Hydrogen production company Monarch Energy this morning announced it is considering Ascension Parish as the location for a new $426 million facility.
Monarch specializes in decarbonizing the hydrogen production process. The company estimates the proposed facility would employ a carbon-free process to manufacture 120,000 kilograms of hydrogen per day to be sold as a “green” feedstock for a wide range of industrial and chemical processes, according to Louisiana Economic Development.
The project adds to a growing list of “green” energy plants going up in the region, including Air Product’s $4.5 billion Blue Hydrogen Clean Energy project, also in Ascension Parish, and Grön Fuels $9.5 billion biofuel plant in West Baton Rouge Parish.
If the project moves forward as outlined, Monarch Energy expects to create 44 new jobs with an average annual salary of more than $63,000, according to LED.
Monarch Energy plans to use electrolysis to break down water into hydrogen and oxygen in the manufacturing process. This would qualify the hydrogen as “green” or no-carbon because its production would not release carbon dioxide or other greenhouse gases into the atmosphere.
The company expects to make a final investment decision and begin construction in 2025. It anticipates commercial operations to begin in 2027.
To help land the project in Ascension Parish, the state of Louisiana is offering Monarch Energy a competitive incentives package that includes LED FastStart and a $500,000 performance-based forgivable loan from the Economic Development Award Program for site and infrastructure improvements. If the project moves forward, the company is expected to participate in the state’s Quality Jobs and Industrial Tax Exemption programs.