Legislature(2025 - 2026)GRUENBERG 120
05/06/2025 01:00 PM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s) Cook Inlet Energy Future | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
May 6, 2025
1:05 p.m.
DRAFT
MEMBERS PRESENT
Representative Ky Holland, Co-Chair
Representative Donna Mears, Co-Chair
Representative Bryce Edgmon
Representative George Rauscher
Representative Mia Costello
MEMBERS ABSENT
Representative Chuck Kopp
Representative Cathy Tilton
COMMITTEE CALENDAR
PRESENTATION(S) COOK INLET ENERGY FUTURE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
GIVEY KOCHANOWSKI, Alaska Regional Director
Bureau of Ocean Energy Management
U.S. Department of the Interior
Anchorage, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation on the
mission of the Bureau of Ocean Energy Management.
DAVID CLARKE, Engineering Director
Alaska Marine Power
Anchorage, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation on the use
of hydrogen for energy in Alaska.
ANTHONY PENNINO, Member
Board of Directors
GeoAlaska
Anchorage, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation on GeoAlaska
and the Augustine Island project.
KEITH MEYER, Advisor for Alaska
Highly Innovative Fuels Global
Anchorage, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation on Highly
Innovative Fuels Global.
ACTION NARRATIVE
1:05:10 PM
CO-CHAIR KY HOLLAND called the House Special Committee on Energy
meeting to order at 1:05 p.m. Representatives Costello, Mears,
Rauscher, and Holland were present at the call to order.
Representative Edgmon arrived as the meeting was in progress.
^PRESENTATION(S) Cook Inlet Energy Future
PRESENTATION(S) Cook Inlet Energy Future
1:07:57 PM
CO-CHAIR HOLLAND announced that the only order of business would
be presentations on the future of Cook Inlet energy.
1:08:14 PM
GIVEY KOCHANOWSKI, Alaska Regional Director, Bureau of Ocean
Energy Management (BOEM), U.S. Department of the Interior, gave
a PowerPoint presentation on the mission of BOEM [hard copy
included in the committee packet]. He noted that the subject of
Cook Inlet energy has been an ongoing discussion between
renewable energy companies. He highlighted BOEM's jurisdiction
on slide 2, which showed the continental shelf of Alaska. He
said that the 1.5-billion-acre shelf is divided into planning
areas, with the newest being the High Arctic planning area. Per
the focus of the discussion, he pointed out the Cook Inlet
planning area, which covers south of Nikiski to Shelikof Strait.
He stated that a joint federal and state workgroup has been
formed to focus on energy opportunities in this planning area.
He noted the different organizations involved in the workgroup.
MR. KOCHANOWSKI, on slide 3, stated that the Office of Resource
Evaluation, the Office of Environment, and the Office of Leasing
and Planning all fall under BOEM's Alaska regional office. On
slide 4, he pointed out the estimated amount of conventional
undiscovered resources in the state that would be technically
recoverable. He stated that this estimate is from the Office of
Resource Evaluation. He noted that the information on the slide
aligns with the current federal administration's executive order
on energy in Alaska. He expressed the understanding that there
are about 47 billion barrels of oil that are technically
recoverable in the federal waters of Alaska. He noted that this
includes Cook Inlet.
MR. KOCHANOWSKI, on slide 5, pointed out that there is also an
executive order on offshore mineral development. He suggested
that most of the federal waters are rich in minerals; however,
this resource is not abundant in Cook Inlet. On slide 6, he
stated that the Inflation Reduction Act has prioritized the
geological storage of carbon. He pointed out the area in Cook
Inlet that would be suitable for carbon storage, and he
maintained that this area would be ideal for this type of
technology. He expressed the understanding that carbon
technology has not progressed nationally; however, there has
been a discussion on regulations in Alaska. He suggested that
Cook Inlet would be the starting point for this technology in
the state.
MR. KOCHANOWSKI moved to slide 7 and pointed out that the Office
of Environment has 15-to-20 ongoing studies on compliance. To
inform BOEM's decision-making process, he said that these
studies look at the factors of science and research. He noted
that the studies include information on cultural and social
science, flora and fauna, oceanography, and other factors that
could affect energy and mineral development. He explained that
the current study in Cook Inlet looks at how energy and mineral
development would affect recreation and tourism in the region.
He noted that these studies also include a public comment
period.
MR. KOCHANOWSKI moved to slide 8 and reviewed the Office of
Leasing and Plans. He noted that leasing for all energy types
would be regulated by this office; however, the only leases
currently producing are involved with conventional energy. He
moved to slide 9, which showed a map of the current federal
leases. He stated that the left side of the slide shows a map
of the leases in Cook Inlet, and he noted that Hilcorp holds
them all. On slide 10, he pointed out that BOEM participates in
two workgroups that address issues in the Arctic.
MR. KOCHANOWSKI moved to slide 11 and slide 12, which showed the
many groups that collaborate with BOEM. He stated that outreach
and engagement are key elements in BOEM's work, and he pointed
out that BOEM works with state agencies, federal partners, and
non-governmental organizations. He stated that BOEM has a
nation-to-nation relationship with the Native corporations in
the state. He added that BOEM works mostly with coastal
communities.
MR. KOCHANOWSKI moved to slide 13 and pointed out BOEM's
involvement in two critical issues: the supplemental
environmental impact statement for a recent lease sale in Cook
Inlet and the National U.S. Outer Continental Shelf (OSC) Oil
and Gas Leasing Program. He noted that with the second
opportunity, BOEM could help shape the areas for lease by the
federal government.
1:19:35 PM
MR. KOCHANOWSKI, in response to a question from Representative
Rauscher on BOEM's annual budget, stated that currently there is
not a final number, but historically for the region, it has been
between $7 million and $10 million.
MR. KOCHANOWSKI, in response to a question from Representative
Costello, stated that BOEM's involvement with the University of
Alaska Fairbanks (UAF) mostly consists of research with the
College of Fisheries and Ocean Sciences and the Coastal Marine
Institute. In response to a follow-up question, he expressed
uncertainty why the name "High Arctic" had been used for the new
northern region. He noted that the U.S. only recently claimed
this area. In response to a follow-up question, he stated that
before this area was designated, the region had only extended
into the limit of the exclusive economic zone, which is around
200 miles offshore. He stated that with the new designation,
the area extends well beyond this limit, into the Arctic Ocean.
In response, he explained that the Arctic Council consists of
eight nations, and the last time the U.S. chaired the council
was in 2015. He expressed uncertainty for when the U.S. would
chair the council again, and he suggested it could be in another
eight years or so.
1:23:16 PM
CO-CHAIR HOLLAND noted that there have been regulatory issues
concerning land leases for renewable energy projects. He
questioned whether there could be regulatory concerns for
leasing renewable projects in ocean waters.
MR. KOCHANOWSKI responded that BOEM has a flexible leasing
approach, and he gave an example of BOEM's approach for
competitive leases. He stated that BOEM also offers research
leases, and it accepts unsolicited lease requests. In response
to a follow-up question concerning the use of natural sources of
hydrogen, he stated that this is not a focus for BOEM, as it is
mostly industry driven, and the industry is not currently
pushing this. He noted the work that UAF is doing in natural
hydrogen. Concerning produced hydrogen, he suggested that BOEM
could be the leasing agency for offshore projects. He
reiterated that BOEM is agnostic concerning the leases for the
different types of energy projects. He stated that per statute,
BOEM's mission is to advance security and energy development for
the nation in a financially and environmentally responsible
manner.
CO-CHAIR HOLLAND expressed the understanding that Cook Inlet has
been identified as an area that could be used for carbon
capture, utilization, and storage (CCUS). He questioned BOEM's
strategy concerning CCUS.
MR. KOCHANOWSKI responded that currently BOEM is researching the
potential for CCUS. He stated that the first step would be to
develop the framework for offshore CCUS, which includes
investigating the resource potential for storage. He added that
a full program has not been developed regarding CCUS.
MR. KOCHANOWSKI, in response to a follow-up question concerning
Cook Inlet priorities, stated that currently the priority is to
expand the capability of conventional energy. He added that
this would not preclude other opportunities. He reiterated that
BOEM is a broad-based agency, and it looks at all demand and
industry opportunities.
1:31:42 PM
DAVID CLARKE, Engineering Director, Alaska Marine Power (AMP),
gave a PowerPoint presentation on the use of hydrogen in Alaska
for energy [hard copy included in the committee packet]. On
slide 1, he noted that Japan would be one of the targeted export
markets for Alaska hydrogen. He moved to slide 2 and expressed
the opinion that, as Asia moves away from fossil fuels, Alaska
would be well-positioned for exporting renewable energy. He
asserted that the state could export oil, liquified natural gas,
and low-carbon hydrogen, as these types of energy would not be
mutually exclusive. He expressed the opinion that Alaska
hydrogen would be competitive, executable, and bankable, as
hydrogen could be exported, as well as used locally for aircraft
fuel and electricity. He stated that the role of AMP would be
project developer.
MR. CLARKE, in response to a question from Co-Chair Holland,
stated that low-carbon hydrogen would be less dense than pure
hydrogen, and it would be more marketable to Japan. He added
that low-carbon hydrogen would be 70 percent green energy.
Concerning the term "blue hydrogen," he responded that this
would depend on how the hydrogen is produced, and it may or may
not fall under the definition of low-carbon hydrogen.
MR. CLARKE moved to slide 3 and discussed AMP's mission, which
is to develop a significant energy resource in Cook Inlet. He
stated that, before starting AMP, he and the cofounder had long
careers in the oil and gas industry. He expressed the opinion
that these careers are relevant in the development of offshore
wind energy and reducible carbon hydrogen. He moved to slide 4,
which showed an overview of the topics that would be covered in
the presentation. He pointed out that he would address
exporting excess renewable energy, exporting excess carbon
dioxide (CO2), making excess CO2 into aviation fuel, and
electrifying energy. He noted that electrified energy could be
used to power mines in the state, and it could also be added to
the Railbelt grid.
MR. CLARKE moved to slide 5, which showed a map of the energy
potential for wind in Cook Inlet. He noted that the dark blue
shade on the map represents strong wind. He stated that there
is also strong wind on the Aleutian Islands, but this area lacks
infrastructure. He discussed the high quality of the wind in
Lower Cook Inlet, as shown on the map in the yellow circle. He
stated that this wind could annually produce 64 megawatts, which
is almost double the capacity produced by Fire Island Wind.
1:37:25 PM
MR. CLARKE, in response to a question from Representative
Rauscher, stated that the Railbelt could absorb around one-half
of a megawatt of energy. In response to a follow-up question on
the usage of exported energy, he stated that he would cover this
in an upcoming slide.
CO-CHAIR HOLLAND interjected that currently the Railbelt uses
one-half of a gigawatt of energy. He stated that the projects
under discussion are on the gigawatt level, which could supply
the entire Railbelt "a couple times over." He reiterated the
large size of the projects under discussion.
CO-CHAIR MEARS commented that these types of large projects
would not make sense for local usage only. She expressed the
understanding that to have cheap local energy, there would need
to be a large demand.
1:39:25 PM
MR. CLARKE moved to slide 6 and continued the discussion on
Lower Cook Inlet. He indicated on the map that the area between
Augustine Island and the Barren Islands would have the best
wind. He stated that this area has the potential for 10
gigawatts of offshore wind, which is 20 times the Railbelt's
usage. He noted that a cable could be ran from this site to
Nikiski. He discussed the high quality of this wind compared
with national rates.
MR. CLARKE moved to slide 7 and stated that for Alaska hydrogen
to compete, at least one-half a gigawatt of power would need to
be produced. He pointed out that this would be produced in
phases, with the first phase producing 50-to-100 kilotons of
hydrogen a year. He added that the ultimate potential would be
10 times this amount. He discussed Cook Inlet's "great
geography" for this production, and he noted that Cook Inlet has
a long history of exporting energy.
MR. CLARKE, in response to a question from Co-Chair Holland,
stated that the level of demand from Japan and other countries
would be discussed on slide 9.
MR. CLARKE, in response to a question from Representative
Edgmon, stated that the president's executive order on
unleashing Alaska's energy potential would provide AMP
advantages, as these projects would fit into the
administration's long-term goals. In response to a follow-up
question concerning whether the benefit would be from funding or
permitting, he stated that there is the potential of producing a
large amount of liquid hydrogen and ammonia for export, as Japan
is expected to pay a premium.
REPRESENTATIVE EDGMON expressed the opinion that his question
was unanswerable at this time.
1:44:27 PM
MR. CLARKE moved to slide 8 and discussed the global hydrogen
market, and he expressed the understanding that Europe would be
importing low-carbon hydrogen from the NEOM project in Saudi
Arabia. He stated that this wind and solar project would
produce 200,000 [metric tons] per year of hydrogen, which would
be exported as liquid ammonia. On slide 9, he expressed the
understanding that Japan would also be importing low-carbon
hydrogen, and he discussed legislation in Japan that targets
greenhouse gas reduction. He noted that Japan has proposed to
pay the difference in cost between green hydrogen and grey
hydrogen for 15 years. He reiterated that Japan is looking for
low-carbon hydrogen, not green hydrogen. He expressed the
opinion that this would be a "huge market."
MR. CLARKE, in response to a question from Co-Chair Holland,
pointed out that there is a large gap in global supply for
Japan's demand. He stated that this is addressed on slide 10.
He moved to slide 10 and pointed out that Australia would be the
main competitor for this market, and it already has multiple
projects in phase 1. He stated that the difference between
Australia and Alaska is that Australia would be using onshore
wind and solar only. He pointed out that Alaska would be closer
to Asian markets.
MR. CLARKE moved to slide 11 and stated that airlines would need
to transition to sustainable aircraft fuel (SAF) for
international routes. He noted that airlines in Anchorage are
already addressing this, as Anchorage has a busy international
air cargo port. He expressed the opinion that importing SAF
could be difficult because demand will likely exceed supply;
however, he noted that SAF could be made from low-carbon energy
and Cook Inlet wind. He stated that AMP has partnered with a
SAF specialist, and there is an ongoing state sponsored study.
MR. CLARKE moved to slide 12 and discussed supplying energy to
hard rock mines in the state. He expressed the understanding
that international miners have been under pressure to reduce
environmental impacts; therefore, alternatives to fossil fuels
are being sought. He suggested that electric-powered mines
could be an alternative.
MR. CLARKE, in conclusion, moved to slide 13. He expressed the
opinion that Alaska could become "a renewable energy
superpower." He suggested that the Alaska hydrogen project
could serve internal and export markets.
1:51:24 PM
CO-CHAIR MEARS discussed the momentum for using electricity for
mining, which includes electrifying all the mining equipment.
She questioned whether this goes along with his experience.
MR. CLARKE responded in the affirmative. He stated that many
new international mines are electrified, including the equipment
and the trucks. He expressed the understanding that this would
reduce the fuel spill risk. In response to a follow-up
question, he expressed agreement that this would also reduce the
pressure on the supply chain and the cost of diesel.
REPRESENTATIVE COSTELLO questioned the cost of transitioning
from jet fuel to alternative fuel. She also questioned the
availability of this alternative fuel at destination ports.
MR. CLARKE responded that there is a study being conducted on
this fuel supply. He stated that the fuel would begin with a
blend of SAF, and over time, the percentage of SAF would
increase. He stated that some airlines are starting to blend
SAF with kerosine. He pointed out that Europe is already
mandating a percentage, and he expressed the opinion that the
airlines would be the driver for this market in the U.S. He
noted that this is a very strong trend.
MR. CLARKE, in response to a question from Co-Chair Mears on
Alaska's progress, stated that customers for renewable energy
would need to be in place before a windfarm and other
infrastructure could be developed. He indicated that this is
why the Japanese market is being pursued. In response to a
follow-up question on barriers to development, he pointed out
the current pause in the leasing of new windfarms. He expressed
the opinion that the proposed Cook Inlet windfarm project would
be permitted, as it would comply with the current
administration's objectives by creating an energy export.
CO-CHAIR MEARS expressed the understanding that this is a
federal barrier.
MR. CLARKE expressed the understanding that the Kenai Peninsula
Borough is pro-development. He expressed the opinion that
Nikiski would be a great site for the production of hydrogen.
1:57:25 PM
MR. CLARKE, in response to a question from Representative
Rauscher, stated that because of Alaska's location and its
quality of renewable energy resources, it could easily export to
Asia. He added that Alaska is a pro-development state. In
response to a follow-up question, he stated that Alaska is the
focus because Japan does not have the same potential for power.
He noted that Alaska has the infrastructure for development,
while projects in Australia would be very remote.
MR. CLARKE, in response to a question from Co-Chair Holland on
the economic value of the proposed projects, suggested that the
exports would produce thousands of high-paying jobs. He added
that there would also be revenue from the offshore wind farm
leasing. He suggested that there could be multimillion-dollar
power plants in Nikiski, and these would generate tax dollars.
MR. CLARKE, in response to a question from Representative
Costello on royalties from wind farms, stated that these
royalties would not be as significant as those on oil and gas
developments would. He suggested that there could be some
significant revenues, but he noted that this element has not
been completely determined.
MR. CLARKE, in response to a question from Co-Chair Holland on
regulatory requirements, expressed the belief that AMP has
everything it needs, as the windfarm would be located in federal
waters, and it would be under BOEM. He observed the pause on
federal leasing; however, he expressed the understanding that
this would be temporary. In response to a follow-up question on
the needed financial commitments, he expressed the understanding
that the proposed windfarm would be easier to finance than a
large liquified natural gas project. He explained that these
types of projects would be developed in phases, so they could
start small while the business is grown. He reiterated that the
new Japanese hydrogen law would guarantee the difference between
the price of green and grey hydrogen for 15 years, and he added
that this would be helpful for financing. In response, he
affirmed that the first phase of a project would cost around $5
billion.
2:05:35 PM
ANTHONY PENNINO, Member, Board of Directors, GeoAlaska, gave a
PowerPoint presentation on GeoAlaska and the Augustine Island
project [hard copy included in the committee packet]. On slide
2, he noted that Mount Augustine is in Lower Cook Inlet. He
pointed out its proximity to the Railbelt grid. He also noted
the green shaded area in the picture, as this shows GeoAlaska's
acreage. He pointed out that the orange shaded area represents
GeoAlaska's newly leased area; however, he stated that he would
be focusing only on the green area. In response to a committee
question, he clarified that these are all state leases.
MR. PENNINO moved to slide 3, which showed a summary of
GeoAlaska's subsurface analysis work during the last two years.
He gave details on this process, stating that the analysis has
provided the prospects for geothermal on Augustine Island. He
pointed out the potential resources that the surveys have
identified. He noted the red area on the slide that represents
the magma chamber. He added that because of its potential
eruption events and the effect on aviation, Mount Augustine is
probably the most studied volcano in the country. He discussed
the significance of the magma chamber, as it is one of the
shallowest on the planet. He noted that this gives it a high
potential for producing power and electricity. He estimated
that 204 megawatts of power could be produced.
MR. PENNINO moved to slide 4 and sited John Eichelberger, PhD,
who has studied Mount Augustine for many years. He discussed
the untested technology of working very close to the magma, as
this could produce 10 times the power. He stated that GeoAlaska
is interested in this technology, as it could be reproduced in
other locations locally and globally.
MR. PENNINO moved to slide 5 and discussed the potential uses of
baseload geothermal power. He suggested that this would be low-
carbon reliable power. He indicated that the geothermal project
could have a long lifespan, and he called it "a renewable
infinite resource" that could replace coal and natural gas. He
noted the new goal of Alaska's Renewable Portfolio Standard, as
it has been lowered to 50 percent by 2035. He discussed the
potential uses for excess power production, including powering
data centers and producing SAF. He discussed the value of
geothermal as a means for decarbonized electricity, remarking
that this would help customers reach a net-zero goal.
2:14:17 PM
MR. PENNINO, in response to a question from Co-Chair Mears,
expressed the opinion that the marketplace would be open to low-
carbon energy. He expressed the understanding that most
companies obtain a net-zero status from buying carbon credits,
which would create a Scope 2 or Scope 3 [carbon footprint],
while a Scope 1 [carbon footprint] would denote a net-zero
emissions profile. He gave the example of data centers having
the desire for a Scope 1 [carbon footprint], as this scope would
be attractive to customers. He expressed agreement with the
follow-up comments on the desirability of preexisting
infrastructure for the production of low-carbon energy.
MR. PENNINO moved to slide 6 and discussed the commercial
aspects of baseload geothermal power. He stated that geothermal
power would not just be in the form of electricity, but it could
also come from the associated steam and heat. He read from the
slide, stating that, with power purchase agreements (PPAs),
geothermal energy could be used in power grids. He noted that
the Inflation Reduction Act would provide an investment tax
credit of around 30 percent. He expressed the opinion that the
biggest commercial element would be the monetization of
environmental attributes, such as with Renewable Energy
Certificates and carbon offsets in the marketplace.
MR. PENNINO moved to slide 7 and pointed out GeoAlaska's
timeframe for building a reliable energy supply in the state.
He stated that GeoAlaska is owned and operated by local
Alaskans. He added that GeoAlaska has been permitted for this
work, and it is currently raising money to build a well on
Augustine Island. He discussed the positive aspects of the
island, noting that it is uninhabited state land, with no native
fauna or wetlands. He added that because of the mild climate,
drilling could take place year-round. He expressed the opinion
that Augustine Island is attractive from a project and
permitting perspective. In conclusion, he moved to slide 8,
reiterating the positive points of developing Augustine Island,
noting the possibility of carbon offsets and the potential for
new shallow-magnum technology.
2:22:43 PM
REPRESENTATIVE RAUSCHER questioned whether PPAs would be needed
to obtain capital for drilling.
MR. PENNINO responded that GeoAlaska has spoken with utility
companies in the state concerning PPAs; however, he stated that
it would be premature to pursue this because there are too many
variables. He expressed the understanding that some independent
power producers would not require the specifics of PPAs. In
response to a follow-up question, he stated that GeoAlaska is
raising money to drill the well, with the goal between $8
million and $10 million.
MR. PENNINO, in response to a question from Co-Chair Mears
concerning the critical mass to move forward, stated that at
least 70 megawatts of power would need to be produced. He
expressed confidence that the power produced could be more than
this. In response, he stated that there would be no upper
limit, as any excess power could be utilized in the state, such
as putting power into the grids and producing SAF for airplanes.
He discussed the example of Iceland, which has excess geothermal
energy. He expressed the opinion that having excess power would
be positive, as it could be monetized.
CO-CHAIR HOLLAND, concerning the uncertainty in Cook Inlet and
the need for funding, questioned the process of achieving
confidence for investors so the project could move forward.
MR. PENNINO aknowledged that the investment landscape has been
uncertain globally and in Cook Inlet; however, he expressed the
belief that once the well is drilled, GeoAlaska would have a
market. He suggested that these markets would include providing
power to the grids, to industry users, and for exports.
Regarding the uncertainty, he said, "Like oil and gas, the first
dollar is always the hardest dollar to get." In response to a
follow-up question on the possibility of state funding from the
Alaska Industrial Development and Export Authority, he expressed
uncertainty whether state programs would fund GeoAlaska.
CO-CHAIR HOLLAND expressed the understanding that GeoAlaska is
involved in the development of both demand and supply of
geothermal energy. He questioned this process.
MR. PENNINO responded that after drilling there would be a
better understanding of the resource and the potential for power
production. At this point, he stated that demand users could be
addressed. Until then, GeoAlaska would be agnostic to the
different power usages. He stated that there is some confidence
because of Augustine Island's location. He discussed a possible
timeline for potential uses and an interconnection with grids.
CO-CHAIR HOLLAND opined that the uncertainty of the supply could
affect an interconnection with the grids.
2:34:51 PM
KEITH MEYER, Advisor for Alaska, Highly Innovative Fuels Global,
gave a PowerPoint presentation on Highly Innovative Fuels (HIF)
Global [hard copy included in the committee packet]. He stated
that HIF is focused on the usage of low carbon liquid fuels. He
noted some of the investors in the company, as seen on slide 2.
He explained that three of its newest investors are from Japan,
and he gave details on this. He stated that the company has
several current worldwide projects, as seen on the slide.
MR. MEYER moved to slide 3 and slide 4, and he discussed HIF's
demonstration facility that was built in a remote part of Chili.
He explained that this facility turns wind and CO2 into
gasoline. He described this gasoline as molecularly identical
to traditional gasoline. He discussed the testing and usage of
this gasoline by Porsche. He stated that this is one of the
world's first e-fuel facility. He explained that the reason for
this location is the wind profile, which exists in Alaska as
well.
MR. MEYER moved to slide 5 and pointed out the e-fuel production
process. He concurred with Mr. Clarke's earlier explanation on
the process of making green hydrogen through electrolysis;
however, he clarified renewable power would need to be used to
make green hydrogen. He continued that blue hydrogen would be
made using natural gas and CO2 sequestration, while grey
hydrogen would be made with natural gas and no sequestration.
He continued that to get the "e" designation for an e-fuel,
high-grade hydrogen must be used, and this must be combined with
a biogenic CO2. He added that this combination would be
exportable in the form of methanol. He suggested that this
would be the way to export Alaska's wind energy. He discussed
the uses of methanol, which could be transformed into SAF. He
stated that HIF has been working on the cost reduction of the
capital for these projects.
MR. MEYER moved to slide 6 and reviewed Alaska's renewable
energy options. He expressed the opinion that wind energy in
Alaska is among the best in the world; however, the problem
would be intermittency. He added that consistent power would be
needed to justify building a multi-billion-dollar facility. He
pointed out the potential for pumped hydro, as this would allow
excess wind to be stored; however, he noted the problem of low
demand in the state. Concerning wind intermittency, he pointed
out the abundance of biomass, as it could be used to produce
renewable power and biogenic CO2. He noted the offshore wind,
geothermal, and hydrokinetic capabilities in the state.
MR. MEYER moved to slide 7 and expressed the opinion that
Alaska's market for energy would consist mostly of exports to
Asia. He suggested that SAF could be produced in the state, as
many air cargo routes stop in Anchorage. He explained that
Alaska is a stopover for planes flying air cargo because of the
need to refuel in an effort to maximize cargo weight over fuel
weight. He continued that these refueling stopovers create a
demand for SAF in the state.
MR. MEYER moved to slide 8, which highlighted Alaska's potential
to advance e-fuels in regard to aviation and marine transport.
He discussed the state's plan to produce 150 million gallons of
SAF a year. He stated that this is in alignment with the
Pacific Northwest to Alaska green corridor project, as this
project is targeting carbon reduction for marine traffic. He
pointed out the press release showing that California has
approved the use of SAF produced by HIF, and he noted that this
was the first approval in the country. He also pointed out the
press release that showed Mabanaft, a marine fuel provider, has
signed an agreement with HIF to accelerate the worldwide
production and use of e-methanol. In conclusion, he moved to
slide 9 and expressed the opinion that Alaska has "excellent"
renewable energy potential. He noted its proximity to major
markets for export opportunities. He suggested that all the
efforts need to be coordinated, as HIF would be interested in
teaming up with developers.
2:47:24 PM
MR. MEYER, in response to a question from Representative
Rauscher concerning flight paths, stated that to reach North
America and South America, most planes from Asia fly over
Alaska. He reiterated that a stopover to refuel in Alaska would
allow for more cargo on the planes. He added that this is why
the airport in Anchorage is so busy. He noted that the northern
route he discussed would be for ships, and using low carbon fuel
on these ships would reduce the soot from the smokestacks, as
this soot melts the polar ice. He noted that low carbon
standards for marine fleets are currently being developed.
MR. MEYER, in response to a question from Co-Chair Holland
concerning the price of the green gas produced in Chili,
asserted that this gas is considered affordable but "at a
premium." He stated that if the only measure of fuel were the
price, dirty fuel would be the cheapest. He continued with the
assertion that cleaner fuel would be more acceptable in Europe
and Asia than in the U.S.
CO-CHAIR HOLLAND opined that $6 a gallon for fuel in rural
Alaska would be considered affordable, especially if tied into
wind generation. He questioned how to establish a demand if
projects have not been developed.
MR. MEYER expressed the opinion that efforts need to be
coordinated, because currently renewable producers need demand
for their products. He explained the markets, in that liquefied
natural gas is bought by utilities on long-term contracts, while
the fuel market is based on short-term contracts. He asserted
that this creates a challenge, with one solution being a blend
of low-carbon energy, so all markets would be based on the same
thing. He expressed the opinion that countries are targeting
decarbonization, while companies want to be competitive, and
this creates a conflict. He said that Porsche and other auto
companies are interested because "this fuel gives life to the
internal combustion engine." He explained that using e-fuel
would be a way to have electricity in the transportation sector
without making the sector switch to electric. In other words,
he pointed out that electricity could be turned into a fuel that
could be used in cars. In response to a follow-up question
concerning what the legislature could do, he stated that working
together to coordinate projects would help.
CO-CHAIR MEARS expressed the understanding that the state's
fossil fuel resource is going away, while the resources for
renewable projects could exist into the future.
MR. MEYER expressed agreement. He stated that the renewable
resources are sustainable, but they would need to be converted
into an exportable liquid product.
2:57:11 PM
CO-CHAIR HOLLAND thanked Mr. Meyer and gave closing comments.
2:58:03 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 2:58 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| BOEM_HENE 5.6.25.pdf |
HENE 5/6/2025 1:00:00 PM |
Presentation |
| AK Marine Power_HENE 5.6.25.pdf |
HENE 5/6/2025 1:00:00 PM |
Presentation |
| GeoAlaska_HENE 5.6.25.pdf |
HENE 5/6/2025 1:00:00 PM |
Presentation |
| HIF Global - HENE 5.6.25.pdf |
HENE 5/6/2025 1:00:00 PM |
Presentation |