The loan offered by the US Department of Energy’s Loan Programs Office marks its first loan in 10 years to the development of the world’s largest green hydrogen hub in Utah
Advanced Clean Energy Storage I will develop the green hydrogen facility. (Credit: Mitsubishi Power Americas, Inc.)
Mitsubishi Power Americas and Magnum Development have secured a $504.4m loan guarantee from the US Department of Energy (DOE) to develop a large-scale green hydrogen facility in central Utah, US.
DOE is offering the loan to Advanced Clean Energy Storage I project (ACES I), through its Loan Programs Office.
ACES I is the entity that will develop the Advanced Clean Energy Storage (ACES) hub as the world’s largest industrial green hydrogen facility.
The current loan guarantee follows a conditional commitment by Loan Programs Office earlier this year and marks its first loan in more than 10 years for a renewable project.
The ACES green hydrogen hub is expected to boost the development of the local economy in the region.
It is expected to create up to 400 local jobs during the construction period of three years, and will employ 25 full-time operations and maintenance personnel at the facility.
In addition, the facility is expected to provide tax revenue benefits to Millard County, Utah.
Magnum Development and ACES Delta CEO Craig Broussard said: “Magnum Development has enjoyed a synergistic relationship with the City of Delta and Millard County since 2008.
“In addition, royalties paid from our operations go to our mineral estate partner, the Utah School and Institutional Trust Lands Administration, to provide funding for the Utah educational system.
“Over the next three decades, significant taxes and royalties will flow from this initial phase of green hydrogen development at our site.”
The ACES hub will be designed to produce up to 100MT per day of green hydrogen from renewable energy using electrolysis.
The green hydrogen produced at the hub is then stored in two large salt caverns, capable of storing 150GWh of energy.
It would become the world’s single largest hydrogen storage site and provides capabilities for seasonal shifting of excess renewable energy.
Furthermore, the ACES hub would support the Intermountain Power Agency’s IPP Renewed project refurbishing to an 840MW hydrogen-capable gas turbine power plant.
The project is planned to run on a blend of 30% green hydrogen initially, with plans for running on 70% natural gas from 2025, and expand to 100% green hydrogen by 2045.
Mitsubishi Power Americas president and CEO Bill Newsom said: “This joint venture is historic for Mitsubishi Power Americas and the future of global hydrogen deployment.
“We’re proud to partner with Magnum Development and provide the hydrogen equipment to further advance carbon-free hydrogen as a cornerstone of our future energy supply and help chart the path towards net-zero.
“This project sets the industry gold standard for hydrogen deployment, helping to combat the impacts of climate change and advance human prosperity.”