Biden administration commits $504M for Utah hydrogen energy plant
Developers were issued a conditional commitment in an effort to create a massive hydrogen hub
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The Biden administration is supporting a project to create the world's largest industrial green hydrogen production and storage facility in Utah backed by a multi-million dollar commitment.
The Department of Energy has issued a conditional commitment backed by up to $504.4 million in debt financing for the joint venture between Advanced Clean Energy Storage Project, which is expected to start operating in 2025, Mitsubishi Power Americas Inc., and Magnum Development.
The hub will be located in Delta, Utah, 135 miles south of Salta Lake City.
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The Advanced Clean Energy Storage project is expected to be the world’s largest industrial green hydrogen production and storage facility. (Business Wire / Fox News)
"We are unbelievably excited to reach this important milestone, not just for our hub, but for the hydrogen industry as a whole," Michael Ducker, senior vice president of hydrogen nfrastructure for Mitsubishi Power Americas and President of Advanced Clean Energy Storage.
The project will be designed to convert renewable energy through 220 megawatts of electrolyzers, machines that break water into hydrogen and oxygen, to produce up to 100 metric tons per day of green hydrogen. The hydrogen will be stored in two massive salt caverns.
In an interview with Bloomberg, Ducker said the caverns will be able to hold 9 million barrels of hydrogen. That will add to the global storage capacity of 11 million to 13 million barrels, he said.
Construction is ongoing and Haddington Ventures, the financial advisor for Magnum, is making efforts to raise $650 million in equity financing for the project.
Earlier this year, the Biden administration announced several moves designed to transition the United States to renewable energy and has promised ambitious action on climate change.
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