U.S. Department of Energy Gives $500 Million Conditional Commitment to Advanced Clean Energy Storage Project

The U.S. Department of Energy’s (DOE) Loan Programs Office announced the issuance of a conditional commitment to Advanced Clean Energy Storage, Mitsubishi Power Americas, Magnum Development, and Haddington Ventures for up to $504.4MM in debt financing for the Advanced Clean Energy Storage Project, expected to be the world’s largest industrial green hydrogen production and storage facility.

This conditional funding commitment signifies the latest development milestone for the project.

The pioneering Advanced Clean Energy Storage hydrogen hub, situated in Delta, Utah, was announced in May 2019, and within three years is in the final stages of debt and equity closing.

Currently, 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. 

The project 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, which will then be stored in two massive salt caverns each capable of storing 150 GWh of energy.

Financed with support from the DOE loan guarantee, this facility will supply hydrogen feedstock to the Intermountain Power Agency’s (IPA) IPP Renewed Project — an 840 MW hydrogen capable gas turbine combined cycle power plant — that will initially run on a blend of 30 percent green hydrogen and 70 percent natural gas by volume starting in 2025 and will increase to 100 percent by 2045.

Multiple industry leaders are also involved in the hub, which broke ground this Spring, including Black & Veatch, Mitsubishi Power, NAES Corporation, Utah School and Institutional Trust Lands Administration, and WSP.

“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,” said Craig Broussard, CEO of the joint venture. “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.”