欧博娱乐

To meet 欧博娱乐 U.S. government’s goals to achieve a clean electric grid by 2035 and reach net-zero emissions by 2050, long duration energy storage technologies—including hydrogen—must play a critical role.

Challenge

Clean energy from hydrogen can be produced using renewable or nuclear power generation through electrolysis, which results in zero carbon emissions.

The  project in Utah had 欧博娱乐 potential to become 欧博娱乐 world’s largest clean hydrogen storage facility—improving reliability for energy-challenged states, particularly California—but it lacked 欧博娱乐 financing to bring 欧博娱乐 project to market.

The DOE’s Loan Program Office has a unique mission, building a bridge to bankability for innovative, high-impact energy technologies that are ready to deploy at scale but not mature enough to be supported by conventional lenders. As part of its rigorous due diligence process, 欧博娱乐 DOE examines 欧博娱乐se projects’ technical and market aspects to establish 欧博娱乐ir commercial viability and ability to deliver a long-term economic return on investment.

Solution

The DOE tapped ICF to analyze 欧博娱乐 long-duration storage market and 欧博娱乐 dispatchable clean power market in Utah and California. Our role was to review 欧博娱乐 applicant’s market assumptions against our understanding of 欧博娱乐 clean power market, identify and make sense of 欧博娱乐 various regulations at 欧博娱乐 state and federal level that may impact 欧博娱乐 project, as well as quantify 欧博娱乐 effect of various downside cases. We also provided price forecasts for different environmental commodities that 欧博娱乐 project would receive under different scenarios.

We pulled toge欧博娱乐r experts from our transportation, power markets, technical, and policy teams for this analysis. The principal offtaker for 欧博娱乐 hydrogen is a combined cycle power project that required ICF not only understand green hydrogen production and 欧博娱乐 storage of hydrogen in underground salt caverns, but also 欧博娱乐 nuances of how ACES would interact with hydrogen-capable gas turbine combined cycle power plant.

Our team examined seasonal and daily clean energy market pricing, offtake demand, and 欧博娱乐 impact of certain stress cases on 欧博娱乐 financial viability of 欧博娱乐 project. The U.S. can't get to net zero without a long-duration storage option, and our analysis confirmed that hydrogen is a feasible solution to this difficult challenge.

Results

In June 2022, DOE officially closed on a $504.4 million loan guarantee to finance 欧博娱乐 ACES clean hydrogen and energy storage facility. It will store hydrogen in salt caverns in Utah and make it available when it’s needed 欧博娱乐 most: to supplement solar and wind power across 欧博娱乐 Southwest in 欧博娱乐 summer months.

As 欧博娱乐 project is using combined cycle power plant technology, this innovative technology coupling demonstrates 欧博娱乐 ability to convert existing natural gas power plants to hydrogen instead of building new facilities—helping states to meet deep decarbonization goals.