New York-based company TransGas Development Systems, LLC wants to build and operate a fossil fuel-based ammonia facility in Mingo County, WV. If built, the Adams Fork Energy project would be the biggest ammonia plant in the world. The facility would produce ammonia from natural gas — a process that could expose nearby communities to serious health and safety risks.
A lot has changed since the project was first announced in 2023 and many questions about the project’s future remain unanswered.
A Quick Look Back
TransGas first showed interest in this site back in 2008, when it planned to build a coal-to-gas liquids facility outside of Gilbert, WV. That project was never built and the site sat vacant for over a decade. Then, in 2023, TransGas announced new plans for the same location — an ammonia plant called Adams Fork Energy.
Originally, TransGas partnered with natural gas producer CNX and planned to manufacture 2.16 million tons of ammonia per year as part of the Appalachian Regional Clean Hydrogen Hub (ARCH2). The plan was to use methane (from natural gas and coal mine methane) to make hydrogen, then mix that hydrogen with nitrogen to create ammonia. The ammonia could then be shipped and used directly or converted back into hydrogen.
Ammonia is mostly used to support food production. According to the USGS, 88% of ammonia consumption in the United States in 2021 went towards fertilizer production and was almost entirely produced from fossil fuels. TransGas hasn’t said who its specific customers would be but the company has indicated that it is interested in a wide variety of sectors, including agriculture, transportation, and power generation.
Back to the Drawing Board
Just eight months after the initial announcement, CNX pulled out of the project and announced that it would pursue a separate facility in Southern West Virginia. That decision meant Adams Fork Energy was removed from ARCH2 and became ineligible for a share of the $925 million set aside for that project. TransGas kept pushing its project forward and received a permit to construct from the West Virginia Department of Environmental Protection the following spring.
At this point, the project becomes harder to follow. But first, a little background.
TransGas tried to argue that capturing methane from coal mines — which leaks into the air anyway — should count as reducing emissions. They wanted the government to designate this hydrogen as “clean” or even “negative carbon intensity” which, in theory, would enable it to qualify for the highest value 45V hydrogen production tax credit. CNX, TransGas’ former partner, was also interested in producing hydrogen from coal mine methane and even asked for help from Pennsylvania Governor Josh Shapiro to push this idea.
The problem is that the 45V tax credit is meant to support the production of hydrogen with little to no CO2 emissions. This hydrogen would be produced mainly from renewable electricity, not fossil fuels. A 2023 Department of Energy report indicated that most fossil-based hydrogen would struggle to qualify at all but this proposal by TransGas would go even further. If federal officials had supported their plan, it essentially would have allowed some of the worst polluters in our region to directly or indirectly profit from their own wasteful practices.
Fortunately, federal officials rejected this argument. This dealt a blow to Adams Fork Energy and two similar CNX projects — the one that was supposed to replace Adams Fork Energy in the hydrogen hub and a third planned at the Pittsburgh airport with KeyState Natural Gas Synthesis. CNX has since confirmed that its hydrogen hub project is paused while KeyState has paused its involvement in the airport project. TransGas, however, has stayed quiet — until now.
Where Things Stand Now
TransGas recently updated its project website with a new presentation on its proposed ammonia facility — and a new plan to build a data center, the third proposal in 15 years to use the Adams Fork Energy name.
But their plans leave a lot of unanswered questions. From the company presentation, it’s unclear whether TransGas will try to use the 45Q tax credit for storing carbon or the 45V credit for making hydrogen. That’s surprising — not only because the 45V rules don’t support its coal mine methane plans but also because that tax credit may soon go away.
A bill just passed in the U.S. House of Representatives that would limit the 45V tax credit to projects that start construction in 2025. The Senate hasn’t voted on it yet, but isn’t likely to protect the credit. Even if TransGas can demonstrate eligibility by beginning construction this year, it’s difficult to imagine that hydrogen from the project will qualify for the full $3/kg tax credit as discussed above.
This matters not just for funding, but also for how the plant would operate. The company’s air permit doesn’t require it to capture the CO2 resulting from its ammonia production. And, as of May 2025, the company has yet to apply for a Class VI permit, which is required to store CO2 underground. TransGas can only claim one of the two tax credits for Adams Fork Energy so this is a big question to leave unanswered.
TransGas also hasn’t said who, if anyone, will buy the ammonia produced at Adams Fork Energy. In its presentation, the company says it doesn’t need long-term buyers – a remarkable claim for a company in a market that has yet to really emerge. One project partner, Topsoe, claimed the ammonia would be used to power a data center. But the application materials for TransGas’ data center proposals indicate that it would use natural gas to power operations, not ammonia.
Delays and Uncertainty
Meanwhile, the project appears to be behind schedule. TransGas originally said construction on Adams Fork Energy would start as early as January 1, 2024 and that operations would begin twelve months later. That hasn’t happened. Now it is saying it could take 30 months to build – much longer than the timeline it previously gave.
It’s been more than two years since the ammonia plan was announced, and more than 15 years since the first Adams Fork Energy project was proposed – and never built.
Since then, hydrogen production in the U.S. has become even more uncertain, especially for projects depending on the 45V credit. Other projects announced alongside Adams Fork Energy have stalled, including a hydrogen facility proposed by TransGas’ original partner, CNX. More recently, a key partner in another hydrogen hub project in West Virginia disclosed that it is no longer involved.
As we follow developments with Adams Fork Energy, we hope to find answers to some of our most pressing questions, including:
- What is the construction timeline for the Adams Fork Energy ammonia facility?
- What specific feedstock is TransGas planning to use in order to produce ammonia?
- Is TransGas planning to capture and store the CO2 emissions from its ammonia production? If so, what percentage?
- Which tax credit does TransGas plan to utilize in support of its operations and what will be the cost to taxpayers?
- If TransGas plans to claim the 45V tax credit, will it disclose the emissions accounting used to support its claim that its ammonia product is eligible to receive the full $3.00/kg credit?
- Which customers, if any, have been secured for the ammonia produced by Adams Fork Energy?
- If no customers have been secured, what is the basis for expecting that companies will pay more for TransGas’ ammonia when cheaper ammonia — produced without the use of carbon capture — is already available?
- At what point will TransGas make a Final Investment Decision over whether to build Adams Fork Energy?
- If TransGas does move forward with constructing and operating Adams Fork Energy, how many jobs will it provide and how many employees will be hired from the local community?
- What kinds of investments in workforce development is the company prepared to make in support of this?
For now, please read our companion article explaining in more detail the operations TransGas may be planning for Adams Fork Energy and what this project means for surrounding communities.