Major Green Hydrogen Hub in Utah Gets DOE Loan

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Advanced Clean Energy Storage (ACES) hydrogen hub in Utah has received a $504.4 million loan guarantee from the U.S. Department of Energy (DOE). The clean energy loan is the first of its kind since 2014.

The project is being developed by ACES Delta LLC, a joint venture between Magnum Development LLC (Holladay, Utah) and Mitsubishi Power Americas Incorporated (Lake Mary, Florida).

"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, chief executive officer 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," he said in a press release.

When complete, the facility will provide a "complete end-to-end solution to produce, store, and convert renewable hydrogen," capable of decarbonizing the western U.S., according to the ACES Delta website. The company has retained energy consulting firm Energy and Environmental Economics Incorporated (E3) (San Francisco, California) to evaluate hydrogen opportunities in the region.

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The first phase of the project entails constructing two subterranean storage caverns, which would be able to store 300 gigawatt-hours of dispatchable clean energy upon startup. Just one of the caverns has the capacity to store the entire state of California's monthly curtailed energy, according to the company website. Construction kicked off in April, with completion expected in early 2025. WSP Global Incorporated (Montreal, Quebec) will provide engineering, procurement and construction (EPC) management services for the storage project.

The caverns will sit next to Intermountain Power Agency's (South Jordan, Utah) 1,800-megawatt (MW) Intermountain Power Plant (IPP) in Delta, Utah, which will see its two coal-fired units retire in 2025. IPA plans to replace the plant with a new, 840-MW, combined-cycle plant.

The ACES hub will provide hydrogen feedstock to the new plant, which initially will be powered by a mix of 30% green hydrogen and 70% natural gas starting in 2025--increasing to 100% green hydrogen by 2045.

The Los Angeles Department of Water and Power (LADWP) is performing project management services for the IPP Renewed combined-cycle power plant project. LADWP also is the largest purchaser of electricity from the Intermountain plant. Subscribers can click here for the detailed project report.

Regarding green hydrogen production, the ACES facility will convert the commodity from excess renewable energy via a 220-megawatt (MW) electrolyzer bank, to produce up to 100 metric tons per day. Black & Veatch Incorporated (Overland Park, Kansas) is providing EPC services for the project. Subscribers can click here for the unconfirmed project report.

Subscribers to the GMI database can click here to see detailed reports for the three projects mentioned above, and click here for a list of related plant profiles.

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