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DOE $500M Clean Hydrogen Project is Announced

About 100 metric tons of renewable hydrogen could eventually be produced and stored at the Advanced Clean Energy Storage site, according to the developers, ranking it among the biggest planned production sites of renewable hydrogen in the United States.

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The $504 million for a Utah project is the third loan guarantee from the Biden administration, which has struggled to get its climate priorities through Congress but has tens of billions in loan authority to back innovative clean energy projects at the Department of Energy (DOE).

It is also the second award for a “clean hydrogen” project, underscoring the technology’s centrality to the administration’s climate plans and renewing questions about local emissions tied to renewable hydrogen.

The loan guarantee was described by DOE as a conditional commitment, meaning final sign-off would hinge on unspecified conditions. If finalized, it would support development of the Advanced Clean Energy Storage (ACES) project in Delta, UT where a team of developers plan to produce hydrogen using excess renewable electricity and store it in two new underground salt caverns.

The hydrogen would then be sold for use in transportation, heavy industry and refineries, as well as at an Intermountain Power Agency power plant in Utah which plans to ditch coal by 2025 in favor of a 70 percent-30 percent mix of natural gas and hydrogen. By 2045, the plant would transition to 100 percent hydrogen, under the plan.

The full E&E News story is here.

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