DOE completes $504 million loan guarantee for world’s largest hydrogen storage and clean energy project
The U.S. Department of Energy (DOE) has completed a $504.4 million loan guarantee for the Advanced Clean Energy Storage project in Delta, Utah (ACES Delta) – marking the first loan guarantee for a new clean energy technology from the DOE’s Office of Loan Programs (LPO) since 2014. The loan guarantee will help finance the construction of the world’s largest clean hydrogen storage facility, capable of providing energy storage low-cost, long-term seasonal, enhancing grid stability.
ACES Delta is a joint venture between Mitsubishi Power Americas and Magnum Development.
The hub will initially be designed to convert renewable energy through 220 MW of alkaline electrolysers to produce up to 100 metric tons per day of green hydrogen, which will then be stored in two massive salt caverns each capable of storing 150 GWh. of energy.
Rendering of the Advanced Clean Energy Storage salt cave
Funded with the support of the DOE loan guarantee, this facility will provide hydrogen feedstock to the Intermountain Power Agency’s (IPA) Renewed IPP Project – a hydrogen-capable gas turbine combined cycle power plant of 840 MW – which will initially run on a mix of 30% hydrogen green power and 70% natural gas by volume from 2025 and will switch to 100% hydrogen by 2045.
The Advanced Clean Energy Storage hydrogen hub was announced in May 2019, and within three years was in the final stages of debt and equity close. Currently, the hub has secured all major contracts, including levy; engineering, procurement and construction (EPC) contractors; major equipment vendors and operation and maintenance (O&M) vendors.
With the closing of this loan guarantee, LPO now has $2.5 billion of loan guarantee authorization remaining for innovative clean energy projects.