The US Department of Energy (DOE) Loans Program Office (LPO) has committed to a conditional US$504 million investment into the development of a major green hydrogen hub in Utah.
The Advanced Clean Energy Storage Project in Utah has initially been designed to use renewable energy to power a 220MW of electrolyser to produce up to 100 metric tonnes (MT) of green hydrogen per day. This will then be stored in two salt caverns each capable of storing 150GWh of energy.
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The project will then supply hydrogen to the Intermountain Power Plant — an 840MW hydrogen capable gas turbine combined cycle power plant — that will initially run on a blend of 30% green hydrogen and 70% natural gas by 2025, with this increasing to 100% by 2045. PV Tech’s sister site Energy-storage.news (ESN), however, has reported that this target could be met sooner.
More detail on the storage element of the project as well as some exclusive extra coverage of today’s announcement by ESN can be accessed here.
The Advanced Clean Energy Storage Project was announced in May 2019, broke ground in spring and is now in the final stages of debt and equity closing. Mitsubishi Power Americas, which is a major backer of the project, said that once complete, it will be the world’s largest industrial green hydrogen production and storage facility.
It has locked in contractors including offtake, engineer, procure and construct (EPC) contractors, major equipment suppliers and operations and maintenance (O&M) providers.
Haddington Ventures, the financial advisor for the hub and equity sponsor of Magnum Development, is securing US$650 million through its Equity Syndication Program.
“The Advanced Clean Energy Storage Project is well on its way to achieving its goal in the creation of a world-class green hydrogen hub,” said Craig Broussard, CEO of the joint venture. “Through our network of partners, we have the potential to provide low-cost green hydrogen to verticals in addition to power, including refineries, heavy industrials and the transportation sector.”
The hub is seeking partners to bring green jobs and green hydrogen to support rural Utah and greater decarbonisation across industries, said Mitsubishi.