U.S. DOE Funds World’s Largest Green Hydrogen Facility

Mitsubishi Power Americas and Magnum Development announced today the completion of a $504.4 million loan guarantee from the United States.

Photo Insert: The hub will use Utah’s unique geological salt domes to store green hydrogen across two massive salt caverns, each capable of storing 150 gigawatt hours of energy.

The Department of Energy (DOE) Loan Programs Office has awarded a loan to Advanced Clean Energy Storage (ACES) I to build the world's largest industrial green hydrogen facility in central Utah. DOE's loan is the agency's first for a renewable energy project in more than ten years.

U.S. Secretary of Energy Jennifer M. Granholm said, “Since President Biden’s first day in office, DOE has made it a priority to leverage the potential of the Loan Programs Office to fund emerging technologies that will deploy clean and reliable energy to Americans. Accelerating the commercial deployment of clean hydrogen as a zero-emission, long-term energy storage solution is the first step in harnessing its potential to decarbonize our economy, create good paying clean energy jobs and enable more renewables to be added to the grid.”

DOE's Loan Programs Office issued a conditional commitment for ACES I in April 2022. The loan will be paid off on June 3, 2022, demonstrating the Administration's and the Energy Department's commitment to the clean hydrogen sector.

This loan helps to create a viable market for hydrogen and makes it scalable in the western United States and electrical grid, laying the groundwork for the deployment of this zero-carbon energy source.

“This joint venture is historic for Mitsubishi Power Americas and the future of global hydrogen deployment,” says Bill Newsom, President and CEO of Mitsubishi Power Americas.

“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.”

The hub is expected to generate up to 100 metric tonnes of green hydrogen per day from renewable energy via electrolysis. Green hydrogen can then be stored in two massive salt caverns, each capable of storing 150 gigatonnes of energy, creating the world's single largest hydrogen storage site and allowing for seasonal shifting of excess renewable energy.

The salt caverns' long-duration energy storage capability will help improve resource adequacy and reduce costs by capturing excess renewable power when it is abundant and dispatching it back onto the grid when it is required.

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