Investors Power

Clean Energy Storage Project Receives $500 Million Conditional Commitment from U.S. Department of Energy

energy storage

Clean energy storage project

Firstly, the U.S. Department of Energy’s (DOE) Loan Programs Office announced that it has issued a conditional commitment to Advanced Clean Energy Storage I., also, LLC, and Mitsubishi Power Americas, Inc. and Magnum Development, LLC, and Haddington Ventures, LLC, for up to $504.4MM in debt financing for the Advanced Clean Energy Storage Project.

Secondly, the project expects to be the world’s largest industrial green hydrogen production and storage facility.

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.

Thirdly, Haddington Ventures, is the financial advisor for the hub and equity sponsor of Magnum Development. The company is securing $650MM through its Equity Syndication Program.

Also, these critical financial investments will ensure the future growth and scalability of the hub.

“We are unbelievably excited to reach this important milestone, not just for our hub, but for the hydrogen industry as a whole,”

Michael Ducker, Senior Vice President of Hydrogen Infrastructure for Mitsubishi Power Americas and President of Advanced Clean Energy Storage I.

We recommend: Renewable generation exceeded nuclear in the U.S. electric power sector in 202. Read more.

Expectative of the green project

In addition, the hub is design to convert renewable energy through 220 MW of electrolyzers to produce up to 100 metric tonnes; per day of green hydrogen. Then, it will be stored in two massive salt caverns each capable of storing 150 GWh of energy. 

Besides, the financed 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.

As a result, the project will initially run on a blend of 30 percent green hydrogen; and 70 percent natural gas by volume starting in 2025; it will increase to 100 percent by 2045.

“The IPP Renewed Project is committed to helping the region meet its carbon targets by utilizing green hydrogen as a tool to integrate affordably and reliably with the significant build-out of renewables. The scale, experience, and collaboration offered by the Advanced Clean Energy Storage hydrogen hub made their team the ideal partner for us to work with as we realize our vision towards 100% green hydrogen at the site,”

Greg Huynh, Operating Agent, IPA.

Industries leaders involved

Firstly, Black & Veatch, is an industry leader in engineering, procurement, and construction. It will provide EPC services for the energy conversion facility; and will construct the hydrogen production facilities.

Also, Mitsubishi Power is an industry leader in technology offerings. The company will provide the hydrogen equipment integration including the 220 MW of electrolyzers, gas separators, rectifiers, medium voltage transformers; and distributed control system.

NAES Corporation is one of the energy industry’s largest independent providers of operations, maintenance, and repair services.

In addition, it will provide the O&M services for the plant and will oversee the current projected team of 20 plant-related personnel.

Moreover, Utah School and Institutional Trust Lands Administration is a subdivision of the State of Utah. It leases the site and utilizes revenue generated from the hydrogen hub to benefit local schools.

On the other side, WSP is a global leader in engineering. It develops creative, comprehensive and sustainable solutions to help communities thrive.

The company will provide EPC Management services for the development of two large salt cavern storage facilities.

Clean energy hub

Also, the commitment demonstrates the Department’s intent to finance the project; but some conditions must be satisfied before DOE issues a loan.

Finally, the hub is seeking partners to bring green jobs and green hydrogen to support rural Utah and greater decarbonization across industries.

For more information, visit www.aces-delta.com.

About Mitsubishi Power Americas, Inc.

Mitsubishi Power Americas, Inc., in Florida, employs more than 2,300 power generation, energy storage, and digital solutions experts and professionals. 

In addition, Mitsubishi Power’s power generation solutions include gas, steam, and aero-derivative turbines; power trains and power islands; geothermal systems; PV solar project development; environmental controls; and services.

Energy storage solutions include green hydrogen, battery energy storage systems, and services. 

For more information clic here.

About Magnum Development

Magnum Development, LLC is developing the only known “Gulf Coast” style domal-quality salt formation in the western United States. Magnum founded in 2008 creates an energy hub centered around a large, little known salt body near Delta, Utah. 

About Haddington Ventures

Founded in 1998. The company oversees a growing portfolio of successful conventional and renewable energy businesses that are bringing innovative new infrastructure to the sector. 

Also, Haddington Ventures, makes control-oriented investments in portfolio companies acquiring or developing energy infrastructure underwritten by long term contracts. 

About ACES Delta

ACES Delta is a joint venture between Mitsubishi Power Americas and Magnum Development.

At last, ACES Delta is developing the world’s largest renewable energy hub to produce, store, and deliver green hydrogen to the Western U.S.

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