World’s Largest Green Hydrogen Project to Get $500m from US Govt

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The US Department of Energy (DOE) has announced that it has conditionally committed for up to $504 million in debt financing for the Advanced Clean Energy Storage Project which is expected to be the world’s largest industrial green hydrogen production and storage facility.

The commitment is made to companies: Advanced Clean Energy Storage, Mitsubishi, Magnum and Haddington. The Advanced Clean Energy Storage hydrogen hub is located in Delta, Utah, and is in the final stages of debt and equity closing. The hub has secured all major contracts 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 $650 million through its Equity Syndication Program. The official statement of the project says that these critical financial investments will ensure the future growth and scalability of the hub.

Michael Ducker, who represents both Mitsubishi Power and the Storage Project, says it’s an 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. We are honored to be sharing this industry moment with them along with all of our world-class partners joining this effort,” he added.

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The hub will initially be designed to convert renewable energy through 220 MW of electrolyzers to produce up to 100 metric tonnes per day of green hydrogen. The green hydrogen produced will be stored in two massive salt caverns each having storage capacity of 150 GWh. Financed with support from the DOE loan guarantee, this facility will supply hydrogen feedstock to the Intermountain Power Agency’s IPP Renewed Project.

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Greg Huynh, Operating Agent, IPA, said, “The IPP Renewed Project is committed to helping the region meet its carbon targets by utilizing green hydrogen as a tool to integrate affordably and reliably with the significant build-out of renewables. The scale, experience, and collaboration offered by the Advanced Clean Energy Storage hydrogen hub made their team the ideal partner for us to work with as we realize our vision towards 100% green hydrogen at the site.”

The official statement says that multiple industry-leading entities are also involved in the hub, which broke ground this spring. Black & Veatch, Mitsubishi Power, NAES Corporation, Utah School and Institutional Trust Lands Administration and WSP are part of the development of the green hydrogen project.

Craig Broussard, CEO of the joint venture, holds, “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. 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 actively seeking partners to bring green jobs and green hydrogen to support rural Utah and greater decarbonization across industries.