As one of two "high impact industrial business districts" in West Virginia, the project consist of four phases with each phase producing over 500 metric tons per day of net-zero carbon hydrogen at an approximate capital cost of $2 billion per phase excluding associated investments in data centers, greenhouses, etc. The first FidelisH2 phase of the Mountaineer GigaSystem is expected to commence operations in 2028.
This net-zero carbon hydrogen will be used for a variety of purposes including carbon neutral hyperscale datacenters, greenhouses, transportation, and steel production.
Hyperscale Datacenters: Monarch Cloud Campus
Making West Virginia a leader in CCUS
The incentive package from the West Virginia Department of Economic Development enables Mountaineer to conduct additional geologic evaluation for carbon capture and sequestration required for the permits needed to conduct CCS activities. These activities will serve as the foundation for the clean hydrogen and CCS industries in the state, providing a source of jobs and generating state revenue for CO2 volumes stored safely and permanently underground. When all four phases of the Mountaineer GigaSystem are operational, approximately 10 million metric tons per year of CO2 would be permanently stored, providing over $100 million in annual revenue to West Virginia or ~$25 million per phase each year.
"I am beyond excited that West Virginia will be the home of the Mountaineer GigaSystem and Monarch Cloud Campus," West Virginia Governor Justice said. "West Virginia has a long history as an energy powerhouse for our nation, thanks to our hardworking people who know how to get the job done. And now, we're in a great position to make the most of a new fuel – hydrogen – through this incredible project in Mason County.
"During my time as Governor, West Virginia has seen many major economic development wins, which have contributed to the diversification of our economy and the fostering of the most business-friendly environment in the nation. Fidelis's selection of West Virginia for their projects adds another huge win to our growing track record of success, and I thank all those involved in bringing this project to fruition."
John Musgrave, the Executive Director of the Mason County Development Authority commented, "The citizens of Mason County are elated with the announcement of Fidelis New Energy selecting Mason County, West Virginia, for its multibillion-dollar state of the art carbon neutral, clean hydrogen complex. The selection of the Mason County site is the result of a team effort with National, State, and County teams working together to bring this outstanding international company to West Virginia."
Fidelis and West Virginia have finalized the operating agreement which determines the terms for the targeted storage capacity and the pore space agreement establishing exclusive rights for CCS in certain areas.
Energy Transition Technologies
Fidelis has a suite of patent pending energy transition technologies that assist in the decarbonization of hard to abate industries. FidelisH2 is a novel hydrogen production pathway that enables lifecycle carbon neutral hydrogen from natural gas and renewable energy. Fidelis' suite of energy transition technologies also includes H2PowerCool™ and CO2PowerGrow™. H2PowerCool utilizes FidelisH2 hydrogen as a net-zero energy source to power and cool data centers, enabling carbon-neutral data centers that can be hosted on-site at Mountaineer without utilizing off-site indirect carbon offsets or credits.
The technologies will be used by data centers at the Monarch Cloud Campus on land secured by Fidelis within the Mountaineer site and additional acreage within Mason County. Fully built out, the data center capacity could reach 1,000 MW, representing over $5 billion in additional investment. Waste heat and a portion of the captured CO2 from FidelisH2 production and waste heat the hyperscale data centers would be used as inputs to co-located greenhouses to decarbonize and lower the cost of food production.
In conjunction with the broader project unveiling, Fidelis also announced a letter of intent with Babcock & Wilcox to support the evaluation, development, and delivery of BrightLoop hydrogen projects at the Mountaineer site. This targets a full build out of four 200 MTPD of net-zero hydrogen production facilities. The BrightLoop technology enables the production of cost competitive clean net-zero hydrogen from waste biomass including fallen trees, sawmill waste, and other solid fuels as well as natural gas combined with carbon capture, use, and sequestration, making it a highly synergistic addition to the Mountaineer GigaSystem site.
West Virginia, ARCH2, and Federal Support
Fidelis is pleased to be a Project Development Partner through Mountaineer in the Appalachian Regional Clean Hydrogen Hub or "ARCH2," a regional hub bringing together private industry, state and local government, academic and technology institutions, NGOs, and communities across the Northern Appalachian region to develop an interconnected, full value chain H2Hub solution in support of the United States Department of Energy's vision of a national clean hydrogen network.
Additionally, projects like Mountaineer and the economic impact they will bring to host states such as West Virginia would not be possible without the energy security and transition incentives passed by Congress in the Inflation Reduction Act.
Regarding the importance of federal support for carbon capture and sequestration and hydrogen projects, Senator Joe Manchin, Chairman of the U.S. Senate Energy and Natural Resources Committee said, "The Inflation Reduction Act continues to deliver for West Virginia, and I am pleased that Fidelis New Energy has chosen Mason County, West Virginia for the home of its new Mountaineer GigaSystem. West Virginia has long been America's energy powerhouse, and thanks to the Inflation Reduction Act, the Mountain State will continue contributing to our Nation's energy security while growing as a hotbed of energy innovation with this announcement and many more to come."
"We are proud to have selected West Virginia as home to the Mountaineer GigaSystem where it can serve as a major anchor and support for the broader ARCH2 Hydrogen Hub. The state's position at the forefront of energy and chemical production in the United States make it a natural choice for a project such as ours." said Pete Hollis, Senior Vice President and Global Head of CCUS of Fidelis.