Element Fuels Holdings, a pioneering company focused on developing and operating scalable, next-generation clean fuels production, has reached a significant milestone in its journey to revolutionize the energy industry. The company has recently completed site preparation and pre-construction on a groundbreaking hydrogen-powered refinery and combined-cycle power plant within the Port of Brownsville, Texas. This innovative complex is set to transform the way clean fuels are produced, paving the way for a more sustainable future.
The Element Fuels refinery, the first of its kind, has been granted the necessary permits to construct and operate a facility capable of producing over 160,000 barrels, or approximately 6.7 million gallons, of finished gasoline, diesel, and jet fuel per day. This marks a significant achievement, as a permit for a greenfield refinery of this size, scope, and functionality has not been granted in the United States since the 1970s. The innovative approaches employed by Element Fuels to address climate and sustainability concerns have been instrumental in securing this landmark permit.
The refinery, expected to be operational in 2027, will exclusively process high gravity domestic shale oil using advanced, commercially proven technologies provided by best-in-class partners. The resulting low-carbon intensity fuels will materially reduce carbon emissions, setting a new standard for the industry. Additionally, the facility will produce enough low-carbon hydrogen to supply approximately 100% of the refinery's fuel requirements, virtually eliminating CO₂ emissions.
In a groundbreaking move, excess hydrogen produced by the refinery will be utilized to generate low-carbon, utility-scale electricity from Element's hydrogen-capable combined-cycle gas turbine power plant. Over 100 MW of excess electricity generated from the power plant will be made available to the Energy Reliability Council of Texas to reliably support the surrounding community's needs. This innovative approach positions Element Fuels as an industry leader in creating a sustainable economy and advancing the transition from fossil to renewable and lower-carbon energy.
Founder and Co-CEO John Calce emphasized the significance of this project, stating, "Element Fuels is not only ushering in the next generation of clean fuels, we're also proving there is a way to produce clean fuels that significantly advance the energy transition. This changes everything for the industry, consumers, and the planet." The Element Fuels complex represents a major step forward in the quest for cleaner, greener energy solutions.
The complex, spanning over 240 acres within the Port of Brownsville, a deepwater port in South Texas, is strategically located to facilitate the movement of bulk petroleum, refined products, natural gas liquids, and other specialized bulk liquid commodities. The project is expected to boost the local economy and improve the quality of life for workforce members and their families by creating hundreds of jobs with above-market wages. Element Fuels is also collaborating with local and Port officials to advance the Justice40 initiative established by the U.S. Department of Commerce, contributing to a climate-positive environment and providing residents of the Brownsville area and Rio Grande Valley with clean energy and affordable, sustainable housing.
Element Fuels has partnered with McDermott, a leading engineering and construction company, to provide front-end engineering design services for the facility, including offsites and utilities. Rob Shaul, Senior Vice President of Low Carbon Solutions at McDermott, expressed the company's commitment to supporting Element Fuels throughout the next stages of this unique project, leveraging their expertise and knowledge to deliver low-carbon pathway projects and advance the landscape of energy production.
