The Biden administration is advancing the production of green hydrogen in the US. The Department of Energy has issued a conditional commitment for up to $504.4 million in debt financing for the creation of a green hydrogen hub in Delta, Utah.
The project supported by the government would create the world’s largest industrial green hydrogen production and storage facility in the world.
Relevant: Plug Power Stock Boosted On Green Hydrogen Deal With Walmart
The project is called Advanced Clean Energy Storage Project and is a joint venture between Mitsubishi Power Americas Inc., and Magnum Development. It is expected to start operating in 2025.
The capacity of clean energy it will provide is more than 300 gigawatt-hours per year. Advanced Clean Energy Storage Project includes 220 megawatts of electrolyzers powered by wind and solar energy and storage caverns that initially will be able to hold 9 million barrels of hydrogen.
The current global storage capacity is 11 million to 13 million barrels per year. The demand for green hydrogen is projected to grow exponentially in the medium term, reaching around 530 million tons which would displace roughly 10.4 billion barrels of oil equivalent or one-third of global annual oil production.
Relevant: The World’s Largest Green Hydrogen Storage Hub To Be Built In Mississippi
“We are unbelievably excited to reach this important milestone, not just for our hub, but for the hydrogen industry as a whole,” said Michael Ducker, senior vice president of hydrogen infrastructure for Mitsubishi Power Americas and President of Advanced Clean Energy Storage.
Building the world’s largest green hydrogen hub in the US would place the country as a leader in green hydrogen production. The project is also expected to accelerate the administration’s ambitions of expanding clean energy and the green transition.
