CNX Resources Pulls Out of Adams Fork Ammonia Project
(Reuters) — CNX Resources said on Friday it had pulled out of the Adams Fork ammonia project and is evaluating several alternative sites in southern West Virginia for clean hydrogen projects.
The natural gas producer cited delays and increasing uncertainty over implementation tax credit provisions of the Inflation Reduction Act (IRA) and an inability to reach final commercial terms with project developers, for ending its participation in the project.
Adams Fork was an anchor project in the Appalachian Regional Clean Hydrogen Hub (ARCH2) and its construction was expected to begin in 2024.
The project would have initial annual ammonia production capacity of 2,160,000 metric tons, with an optional additional production capacity.
CNX said on Friday it remains committed to ARCH2, adding that "final investment decision remains contingent upon tax credit guidance that unambiguously supports low carbon intensity feedstock projects that will facilitate development of the regional clean hydrogen hubs, including ARCH2."
The ARCH2 project includes several partners, and the consortium was selected to develop multi-state clean hydrogen hub.
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