Geodyn Solution: Integrated Investment in Nebraska with Hydrogen and Helium Exploration and Extraction

Geodyn Solution proposes a $650 million investment in Nebraska to establish an integrated facility combining hydrogen and helium exploration and extraction, hydrogen production, helium extraction, ammonia production, and a 1000 MWh electric plant with Organic Rankine Cycle (ORC) and heat recovery systems. This project leverages Nebraska’s natural resources and operational synergies to deliver strong financial returns over a 10-year period.
  • Total CapEx: $650 million
  • Annual Revenue: $145.7 million
  • Annual OpEx: $60 million
  • 10-Year ROI: 131.8% (13.18% annualized)
  • Payback Period: 7.6 years
  • NPV (5% discount rate): $184.6 million
This diversified approach ensures multiple revenue streams, enhances efficiency, and positions Geodyn Solution as a leader in clean energy and industrial gas production.

Project Overview
Objectives
  • Explore and quantify hydrogen and helium reserves in Nebraska.
  • Extract hydrogen and helium efficiently for commercial use.
  • Integrate ammonia production and electricity generation with exploration and extraction.
  • Maximize ROI through strategic capital allocation and cost management.
Components
  1. Hydrogen and Helium Exploration: Geological surveys, seismic studies, and test drilling.
  2. Hydrogen Extraction: Electrolysis powered by renewable energy.
  3. Helium Extraction: Cryogenic separation from natural gas.
  4. Ammonia Production: Haber-Bosch process using on-site hydrogen.
  5. 1000 MWh Electric Plant: Combined cycle gas turbine (CCGT) with ORC and heat recovery.

Technical Design
1. Hydrogen and Helium Exploration
  • Activities:
    • Geological surveys and seismic studies to locate reserves.
    • Drilling test wells to assess reserve size and quality.
  • Technology: Seismic imaging, exploratory drilling rigs.
  • Purpose: Confirm resource availability for extraction planning.
2. Hydrogen Extraction
  • Technology: Proton Exchange Membrane (PEM) electrolysis.
  • Capacity: 10,000 tonnes/year.
  • Power Source: 50 MW solar farm.
  • Purpose: Feedstock for ammonia production and power plant fuel.
3. Helium Extraction
  • Technology: Cryogenic separation.
  • Capacity: 1 million cubic feet/year.
  • Source: Natural gas co-production.
4. Ammonia Production
  • Technology: Haber-Bosch process.
  • Capacity: 50,000 tonnes/year.
  • Inputs: Hydrogen from electrolysis, nitrogen from air separation.
  • Synergy: Utilizes waste heat from the electric plant.
5. 1000 MWh Electric Plant
  • Technology: CCGT (500 MW) + ORC (50 MW).
  • Heat Recovery: Heat Recovery Steam Generator (HRSG).
  • Efficiency: ORC converts low-grade heat into additional power.

Operational Synergies
  • Waste Heat: HRSG steam supports ammonia production, cutting energy costs.
  • Resource Use: Natural gas powers the plant and aids helium extraction.
  • Electricity Boost: ORC increases output and revenue.
  • Data Utilization: Exploration data optimizes extraction strategies.

Detailed Capital Expenditure (CapEx)
Exploration CapEx
  • Geological Surveys and Seismic Studies: $10 million
  • Test Drilling (5 wells): $15 million
  • Permits and Environmental Assessments: $5 million
  • Total Exploration CapEx: $30 million
Extraction and Production CapEx
  • Hydrogen Extraction (Electrolysis Plant): $100 million
  • Helium Extraction (Cryogenic Separation Plant): $50 million
  • Ammonia Production Plant: $150 million
  • 1000 MWh Electric Plant (CCGT with ORC & HRSG): $200 million
  • Infrastructure (Pipelines, Storage, etc.): $50 million
  • Land Acquisition and Site Preparation: $20 million
  • Total Extraction and Production CapEx: $570 million
Total Project CapEx
  • Exploration CapEx: $30 million
  • Extraction and Production CapEx: $570 million
  • Contingency (5%): $30 million
  • Total CapEx: $650 million

Operational Expenditure (OpEx)
  • Exploration Maintenance: $2 million/year
  • Hydrogen Extraction: $10 million/year
  • Helium Extraction: $5 million/year
  • Ammonia Production: $20 million/year
  • Power Plant: $15 million/year
  • General Operations and Administration: $8 million/year
  • Total OpEx: $60 million/year

Revenue Streams
  • Hydrogen: 10,000 tonnes × $2,000/tonne = $20 million/year
  • Helium: 1 million cf × $0.2/cf = $0.2 million/year
  • Ammonia: 50,000 tonnes × $500/tonne = $25 million/year
  • Electricity: 1,000,000 MWh × $100/MWh = $100 million/year
  • Exploration Data Sales: $0.5 million/year
  • Total Revenue: $145.7 million/year
Exploration Reserves
  • Hydrogen: 100,000 tonnes (10-year supply).
  • Helium: 10 million cf (10-year supply).

Financial Projections
ROI and Payback Period
  • Annual Profit: $145.7M – $60M = $85.7 million
  • Payback Period: $650M / $85.7M ≈ 7.6 years
  • 10-Year Cumulative Profit: $85.7M × 10 = $857 million
  • 10-Year ROI: ($857M / $650M) × 100% = 131.8%
10-Year Cumulative Cash Flow
Year
Annual Profit ($M)
Cumulative Cash Flow ($M)
0
-650
-650
1
85.7
-564.3
2
85.7
-478.6
3
85.7
-392.9
4
85.7
-307.2
5
85.7
-221.5
6
85.7
-135.8
7
85.7
-50.1
8
85.7
35.6
9
85.7
121.3
10
85.7
207.0
Net Present Value (NPV)
  • Discount Rate: 5%
  • NPV: $184.6 million

Risk Management
  • Exploration Risks: Advanced imaging and phased drilling reduce uncertainty.
  • Market Risks: Diversified products buffer price volatility.
  • Technical Risks: Robust R&D and maintenance plans.
  • Regulatory Risks: Dedicated compliance team.

Sustainability
  • Renewable Energy: Solar-powered hydrogen production.
  • Efficiency: Heat recovery minimizes waste.
  • Compliance: Adheres to environmental standards.

Conclusion
This $650 million investment integrates hydrogen and helium exploration and extraction with ammonia production and electricity generation, delivering a 10-year ROI of 131.8%, a 7.6-year payback period, and an NPV of $184.6 million. It offers substantial returns and strategic market positioning.
You are currently viewing Proposal for Geodyn Solution: Integrated Investment in Nebraska with Hydrogen and Helium Exploration and Extraction

Proposal for Geodyn Solution: Integrated Investment in Nebraska with Hydrogen and Helium Exploration and Extraction