HARRISBURG — Rep. Stephanie Borowicz, R-Clinton/Centre, commended Perry Babb, chairman and CEO, KeyState Natural Gas Synthesis Energy for his testimony before the House Environmental Resources and Energy Committee this week, when he talked about the potential of producing low-carbon hydrogen power with Pennsylvania natural gas.

“It’s exciting to see Perry’s and KeyState’s vision for Pennsylvania’s next energy revolution moving forward, right here at home in the 76th District,” said Borowicz.

“In addition to expanding energy independence, the $400 million natural gas synthesis facility under development in West Keating Township, Clinton County, has the potential to generate more than 500 permanent jobs and $260 million in annual economic output.”

Supported last session by Borowicz in the state House, Act 66 of 2020 established the Local Resource Manufacturing Tax Credit to attract private investment from companies, such as KeyState, for the construction and operation of Pennsylvania manufacturing facilities that use dry natural gas to produce fertilizer and other petrochemical products.

Statewide, it has been estimated that the Local Resource Manufacturing Tax Credit could help generate 4,440 jobs, $600 million in annual labor income and more than $1.6 billion in economic benefits from the construction of four dry natural gas manufacturing facilities as provided for in Act 66.

“The information presented at (the) meeting proves once again that the last thing government should be doing during times of economic crisis is eliminating more jobs and making it more difficult for our families and seniors to make ends meet,” said Borowicz. “Whenever the free market and limited government are given the opportunity to thrive, rising standards of living, cleaner air and water, lower energy costs, dynamic economic growth and greater personal freedom naturally follow.”

Keystate Natural Gas is seeking to integrate natural gas production, manufacturing, and carbon dioxide capture and storage on private ground in Western Clinton County.

It currently is recruiting and gaining investors for the project, Babb told The Express earlier this year.

The project is estimated to cost $400 million while generating $260 million in annual economic income and to have 150 to 200 direct permanent jobs.

Already on the site is a natural gas liquification plant operated by Frontier Natural Resources, which is also a partner in the KeyState project.

The firm would build the plant to produce four primary products, which when combined with carbon capture and storage, result in low carbon, ‘Blue’ products:

∫ Low carbon; Blue Hydrogen for hydrogen fuel cell vehicles and power generation.

∫ Low-carbon and lower cost Blue Ammonia for a range of industrial, medical, and manufacturing uses.

∫ Low-carbon nitrogen fertilizer, with an approximately 50% reduction in CO2 per ton of fertilizer.

∫ Exhaust treatment for power plants and diesel engines that eliminates 90% of harmful emissions.

“The company plans to extract natural gas and capture CO2 generated in the manufacturing process and store it on site underground and eliminate a high percentage of emissions from reaching the air,” Babb told The Express for a story in January. He explained how important carbon capture and geological storage is for the future of the Pennsylvania natural gas industry.

“We are making something with our own gas and capturing the CO2 from that manufacturing process and storing it underground. This leaves a low carbon product called ‘Blue Ammonia, which is used for industrial practices, medical practices, and agricultural practices. With carbon capture and storage, we are decreasing CO2 emissions by 50 percent per ton of ammonia. Ammonia is the combination of hydrogen along with the nitrogen from the air. Lower-carbon and lower-cost hydrogen and ammonia are part of the coming low carbon economy.”

“Pennsylvania could be a hydrogen powerhouse in 20 years,” Babb told the newspaper.