The U.S. Department of Energy’s (DOE) Lending Programs Office (LPO) has committed US$504 million to a 300 GWh hydrogen storage project in Utah and an additional US$107 million to a graphite production plant for batteries in Louisiana.
The DOE has offered a conditional commitment for a US$504.4 million loan guarantee to the Advanced Clean Energy Storage Project in Delta, Utah, which began this spring and has multiple backers and developers , including Mitsubishi Power Americas.
He was asked to apply for a loan last year shortly after the LPO reopened, having been dormant through the Trump years.
The renewable energy will be converted by 220 MW of electrolyzers into up to 100 metric tons of green hydrogen per day when the project is completed in 2025. This will be stored in two huge salt caverns with a storage capacity of combined 300 GWh.
The facility will supply the stored hydrogen to the Intermountain Power Agency’s renewed IPP project, an 840MW combined cycle power plant also in Delta, powering 30% of the plant when it launches concurrently in 2025 with plans to increase to 100% by 2045. However, in a recent interview with energy-storage.newsThomas Cornell of Mitsubishi Power America said that could happen as early as 2030 or 2035.
“The Los Angeles Department of Water and Power (LADWP) is a major tenant of the IPP Renewed facility, which will be on a DC line. The plan is, with all the renewables reduced on that DC line, to move the electricity to Utah to produce hydrogen, then during times when they need the excess electricity, and then take that electricity from Utah and send her back to Southern California,” Cornell said.
The green hydrogen hub is the largest planned in the world and its proximity and connection to California, with its massive solar pipeline, is unsurprising given that large-scale green hydrogen needs significant sources of energy. ‘renewable energy. The technology is at an early stage of commercialization, making commercial bank debt financing difficult to come by. Premium subscription users of energy-storage.news’ sister site PV-tech can read an analytical article on the subject here.
The hydrogen center has off-take agreements and all major contracts with engineering, procurement and construction (EPC) contractors, major equipment vendors, and operations and maintenance vendors (O&M), Mitsubishi Power said. Haddington Ventures is raising $650 million from investors to help fund the project.
Black & Veatch provides EPC services for the power conversion plant while Mitsubishi Power provides the integration of hydrogen equipment including electrolysers, gas separators, rectifiers, medium voltage transformers and the distributed control system. NAES Corporation will provide O&M services while WSP will provide EPC management services for the development of two salt cavern storage facilities.
The DOE LPO also offered a conditional commitment of US$107 million to Syrah Technologies to expand its Syrah Vidalia facility in Louisiana. The facility produces graphite-based active anode material (AAM) for electric vehicle batteries and has an off-take agreement with Tesla for the majority of its production.
He expects the expansion to allow the facility to produce enough AAM for 2.4 million electric vehicles by 2040.
This commitment is the first of the LPO’s Advanced Technology Vehicle Manufacturing (ATVM) program in more than a decade. The DOE said it is building on Biden’s recent enactment of the Defense Production Act to secure critical battery materials, including graphite.