ARKANSAS, Dec 17 (Future Headlines)- CNX Resources has announced its withdrawal from the Adams Fork ammonia project, citing delays and increasing uncertainty related to the implementation tax credit provisions of the Inflation Reduction Act (IRA) and challenges in reaching final commercial terms with project developers. The natural gas producer is now exploring alternative sites in southern West Virginia for clean hydrogen projects. Adams Fork was a key project within the Appalachian Regional Clean Hydrogen Hub (ARCH2), and its cancellation has prompted a reevaluation of project locations.

CNX Resources’ decision to pull out of the Adams Fork ammonia project is grounded in several factors, primarily related to regulatory uncertainties and challenges in finalizing commercial terms. The company highlighted delays and increasing uncertainty surrounding the implementation tax credit provisions of the Inflation Reduction Act (IRA) as a significant factor influencing its decision. The absence of clear guidance on tax credits for low carbon intensity feedstock projects created an environment of uncertainty, impacting the feasibility of the Adams Fork project.


The Adams Fork project, which was expected to commence construction in 2024, aimed to contribute to the regional clean hydrogen initiatives, particularly within the ARCH2 framework. However, CNX Resources faced challenges in navigating the evolving regulatory landscape and establishing viable commercial terms with project developers.

In response to the withdrawal from the Adams Fork project, CNX Resources is actively exploring alternative sites in southern West Virginia for new clean hydrogen projects. The company remains committed to the overarching goals of the Appalachian Regional Clean Hydrogen Hub (ARCH2) and is seeking suitable locations that align with its clean hydrogen initiatives.

The evaluation of alternative sites reflects CNX Resources’ determination to contribute to the development of regional clean hydrogen hubs, even in the face of challenges encountered in specific projects. The selection of suitable sites is crucial for the success of clean hydrogen initiatives, considering factors such as infrastructure, regulatory support, and strategic positioning within the broader clean energy landscape.

While CNX Resources has withdrawn from the Adams Fork ammonia project, it emphasizes its ongoing commitment to ARCH2. The Appalachian Regional Clean Hydrogen Hub (ARCH2) is a multi-state initiative involving various partners dedicated to developing clean hydrogen hubs. Despite the setback with the Adams Fork project, CNX Resources is actively engaged in the consortium and recognizes the importance of achieving a final investment decision that aligns with the evolving regulatory framework and market conditions.

CNX Resources acknowledges that the final investment decision for ARCH2 is contingent upon obtaining tax credit guidance that unequivocally supports low carbon intensity feedstock projects. The company emphasizes the need for unambiguous support to facilitate the development of regional clean hydrogen hubs, reinforcing the critical role of regulatory clarity in advancing clean energy projects.

The mention of tax credits underscores the significance of supportive regulatory frameworks in the viability of clean hydrogen projects. The Inflation Reduction Act (IRA) and associated tax credit provisions play a crucial role in shaping the economic landscape for projects like Adams Fork and broader initiatives such as ARCH2. The uncertainty surrounding the implementation of tax credits can introduce financial risks and impact the overall feasibility of clean energy projects.

For companies like CNX Resources, clear and favorable tax credit guidance is essential to mitigate financial risks and provide the necessary incentives for investment in clean hydrogen projects. The push for unambiguous support reflects a broader industry need for regulatory frameworks that encourage and facilitate the transition to cleaner energy sources. CNX Resources’ decision to explore alternative sites for clean hydrogen projects signals a determination to overcome challenges and continue contributing to the development of regional clean hydrogen hubs. The evaluation process for alternative sites involves considerations beyond regulatory uncertainties, encompassing factors like geographical suitability, infrastructure requirements, and collaboration with stakeholders.


The evolving landscape of clean hydrogen initiatives requires a collaborative approach among industry participants, regulators, and policymakers to address challenges, streamline regulatory processes, and provide the necessary support for project viability. The commitment to ARCH2 underscores the long-term vision for clean hydrogen development in the region, with an emphasis on creating a supportive environment for investment and innovation.

As CNX Resources navigates the complexities of regulatory uncertainties and explores new opportunities, the clean energy sector will closely watch developments in the clean hydrogen space. The collaboration between industry players, regulatory bodies, and other stakeholders will play a pivotal role in shaping the path forward for clean hydrogen projects, contributing to the broader goals of sustainability and decarbonization.

Reporting by Kevin Wood; Editing by Sarah White