A maker of hydrogen-based fuel is planning to build a new facility near Savannah, Georgia, in a move that shows investors and energy industry players are focused on developing renewable fuels despite threats to federal incentives from the new presidential administration.
HydroFleet is investing $33 million into the hydrogen production and fueling station that will service environmentally friendly heavy-duty trucks at 500 Seabrook Parkway in Pooler, Georgia, according to the Savannah Economic Development Authority. The facility is expected to produce hydrogen to supply local industrial customers such as Hyundai.
Large energy companies have pursued the development of hydrogen-fuel infrastructure in projects that were expected to qualify for federal tax credits under the Inflation Reduction Act, according to a report by S&P Global. But recent comments by President Trump criticizing the Biden administration’s efforts on energy policy may indicate the potential end of federal support for renewable fuel development.
Exxon Mobil is planning a hydrogen fuel production and distribution facility at its Baytown, Texas, complex in a proposed project Exxon Mobil touts as the world’s largest related to low-carbon hydrogen.
However, Air Products & Chemicals dropped plans to develop a $4 billion hydrogen production facility near Wichita Falls, Texas, in a joint venture with energy utility AES in November after pressure from activist investors to take fewer risks on capital spending, according to S&P Global.
Georgia facility
HydroFleet's proposed facility is expected to refuel between seven and 14 trucks per day during its initial operations. It can be expanded later to service 50 trucks per day. At full capacity, hydrogen-powered trucks serviced by the facility are expected to remove more than 40,000 metric tons of carbon dioxide from the Savannah region a year, according to the statement.
Hyundai Motor Group manufactures hydrogen fuel-cell electric trucks at its multibillion-dollar plant about 20 miles west of the HydroFleet site. HydroFleet said it will refuel hydrogen-cell trucks used in the Hyundai Glovis logistics network.
The new facility will also have capacity to refuel hydrogen-powered forklifts, according to HydroFleet. The company did not disclose its forklift customers, but said Amazon, Walmart and Whirlpool all use hydrogen-powered forklifts.
The planned facility’s location on Seabrook Parkway in Pooler is within the Savannah Port Logistics Center, an industrial park developed by Capital Development Partners. Capital Development Partners owns the HydroFleet site in partnership with Stockbridge Capital, John Knox Porter, CEO of Capital Development, told CoStar News.
“We know customers want zero-emission fleets but have struggled to source the entire hydrogen ecosystem at a price that is competitive," said HydroFleet’s CEO Scott Moe in the statement.