Monarch Energy, an energy company focused on decarbonizing the hydrogen production process, announced it is exploring building a $426 million facility in Ascension Parish, Louisiana. 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.
If the project moves forward as outlined, Monarch Energy expects to create 44 new direct jobs with an average annual salary of more than $63,000. It also anticipates the creation of about 300 construction jobs at peak construction. Louisiana Economic Development estimates the project would result in an additional 105 new indirect jobs, for a total of 149 potential new jobs in the Capital Region.
Monarch Energy plans to utilize electrolysis, the use of electricity 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 commence in 2027.
To support the project in Ascension, the state of Louisiana has prepared a competitive incentives package that would include the comprehensive workforce development solutions of 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.
“Monarch Energy’s consideration of a new green hydrogen facility is an exciting addition to the transitional energy cluster developing through the Baton Rouge Carbon Reduction Alliance and the H2theFuture coalition across south Louisiana,” said Adam Knapp, Baton Rouge Area Chamber president & CEO. “We look forward to working alongside Monarch Energy and our Ascension Parish partners to move this project forward, and show the world that Louisiana is ground zero for net zero projects.”