EQT Advances into Phase 1 Planning of Clean Hydrogen Project

Rhea-AI Summary

EQT (NYSE: EQT) announced the advancement of its clean hydrogen project to Phase 1 planning as part of the Appalachian Regional Clean Hydrogen Hub (ARCH2). This follows a cooperative agreement between ARCH2 and the U.S. Department of Energy, unlocking $30 million in initial funding from a potential $925 million. EQT plans to construct a facility to convert natural gas into hydrogen-rich syngas and low carbon aviation fuel (LCAF).

The project aims to kickstart a clean hydrogen economy, promote economic growth, and decarbonize hard-to-abate industries. EQT's CEO, Toby Z. Rice, highlighted the company's recent achievements, including a 50% increase in production and a nearly 70% reduction in legacy Scope 1 and 2 production emissions over the past five years.

Positive

• Advancement to Phase 1 planning for clean hydrogen project
• Access to $30 million in initial funding from potential $925 million
• 50% increase in production over the past five years
• Nearly 70% reduction in legacy Scope 1 and 2 production emissions

Negative

• Project location still under consideration
• Dependence on government funding for project advancement

EQT, together with its peers in the Appalachian Regional Clean Hydrogen Hub, have advanced to Phase 1 Award Status from the U.S. Department of Energy

PITTSBURGH, July 31, 2024 /PRNewswire/ -- EQT Corporation (NYSE: EQT) today announced that its strategic plans to produce clean hydrogen and low carbon aviation fuel (LCAF) from its low emissions Appalachian natural gas will advance into Phase 1 planning following the execution of a cooperative agreement between the Appalachian Regional Clean Hydrogen Hub (ARCH2) and the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED).

The agreement unlocks $30 million in initial funding for ARCH2 projects in Phase 1 from a potential $925 million that may be distributed in future phases, as designated by the Bipartisan Infrastructure Law, which establishes an investment of up to $7 billion for the Regional Clean Hydrogen Hubs (H2Hubs) Program. Phase 1 will encompass initial planning, siting, permitting, community engagement and analysis activities to ensure the Hub and its projects are technologically and financially viable, with input from local stakeholders.

EQT plans to construct and operate a clean hydrogen production facility to convert natural gas into hydrogen-rich syngas via autothermal reforming, and then into LCAF and other liquid fuels. Hydrogen will also be purified from the syngas and used for fuel cell vehicles or blending to gas distribution lines. The project location is still under consideration.

"The advancement of ARCH2 enables EQT and our region to lead the next generation of natural gas by kickstarting a clean hydrogen economy that deploys innovative, commercial-scale technologies, promotes the growth of our economy and improves the environment by decarbonizing hard-to-abate industries that lack affordable, scalable solutions," said Toby Z. Rice, President & CEO of EQT Corporation.

Rice continued, "But the backdrop of this milestone is just as important as our path forward. Our vast supply of affordable, low-emissions Appalachian natural gas, underpinned by the innovation, grit and reliability of our region's workforce, has driven our nation's climate progress for decades. In the past five years alone, EQT has increased production by 50 percent and reduced our legacy Scope 1 and 2 production emissions by nearly 70 percent. Natural gas is – and will continue to be – the answer to the world's call for cheaper, more reliable, more affordable energy." 

Media Contact:
Courtney Loper
Head of Government Relations and Public Affairs
Courtney.Loper@eqt.com
202.744.3255

About EQT Corporation
EQT Corporation is a leading independent natural gas production company with operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do. To learn more, visit eqt.com.

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SOURCE EQT Corporation

FAQ

What is EQT's plan for clean hydrogen production?

EQT plans to construct a facility to convert natural gas into hydrogen-rich syngas via autothermal reforming, which will then be used to produce low carbon aviation fuel (LCAF) and other liquid fuels. Pure hydrogen will also be extracted for fuel cell vehicles or blending into gas distribution lines.

How much funding has been allocated for the ARCH2 project?

ARCH2 has received $30 million in initial funding for Phase 1, with potential access to $925 million in future phases as part of the $7 billion Regional Clean Hydrogen Hubs Program established by the Bipartisan Infrastructure Law.

What are the key achievements of EQT in recent years?

Over the past five years, EQT has increased production by 50% while reducing its legacy Scope 1 and 2 production emissions by nearly 70%.

What is the significance of the ARCH2 project for EQT?

The ARCH2 project enables EQT to lead in developing a clean hydrogen economy, deploy innovative technologies at commercial scale, promote economic growth, and contribute to decarbonizing hard-to-abate industries.