Power Synch to Utilise Carbon Central for Green Hydrogen Tracking
Highlights
- Power Synch will utilise Carbon Central to monitor green hydrogen production for its hydrogen hub clients in the United States
- Power Synch will leverage Carbon Central’s digital twin capabilities prior to hydrogen production commencing at which point Carbon Central will be used to monitor green hydrogen production in real-time
- Carbon Central will be used to monitor production to enable Power Synch clients to claim a rebate for their hydrogen production under the United States Inflation Reduction Act
Gold Coast, 7th March — NoviqTech Limited (“NoviqTech”) is pleased to announce that SmartSmiths, Inc., trading as “Power Synch”, has signed a commercial agreement to leverage the capabilities of Carbon Central for tracking sustainable hydrogen production in the United States.
The United States Inflation Reduction Act (IRA), which was signed into law in 2022 includes a range of provisions aimed at investing in domestic energy production and lowering greenhouse gas emissions. The Act introduces significant incentives for clean energy, including a notable focus on green hydrogen through the establishment of a green hydrogen tax credit. Under the IRA, the maximum tax credit a green hydrogen producer can claim is up to $3 per kilogram of hydrogen produced, depending on the carbon intensity of the production process.
Power Synch will utilise Carbon Central’s digital twin capabilities to simulate hydrogen production emissions prior to hydrogen production commencing in 2025. Once production commences, Carbon Central will be used to monitor carbon emissions in real-time through integration with plant facilities, producing a digital certificate for each kilogram of hydrogen produced.
Each certificate will contain the full history of each unit of hydrogen, incorporating all requirements of the legislation and all calculations used. This is being accomplished thanks to Carbon Central’s industry agnostic policy workflow engine, allowing for NoviqTech to create a digital version of the Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model for use by hydrogen producers in the US looking to claim the tax credit under the IRA.
Speaking on the announcement, NoviqTech CEO, Freddy El Turk, said,
“We are excited to be working with Power Synch on their green hydrogen tracking service, helping them in driving additional value for their hydrogen hub clients through the use of Carbon Central tracking. Carbon Central has been designed to support a wide range of project types including the tracking of green hydrogen. With the data collected through our platform, Power Synch will be able to maximise the revenue potential of their hydrogen clients enabling them to claim up to the maximum of $3 for each kilogram of green hydrogen via our audit-ready certificates. We are excited to be working with Power Synch and are looking forward to our future together”.
Scott Helm, Power Synch CEO, said,
“Power Synch will be ensuring carbon tracking accuracy by providing physical delivery (of power) with digital verification. Digital verification of carbon intensity can be particularly challenging under the GREET standards but Carbon Central is up to the task and we are confident our combined efforts will keep us on the leading edge of this emerging industry.
Under the terms of the agreement, Power Synch will be utilising the basic tier pricing category, with subscription payments until production becomes operational at which point a fee for each token being produced will be charged. The subscription is on a month-by-month basis with either party being able to terminate with 30 day notice as per the signed agreement.
As at this date, NoviqTech is not able to calculate the expected revenue from tokenisation as hydrogen production volumetrics are still to be finalised. NoviqTech will update the market once hydrogen production volumetrics are confirmed.
About NoviqTech
NoviqTech (ASX: NVQ) harnesses the power of artificial intelligence and distributed ledger technology to provide trusted and transparent reporting across supply chains, carbon emissions reporting, and guarantee of origin. The NoviqTech brands — NoviqAI and TYMLEZ deliver novel and innovative technologies to organisations across the globe in sectors from maritime to regenerative agriculture, empowering them to make more informed decisions, track their carbon emissions with precision, and validate the authenticity of their products’ origins all in real-time.
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