Proposed facility will help catalyze hydrogen
and sustainable aviation fuel industries at scale, propel the
aviation sector's decarbonization goals, lower transportation
costs, and create supply chain efficiencies
PITTSBURGH, May 15, 2024
/PRNewswire/ -- To accelerate regional and national hydrogen
and sustainable aviation fuel (SAF) development, KeyState Energy
(KeyState), CNX Resources Corp. (NYSE: CNX), and Pittsburgh International Airport (PIT) today
announced a collaboration to bring yet another transformational
project to PIT property.
The integrated facility can produce hydrogen solely, reaching up
to 68,000 metric tons annually, or SAF exclusively, up to 70
million gallons per year. The plant will offer the flexibility to
produce both products simultaneously at lower varying individual
volumes and customize production to meet specific demands. Building
upon CNX and PIT's previously announced alternative fuel strategy
in 2022, this initiative supports the national goal of
significantly reducing hard-to-abate sectors' emissions by 2030,
positioning the region as a key player in the hydrogen and
sustainable aviation fuel industries.
KeyState and CNX recently signed a Letter of Intent (LOI) to
advance the approximately $1.5
billion project that, if the U.S. Department of Treasury
enables a pathway for ultra-low carbon intensity fugitive coal mine
methane (CMM) under the 45V Hydrogen Production Tax Credit, is
expected to support 3,000 direct construction jobs through the
development phase. The partners are evaluating several potential
market targets for the usage of SAF in the aviation industry and
clean hydrogen for local heavy trucks and equipment, and power
generation, among other applications for hard-to-abate sectors of
the economy.
"Because of this exciting new project, Pittsburgh International Airport will become
home to one of the largest facilities in the Nation that
specializes in the innovative process of using hydrogen gas to
produce sustainable aviation fuel," said Senator Bob Casey (D-PA). "It will help support
thousands of new union jobs and provide a look at how cutting-edge
innovation in Pennsylvania is
helping to build the energy economy of the future."
"As the only state to secure two regional clean hydrogen hubs,
the future of clean energy is running through Pennsylvania, and as we build out these
hydrogen hubs over the next several years, we'll see more
innovation, job creation, and opportunity coming to our
Commonwealth," said Pennsylvania Governor Josh Shapiro. "We're proving that you don't
have to choose between protecting the planet and protecting jobs –
and the partnership between KeyState Energy, CNX Resources, and
Pittsburgh International Airport
will create thousands of jobs and cut fuel costs for airlines, all
while reducing pollution and making our communities safer and
healthier. My Administration will continue to bring people together
to drive innovative projects to the Commonwealth that reduce
emissions, tackle climate change, and create family sustaining
jobs."
Allegheny/Fayette Central
Labor Council, AFL-CIO President Darrin
Kelly said, "This project is the economic shot in
the arm the region needs and I'm proud of the diverse coalition
working to make Pittsburgh the
leader in hydrogen and sustainable aviation fuel. The commitment by
our coalition to work together to ensure that the men and women of
our regional union workforce lead the way on the jobs associated
with these new sectors of the economy is exactly what we need more
of – labor, business, and government finding ways to tear down old
narratives and move our region forward. This would be the most
significant energy project the region has seen in years, and it can
help trigger a broader transformation and position us for a lower
carbon future. We will continue our advocacy to ensure the
forthcoming hydrogen and SAF tax credit rules provide western
Pennsylvania the opportunity to
bring this project and our vision to fruition."
Produced from a variety of sources, including waste feedstocks,
SAF can drastically reduce the lifecycle carbon emissions of air
travel, making it the best decarbonization lever available to the
aviation industry to reach net zero. However, due to production and
cost issues, SAF currently accounts for less than one percent of
global commercial airline consumption. A facility of the proposed
size and scope would produce enough alternative fuel to supplant
nearly all traditional jet fuel consumption at PIT at a price on
par with conventional Jet A.
Mixing just 10 percent SAF with regular jet fuel can power
thousands of flights annually, significantly reducing emissions.
The integrated facility further positions PIT as an industry
leader, making it even more attractive for passenger and cargo
flights.
A 2021 study from the U.S. Department of Energy's National
Energy Technology Laboratory (NETL) confirmed that constructing and
operating a gas-to-liquids SAF facility at PIT is technically
feasible through the use of onsite natural gas production and
net-zero or net-negative greenhouse gas emissions feedstocks to
produce sustainable aviation fuel.
Additionally, the groups announced they are seeking a federal
grant to conduct a logistics study to inform a project hub and
transportation network investment strategy. Using FAST SAF grant
funds under the Inflation Reduction Act (IRA) and awarded by the
Federal Aviation Administration, the Tier 1 logistics study would
advance local SAF development by informing how fuels produced at
PIT can be cost-effectively transported to nearby airports
throughout the Northeast and Midwest. The entities plan to evaluate
transporting SAF through various modes, including the use of
existing or constructing new pipeline infrastructure, barge, and
rail. Providing excess SAF to other regional airports will increase
energy security, reduce dependence on foreign supply chains, and
reduce lifecycle greenhouse gas emissions.
Successful completion of the logistics study could yield
significant investment in constructing the hydrogen and SAF
facility on PIT grounds, which would double onsite fuel storage and
further stabilize fuel supply in the event of disruptions.
"This exciting project opens the door for Western Pennsylvania to lead the nation in
sustainable aviation fuel—and that could be a big win for our
workers, local economy, and efforts to cut emissions and meet new
energy standards," said Congressman Chris Deluzio (D, PA-17). "I am proud
that my office is supporting federal grants that will help this
venture get off the ground and start using cleaner aviation fuel as
soon as possible."
Allegheny County Chief
Executive Sara Innamorato said,
"I'm very pleased that Pittsburgh
International Airport, KeyState Energy, and CNX Resource are
bringing this transformational collaborative project to
Allegheny County. Our region
should be out front on more sustainable options for hard-to-abate
sectors like aviation fuel industries. The onsite potential for a
SAF facility on PIT's campus will create jobs and help our region
lead on climate solutions for the energy sector."
"For more than 300 years, Pennsylvania and Appalachia have lived and led America's energy
transitions; first from wood to coal, then oil was added, then
natural gas added, then nuclear, then the shale gas revolution and
now the beginning of a next energy revolution, this in clean
hydrogen," said Perry Babb, CEO
of KeyState Energy. "The innovations contemplated for the PIT
hydrogen and SAF Hub have the potential to produce the
lowest-carbon, lowest-cost, large-scale aviation fuel in the
world."
Commencing in 2014, the innovative partnership between PIT
and CNX has helped transform the Pittsburgh region's economic development hub
into one of the most sustainable and resilient airports in the
world. Innovations include development of a first-of-its-kind
microgrid making PIT the first airport in the world to be
completely powered by natural gas and solar energy.
"Pittsburgh is once again
leading the way on energy toward a more sustainable future," said
Pittsburgh International
Airport CEO Christina Cassotis.
"Increasing SAF and hydrogen production in the U.S. is a necessary
first step in reducing carbon output to meet upcoming industry
goals, helping aviation earn its right to grow and moving further
toward a cleaner, greener future. We look forward to continuing to
work with our partners, CNX and KeyState Energy, in cementing
Pittsburgh International Airport
and our region as a global leader in sustainable energy."
The project would leverage, pending the outcome of forthcoming
U.S. Department of Treasury implementation rules for the IRA's tax
credit provisions, ultra-low carbon intensity waste CMM emissions
as feedstock to create low-cost, low-carbon alternative fuels. As
part of the project's development, the partners intend to clarify
that the products meet the requirements and specifications for
clean hydrogen and SAF as determined by the applicable agency.
KeyState serves as project developer and, with its development
partners, will secure project financing while CNX will provide
feedstock services and other technical engineering support to the
project. The airport will provide strategic advisory planning and
industry expertise.
"First and foremost, we would not be in position to announce
this project without the support and advocacy of our western PA
labor leaders, and we are not going to proceed without them on this
or any other hydrogen or SAF project in the region. Our goal is to
expand end-use opportunities of our abundant, ultra-low carbon
intensity natural gas to drive further emission reductions, create
good paying, local jobs, and enhance PIT's position as an
innovative sustainable fuel hub," CNX President and CEO
Nick Deiuliis said. "Our
decade-long partnership with PIT has contributed to the airport's
international profile as a pioneer in the industry and we look
forward to taking the next step together in catalyzing a
first-of-its-kind, large scale hydrogen and sustainable aviation
fuel hub right here in the Pittsburgh region."
The Allegheny Conference on Community Development recently
completed an analysis of CMM as a pathway to a hydrogen economy in
the Southwestern Pennsylvania
region. The findings identified over 30 projects that can be
deployed within the next 15 years if the full IRA tax credits can
be utilized potentially creating over 200,000 direct construction
jobs and more than $213 billion in
economic output.
Allegheny Conference on Community Development Chief Growth
Officer and Vice Chair of the Allegheny County Airport Authority
Board of Directors Matt
Smith said, "Establishing a hub for hydrogen and
sustainable aviation fuel at the Pittsburgh International Airport is a
transformational milestone in our energy and transportation future,
and I commend the public, private and labor leaders involved in
bringing this opportunity to fruition. Robust partnerships and our
world-class innovation ecosystem keep Pittsburgh at the forefront of what's next,
and we are strongly advocating for the policies, including
updates to the federal 45V Clean Hydrogen Production Tax Credit
guidance, required to open up this generational opportunity
for new jobs and catalyze a low-carbon intensity hydrogen economy
for our region. The full potential of this opportunity for the
Pittsburgh region is dependent on
smart and thoughtful decisions by policymakers."
Dozens from Pennsylvania's
labor and business community, as well as local elected officials
also shared their support for the project. Read what they're saying
at www.safpittsburgh.com/commentary.
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 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, 2023 filed with the
Securities and Exchange Commission (SEC) and any subsequent reports
filed with the SEC. Those risk factors discuss, among other
matters, pricing volatility or pricing decline for natural gas and
NGLs; local, regional and national economic conditions and the
impact they 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.
About KeyState Energy
KeyState Energy is a privately
held Development Company of large-scale, energy and manufacturing
projects, which have both dramatic emission reduction impacts and
generational job and economic impacts. This is accomplished through
a proprietary integration of innovative natural gas extraction,
which avoids 99% of fugitive methane emissions, combined with the
separation, capture and geological sequestration of 99% of the CO2
in the natural gas feedstock. The result is products meeting the
most stringent requirements for Qualified Clean Hydrogen, with uses
including mobility and aviation fuels, fertilizers, critical
chemicals, and power. KeyState Energy is Developer of KeyState
Natural Gas Synthesis, in Clinton Co. Pa., a part of the ARCH2
Hydrogen Hub, and of KeyState-Virginia, in Wise, County, Va. with additional project
announcements forthcoming. www.KeyState.net
About CNX
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 160-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, 2023, CNX
had 8.74 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.
About Pittsburgh
International Airport
Pittsburgh International Airport (PIT) serves
approximately 10 million passengers annually and is a key economic
driver for the region, reflecting and serving the community,
inspiring the industry, and advancing the region's role as a world
leader. PIT's new terminal, scheduled to open in 2025, will
transform the passenger experience and showcase the region's
thriving economy as its new front door. PIT has recently won
numerous international awards including being named by Fast Company
magazine as One of the Most Innovative Companies in the World as
well as a finalist in Accessible Design. Future Travel Experience
named PIT a winner in its Pioneer innovation awards, and PIT's
first-of-its-kind microgrid has garnered numerous accolades for
resiliency and sustainability. For more information visit
www.flypittsburgh.com.
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SOURCE CNX Resources Corporation; Pittsburgh International Airport; KeyState
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