Monarch Energy and LS Power Collaborated for Green Hydrogen Development

Monarch Energy and LS Power have joined forces to launch a series of green hydrogen projects across the United States. As part of the newly established Clean Hydrogen Fuels, LLC platform, LS Power is set to invest up to $400 million in projects developed by Monarch.

In a strategic move, LS Power has provided $25 million in preferred equity financing for Monarch Energy, securing a seat on Monarch's Board of Directors. This significant investment is earmarked to propel Monarch's ongoing projects, facilitate expansion into new regions within the US, and bolster the talent pool within the Monarch team. Monarch Energy is actively pursuing large-scale electrolyzer projects with the goal of delivering cost-competitive green hydrogen to customers in industries such as refining, chemicals, fertilizer, and long-haul transport.

The collaboration through the Clean Hydrogen Fuels partnership positions Monarch to leverage LS Power's extensive expertise across various domains, including project development, power marketing, public policy and market development, and project finance. Ben Alingh, the CEO of Monarch Energy, underscored the significance of the partnership by expressing that carrying out one of the most extensive pipelines of green hydrogen projects in the United States necessitates access to substantial capital resources, a diverse range of skills, and a dedication to innovation. Alingh pointed out that LS Power consistently operates on the forefront of emerging technologies and is recognized for its ability to construct intricate projects on a scale that leads the industry.

David Nanus, President of LS Power Equity Advisors, underscored the broader importance of green hydrogen within the realm of clean fuel solutions. He mentioned that corporations and policymakers are actively pursuing progress in clean fuel solutions to hasten the energy transition. Nanus emphasized that green hydrogen holds a pivotal position in driving this effort forward. Expressing excitement about the collaboration with Monarch Energy, he noted the significance of Monarch's team being pioneers in clean hydrogen development and possessing a profound skill set. Nanus conveyed their enthusiasm to partner with Monarch Energy to propel its project pipeline and to expand on their successful endeavors in other clean fuel categories such as renewable natural gas.

The collaboration between Monarch Energy and LS Power aligns with the goals outlined in the US Department of Energy's September 2022 National Clean Hydrogen Strategy and Roadmap. The partnership between Monarch Energy and LS Power comes at a pivotal moment, aligning with the nation's clean energy goals and emphasizing the role of green hydrogen in shaping a more sustainable and resilient energy landscape. As both entities pool their resources and expertise, they are poised to contribute significantly to the growth and implementation of green hydrogen initiatives across the United States, supporting the broader objectives of the clean energy transition.