The US Department of Energy (DOE), through its Loan Programs Office, has made a conditional commitment to provide up to $504.4m in debt for an industrial green hydrogen production and storage hub to be built in Utah, US.
The Advanced Clean Energy Storage Project is being developed by Advanced Clean Energy Storage I, Mitsubishi Power Americas, Magnum Development, and Haddington Ventures.
Originally announced in 2019, the new hydrogen hub will be designed to initially convert more than 220MW of renewable energy to 100 metric tonnes of green hydrogen per day.
The green hydrogen produced at the facility will be stored in two sprawling salt caverns, each capable of storing 150GWh of energy.
The project is anticipated to supply hydrogen feedstock to the Intermountain Power Agency’s (IPA) 840MW hydrogen capable gas turbine combined cycle power plant.
Dubbed IPP Renewed Project, the power plant will initially run on a mix of 30% green hydrogen and 70% natural gas by volume starting from 2025, with plans to increase it to 100% by 2045.
Advanced Clean Energy Storage I president Michael Ducker said: “We are unbelievably excited to reach this important milestone, not just for our hub, but for the hydrogen industry as a whole.
“Equally rewarding is having spent the past year partnering and working with such a forward-thinking and incredibly talented team from the Intermountain Power Agency to trail blaze this market leading facility.”
US-based engineering, procurement, and construction company Black & Veatch has been selected to provide EPC services for the renewable hydrogen facility.
Mitsubishi Power will provide hydrogen equipment integration, including the 220MW of electrolysers, gas separators, rectifiers, medium voltage transformers, and control system.
NAES would initially provide the O&M services for the facility along with managing the currently estimated team of 20 plant-related personnel.
Utah School and Institutional Trust Lands Administration, a subdivision of the State of Utah, will lease the site and use the revenue generated from the plant to fund schools in the state.
Furthermore, WSP has been selected to provide EPC Management services for the development of two large salt cavern storage facilities.
Black & Veatch incoming chair and CEO Mario Azar said: “being part of this innovative team advancing clean hydrogen as a fuel and feedstock is helping pave the way for a lower-carbon energy future that takes the energy transition farther, faster.”
“Black & Veatch is committed to keeping our clients and partners ahead of the curve when it comes to managing the energy transition and meeting their decarbonization goals.”
