KeyState, CNX Advancing Transformational Hydrogen, SAF Hub at Pittsburgh International Airport

May 21, 2024

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(CNX Resources/Biobased Diesel Daily) To accelerate regional and national hydrogen and sustainable aviation fuel (SAF) development, KeyState Energy, CNX Resources Corp. and Pittsburgh International Airport (PIT) announced May 15 a collaboration to bring yet another transformational project to PIT property.

The integrated proposed facility will be designed to produce hydrogen solely, reaching up to 68,000 metric tons annually, or SAF exclusively, up to 70 million gallons per year.

The plant will offer the flexibility to produce both products simultaneously at lower varying individual volumes and customize production to meet specific demands.

Building upon CNX and PIT’s previously announced alternative-fuel strategy in 2022, this initiative supports the national goal of significantly reducing hard-to-abate sectors’ emissions by 2030, positioning the region as a key player in the hydrogen and SAF industries.

KeyState and CNX recently signed a letter of intent (LOI) to advance the approximately $1.5 billion project that, if the U.S. Department of the Treasury enables a pathway for ultra-low carbon intensity fugitive coalmine methane (CMM) under the 45V hydrogen production tax credit, is expected to support 3,000 direct construction jobs through the development phase.

The partners are evaluating several potential market targets for the usage of SAF in the aviation industry and clean hydrogen for local heavy trucks and equipment, and power generation, among other applications for hard-to-abate sectors of the economy.

“Because of this exciting new project, Pittsburgh International Airport will become home to one of the largest facilities in the nation that specializes in the innovative process of using hydrogen gas to produce sustainable aviation fuel,” said Sen. Bob Casey, D-Pennsylvania. “It will help support thousands of new union jobs and provide a look at how cutting-edge innovation in Pennsylvania is helping to build the energy economy of the future.”

Produced from a variety of sources, including waste feedstocks, SAF can drastically reduce the lifecycle-carbon emissions of air travel, making it the best decarbonization lever available to the aviation industry to reach net zero.

However, due to production and cost issues, SAF currently accounts for less than 1 percent of global commercial-airline consumption.

A facility of the proposed size and scope would produce enough alternative fuel to supplant nearly all traditional jet fuel consumption at PIT at a price on par with conventional Jet A.

Mixing just 10 percent SAF with regular jet fuel can power thousands of flights annually, significantly reducing emissions.

The integrated facility further positions PIT as an industry leader, making it even more attractive for passenger and cargo flights.

A 2021 study from the U.S. DOE’s National Energy Technology Laboratory confirmed that constructing and operating a gas-to-liquids SAF facility at PIT is technically feasible through the use of onsite natural-gas production and net-zero or net-negative greenhouse-gas (GHG) emissions feedstocks to produce SAF.

Additionally, the groups announced they are seeking a federal grant to conduct a logistics study to inform a project hub and transportation network investment strategy.

Using FAST SAF grant funds under the Inflation Reduction Act and awarded by the Federal Aviation Administration, the Tier 1 logistics study would advance local SAF development by informing how fuels produced at PIT can be cost-effectively transported to nearby airports throughout the Northeast and Midwest.

The entities plan to evaluate transporting SAF through various modes, including the use of existing or constructing new pipeline infrastructure, barge and rail.

Providing excess SAF to other regional airports will increase energy security, reduce dependence on foreign supply chains, and reduce lifecycle-GHG emissions.

Successful completion of the logistics study could yield significant investment in constructing the hydrogen and SAF facility on PIT grounds, which would double onsite fuel storage and further stabilize fuel supply in the event of disruptions.

“This exciting project opens the door for Western Pennsylvania to lead the nation in sustainable aviation fuel—and that could be a big win for our workers, local economy and efforts to cut emissions and meet new energy standards,” said Rep. Chris Deluzio, D-Pennsylvania.

Sara Innamorato, Allegheny County’s chief executive, said, “I’m very pleased that Pittsburgh International Airport, KeyState Energy and CNX Resources are bringing this transformational collaborative project to Allegheny County. Our region should be out front on more sustainable options for hard-to-abate sectors like aviation fuel industries. The onsite potential for a SAF facility on PIT’s campus will create jobs and help our region lead on climate solutions for the energy sector.”

KeyState Energy CEO Perry Babb added, “For more than 300 years, Pennsylvania and Appalachia have lived and led America's energy transitions—first from wood to coal, then oil was added, then natural gas, nuclear, then the shale-gas revolution and now the beginning of a next energy revolution, this in clean hydrogen. The innovations contemplated for the PIT hydrogen and SAF hub have the potential to produce the lowest-carbon, lowest-cost, large-scale aviation fuel in the world.”

Beginning in 2014, the innovative partnership between PIT and CNX has helped transform the Pittsburgh region’s economic-development hub into one of the most sustainable and resilient airports in the world.

Innovations include development of a first-of-its-kind microgrid making PIT the first airport in the world to be completely powered by natural gas and solar energy.

“Increasing SAF and hydrogen production in the U.S. is a necessary first step in reducing carbon output to meet upcoming industry goals, helping aviation earn its right to grow and moving further toward a cleaner, greener future,” said PIT CEO Christina Cassotis. “We look forward to continuing to work with our partners, CNX and KeyState Energy, in cementing PIT and our region as a global leader in sustainable energy.”

The project would leverage, pending the outcome of forthcoming treasury department implementation rules for the IRA’s tax-credit provisions, ultra-low carbon intensity waste CMM emissions as feedstock to create low-cost, low-carbon alternative fuels.

As part of the project’s development, the partners intend to clarify that the products meet the requirements and specifications for clean hydrogen and SAF as determined by the applicable agency.

KeyState serves as project developer and, with its development partners, will secure project financing while CNX will provide feedstock services and other technical engineering support to the project.

The airport will provide strategic advisory planning and industry expertise.

“First and foremost, we would not be in position to announce this project without the support and advocacy of our Western Pennsylvania labor leaders, and we are not going to proceed without them on this or any other hydrogen or SAF project in the region,” said CNX President and CEO Nick Deiuliis. “Our goal is to expand end-use opportunities of our abundant, ultra-low carbon intensity natural gas to drive further emission reductions, create good-paying local jobs, and enhance PIT’s position as an innovative sustainable fuel hub. Our decade-long partnership with PIT has contributed to the airport’s international profile as a pioneer in the industry and we look forward to taking the next step together in catalyzing a first-of-its-kind, large-scale hydrogen and SAF hub right here in the Pittsburgh region.”

The Allegheny Conference on Community Development recently completed an analysis of CMM as a pathway to a hydrogen economy in the Southwestern Pennsylvania region.

The findings identified over 30 projects that can be deployed within the next 15 years if the full IRA tax credits can be utilized potentially creating over 200,000 direct construction jobs and more than $213 billion in economic output. READ MORE

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