Element Fuels launches innovative hydrogen-powered refinery in Texas

Element Fuels Holdings, LLC has announced the completion of site preparation and pre-construction phases for a hydrogen-powered refinery and combined-cycle power plant within the Port of Brownsville, Texas. This significant venture is set to become operational in 2027 and represents the first refinery of its kind in the United States since the 1970s to receive a permit for such a vast scope and innovative functionality.

Revolutionizing Fuel Production with Advanced Technology

Designed to address the pressing needs of climate and sustainability, the Element Fuels complex aims to produce over 160,000 barrels—or approximately 6.7 million gallons—per day of low-carbon intensity gasoline, diesel, and jet fuel. According to Founder and Co-CEO John Calce, “A permit for a greenfield refinery of this size, scope, and functionality has not been granted in the United States since the 1970’s. This speaks to the innovative approaches we are taking to address climate and sustainability concerns in cleaner, greener ways that are new to the refinery space.”

The refinery is uniquely engineered to process exclusively high-gravity domestic shale oil, significantly reducing carbon emissions in the production of high-octane fuels. The facility will also generate its own low-carbon hydrogen to meet 100% of its fuel needs, with surplus hydrogen used to power a hydrogen-capable combined-cycle gas turbine power plant.

Element Fuels is setting new industry standards with its innovative hydrogen-powered refinery in Brownsville, Texas, paving the way for cleaner and higher-quality fuel production.

Contributions to Local Energy Supply and Environmental Sustainability

Element Fuels’ power plant is projected to contribute over 100 MW of excess low-carbon electricity to the Energy Reliability Council of Texas (ERCOT), aiding in reliable energy support for the surrounding community. Calce emphasized the broader impact of this initiative, stating, “Element Fuels is not only ushering in the next generation of clean fuels, we’re also proving that, without a doubt, there is a way to produce higher quality, cleaner, higher-octane fuels that significantly advance the energy transition. This changes everything – for the industry, for consumers, and for the well-being of the planet.”

Economic and Social Advancements

The construction of the Element complex on more than 240 acres within the strategically significant deepwater Port of Brownsville not only promises to enhance the local economy by creating hundreds of jobs at above-market wages but also aims to improve quality of life for workforce members and their families. Additionally, Element Fuels is collaborating with local and port officials to support the Justice40 initiative by the U.S. Department of Commerce, which focuses on creating a climate-positive environment with access to clean energy and affordable, sustainable housing for the community.

Looking Ahead: Partnerships and Progress

Element Fuels has partnered with McDermott for front-end engineering design services, with McDermott’s Senior Vice President of Low Carbon Solutions, Rob Shaul, highlighting their commitment: “Building on our successful collaboration during early project phases, we believe we are uniquely positioned to leverage our expertise and knowledge to further support Element Fuels throughout the next stages of this unique project.”

This innovative project marks a significant milestone in the transition from fossil fuels to renewable and lower-carbon energy sources, setting a new standard for the industry and contributing to environmental sustainability.