Utility-scale project shows a path to 100% renewable power no later than 2045
LAKE MARY, Fla., March 10, 2020— The Intermountain Power Agency (IPA) today awarded Mitsubishi Hitachi Power Systems (MHPS) a contract for two M501JAC power trains for the Intermountain Power Plant (IPP) in Delta, Utah. This award marks the first Advanced Class Gas Turbines in the industry specifically designed and purchased as part of a comprehensive plan to sequentially transition from coal, to natural gas and finally to renewable hydrogen fuel, and creates a roadmap for the global industry to follow. This transition will start in 2025, when the turbines will be commercially guaranteed capable of using a mix of 30% hydrogen and 70% natural gas fuel. This fuel mixture will reduce carbon emissions by more than 75% compared to the retiring coal-fired technology. Between 2025 and 2045, the hydrogen capability will be systematically increased to 100% renewable hydrogen, enabling carbon-free utility-scale power generation.
The renewed generation facility will be owned by IPA and operated by the Los Angeles Department of Water and Power (LADWP). It will provide 840 MW of reliable energy to the IPA purchasers it serves, including Los Angeles and municipalities in other parts of California and Utah. The power plant is connected to the Los Angeles power grid by an existing high voltage direct-current (HVDC) transmission line.
IPA's order includes two 1-on-1 M501JAC power trains with gas turbines, steam turbines, heat recovery steam generators, and auxiliary equipment. MHPS will service the plant under a 20-year long-term service agreement.
MHPS's installed fleet of J-Series gas turbines has accumulated almost 1 million hours of operating experience. IPA will receive MHPS's newest generation JAC air-cooled dry low NOx combustion system with hydrogen-rich fuel capability. MHPS gas turbines have more than 3.5 million hours of high-hydrogen operating experience, accumulated over 40 years and across 29 facilities.
The selection of the new M501JAC power trains expands the MHPS footprint in Millard County, Utah. In May of 2019, MHPS partnered with Magnum Development to announce plans to develop the Advanced Clean Energy Storage project adjacent to IPP. The project will use renewable power to produce hydrogen through electrolysis. The hydrogen will be stored in an underground salt dome at the site, using technology that has been in operation for the past 30 years to supply hydrogen to U.S. refineries in the Gulf Coast of the United States. Stored renewable hydrogen can provide power when wind and solar availability are limited due to prevailing weather conditions and time of day, as well as provide seasonal energy storage from renewable energy sources.
Dan Eldredge, General Manager of the Intermountain Power Agency said, "Our mission is to provide affordable, reliable power with a future vision of becoming a net-zero carbon energy resource. The unique Intermountain Power Project site and existing regional energy infrastructure provide an ideal opportunity for accomplishing this mission."
Paul Browning, President and CEO of MHPS Americas said, "The mission statement of the 2,000+ employees of MHPS Americas is to provide power generation and storage solutions that enable our customers to combat climate change and advance human prosperity. We worked hard to develop a total solution for our customer IPA that included not only gas turbines capable of using renewable hydrogen fuel, but also the nearby Advanced Clean Energy Storage project, which will affordably generate and store large quantities of renewable hydrogen. We believe both IPP and the storage project will be essential renewable energy infrastructure that will eventually help enable a 100% renewable power grid for the entire western interconnect of the United States, and will also provide renewable hydrogen for industrial and transport uses. The projects are being developed in close cooperation among ourselves; Magnum Development; the governments of Utah, California and Los Angeles; the Intermountain Power Agency; and LADWP. By combining our capabilities and imagining a 100% renewable energy future, we are creating a Change in Power."
Certain statements included in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Such statements are generally identifiable by the terminology used such as "plan," "vision," "future," "potential," "continue" or other similar words and include statements regarding future operations of IPA. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements described to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. Such risks include the ability to complete the natural gas facilities at IPP, the ability to develop technology to use hydrogen as a fuel, and other risks, uncertainties and other factors discussed from time to time in filings made by IPA pursuant to its continuing disclosure obligations through the Municipal Securities Rulemaking Board's Electronic Municipal Market Access system ("EMMA"), currently located at http://emma.msrb.org. IPA does not undertake any obligation to correct or update any forward-looking statements whether as a result of changes in internal estimates or expectations, new information, subsequent events or circumstances or otherwise.