A green hydrogen project in Utah has received a $504.4 million loan guarantee from the Department of Energy’s Loan Programs Office, the first guarantee awarded to a clean energy project in nearly a decade.
The Advanced Clean Energy Storage project will combine 220 MW of alkaline electrolysis with two 4.5-million-barrel salt caverns to store clean hydrogen.
The project is intended to capture excess renewable energy when it is most abundant, store it as hydrogen, then deploy it as fuel for the Intermountain Power Agency’s IPP Renewed Project. The hydrogen-capable gas turbine combined cycle power plant would be incrementally fueled by 100% clean hydrogen by 2045.
The Advanced Clean Energy Storage project received a conditional commitment from LPO in April. This is the first time a green hydrogen project has received a loan guarantee from DOE.
The Utah project is planned to include retiring existing coal-fueled power generating units at the IPP site; installing new natural gas-fueled electricity generating units capable of utilizing hydrogen for 840 MW net generation output; modernizing IPP’s Southern Transmission System linking IPP to Southern California; and developing hydrogen production and long-term storage capabilities.
IPP would use renewable energy-powered electrolysis to split water into oxygen and hydrogen. The new natural gas generating units, expected to be supplied by Mitsubishi Power, would use 30% hydrogen fuel at start-up, transitioning to all hydrogen fuel by 2045 as technology improves. The Los Angeles Department of Water and Power would be the offtaker for electricity produced by the facility.
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