Clean Hydrogen Storage and Production Explained

The Advanced Clean Energy Project

Energy Evolution is a podcast by S&P Global Commodity Insights that delves into the latest trends and insights in the energy transition. Hosted by Taylor Kuykendall, the podcast features in-depth conversations with industry leaders and experts, exploring innovative projects and technologies shaping the future of energy.

In this episode, the spotlight is on the pivotal role of hydrogen in the energy transition, focusing on the  Advanced Clean Energy Storage (ACES Delta) project. The discussion with Austin Knight, Chevron’s Vice President of Hydrogen, and Mike Ducker, President and CEO of MHI Hydrogen Infrastructure, a wholly owned subsidiary of Mitsubishi Power Americas, covers the project’s goals, its role in reducing carbon intensity, and the importance of hydrogen in achieving climate targets.

This article breaks down the key points discussed in the podcast, including the production and storage of hydrogen, the involvement of major industry players, and the collaborative efforts required to bring such a complex project to fruition.

The ACES Delta Project

What is the ACES Delta Project?

The ACES Delta project, located in Delta, Utah, is a groundbreaking initiative aimed at producing, storing, and delivering green hydrogen to the western United States. This large-scale, world-class facility is a joint venture between Mitsubishi Power and Chevron U.S.A. Inc.’s New Energies Company. The project leverages renewable energy via electrolysis to produce green hydrogen, which is then stored in two massive salt caverns. These caverns, located within the only major geologic salt dome formation in the western U.S., have a storage capacity of more than 300 GWh of dispatchable clean energy. The ACES Delta project is designed to convert 220 MW of renewable energy into nearly 100 metric tons of green hydrogen per day.

IPP Renewed: Advancing Hydrogen for Clean Energy Generation

The hydrogen produced at ACES Delta will be used to supply the Intermountain Power Agency’s IPP Renewed power plant project, which aims to achieve seasonal, dispatchable renewable energy storage. The plant will use a blend of hydrogen and natural gas, with a goal of transitioning to 100% hydrogen by 2045 or sooner. The IPP Renewed power plant is a combined cycle plant with two advanced-class Mitsubishi Power J-series gas turbines, which have a combined capacity of 840 MW. These turbines will initially operate on a hydrogen-natural gas blend, gradually increasing the hydrogen proportion to achieve carbon-free utility-scale power generation. The project represents a significant step towards reducing carbon emissions and advancing the long-term use of clean hydrogen in the U.S. energy system.

History of the ACES Delta Project

The ACES Delta project has a fascinating history dating back to the 1970s during the energy crisis. Entities exploring for oil and gas in Utah came across a salt dome formation, ideal for hydrogen storage. While they weren't able to find oil and gas at the time, the site's potential for energy storage was thoroughly documented.

Over the decades, various ideas and concepts for utilizing this salt dome formation were proposed. In the late 2010s, the Intermountain Power Agency began exploring the use of hydrogen-capable turbines to generate clean and reliable power. This led to a partnership between Mitsubishi Power and Magnum Development, who had mineral rights to the salt dome formation at the ACES Delta site.

Through collaborative efforts from 2020 to 2023, they formulated a plan to not only produce hydrogen but also store it in the massive caverns on-site in volumes sufficient to support the commercial deployment at the Intermountain Power Agency's IP Renewed facility.

Mike Ducker, reflects on the challenges and triumphs of the project: "We were paving new territory. It did take humility and also collaborative spirit to work together to get a project like this to the finish line. That's what it's going to take to continue to see this industry unfold, is that type of collaboration across different partners, certain entities that can take on certain risks for a project development and who are best suited to take that on and others who can take on and complement different areas of risks and support."

The ACES Delta Project’s Unique Advantages

• •Commitment and Infrastructure: The ACES Delta project benefits from the unwavering commitment of the Intermountain Power Agency to achieving its climate goals. Additionally, the project's location offers a unique geological advantage with salt caverns ideal for hydrogen storage. "It's in a location that has unique geology and existing infrastructure," explains Knight.
• •Local Engagement: The ACES Delta project strives to support the community by creating jobs and contributing to the local tax base. "We take that as a great responsibility," says Ducker, reflecting on the project's positive impact on local communities.

Importance of Hydrogen for Climate Goals

Hydrogen is crucial in reducing the carbon intensity of our energy system. It can be used in various applications, including dispatchable power, heavy industry, and long-haul transportation. As Austin Knight puts it, "Hydrogen is one of those large potentials in the global energy system to direct low carbon intensity energy into solutions that are difficult to electrify."

In the power industry, more challenging use case scenarios are emerging, such as seasonal energy storage shifting from overproduction in the winter and spring to periods of deficit in the summer. Securing the grid will require a mix of solutions, and according to Mike Ducker, "battery energy storage is not going to solve the problem by itself, or it certainly won't do it in the most cost effective or reliable way." In this case, hydrogen offers a dispatchable and versatile solution, enabling a reliable, cleaner energy grid.

Why Hydrogen is Getting Attention Now

Deeper decarbonization targets are driving the increased focus on hydrogen. Mitsubishi Power and Mitsubishi Heavy Industries have set ambitious goals of achieving net zero emissions by 2040. Hydrogen is gaining recognition for its ability to address hard-to-abate sectors and seasonal energy storage challenges. "We need more tools in the toolkit," emphasizes Ducker, highlighting the necessity of hydrogen in the energy mix.

The U.S. Policy Environment for Hydrogen

Policy plays a vital role in the deployment of hydrogen projects. Recognizing the value of carbon abatement, improving permitting efficiency, and fostering social acceptance are key factors. "It all comes down to policy that recognizes the value of carbon abatement," Knight emphasizes.

The Inflation Reduction Act has the potential to significantly impact clean energy investment. Clear and consistent policies are needed to encourage hydrogen development. "Certainty is important, and ambiguity does nothing but create headwinds," states Ducker, underlining the need for clear policies.

The US approach to hydrogen policy is being compared to those in Europe and Asia, highlighting the need for a cohesive and supportive policy environment. "The entire world is grappling with this," observes Ducker, emphasizing the global nature of the challenge.

Value Proposition of Hydrogen: A Key Player in Decarbonization

Hydrogen is emerging as a crucial component in the transition to a decarbonized energy future. Its versatility, efficiency, and potential for reducing greenhouse gas emissions make it an asset for various sectors.

Clean and Sustainable Energy Source:

Hydrogen is a clean and sustainable energy source that produces significantly fewer greenhouse gas emissions and air pollution compared to traditional fossil fuels. It can be used in various sectors, including power generation, transportation, and industry.

Reliable and Dispatchable Power:

Hydrogen addresses the intermittent challenges associated with renewable energy sources by providing a reliable and dispatchable energy solution. This is particularly valuable for balancing the grid during periods of peak demand or when renewable energy sources are not producing at full capacity.

Mitsubishi Power's Leadership in Hydrogen Integration:

Mitsubishi Power has been at the forefront of hydrogen integration into power generation. The company's JAC gas turbine has demonstrated the feasibility of using a 30% hydrogen blend without major modifications. This showcases the potential for existing infrastructure to be adapted for hydrogen utilization.

Economic Potential:

Hydrogen offers significant economic benefits, including job creation, local economic development, and energy security. As production costs continue to decline and efficiency improves, hydrogen becomes increasingly competitive with traditional fuels.

Decarbonization and Peak Load Management:

Hydrogen-powered peakers can play a crucial role in decarbonization efforts. By providing flexible, on-demand power, they can help integrate renewable energy sources and reduce the reliance on fossil fuels during peak load periods.

Mitsubishi Power's Commitment to Innovation:

Mitsubishi Power is actively involved in developing and implementing innovative hydrogen solutions. The company's partnership with Chevron New Energies at the ACES Delta Hub demonstrates its commitment to advancing hydrogen technology and commercializing its applications.

Driving the Hydrogen Revolution: Key Takeaways from the ACES Delta Project

The ACES Delta project is more than just a technological achievement—it's a major leap toward a hydrogen-powered, decarbonized energy future. By producing and storing green hydrogen at scale, this initiative exemplifies the critical role hydrogen will play in reducing carbon emissions and supporting renewable energy integration. Collaboration between industry giants like Mitsubishi Power and Chevron U.S.A., along with strong policy support, will be key to driving hydrogen adoption in hard-to-decarbonize sectors like power generation and transportation. As we move forward, projects like ACES Delta demonstrate how innovation, strategic partnerships, and clear policy frameworks can unlock the full potential of hydrogen to meet global climate goals.
 

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