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Home Home - Americas
Natural Hydrogen

Hy Stor Projects to Utilize Mississippi’s Geological Advantage in Green Hydrogen Development

Anela DoksoBy Anela Dokso26/04/20242 Mins Read
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Mississippi’s unique geological formation might offer it a key role in the increasingly significant “green hydrogen” energy domain.

Hy Stor Energy, established in 2019, aims to exploit the state’s salt domes as underground gas storage repositories for its hydrogen production. The company plans to initiate their operations by 2026’s end, primarily in Perry and Smith counties.

Renewably sourced hydrogen provides a promising breakthrough, a concept that has existed for approximately a century through electrolysis, a technique that employs electricity to separate water into hydrogen and oxygen. However, the method has only drawn substantial interest in the U.S. and Europe over recent years, with an allocation of $9.5 billion for clean hydrogen development through the Bipartisan Infrastructure Law passed in 2021.

The U.S. Department of Energy’s 2023 roadmap emphasized clean hydrogen as an imperative instrument in achieving the nation’s 2050 carbon neutral ambition. The utility of clean hydrogen is manifold – it can notably reduce emissions from various sectors like transport, metal production, and fertilizer manufacturing. Last month, the Department of Energy pledged up to $500 million towards a “green steel” endeavor, including iron production through clean hydrogen by Hy Stor in Perry County.

Hy Stor intends to utilize solar and wind power to manufacture green hydrogen, despite their intermittent availability, and transform them into a readily dispatchable fuel source like hydrogen. Mississippi, with its excellent geological features, offers an advantageous investment environment for the energy sector. Companies have utilized the state’s salt domes for gas storage, and more recently, Mississippi is becoming a hub for carbon storage.

However, the production of green hydrogen comes with a considerable price tag. The first phase of the project is forecasted to cost over $10 billion. To fund this operation, Hy Stor wants to establish long-term agreements with industry clients. Hy Stor’s initial client base during the initial operating years will be plastic, maritime, and other transport companies, and the proposed green steel project. Despite this, no project financing has been sourced from federal or state government funds, though potential backing from the Department of Energy and renewable energy tax credits has been considered.

Hy Stor, along with Mississippi’s supportive geological features and political support from local leaders, can give a substantial boost to the green hydrogen market, potentially transforming Mississippi into a leader in this emerging sphere of renewable energy.chat.completion

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