US Department of Energy’ Loan Programs Office’s Innovative Clean Energy Loan Guarantees has gathered momentum with a conditional commitment for a USD 504.4 million loan guarantee to the Advanced Clean Energy Storage Project, which would be a first-of-its-kind clean hydrogen production and storage facility capable of providing long-term seasonal energy storage. The facility in Delta in Utah will combine alkaline electrolysis with salt cavern storage for grid scale energy conversion and storage using hydrogen as the energy carrier.The Project has the potential to build on LPO’s track record of catalyzing innovative energy sectors and accelerating the clean energy transition in several ways:Advanced Clean Energy Storage could accelerate the commercial deployment of the clean hydrogen sector as the 220-megawatt electrolyzer bank would be one the largest deployments in the world. While industries are beginning to implement clean hydrogen to reduce emissions, many hurdles remain for deploying it at scale. According to DOE’s Hydrogen and Fuel Cell Technology Office, hydrogen from renewable energy costs about $5 per kilogram. Achieving the DOE Hydrogen Shot’s 80% cost reduction goal can unlock new markets for hydrogen, including energy storage. Additionally, DOE is working to implement the Infrastructure Investment and Jobs Act’s hydrogen initiatives, which includes $8 billion for Regional Clean Hydrogen Hubs that will create jobs to expand use of clean hydrogen in the industrial sector and beyond.
US Department of Energy’ Loan Programs Office’s Innovative Clean Energy Loan Guarantees has gathered momentum with a conditional commitment for a USD 504.4 million loan guarantee to the Advanced Clean Energy Storage Project, which would be a first-of-its-kind clean hydrogen production and storage facility capable of providing long-term seasonal energy storage. The facility in Delta in Utah will combine alkaline electrolysis with salt cavern storage for grid scale energy conversion and storage using hydrogen as the energy carrier.The Project has the potential to build on LPO’s track record of catalyzing innovative energy sectors and accelerating the clean energy transition in several ways:Advanced Clean Energy Storage could accelerate the commercial deployment of the clean hydrogen sector as the 220-megawatt electrolyzer bank would be one the largest deployments in the world. While industries are beginning to implement clean hydrogen to reduce emissions, many hurdles remain for deploying it at scale. According to DOE’s Hydrogen and Fuel Cell Technology Office, hydrogen from renewable energy costs about $5 per kilogram. Achieving the DOE Hydrogen Shot’s 80% cost reduction goal can unlock new markets for hydrogen, including energy storage. Additionally, DOE is working to implement the Infrastructure Investment and Jobs Act’s hydrogen initiatives, which includes $8 billion for Regional Clean Hydrogen Hubs that will create jobs to expand use of clean hydrogen in the industrial sector and beyond.
