Monolith gains conditional approval for $1 billion federal loan

LINCOLN, Neb.—Thanks to a large federal loan, Monolith Corp. plans to expand its clean hydrogen and carbon black production facilities and do its part in the global race to decarbonization.

The manufacturer has received conditional approval for a $1.05 billion loan from the U.S. Department of Energy. Established through the Title XVII Innovative Energy Loan Guarantee Program, the 20-year loan will allow Monolith to expand its facilities in Hallam, Neb.

In a Dec. 23 statement, Monolith said its process technology had met DOE's "stringent eligibility requirements" for the loan program, which is designed to help scale up clean energy technologies.

Monolith said once expansions are completed, its Olive Creek plant is expected to be the largest carbon black production facility in the U.S., producing an estimated 194,000 metric tons per year.

The project also is expected to generate approximately 1,000 jobs to support the expansion. The the facility then will generate about 260 direct and 600 indirect green energy jobs to support operations, according to Monolith.

"Reaching the ambitious goal of global decarbonization by 2050 will require the innovation of American companies like Monolith and the resources of like-minded organizations like the Department of Energy," said Rob Hanson, co-founder and CEO of Monolith.

"Monolith was founded with the belief that private sector companies could develop the innovation needed to help lead the clean energy transition, while also creating high-paying green jobs and strengthening our nation's supply chain," he added.

Founded in 2012, Monolith has developed a methane pyrolysis technology that uses renewable energy to convert natural gas into clean hydrogen and carbon black.

The process is claimed to prevent an estimated 2.3 metric tons of CO2 from being released for every ton of carbon black produced.

According to Monolith, leading tire manufacturers including Goodyear and Michelin have expressed their support for the DOE's conditional approval and Monolith's technology.

"We are excited to work with Monolith to reduce our carbon footprint and further our use of alternative materials as we continue to deliver industry-leading products," said Richard Kramer, chairman, CEO and president of Goodyear.

DOE Secretary Jennifer Granholm said the loan program recognizes and supports technology that "reduces emissions and supports a clean energy future.

"Advanced, clean production technology like Monolith's are the types of impactful projects that support not just sustainability, but economic growth and clean energy jobs for the American people," she added.

European Rubber Journal contributed to this article.