PITTSBURGH, Oct. 13,
2023 /PRNewswire/ -- In response to today's U.S.
Department of Energy announcement regarding hydrogen hub funding,
CNX (NYSE: CNX) President and CEO Nick
Deiuliis issued the following statement:
"CNX is pleased to provide ultra-low carbon intensity
feedstock and carbon capture and sequestration services for the
Adams Fork project, an anchor project in the recently approved
ARCH2 hydrogen hub application. With today's announcement, the U.S.
Department of Energy has recognized the vital importance of ARCH2
and Adams Fork in improving our nation's energy security. The Adams
Fork project is expected to be the largest clean ammonia facility
in the United States, once
completed and is expected to support jobs and economic investment
in an economically disadvantaged community in the heart of
Appalachia. While we applaud the funding announcement and inclusion
of ARCH2 in the award, we are eagerly awaiting implementation
guidance regarding the related hydrogen production tax credit (45V)
provision of the Inflation Reduction Act (IRA). The Adams Fork
project, and other such potential projects throughout the broader
Appalachian region, will substantially benefit from implementation
of 45V that adheres to the original intent of the law. The intent
of the hydrogen production provision of the IRA was to incentivize
the creation of low carbon intensity hydrogen, reduce emissions,
enhance U.S. energy security, and create jobs and economic activity
in energy communities. This project squarely aligns with those
objectives. We are monitoring development of the 45V guidance very
closely and are hopeful that Washington will follow the intent of the law
and help us make this important West
Virginia project, and others like it, a
reality."
Adams Fork Clean Ammonia Project Background
The Adams
Fork Energy clean ammonia project, jointly developed by Adams Fork
Energy, LLC and the Flandreau Santee Sioux Tribe, is expected to
have initial annual ammonia production capacity of 2,160,000 metric
tons, with optional additional production capacity. Project
developers have entered into a strategic partnership with CNX, one
of the lowest carbon intensive natural gas producers in the lowest
emissions basin in the United
States, to provide fuel and carbon sequestration services.
The project is expected to support 2,000 well-paying construction
jobs, including pipefitters and electrical workers, as well as
generate significant tax revenues and capital investment for
underserved Mingo County in
Southern West Virginia. The
planned facility is also located on a reclaimed coal mining site
near Gilbert Creek, WV, further
aligning the project with the White House's Justice40 Initiative.
Adams Fork has received significant federal, state, and local
bipartisan support, and is expected to displace more than 2.7
million metric tons per year of CO2 equivalent or more than 580,000
gasoline-powered passenger vehicles driven annually. By sourcing
local low carbon intensity Appalachian natural gas as feedstock and
installing carbon capture technology, Adams Fork Energy will have
an ultra-low carbon intensity profile. Ammonia has been identified
as one of the most efficient hydrogen carriers and also results in
zero carbon emissions when combusted. It is primarily used in
agriculture as a fertilizer, but other applications include heating
and power generation, refrigerant, water purification, and in
manufacturing plastics, textiles, and pesticides.
What They're Saying
"The Inflation Reduction Act and
Bipartisan Infrastructure Law continue to deliver for West
Virginia. Today's announcement of plans for a clean ammonia
production facility in Mingo County will help ensure the
Mountain State continues to be a leader in American energy
innovation and support good paying, West Virginia energy
jobs. This project, planned for a reclaimed coal mining site
near Gilbert Creek, honors our legacy as America's energy
powerhouse while keeping an eye on the future as we work to bring
an Appalachian Regional Clean Hydrogen Hub to West Virginia. I
applaud the cooperation it took to bring this project to Mingo
County and look forward to seeing the benefits it brings to
the community, economy, and our energy
security," said Senator Joe Manchin (D-WV).
"Since I've been Governor, it has been my top priority to
ensure Southern West Virginia has the resources to grow
economically, and that is why this announcement brings me so much
joy," West Virginia Governor Jim
Justice said. "I'm incredibly proud that the Adams Fork
Energy plant will become the largest clean ammonia facility in the
country.
I'm confident they will be a champion in this emerging field and
help our Southern West Virginia communities flourish for
decades to come. It's a testament to the great things that can be
accomplished when we all work together to build a brighter future
for all West Virginians, while never forgetting our hard-working
coal miners and the hard work they do every day."
"Adams Fork Energy is a transformational manufacturing
investment for Southern West Virginia," said Francis
Sacr, Special Advisor to the President of Adams Fork
Energy. "Thanks to leadership
in Washington through the Bipartisan Infrastructure Law
and the Inflation Reduction Act, we're excited to advance our clean
ammonia production facility that will create family-sustaining
local jobs while boosting available supply of clean ammonia, a
critical component to sustainable food production and achieving a
lower-carbon energy future."
"With a total of 56.2 million acres of trust land held by the
576 federally recognized tribes across the United States, the preservation of land
through best agricultural practices is key to sustainability,"
FSST President Anthony Reider
said. "The Flandreau Santee Sioux Tribe depends heavily on its
agricultural resources on and off its Reservation to provide
programing for tribal members and to supplement the barebones
federal funding it receives. The decreasing availability of ammonia
has created sharp increases in costs, thereby impacting the
agricultural economy. The Tribe is hopeful to utilize a substantial
portion of the Adams Fork Energy ammonia as fertilizer for its own
land and for other United States Tribes. The advancement of this
project will provide a critical economic benefit to Tribal nations.
However, we need assurance from the federal government they will
support projects using all resources – including low carbon
intensity natural gas feedstock – for Adams Fork to become a
reality."
About CNX Resources
CNX Resources Corporation (NYSE:
CNX) is unique. We are a premier, ultra-low carbon intensive
natural gas development, production, midstream, and technology
company centered in Appalachia, one of the most energy abundant
regions in the world. With the benefit of a 159-year regional
legacy, substantial asset base, leading core operational
competencies, technology development and innovation, and astute
capital allocation methodologies, we responsibly develop our
resources and deploy free cash flow to create long-term per share
value for our shareholders, employees, and the communities where we
operate. As of December 31, 2022, CNX
had 9.81 trillion cubic feet equivalent of proved natural gas
reserves. The company is a member of the Standard & Poor's
Midcap 400 Index. Additional information is available
at www.cnx.com.
Cautionary Statements
We are including the following
cautionary statement in this press release to make applicable and
take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and any other protections
afforded under applicable federal securities laws for any
forward-looking statements made by, or on behalf of us. With the
exception of historical matters, the matters discussed in this
press release are forward-looking statements (as defined in 21E of
the Securities Exchange Act of 1934 (the "Exchange Act")) that
involve risks and uncertainties that could cause actual results to
differ materially from projected results. Accordingly, investors
should not place undue reliance on forward-looking statements as a
prediction of actual results. These forward-looking statements may
include projections and estimates concerning the timing and success
of specific projects and our future production, revenues, income,
and capital spending. When we use the words "believe," "intend,"
"expect," "may," "should," "anticipate," "could," "estimate,"
"plan," "predict," "project," "will," or their negatives, or other
similar expressions, the statements which include those words are
usually forward-looking statements. When we describe a strategy
that involves risks or uncertainties, we are making forward-looking
statements. The forward-looking statements in this press release
speak only as of the date of this press release; we disclaim any
obligation to update these statements. We have based these
forward-looking statements on our current expectations and
assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies, and uncertainties, most
of which are difficult to predict and many of which are beyond our
control. Specific factors that could cause future actual results to
differ materially from the forward-looking statements are described
in detail under the captions "Forward-Looking Statements" and "Risk
Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2022 filed with the
Securities and Exchange Commission ("SEC"), as supplemented by our
quarterly reports on Form 10-Q filed in 2023, and any subsequent
reports filed with the SEC.
Those risk factors discuss, among other matters, pricing
volatility or pricing decline for natural gas and natural gas
liquids; local, regional and national economic conditions and the
impact those conditions may have on our customers; the impact of
events beyond our control, including a global or domestic health
crisis; dependence on gathering, processing and transportation
facilities and other midstream facilities owned by others;
conditions in the oil and gas industry; our current long-term debt
obligations and the terms of the agreements that govern that debt;
strategic determinations, including the allocation of capital and
other resources to strategic opportunities; cyber-incidents
targeting our systems, oil and natural gas industry systems and
infrastructure, or the systems of our third-party service
providers; and changes in safety, health, environmental and other
regulations.
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SOURCE CNX Resources Corporation