The U.S. Department of Energy (DOE) on June 8 announced it closed on a $504.4 million loan guarantee to the Advanced Clean Energy Storage project in Utah, marking the first loan guarantee for a new renewable energy technology project from DOE’s Loan Programs Office (LPO) since 2014.
The loan guarantee will help finance construction of the largest clean hydrogen storage facility in the world, capable of providing long-term low-cost, seasonal energy storage, furthering grid stability, DOE said.
Earlier this year, LPO announced a conditional commitment for a loan guarantee for Advanced Clean Energy Storage.
The facility in Delta, Utah, 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, then deploy it as fuel for the Intermountain Power Agency’s IPP Renewed Project — a hydrogen-capable gas turbine combined cycle power plant that intends to incrementally be fueled by 100% clean hydrogen by 2045.
With the closing of this loan guarantee, LPO now has $2.5 billion in remaining loan guarantee authority for Innovative Clean Energy projects.