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    DOE Loan Office guarantees $1B to help fund Nebraska Gas-to-H2 Carbon removal project for Industrials

    Jan. 5, 2022
    The project is the called by its planners as first-ever commercial-scale project to deploy methane pyrolysis technology, which converts natural gas into carbon black and hydrogen
    Image credit Monolith's Olive Creek Hydrogen Production Plant
    Olive Creek 61d5e3b55da9c

    The U.S. Department of Energy’s renewed Loan Programs Office is giving a conditional guarantee of about $1 billion for an expanded Nebraska project to convert methane gas to hydrogen and removing carbon in the process.

    LPO has offered a conditional commitment to guarantee a loan of up to $1.04 billion for Monolith Nebraska, LLC to expand its Olive Creek facility in Hallam, Nebraska. The Monolith Olive Creek expansion will support Nebraska’s economy by creating approximately 1,000 jobs during construction and 75 high-paying, highly skilled, clean energy jobs to support facility operations. 

    The project is the called by its planners as first-ever commercial-scale project to deploy methane pyrolysis technology, which converts natural gas into carbon black and hydrogen — two products that are frequently used in difficult to decarbonize industrial sectors like tire and ammonia fertilizer production. 

    Methane pyrolysis refers to thermal decomposition of methane. It is called a non-polluting conversion to "turquoise" hydrogen by removing the solid carbon from methane.

    “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,” said Richard J. Kramer, chairman and CEO of The Goodyear Tire & Rubber Company. “We are excited to work with Monolith to reduce our carbon footprint and further our use of alternative materials as we continue to deliver industry-leading products.”  

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    If and when completed, this loan would be the DOE LPO’s first for a non-nuclear project since 2016. The LPO intends to finance the expansion project, but several conditions remain before the funding is distributed.

    Mitsubishi Heavy Industries is one of Monolith’s investors in the green hydrogen project. Hydrogen does not emit carbon when burned but must be created via clean energy processes.

    About the Author

    Rod Walton, EnergyTech Managing Editor | Senior Editor

    For EnergyTech editorial inquiries, please contact Managing Editor Rod Walton at [email protected].

    Rod Walton has spent 15 years covering the energy industry as a newspaper and trade journalist. He formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.

    Walton earned his Bachelors degree in journalism from the University of Oklahoma. His career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World. 

    EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.

    He was named Managing Editor for Microgrid Knowledge and EnergyTech starting July 1, 2023

    Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.

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