In a strategic move, CNX Resources Corporation has ceased collaboration with the Adams Fork project, redirecting its efforts towards assessing multiple alternative locations in southern West Virginia for the establishment of clean hydrogen initiatives.
This shift in direction by CNX Resources stems from persistent delays and escalating uncertainties surrounding the implementation regulations associated with the 45V hydrogen production tax credit provisions outlined in the Inflation Reduction Act (IRA). Additionally, an impasse in reaching conclusive commercial terms with project developers contributed to this decision.
Despite this alteration, CNX Resources has underscored its unwavering commitment to bolstering the Appalachian Regional Clean Hydrogen Hub (ARCH2). Their strategy involves leveraging locally sourced, cost-effective, and low-carbon intensity raw materials to support energy communities throughout Appalachia.
The final investment verdict by CNX Resources hinges on the availability of tax credit guidance that fosters the development of low-carbon intensity feedstock projects. These projects are pivotal in facilitating the emergence of regional clean hydrogen hubs like ARCH2.
In a plea to the federal government, CNX Resources urges consideration of the counsel offered by elected representatives, labor unions, and stakeholders nationwide. They advocate for regulatory frameworks that stimulate, rather than inhibit, the burgeoning hydrogen economy.
The ARCH2 hydrogen hub serves as a collaborative platform, uniting private enterprises, state and local governments, academic and technological institutions, non-governmental organizations (NGOs), and community groups across the Northern Appalachian region. This collective effort spans West Virginia, Ohio, Pennsylvania, and Kentucky, strategically positioned due to their abundant access to cost-effective natural gas resources, burgeoning end-user demand, skilled workforce, technological capabilities, and carbon sequestration potential.
As of December 31, 2022, CNX Resources reported holdings of 9.81 trillion cubic feet equivalent in proved natural gas reserves, underscoring their significant presence and potential impact within the energy sector.