The world’s largest clean storage facility will create jobs, deploy clean energy and replace an old coal plant.
The U.S. Department of Energy (DOE) has secured a $504.4 million loan guarantee to Mitsubishi Power Americas and Magnum Development for the Advanced Clean Energy Storage I project, the world’s largest industrial green hydrogen facility . The project, which is located in Millard County, Utah, was announced in 2019 and is currently in the final stages of debt and equity closing.
The loan guarantee is the first for a new clean energy technology project from the DOE’s Lending Programs Office (LPO) since 2014, and it will help fund construction of the facility. The project is expected to create up to 425 jobs and advance President Biden’s goal of net zero emissions by 2050 through the deployment of clean energy, as well as the replacement of an end-of-life coal-fired power plant .
“The Advanced Clean Energy Storage team, along with its world-class industry partners, is thrilled to secure this loan from the DOE to develop the first phase of the world’s largest renewable hydrogen energy center,” said Michael Ducker, Vice senior president of Hydrogen Infrastructure for Mitsubishi Power Americas and president of Advanced Clean Energy Storage I. “This milestone creates a pathway to accelerate the long-term hydrogen market and clean energy landscape to expand the decarbonization in the United States.”
The facility will combine 220 MW of alkaline electrolysis with salt cavern storage for grid-scale energy conversion and storage using hydrogen as the energy carrier. The clean hydrogen will be stored in two massive 4.5 million barrel salt caverns. Advanced Clean Energy Storage will capture excess renewable energy when it is most abundant, store it as hydrogen, and then deploy it as fuel for the Intermountain Power Agency’s (IPA) renewed IPP project, a hydrogen-powered gas-turbine combined-cycle power plant that is expected to be powered progressively by 100% clean hydrogen by 2045.
The plan is to use the stored hydrogen as fuel for an 840 MW hybrid combined cycle gas turbine (CCGT) plant that will replace the 1,800 MW coal plant at the end of its life. The project is estimated to help prevent 126,517 metric tons of carbon dioxide emissions per year based on the difference in IPP turbine emission profiles between 100% natural gas fuel and a 70 % natural gas and 30% hydrogen.
“Since President Biden’s first day in office, the DOE has made it a priority to leverage the potential of the Office of Lending Programs to fund emerging technologies that will deliver clean, reliable energy for Americans,” the agency said. US Secretary of Energy, Jennifer M. Granholm. “Accelerating the commercial deployment of clean hydrogen as a long-term, zero-emissions energy storage solution is the first step to harnessing its potential to decarbonize our economy, create well-paying clean energy and allow more renewables to be added to the grid. ”
By the end of May, the Office of Lending Programs had attracted more than 70 active applications for projects in 24 states totaling nearly $79 billion in requested loans and loan guarantees. With the closing of this loan guarantee, LPO now has $2.5 billion of loan guarantee authorization remaining for innovative clean energy projects. Since early 2021, LPO has made substantial changes to enhance its innovative Clean Energy Loan Guarantee Program and Tribal Energy Loan Guarantee Program. To find out more about the supported projects, visit the LPO portfolio projects webpage.
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