Heliogen, a leading provider of AI-enabled concentrating solar energy technology, has entered into a definitive contract with the City of Lancaster, California, to produce green hydrogen to meet the city’s growing fuel needs.
This partnership marks Lancaster’s first hydrogen offtake agreement and represents a significant step towards decarbonization.
Under the agreement, Heliogen will produce green hydrogen at its Proxima facility in Lancaster using its innovative technology that leverages AI and advanced computer vision software to concentrate sunlight with mirrors. This process enables the production of carbon-free hydrogen with immense economic development potential. Heliogen will also ensure the carbon intensity of the hydrogen produced, certifying its environmental impact.
The green hydrogen produced at Proxima has the potential to support various projects within the city and region, including the production of sustainable aviation fuel and the sales and distribution of hydrogen fuel for industrial processes like long-haul trucking, cement production, and mining.
The collaboration between Heliogen and Lancaster builds upon a previously announced memorandum of understanding (MOU) between the two parties to establish a clean hydrogen generation facility. The hydrogen produced will conform to SAE J2719 fuel cell vehicle specifications and will be supplied to the city at an offtake price of $10 per kilogram. This wholesale-level pricing offers significant cost savings for the city, especially considering the rising prices at hydrogen filling stations across California.
Lancaster, as the nation’s first hydrogen city and an inaugural winner of the U.S. Department of Energy’s H2 Twin Cities Initiative, is committed to becoming a model and leader in adopting hydrogen as a clean energy source for municipalities.
Christie Obiaya, CEO of Heliogen, emphasizes the potential of green hydrogen as a key pathway towards a decarbonized economy. The agreement with Lancaster highlights the value of Heliogen’s breakthrough technology in producing cost-effective green hydrogen and its role in accelerating the global adoption of this versatile clean fuel.
Mayor R. Rex Parris of the City of Lancaster expresses pride in pioneering innovative solutions to drive change and decarbonize the local economy. He recognizes the immense promise of Heliogen’s carbon-free hydrogen in fueling the city’s municipal fleet with the lowest carbon intensity. The mayor invites other cities to join Lancaster on the path to decarbonization, emphasizing the role of hydrogen in tackling climate change.
Heliogen has already made progress in the preliminary configuration designs for the Proxima facility and has secured a suitable site for its operations.