policy goals and provide a net-zero solution for the energy transition.
In addition to the LPO Title 17 Clean Energy Financing Program, the recent Biden administration announcement on creating regional “Hydrogen Hubs” and the company’s desire to participate in these hubs is another example of CleanBay’s alignment with current climate goals.
We see this process as a natural next step in the capitalization of our shovel-ready projects in Maryland and future projects under development in Delaware and California. While work remains to be completed for the Part II review, it is an important step in the Department’s willingness to proceed with its diligence and confirms CleanBay’s GHG emission reduction benefits, Thomas Spangler said.
Proven technology in a novel process
According to CleanBay, it has accumulated proprietary intellectual property covering its conversion process to include trade secrets, a US patent, and pending patent applications in the United States and Europe.
At full capacity, each CleanBay bioconversion facility can recycle more than 150,000 tonnes of poultry litter annually.
By repurposing a potential source of excess nutrients, each facility can generate more than 750,000 MMBtus of sustainable RNG, 100,000 tonnes of natural controlled-release fertilizer, and up to an estimated 500,000 tonnes of carbon dioxide equivalent (CO2eq) emission reduction that can be available for Scope 1 and 2 emission reductions or monetization in global carbon markets.
As an alternative to RNG, CleanBay’s facilities can also produce clean, low-carbon hydrogen at an estimated rate of 13,500 tonnes per year.
DOE invitation is not an assurance
DOE’s invitation to submit a Part II application is not an assurance that DOE will invite the applicant into the due diligence and term sheet negotiation process, that DOE will offer a term sheet to the applicant, or that the terms and conditions of a term sheet will be consistent with terms proposed by the applicant.
The foregoing matters are wholly dependent on the results of DOE review and evaluation of a Part II Application, and DOE’s determination whether to proceed.