Fortress Transport and Infrastructure (FTAI) has made plans to enter into a joint venture with Zero Parks to develop renewable diesel and hydrogen-based fuels like blue ammonia. FTAI has a strong business portfolio in Beaumont, Texas’s ship, pipeline, and rail transport infrastructure.
FTAI plans to initiate its final investment decisions on two energy investment projects in the third quarter. The transport company’s management has revealed that FTAI seeks to invest in renewable jet fuel and diesel production in its first project. The second phase will involve the production of carbon-free ammonia and hydrogen fuels.
This comprehensive project will take a while to yield results.
New Fortress Energy and Investments in LNG
New Fortress is well known for its high-end investment projects in the liquefied natural gas sector in the Caribbean and Latin America. The company is also involved in other countries around the world. It is going forward with a strategy of providing clean power in a more comprehensive fashion across the world.
This strategy requires the company, in several cases, to finance the projects themselves and then to obtain the payback from the country that they are dealing with over time.
In addition, the company invested in a green hydrogen unit located in Israel in 2022. However, the company’s CEO, Wes Edens, registered his disappointment in the project, revealing that green hydrogen is no longer commercially viable.
Shifting To the Future
More politicians are coming around to the fact that we must have cleaner types of energy sources like natural gas and LNG if we are to genuinely transition from our current energy paradigm to a more renewable world.
The company and similar peers are looking to make more investments into comprehensive sustainable forms of energy while understanding the present forms of energy have key role to play. An Anti-fragile energy infrastructure and servicing comes from a more rational energy policy.
In essence, blue hydrogen and ammonia are manufactured by splitting natural gas into carbon dioxide, and hydrogen is easy to liquefy and store. Conversely, green hydrogen production processes involve electrolyzing water using renewable energy.
Wes Edens revealed that renewable fuels will still offer more short-term opportunities even though the government had supported its green hydrogen operations.
Zero Parks’ CEO, Ken Nicholson, was confident that the project would proceed without hitches since the feedstock and technologies needed are already available. The project will cost between $200 million and $300 million in a 2-year development timeline.
Nicholson noted a strong demand for blue ammonia, particularly in the shipping industry transitioning to renewable energy sources.
The company will maintain its current green energy production facilities while exploring and evaluating the viability of other renewable fuels.