Mitsubishi Heavy and Chevron Target 2025 for U.S. Green Hydrogen Production Launch

Mitsubishi Heavy Industries and Chevron have announced plans to begin commercial green hydrogen production in Utah by mid-2025. Their joint venture, ACES Delta, will use renewable energy to produce 100 tonnes of hydrogen daily, marking a significant step toward sustainable power generation.

ACES Delta to Produce 100 Tonnes of Hydrogen Daily in Utah’s Largest Renewable Storage Site

ACES Delta, a joint venture between the two corporations, will produce and store the gas at facilities in Utah. GIC, the Singapore sovereign wealth fund, and a significant Canadian pension fund are among the other investors, with Chevron being the largest shareholder.

ACES will assist the Intermountain Power Agency (IPA), a local electricity provider, in procuring surplus solar and wind power from other regions of the country and distributing it to ACES. By utilizing this excess power to generate hydrogen from water, ACES can produce 100 tonnes of hydrogen per day and receive processing and storage fees from IPA.

Salt dome caverns, a type of subterranean formation also employed to store natural gas and oil, will be utilized to store hydrogen. This is due to the underground formation's gas and liquid leakage resistance. IPA will extract hydrogen from natural gas for combustion in power facilities.

In a recent report by Nikkei Asia, the power company intends to terminate its coal plants and construct an 840-megawatt gas-fired facility, which is expected to commence commercial operations next year. The aim is to transition the new plant entirely to hydrogen by 2045, and it will initially operate on a blend of 70% natural gas and 30% hydrogen.

The salt dome caverns can store enough hydrogen to produce 300 gigawatt-hours of electricity, satisfying the annual energy requirements of 28,000 households in the United States. It is anticipated to be the world's largest renewable hydrogen storage site.

If successful, the site would be the world's first large-scale green hydrogen production, storage, and power generation initiative. The total expenses are anticipated to exceed billions of dollars.

Michael Ducker, president of MHI Hydrogen Infrastructure, a U.S.-based company, stated that the company is "looking at commissioning beginning later this year."

Mitsubishi Heavy Expands Hydrogen Power with U.S. Project, Backed by $500 Million Loan Guarantee

Mitsubishi Heavy has developed and manufactured a gas turbine for the power plant and will be responsible for maintaining and inspecting the equipment for 20 years. Mitsubishi Heavy also has a stake in a Norwegian company that manufactures the electrolyzer apparatus that will be employed to produce hydrogen.

Natural gas turbines are among Mitsubishi Heavy's strengths. The company is expanding its hydrogen power business, which it believes has more promising development prospects. As the United States endeavors to transition away from fossil-fuel-fired power plants to reduce greenhouse gas emissions, Mitsubishi Heavy intends to leverage its participation in the Utah project's production side as an opportunity to acquire expertise.

The facility can serve as a conduit for solar power that would otherwise be squandered. When the grid cannot accommodate the excess energy generated by solar farms in the western United States, they are frequently disconnected.

The administration of U.S. President Joe Biden has provided a $500 million loan guarantee for the Utah project to establish the United States as a significant player in the hydrogen industry.

Ducker stated, "A fundamental approach that we are taking is to engage with the different strategic companies out there in some of these hubs" when asked about potential partners for other hydrogen initiatives.