EB-5 Green Hydrogen Project: A Clean Energy Route to U.S. Green Cards for Your Family
October 18, 2024 · EB-5 · 9 min read
The New Fortress Energy green hydrogen plant Phase 2 EB-5 project is sponsored by CanAm, one of the longest-established regional centers in the United States, and is structured around the EB-5 green card route for the investor and their family.
Green hydrogen is a clean energy source that the U.S. government has made a development priority, backed by significant incentive policies. This EB-5 green hydrogen project — Phase 2 of the New Fortress Energy green hydrogen plant, sponsored by the long-established CanAm regional center — combines a growing end market with a defined security package: plant assets pledged against the EB-5 loan, a contracted offtake for the plant’s output, and a job-creation forecast well above the statutory minimum, all of which bear on the green card petition and the capital.
Green hydrogen – a clean energy source with a growing industrial market
Hydrogen is a gas that plays an important role in many industries, including oil refining, fertilizer production, chemicals, and steelmaking. Its versatility and its ability to store energy efficiently make it one of the more practical levers in the energy transition. The hydrogen market is projected to grow sharply, from 90 million tonnes in 2020 to 530 million tonnes by 2050, reflecting rising global demand for this energy source.
Unlike conventional hydrogen, which is typically produced from fossil fuels, green hydrogen is made through water electrolysis — splitting water into hydrogen and oxygen — a process that emits no carbon and no other pollutants. The environmental benefit is substantial: green hydrogen can help cut greenhouse gas emissions while supporting decarbonization in heavy industry. Producing it requires renewable power, such as solar or wind, which is what allows the end product to qualify as genuinely low-carbon.
Water electrolysis technology for producing green hydrogen
Faced with the challenges of climate change, the U.S. government has committed to cutting CO2 emissions by 50% by 2030. Green hydrogen plays an essential part in that effort and is actively encouraged through major federal incentives. Under the Inflation Reduction Act (IRA) of 2022, as enacted, the United States offers a production tax credit of up to US$3 per kilogram of qualified clean hydrogen, claimable over 10 years. That support makes green hydrogen more price-competitive and helps build market demand.
The New Fortress Energy green hydrogen plant — inside the EB-5 green card project structure
The New Fortress Energy green hydrogen plant sits in the Port Arthur industrial complex in Texas — one of the largest energy hubs in the United States and home to many leading heavy-industry manufacturers. Sitting inside its own end market, the plant can supply green hydrogen directly to nearby industrial users with high demand, including steel, chemical, and fertilizer producers. That proximity to demand shortens the transport chain and takes meaningful cost out of operations, which improves the economics of the business.
The plant’s strategic location
On completion — targeted for the end of 2025 at the time of writing — the project was expected to become the largest green hydrogen plant in North America. Phase 1 began construction in 2020 with 100 MW of electrolysis capacity. Phase 2 is expanding the infrastructure to double plant capacity to 200 MW, with maximum output of more than 100 tonnes of green hydrogen per day.
Phase 2 has a total project cost of US$75.4 million, of which US$40 million is expected to come from EB-5 capital across 50 investors. The EB-5 capital for Phase 2 is managed by CanAm, one of the longest-established regional centers in the United States, within the compliance framework of the EB-5 program. The project is forecast to create more than 17 jobs per investor, against the statutory minimum of 10, which is the job test behind the green card petition. Phase 1 has also received Form I-956F approval from U.S. Citizenship and Immigration Services (USCIS), which reflects CanAm’s track record of taking this project structure through USCIS review.
The project developer is New Fortress Energy, a producer and distributor of lower-carbon energy listed on NASDAQ (ticker: NFE). At the time of writing, the company reported a market capitalization of more than US$2.6 billion and 2023 revenue of US$2.5 billion. For the EB-5 loan, New Fortress Energy has pledged all of the plant’s assets and has given an undertaking to repay the EB-5 capital, backed by the company’s annual revenue and by the value of the company. Fortress has also worked with the CanAm regional center 5 times previously, raising a combined US$643.8 million in EB-5 capital, of which more than US$400 million has already been repaid to EB-5 investors. Investors should review the project’s offering documents for the current terms and standing of these arrangements.
At the time of writing, the plant’s entire green hydrogen output was committed under an offtake agreement with OCI Global — a world-leading producer and distributor of ammonia, fertilizers, and methanol — which is intended to provide a revenue base once the plant reaches commercial operation. Hydrogen demand among companies in the surrounding area runs to 800 tonnes per day, while supply remains very limited. That supply-demand gap is the basis for the project’s commercial case, and in turn for the repayment analysis presented to EB-5 investors.
The Phase 2 green hydrogen plant brings together the elements EB-5 investors weigh most closely: a contracted offtake, a defined security package, and a job-creation forecast well above the statutory minimum. As with any EB-5 investment, the capital must remain at risk and repayment is not assured, so review the offering documents in full and take advice from an independent immigration attorney and tax advisor before you commit.
If you are considering the EB-5 U.S. residency by investment program, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help you assess how well your profile fits the program requirements. We will keep your personal data confidential and use the information you provide only to advise on your family’s case.
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