Lewis County Hydrogen Alliance Launches Phase 1 Work to Turn Forest Residuals into Fuel-Grade Hydrogen and Dispatchable Clean Power,
Grant Value 400,000.00
Supported in part by a $400,000 award under LCH2’s $3.9M grant request to the Centralia Coal Transition Grants Energy Technology Board, the project brings together LCH2, The Devonshire Group, Ways2H and HydrogenXT to advance a replicable clean-energy platform for Lewis County.
CHEHALIS, Wash., July 28, 2026 – Lewis County Hydrogen Alliance, Inc. (LCH2) today announced the launch of Phase 1 project assessment work for the Lewis County Forestry Residuals to Fuel-Grade Hydrogen & Dispatchable Clean Power project, supported in part by a grant from the Centralia Coal Transition Board.
The initial $400,000 Phase 1 award supports a project assessment package including, site diligence, concept engineering, a permitting roadmap, commercialization planning, and capital-readiness analysis. The work is designed to determine the necessary parameters for the project to move from Project Assessment into detailed engineering, pilot development and private-capital deployment.
The project’s objective is to convert locally available forestry residuals into fuel-grade hydrogen, captured carbon dioxide or carbon-based products, and dispatchable clean power without burning the feedstock. The platform is being developed for transportation fleets, industrial users and energy-intensive operations that need reliable clean power, including potential self-sufficient data-center infrastructure. By transforming an underutilized local biomass resource into multiple high-value clean energy products, the project demonstrates a pathway to greater local energy resilience, strengthening forest health and supporting rural economic development. With Lewis County at the forefront, LCH2 is laying the foundation for a scalable, replicable model that can help communities across Washington and advance clean energy and decarbonization goals.
LCH2 is serving as the coordinating nonprofit and grant recipient. The Devonshire Group is supporting delivery management, biomass supply-chain assessment, and stakeholder coordination. Ways2H is providing thermochemical conversion technology and engineering support. HydrogenXT is supporting project development, commercialization, offtake strategy and integration with hydrogen fuel and power customers.
“Lewis County has the forest resources, the energy-transition need and the industrial know-how to become a national proving ground for clean hydrogen from forest residuals. Phase 1 is about discipline: validate the site, the feedstock, the engineering, the permits, the customers and the capital pathway before anyone asks the community or investors to take the next step. We are grateful that the Centralia Coal Transition Grants Energy Technology Board share our vision for a more sustainable future for our region.”— Ken Cavallon, Executive Director of LCH2
“This project is a powerful fit for the Ways2H platform because it focuses on a real local resource, a real clean-fuel need and a phased pathway to commercial deployment. Our role is to help translate the technology into a practical, financeable system that can turn underused biomass into hydrogen fuel and carbon products.”— Jean-Louis Kindler, Co-Founder & Director of Ways2H
“Forestry residuals are often treated as a disposal problem. LCH2 is asking a better question: how can that material become a durable source of regional economic value, forest resilience and clean energy? That is the kind of implementation challenge The Devonshire Group was built to help solve.”— Skip Sponsel, Vice President of The Devonshire Group
“The commercial opportunity is not just producing hydrogen; it is connecting clean hydrogen fuel to customers who can use it reliably and economically. HydrogenXT is focused on helping this project develop the offtake, customer and integration pathway needed to move from promising assessment to bankable deployment.”— Karl Tussy, Chief Customer Officer of HydrogenXT
Phase 1 results will be used to inform future partner decisions and private-sector investment discussions. Future phases remain subject to technical findings, permitting, commercial commitments, financing and applicable approvals.
Media Contact
Ken Cavallon, Executive Director | ken.cavallon@lch2.org | www.lch2.org
About the Partner Organizations
About Lewis County Hydrogen Alliance
Lewis County Hydrogen Alliance, Inc. (LCH2) is a Washington-based nonprofit promoting the development of clean-energy projects in Lewis County. LCH2 was formed to align public, private and nonprofit stakeholders around a regional hydrogen ecosystem that can convert locally sourced forestry residuals into fuel-grade hydrogen, captured carbon dioxide/carbon products and dispatchable clean power. Learn more at www.lch2.org.
About The Devonshire Group
The Devonshire Group is a knowledge-capture, project-development and stakeholder-coordination organization focused on turning complex natural-resource and clean-energy challenges into practical implementation pathways. Its work emphasizes forest resilience, durable rural economic value, and disciplined delivery across public, private and community partners. Learn more at www.thedevonshiregroup.org.
About Ways2H
Ways2H, a Clean Energy Enterprises company, engineers, builds and sells systems that convert organic feedstocks and waste streams into hydrogen and carbon products. Its patented platform is designed to support circular-economy outcomes, climate remediation and local energy independence through distributed waste-to-value infrastructure. Learn more at www.ways2h.com.
About HydrogenXT
HydrogenXT develops and commercializes scalable clean-hydrogen production and dispensing infrastructure for transportation, logistics, power and data-center markets. The company focuses on on-site hydrogen production, customer offtake, project integration and practical pathways to low- and zero-carbon hydrogen at competitive costs. Learn more at www.hydrogenxt.com.
About the Centralia Coal Transition Grants Energy Technology Board
The Energy Technology Board of the Centralia Coal Transition Grants was established by Washington State and TransAlta to fund energy technologies with the potential to create environmental benefits for the state of Washington.
Centralia Coal Transition Board awards grant to support Yakama Power Project,
Grant Value 175,000.00
Centralia, (April 27, 2026) The Centralia Coal Transition Grants Energy Technology Board is pleased to announce it has approved a grant award to Yakama Power to support the Yakama Dual-Use Canal Solar Project. The grant award of $175,000.00 will be combined with a grant awarded by the Washington State Department of Commerce Energy Division Tribal Energy Grant Program to install a specialized solar array over a section of canal. The goal of the project is to design, build and test a system to provide share to reduce evaporation while generating power to demonstrate a technology with long term potential to reduce costs and boost energy production.
This project will design and install a specialized solar array for use over a canal at the Yakama Nation. The system can shade the canal to reduce evaporation while generating power, demonstrating a technology with long-term potential to lower costs compared with current solar systems. The design will combine standard bifacial silicon cells with glass tubes widely used in solar hot water heating systems. These aerodynamic PV tubes reduce mounting hardware and installation expenses while providing solar tracking to increase energy generation. The funds provided by this grant support the project as Yakama Power continues to push toward new innovations for solar generation.
Yakama Power is an electricity utility formed by the Yakama Nation by charter to provide good jobs to tribal members providing affordable electricity and energy efficiency services to customers living on the Reservation.
The Energy Technology Board was formed as a result of the 2011 Agreement between TransAlta and the state of Washington. This agreement allowed the Centralia plant to move away from coal-fired operations with one unit retiring in December 2020 and the second unit in December 2025. TransAlta is investing $55 million in Lewis and South Thurston counties and the state of Washington through the Coal Transition Boards.
About Centralia Coal Transition Funding Boards
Overview of the Centralia Coal Transition Funding Boards:
Weatherization Board ($10M): established to fund energy efficiency and weatherization for the residents, employees, business, non-profit organizations and local governments within Lewis County and South Thurston County; up to $1 million shall be allocated to fund residential energy efficiency and weatherization measures for low-income and moderate-income residents of Lewis County and South Thurston County;
Economic & Community Development Board ($20M): established to fund education, retraining, economic development, and community enhancement; at least $5M shall be allocated to fund education, retraining and economic development specifically targeting the needs of workers displaced from the Centralia facility;
Energy Technology Board ($25M): established to fund energy technologies with the potential to create environmental benefits to the state of Washington.
Centralia Coal Transition Board awards grant to support energy and economic growth project in Chehalis, Washington,
Grant Value 400,000.00
Centralia, (April 10, 2026) The Centralia Coal Transition Grants Energy Technology Board is pleased to announce it has approved a grant award to CleanFiber, Inc. in the amount of $400,000.00 to support a liquid fire-retardant system for advanced carbon-negative cellulose insulation manufacturing plant in Chehalis, Washington.
The production facility will manufacture an advanced form of carbon-negative cellulose insulation entirely from recycled cardboard and will double the company’s current production capacity in the U.S. Significant effort has already been expended to select an ideal site, create detailed site and project plans, and secure funding for the project. The company goal is to move the project forward which once fully operational the facility would annually divert 19,000 tons of paper mill waste that is currently landfilled, and 5,000 tons of this same waste from incineration.
CleanFiber Inc. was founded in 2009 to develop high-performance, carbon-negative cellulose insulation. CleanFiber’s advanced carbon-negative insultation reduces carbon emissions across its entire process, from its feedstock to its ultimate end using improving building energy efficiency. CleanFiber proposes establishing a 100,000 square foot production facility in Chehalis, Washington to manufacture an advanced form of carbon-negative cellulose insulation entirely from recycled cardboard. The project will leverage existing infrastructure at the chosen site, provide job opportunities and enhance community partnerships.
The Energy Technology Board was formed as a result of the 2011 Agreement between TransAlta and the state of Washington. This agreement allowed the Centralia plant to move away from coal-fired operations with one unit retiring in December 2020 and the second unit in December 2025. TransAlta is investing $55 million in Lewis and South Thurston counties and the state of Washington through the Coal Transition Boards.
About Centralia Coal Transition Funding Boards
Overview of the Centralia Coal Transition Funding Boards:
Weatherization Board ($10M): established to fund energy efficiency and weatherization for the residents, employees, business, non-profit organizations and local governments within Lewis County and South Thurston County; up to $1 million shall be allocated to fund residential energy efficiency and weatherization measures for low-income and moderate-income residents of Lewis County and South Thurston County;
Economic & Community Development Board ($20M): established to fund education, retraining, economic development, and community enhancement; at least $5M shall be allocated to fund education, retraining and economic development specifically targeting the needs of workers displaced from the Centralia facility;
Energy Technology Board ($25M): established to fund energy technologies with the potential to create environmental benefits to the state of Washington.
Centralia Coal Transition Board awards grant to support University of Washington Research & Development Project,
Grant Value 98,512.00
Centralia, WA (April 15, 2026) The Centralia Coal Transition Grants Energy Technology Board is pleased to announce it has approved a grant award to the University of Washington to support a research and development project to establish a process to produce high value nanocellulose from sawmill residuals at the Cascade Hardwood sawmill in Chehalis, Washington. The grant award of $98,512.00 will allow the UW Bioresource Science and Engineering team to build on the extensive nanocellulose research already completed to demonstrate the benefits of establishing a nanocellulose biorefinery in Lewis County, Washington.
The University of Washington (UW) is the premier research institution of the Pacific Northwest. The Bioresource and Engineering (BSE) program is an engineering program within UW. The BSE program does teaching and research in the general area of process design and operations for conversion of biomass into products, fuels, and chemicals. BSE graduates work in production facilities such as pulp and paper mills, for engineering firms, sustainability groups in companies using biomass feedstocks.
The Energy Technology Board was formed as a result of the 2011 Agreement between TransAlta and the state of Washington. This agreement allowed the Centralia plant to move away from coal-fired operations with one unit retiring in December 2020 and the second unit in December 2025. TransAlta is investing $55 million into Lewis and South Thurston counties and the state of Washington through the Coal Transition Board.
About Centralia Coal Transition Funding Boards
Overview of the Centralia Coal Transition Funding Boards:
Weatherization Board ($10M): established to fund energy efficiency and weatherization for the residents, employees, business, non-profit organizations and local governments within Lewis County and South Thurston County; up to $1 million shall be allocated to fund residential energy efficiency and weatherization measures for low-income and moderate-income residents of Lewis County and South Thurston County;
Economic & Community Development Board ($20M): established to fund education, retraining, economic development, and community enhancement; at least $5M shall be allocated to fund education, retraining and economic development specifically targeting the needs of workers displaced from the Centralia facility;
Energy Technology Board ($25M): established to fund energy technologies with the potential to create environmental benefits to the state of Washington.
Centralia Coal Transition Board awards grant to support electric vehicle training program,
Grant Value 5,000.00
Centralia, (March 5, 2026) The Centralia Coal Transition Grants Energy Technology Board is pleased to announce it has approved a grant award to New Market Skills Center Foundation in the amount of $5,000.00 to support the electric vehicle training program. The grant funds will be used to purchase an electric car which will be the basis for the training program for electric vehicles. The balance of the funds required for the vehicle will be provided by the organization and the Charities Aid Foundation of America through Enterprise/Taylor Charitable Entities. This additional funding will support milestones and deliverables in connection with the project.
New Market Skills Center opened in 1986 as an educational venture between local school districts and is a public school offering technical training for high school students. New Market is a consortium of 12 districts including Adna, Centralia, Napavine, North Thurston, Oakville, Olympia, Rainier, Rochester, Shelton, Tenino, Tumwater, and Yelm. The vision is to prepare students for post-secondary education, apprenticeships, or entrance into the workforce by offering the opportunity to be trained in technical career areas too expensive for a single district to fund. Students are transported to New Market from their home high schools. They spend half their day at the sending school and half at the skills center.
The Energy Technology Board was formed as a result of the 2011 Agreement between TransAlta and the state of Washington. This agreement allowed for the Centralia plant to move away from coal-fired operations with one unit retiring in December 2020 and the second unit in December 2025. TransAlta is investing $55 million into Lewis and South Thurston counties and the state of Washington through the Coal Transition Boards.
About Centralia Coal Transition Funding Boards
Overview of the Centralia Coal Transition Funding Boards:
Weatherization Board ($10M): established to fund energy efficiency and weatherization for the residents, employees, business, non-profit organizations and local governments within Lewis County and South Thurston County; up to $1 million shall be allocated to fund residential energy efficiency and weatherization measures for low-income and moderate-income residents of Lewis County and South Thurston County;
Economic & Community Development Board ($20M): established to fund education, retraining, economic development, and community enhancement; at least $5M shall be allocated to fund education, retraining and economic development specifically targeting the needs of workers displaced from the Centralia facility;
Energy Technology Board ($25M): established to fund energy technologies with the potential to create environmental benefits to the state of Washington.
