A Nebraska project which is intended to combine renewably produced hydrogen with biogenic carbon dioxide from ethanol plants to create a reportedly low-emissions form of natural gas is entering its pre-construction and front-end engineering design (FEED) phase with its owners contracting a prominent Houston-based firm to do that early work.
KBR was selected by the Live Oak Consortium to initiate FEED services for the project planned in Norfolk, Nebraska. Live Oak is at the center of an international partnership featuring French-based TotalEnergies, German electric-natural gas (e-NG) developer Tree Energy Solutions (TES) and three Japanese energy entities—Osaka Gas, ITOCHU Corp. and Toho Gas.
This global team wants to create 250 MW of electrolyzed green hydrogen, combine it with biogenic C02 and produce a fuel which is “chemically identical to methane natural gas” which can be introduced into existing pipelines and equipment without adaptation, according to the Live Oak Consortium.
The project is awaiting final investment decision by next year. If approved going forward, Live Oak could begin commercial operations in 2030 with e-NG export agreements in Japan creating the commercial justification. They hope to produce about 75 kilotons of e-NG annually.
In the meantime, KBR will handle the FEED phase of project development.
“We are pleased to support the Live Oak consortium and its partners on this strategically important project,” said Jay Ibrahim, President, KBR Sustainable Technology Solutions, in a statement. “This award reflects KBR’s proven ability to deliver large-scale energy transition projects, our deep expertise in hydrogen and electrolysis technologies, strong U.S. execution capabilities and successful track record supporting TotalEnergies worldwide. We look forward to helping advance one of the largest e-methane projects currently under development in North America.”
Future electric natural gas heading to Japan
Live Oak’s backers say that future e-NG also will seamlessly integrate into existing liquified natural gas (LNG) infrastructure. The U.S. is the global leader in LNG exports, primarily from LNG liquefaction terminals along the Gulf Coast.
TotalEnergies, TES, Toho, Osaka and ITOCHI announced they signed the joint development and operating agreement for Live Oak last December. The Japanese companies together hold a 33% stake in the Live Oak Consortium. This larger partnership grew out of an earlier deal between TotalEnergies and TES—both of which hold 33.3% stakes, as well—focused on creating a site to produce e-NG.
The group chose Nebraska because the state holds abundant biogenic CO2 resources which are captured from ethanol production plants. The Live Oak site also would utilize renewable energy resources to power electrolyzers.
Electrolyzers separate hydrogen (H2) by splitting water into its H2 and O (oxygen) atoms through electric current. To be classified as green hydrogen, the electrolyzers must be powered by carbon-free resources such as renewable solar and wind or even nuclear power.
The biogenic CO2 captured from ethanol production—a process which turns agricultural feedstocks such as corn into fuel—is then mixed with the H2. The resulting e-NG would be pipelined and transported for export, with Osaka Gas and Toho Gas as the primary off-takers. Japan imports 90% of its energy capacity needs.
Nebrkasa consistently ranks second in U.S. ethanol production behind only Iowa. The Cornhusker state has 24 plants and produces close to 2.4 billion gallons of ethanol per year, according to federal Energy Information Administration statistics.
