DOE closes on $504M loan guarantee for world’s largest clean hydrogen and energy storage project

The US Department of Energy (DOE) closed on a $504.4-million loan guarantee to the Advanced Clean Energy Storage project in Delta, Utah (ACES Delta)—marking the first loan guarantee for a new clean energy technology project from DOE’s Loan Programs Office (LPO) since 2014. The loan guarantee will help finance construction of the largest clean hydrogen storage facility in the world, capable of providing long-term low-cost, seasonal energy storage, furthering 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 electrolyzers to produce up to 100 metric tonnes 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 Advanced Clean Energy Storage salt cavern

Financed with support from the DOE loan guarantee, this facility will supply hydrogen feedstock to the Intermountain Power Agency’s (IPA) IPP Renewed Project—an 840 MW hydrogen capable gas turbine combined cycle power plant—that will initially run on a blend of 30% green hydrogen and 70% natural gas by volume starting in 2025 and will increase 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 closing. Currently, the hub has secured all major contracts including offtake; engineer, procure and construct (EPC) contractors; major equipment suppliers, and Operations and Maintenance (O&M) providers.

With the closing of this loan guarantee, LPO now has $2.5 billion in remaining loan guarantee authority for Innovative Clean Energy projects.