US engineering and construction giant McDermott International has landed a contract to build a power-to-gas facility in the state of New Jersey that will use solar energy to produce green hydrogen to inject into an existing natural gas distribution network for home and commercial use.


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The engineering, procurement and construction award by New Jersey Natural Gas went to McDermott’s CB&I Storage Solutions business, which designs and builds storage facilities, tanks and terminals.

McDermott said initial engineering is under way at offices in Plainfield, Illinois, with project completion expected this year. It added that the contract expands its energy transition portfolio.

Reducing carbon footprint

Incorporating a measure of green hydrogen produced with renewable energy can reduce the overall carbon footprint of an existing town gas network.

Hydrogen produces no greenhouse gas emissions when combusted.

New Jersey Resources, the parent oganisation of New Jersey Natural Gas, has said it intends to meet operational emissions reduction targets by “continuing to upgrade its natural gas infrastructure... and introducing decarbonised fuels, such as renewable natural gas and hydrogen, into its supply”, among other measures.

The natural gas subsidiary operates 7500 miles of transportation and distribution infrastructure reaching more than 500,000 customers in five New Jersey counties.

"Green hydrogen is critical to power a carbon-free future," said Cesar Canals, senior vice president of CB&I Storage Solutions.

"As the energy industry seeks opportunities to reduce its impact on the environment, our proven project execution model is positioned to deliver the next generation of sustainable energy infrastructure."

The power-to-gas facility will be located in Howell, New Jersey.