Diversified Energy, FuelCell, TESIAC partner on off-grid data power
Diversified Energy Co PLC on Monday announced a strategic partnership with FuelCell Energy Inc and TESIAC to develop off-grid power solutions for data centres.
The partnership will leverage natural gas and coal mine methane to provide up to 360 megawatts of electricity across sites in Virginia, West Virginia, and Kentucky, the Alabama-based oil and gas producer said.
The companies plan to establish an acquisition and development company that will generate ‘continuous and scalable’ power for data centres, addressing the growing demand for ‘reliable’ energy driven by artificial intelligence and high-performance computing.
The project will use natural gas and coal mine methane extracted by Diversified Energy and delivered via pipeline to FuelCell Energy’s electrochemical technology, which converts methane into hydrogen and then into electricity.
This process, which does not rely on combustion, is expected to reduce emissions compared to conventional power generation methods, while also qualifying for environmental and tax credits.
Diversified Energy President & Chief Financial Officer Brad Gray said the project aligns with the increasing need for dispatchable power, particularly for data centres that require a steady energy supply.
FuelCell Energy Chief Executive Officer Jason Few added that the partnership will enable these facilities to operate efficiently and sustainably while accelerating time-to-market for their customers.
TESIAC Managing Partner Karen Morgan emphasised the broader economic benefits, including job creation and regional investment, highlighting the opportunity to transform methane emissions into an energy source that supports long-term economic growth.
The companies said they are finalising the financial structure of the partnership and will provide further details on project timelines in due course.
Shares in Diversified Energy were down 0.4% at 887.00 pence in London on Monday afternoon. Shares in FuenCell were down 1.1% at $6.51 in New York on Monday morning.
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