PM Edition: Tellurian on new LNG financing; Plug Power on green hydrogen

➤ Tellurian tests new way to finance US LNG in possible 'seismic shift' for sector

Surging demand for U.S. LNG and high natural gas prices abroad will allow a developer to finance a Gulf Coast export terminal without the traditional 20-year customer contracts that used to back U.S. projects, according to Charif Souki, the executive chairman and founder of Driftwood LNG terminal developer Tellurian Inc. "It got me fired at [Cheniere Energy Inc.], but I was right," Souki, who pioneered U.S. LNG exports, said in a recent interview at the CERAWeek by S&P Global energy conference in Houston.

➤ Green hydrogen sees opening to capitalize as European gas prices surge

Surging gas prices in light of the escalating war in Ukraine are bolstering arguments for the green hydrogen industry in Europe, which is now seen to have a price advantage over fossil fuel-sourced grey or blue hydrogen alternatives. To capitalize on this advantage and start building, though, investors and hydrogen businesses still crave regulatory clarity.

➤ Plug Power CEO sees 'huge opportunity' for global green hydrogen deployment

Plug Power Inc. plans to develop production facilities in California and Pennsylvania and is already building a plant and electrical substation in New York. The company also has several joint ventures in Europe and Asia to capitalize on growing interest in the fuel as a key component of decarbonizing the economy and combating climate change. S&P Global Commodity Insights spoke with Plug Power CEO Andy Marsh about opportunities for hydrogen across the globe and how existing infrastructure can help facilitate large-scale deployment.

OTHER NEWS

* Duke Energy Indiana LLC expects to recognize pretax charges of between $250 million and $275 million in the first quarter, mostly related to coal ash closure costs. The Indiana Supreme Court recently ruled against the utility's recovery of about $212 million of costs tied to coal ash management primarily incurred through 2018. Duke Energy Indiana is still evaluating whether to request a rehearing, the company said in a Form 8-K filing March 15.

* The Federal Energy Regulatory Commission agreed that the New York Power Authority and Niagara Mohawk Power Corp. may recover their costs if they are forced to abandon, for reasons beyond their control, a $1.1 billion transmission project aimed at helping reach New York's clean energy goals.

* Additional transmission capacity into New Brunswick and Nova Scotia will help those two Canadian provinces replace fossil-fueled power generation resources by 2030 and achieve longer-term emissions-reduction goals, a new report recommended. "Our government has set clear objectives that will see Canada end its reliance on coal for electricity generation by 2030 and reach net-zero by 2050. The key to achieving these targets is enhanced collaboration between all levels of governments," Dominic LeBlanc, Canada's minister of intergovernmental affairs, infrastructure and communities, said in a statement accompanying the release of the report.

CHART SPOTLIGHT

The easy steps to reduce carbon emissions have already been taken, and further cuts will require innovation from planners and policymakers to maximize natural gas and hydrogen fuels, experts on an industry conference panel in Houston said.

RESEARCH

* Settlement reached in CenterPoint's Minn. rate case would increase rates $48.5M

* Emerging trends in several jurisdictions could signal shifts in regulatory risk

QUOTED

"The political messaging can easily write itself, so analysts need to think carefully about ... the outcomes for consumers and firms in a carbon pricing environment on top of current conditions." – Joseph Majkut, director of the Center for Strategic and International Studies' energy security and climate change program, discussing some of the challenges that policymakers face in promoting carbon pricing programs.

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