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Mitsubishi Heavy and Bakken Energy collaborate on large hydrogen project

Arnes BiogradlijaBy Arnes Biogradlija05/04/20222 Mins Read
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Mitsubishi Heavy Industries is collaborating with Bakken Energy of the United States on what is expected to be one of North America’s largest clean hydrogen projects, with a capacity of more than 300,000 tons per year.

In North Dakota, an old chemical facility will be repurposed to extract hydrogen from natural gas. It will absorb and store carbon dioxide released throughout the process, with the goal of sequestering 6 million tons per year, the equivalent of 2.6 million passenger vehicle emissions annually.

The “blue” hydrogen facility is scheduled to open in 2027 at a cost of approximately $2 billion. Mitsubishi Heavy is considering investing in the project and entering the construction industry.

Hydrogen is gaining traction as a viable alternative to fossil fuels, particularly as Europe seeks to lessen its reliance on Russian gas in the aftermath of the Ukraine incursion.

The Japanese industrial conglomerate is focusing its decarbonization efforts on hydrogen and carbon sequestration, establishing a track record that includes a carbon capture facility at a Texas coal-fired power station.

The local government will contribute to the initiative. Gov. Doug Burgum of North Dakota told Nikkei that the state will support the project with $10 million in subsidies and $80 million in low-interest loans through its Clean Energy Sustainability Fund.

The United States is the world’s greatest oil producer, and North Dakota is the second largest, accounting for at least 10% of the country’s output. North Dakota is home to a portion of the Bakken Formation, which fueled the US shale boom. Additionally, it is a significant producer of natural gas and coal.

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