The Department of Energy intends to issue a half-billion-dollar loan guarantee for a “first-of-its-kind” hydrogen project, according to E&E News.
What’s happening: If finalized, the $504 million earmarked for the Advanced Clean Energy Storage project in Delta, Utah, would support “a team of developers [who] plan to produce hydrogen using excess renewable electricity and store it in two new underground salt caverns.”
- The produced hydrogen would be sold for use in heavy industry, refineries and transportation, as well as at Utah’s Intermountain Power Agency plant, which plans to transition from coal to 100% hydrogen by 2045.
- The Utah project, which would eventually aim to produce and store about 100 metric tons of renewable hydrogen, marks “the third loan guarantee by the Biden administration and the second award for a ‘clean hydrogen’ project.”
How it will work: The Utah project would include one of the world’s largest-scale deployments of electrolyzers, which would use wind and solar power to split hydrogen from water molecules in a zero-emissions process.
Who’s getting the funds: The DOE money “would be awarded to Mitsubishi Power Americas Inc. and salt dome developer Magnum Development LLC, along with private equity firm Haddington Ventures LLC. The project will also involve work from entities Black & Veatch, NAES Corp., WSP Global Inc. and the Utah School and Institutional Trust Lands Administration.”
The NAM says: “Manufacturers support additional investments in clean hydrogen technologies,” said NAM Director of Energy and Resources Policy Chris Morris. “Hydrogen is a dynamic fuel source and is critical along many manufacturing supply chains. This announcement reinforces the necessity of energy storage and security.”