DOE Finances the World’s Largest Clean Hydrogen Storage Facility

Business, Business News/Analysis, Energy, Federal Agency/Executive Branch, Funding/Financing/Investing, Resources, Utah

January 18, 2023

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(ICF) We analyzed the clean power, hydrogen, and long duration storage markets for this first-of-its-kind project. … The Advanced Clean Energy Storage (ACES) project in Utah had the potential to become the world’s largest clean hydrogen storage facility—improving reliability for energy-challenged states, particularly California—but it lacked the financing to bring the project to market.

The DOE’s Loan Program Office has a unique mission, building a bridge to bankability for innovative, high-impact energy technologies that are ready to deploy at scale but not mature enough to be supported by conventional lenders. As part of its rigorous due diligence process, the DOE examines these projects’ technical and market aspects to establish their commercial viability and ability to deliver a long-term economic return on investment.

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In June 2022, DOE officially closed on a $504.4 million loan guarantee to finance the ACES clean hydrogen and energy storage facility. It will store hydrogen in salt caverns in Utah and make it available when it’s needed the most: to supplement solar and wind power across the Southwest in the summer months.

As the project is using combined cycle power plant technology, this innovative technology coupling demonstrates the ability to convert existing natural gas power plants to hydrogen instead of building new facilities—helping states to meet deep decarbonization goals. READ MORE

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