Trans Permian H2Hub sponsor gets nod to advance in funding competition

MMEX Resources Corp (OTCMKTS:MMEX) has received the go-ahead from the US Department of Energy (DOE) to advance its regional clean hydrogen hub project to the final application stage of a USD-8-billion (EUR 7.59bn) funding programme.

The energy infrastructure developer said in a statement that the concept paper for its Trans Permian H2Hub project was approved by the energy department on December 27, 2022. MMEX Resources’ hub proposal is competing to become one of six to 10 projects selected to receive a DOE investment of between USD 500 million and USD 1 billion under a Funding Opportunity Announcement (FOA) released in September 2022.

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Concept papers were supposed to be filed by November 7, 2022, while full applications are now due by April 7, 2023.

The Trans Permian H2Hub is drawn up to include multiple projects spanning the cities of San Antonio, San Angelo, Big Spring, Midland, Odessa, El Paso, Fort Stockton, Alpine, Presidio and Del Rio, with an outreach of hydrogen attributes across Texas, the US Southwest and Mexico, according to Jack W. Hanks, president and CEO of MMEX Resources.

Two of the projects envisage the construction of a green hydrogen and ammonia plant in Pecos County and another one in El Paso. The CAPEX for each is estimated at USD 494 million, shows a presentation from November 2022.

“The planned projects within the Trans Permian H2Hub include hydrogen bus manufacturing, H2 re-fueling stations, green and blue hydrogen production, ammonia and methanol production, solar and wind power, and metropolitan bus transport projects in the major cities,” Hanks said in a statement, adding that hydrogen blending activities are planned as well.

(USD 1 = EUR 0.948)