$504 million green hydrogen facility being built in Utah

white and blue factory under white clouds during daytime Photo: Photo by Untitled Photo

DELTA, Utah – In a media release from this past June, the United States Department of Energy (DOE) announced a $504.4 million loan guarantee to Advanced Clean Energy Storage LLC (ACES), who are working closely with Mitsubishi Power Americas and Utah-based Magnum Development. ACES is contracted to build the world’s largest industrial green hydrogen storage facility right here in central Utah.

The storage facility, set to be built in Delta, will help the clean energy transition as the facility there is upgraded to an 840 megawatt (MW) hydrogen-capable gas turbine combined cycle power plant. The plant will initially run on a blend of 30% green hydrogen and 70% natural gas starting in 2025 and then incrementally expand to 100% green hydrogen by 2045.

“The Advanced Clean Energy Storage team, with its world-class industry partners, is excited to secure this loan by DOE to develop the first phase of the world’s largest renewable hydrogen energy hub,” said Michael Ducker, senior vice president of Hydrogen Infrastructure for Mitsubishi Power Americas and president of Advanced Clean Energy Storage LLC. “This step creates a path to accelerate the long-term hydrogen market and clean energy landscape to expand decarbonization across the United States.”

Power plants that use hydrogen as fuel might lessen their reliance on fuels like natural gas, which, when burned, produces more greenhouse emissions. Numerous countries support the use of so-called green hydrogen in ships, automobiles, and power plants. This hydrogen is produced using electrolysers that are fueled by renewable energy sources.

U.S. Secretary of Energy Jennifer M. Granholm said the following about the development:

“Since President Biden’s first day in office, DOE has made it a priority to leverage the potential of the Loan Programs Office to fund emerging technologies that will deploy clean and reliable energy to Americans. Accelerating the commercial deployment of clean hydrogen as a zero-emission, long-term energy storage solution is the first step in harnessing its potential to decarbonize our economy, create good paying clean energy jobs and enable more renewables to be added to the grid.”

By electrolyzing renewable energy, the facility will be able to produce up to 100 metric tons of green hydrogen on a daily basis. The world’s largest hydrogen storage site can then be created by storing green hydrogen in two enormous salt caverns, each of which has the capacity to store 150 GWh of energy. This allows for excess renewable energy to shift seasonally.

The salt caverns’ ability to store green hydrogen for extended periods of time will reduce costs and increase resource efficiency by collecting excess renewable energy when it is available and then redistributing it to the grid when it is needed.

Bill Newsom, President and CEO of Mitsubishi Power Americas, also commented on the partnership:

“This joint venture is historic for Mitsubishi Power Americas and the future of global hydrogen deployment. We’re proud to partner with Magnum Development and provide the hydrogen equipment to further advance carbon-free hydrogen as a cornerstone of our future energy supply and help chart the path towards net zero. This project sets the industry gold standard for hydrogen deployment, helping to combat the impacts of climate change and advance human prosperity.”

The development and operation of the Advanced Clean Energy Storage hub will encourage economic development locally by creating up to 400 local construction jobs throughout the 3-year construction cycle. It will employ a projected 25 full-time operations and maintenance personnel to provide 24/7 operations and maintenance of the facility.

Additionally, property tax revenue collected by Millard County, Utah, will contribute to services that benefit all nearby Utahns, which typically include law enforcement, emergency response, infrastructure, and other services.

ACES hopes to open the facility by 2025 and seamlessly integrate with the Western power grid and interstate gas transmission system. This project will serve as a green hydrogen gas and storage hub for the Western United States, delivering green hydrogen for the power generation, industrial, and transportation sectors.

To learn more about the ACES project, follow this link.