WASHINGTON DC- The U.S. Department of Energy (DOE) today announced the closing of a $504.4 million loan guarantee for the Advanced Clean Energy Storage project in Utah – marking the first loan guarantee for a DOE’s Loan Programs Office (LPO) new clean energy technology project since 2014 The loan guarantee will help finance the construction of the world’s largest clean hydrogen storage facility, capable of providing storage of long-term, low-cost seasonal energy, thereby enhancing grid stability. The project is expected to create up to 400 construction jobs and 25 operations jobs, advancing President Biden’s climate and clean energy deployment goal of net zero emissions by 2050.
“Since President Biden’s first day in office, the DOE has made it a priority to leverage the potential of the Office of Lending Programs to fund emerging technologies that will deliver clean, reliable energy for Americans,” said U.S. Secretary of Energy Jennifer M. Granholm. “Accelerating the commercial deployment of clean hydrogen as a long-term, zero-emissions energy storage solution is the first step to harnessing its potential to decarbonize our economy, create well-paying clean energy and allow more renewables to be added to the grid. ”
To meet President Biden’s goals of achieving a clean grid by 2035 and achieving a net-zero emissions economy by 2050, long-term energy storage technologies, including hydrogen, will play an essential role. Clean energy from hydrogen can be produced using renewables, such as solar and wind power, before being stored for later use for power generation or as fuel or dispatchable raw material to decarbonize the industry and transport sectors.
Across all of its programs, LPO has attracted more than 70 active applications for projects in 24 states totaling nearly $79 billion in requested loans and loan guarantees as of the end of May.
Earlier this year, LPO announced a conditional commitment for a loan guarantee for Advanced Clean Energy Storage, which will be the first of its kind to a clean hydrogen company. The Delta, Utah facility will combine 220 megawatts of alkaline electrolysis with two massive 4.5 million barrel salt caverns to store clean hydrogen. Advanced Clean Energy Storage will capture excess renewable energy when it is most abundant, store it as hydrogen, and then deploy it as fuel for the Intermountain Power Agency’s (IPA) renewed IPP project – a power plant at hydrogen-capable gas turbine combined cycle that intends to be powered progressively by 100% clean hydrogen by 2045.
“I am thrilled to see the DOE supporting Utah’s efforts to become a global leader in hydrogen,” said US Senator Mitt Romney (UT). “This is not only a win for Millard County and Utah, but it’s also an important step toward developing new energy technologies as we use an ‘all of the above’ approach to meet our energy needs.”
“Utah has a wealth of natural resources that make it an ideal location for clean energy innovation,” said U.S. Representative John Curtis (UT-3). “It’s exciting to see the ACES project get funding from the Department of Energy and move one step closer to completion. Hydrogen can and should play an important role in powering our society and I am grateful to Secretary Granholm for supporting this important project.
“It has never been more important to develop home energy here in the United States,” said U.S. Representative Chris Stewart (UT-2). “I am thrilled to see Utah’s great technical capabilities and resources being used to do just that, and I look forward to continuing to work with President Biden and Secretary Granholm to advance America’s energy agenda. ”
With the closing of this loan guarantee, LPO now has $2.5 billion of loan guarantee authorization remaining for innovative clean energy projects. Since early 2021, LPO has made substantial changes to enhance its innovative Clean Energy Loan Guarantee Program and Tribal Energy Loan Guarantee Program.
For more information about the project and the role it could play in the clean energy economy in the United States, read the Conditional Commitment blog post and the LPO Portfolio Project webpage .