The Biden administration is backing a project in Utah that would build the world’s largest industrial green hydrogen production and storage plant, with a multi-million dollar investment.
The Department of Energy has made a conditional commitment supported by up to $504.4 million in debt financing for the joint venture between Advanced Clean Energy Storage Project, Mitsubishi Power Americas Inc., and Magnum Development, which is slated to begin operations in 2025.
The center will be 135 miles south of Salta Lake City in Delta, Utah.
The Advanced Clean Energy Storage project will be the largest industrial green hydrogen production and storage plant in the world.
Michael Ducker, senior vice president of hydrogen infrastructure for Mitsubishi Power Americas and President of Advanced Clean Energy Storage, said, “We are tremendously delighted to attain this crucial milestone, not just for our hub, but for the hydrogen industry as a whole.”
The project will use 220 megawatts of electrolyzers (machines that break water into hydrogen and oxygen) to produce up to 100 metric tons of green hydrogen per day, converting renewable energy. Two large salt caverns will be used to store the hydrogen.
Ducker stated the tunnels will be able to house 9 million barrels of hydrogen in an interview with Bloomberg. According to him, this would increase worldwide storage capacity from 11 million to 13 million barrels.
Construction is still continuing ahead, and Magnum’s financial advisor, Haddington Ventures, is working to obtain $650 million in equity financing for the project.
The Biden administration unveiled many initiatives aimed at transitioning the United States to renewable energy earlier this year, as well as significant climate change action.
