The Green Hydrogen Coalition, the Los Angeles Department of Water and Power, and other partners launched HyDeal LA, an initiative to achieve at-scale green hydrogen procurement at $1.50/kilogram in the Los Angeles Basin by 2030.
HyDeal LA aims to overcome the biggest barrier to the green hydrogen economy—its high cost—by launching a commercial green hydrogen cluster at scale.
Green hydrogen can be produced from renewable electricity and water or organic waste, can be used as a carbon-free fuel, and provide long-duration seasonal energy storage.
Phase 1 of HyDeal LA will design the supply chain needed to achieve $1.50/kg delivered green hydrogen in the LA Basin. It also will strive to agreen on terms and conditions to achieve production, storage, transport, and delivery of green hydrogen at scale.
LADWP said that green hydrogen “is the key to reliably achieving 100% renewable energy.” The HyDeal LA effort aims to catalyze the supply chain needed to achieve large-scale, low-cost green hydrogen power supply for LADWP’s local power plants.
In March, a study from the National Renewable Energy Laboratory said that Los Angeles’ goal of reaching a 100% renewable, reliable, and resilient grid could be met as early as 2035. Doing so will require adding new solar, batteries, wind, and transmission, along with operational practices that make more efficient use of those assets. The study did not address specific costs, but said that economic impacts to the city would be “small relative to the overall size” of LA’s economy.
Power plant conversion
LADWP is currently leading the conversion of the Intermountain Power Project in Delta, Utah, to become one of the world’s first gas turbines designed and built to operate on 100% green hydrogen.
Dubbed “IPP Renewed,” Intermountain project includes retiring existing coal-fired units at the power plant site and installing new natural gas-fired electricity generating units capable of utilizing hydrogen for 840 MW net generation output. Additional investment will modernize the power plants transmission system to southern California, and develop hydrogen production and long-term storage capabilities. The new natural gas generating units will be provided by Mitsubishi Power and designed to use 30% hydrogen fuel at start-up, transitioning to 100% hydrogen fuel by 2045 as technology improves.
HyDeal LA is part of HyDeal North America, a commercialization platform launched by the Green Hydrogen Coalition. It is modeled after HyDeal Ambition, a similar project in Europe committed to producing and buying 3.6 million tons of green hydrogen per year for the energy, industry, and mobility sectors at €1.5/kilogram (kg) before 2030.
In addition to LADWP, HyDeal LA leaders include 174 Power Global, Mitsubishi Power, and SoCalGas. Key implementation partners include Clifford Chance, Corporate Value Associates, Cranmore Partners, Energeia, Marathon Capital, Sheppard Mullin, and Strategen.
Earlier in May, Mitsubishi Power and Texas Brine Co. agreed to develop large-scale long-duration hydrogen storage to support decarbonization efforts across the eastern United States.
This collaboration expands Mitsubishi Power’s capability to store hydrogen in salt caverns across North America. As one of the nation’s largest brine producers, Texas Brine and its affiliates have salt positions in New York, Virginia, Texas, and Louisiana that will enable access to major load centers in the Northeast, Mid-Atlantic, and the Gulf Coast.
Expanding the use of salt caverns for hydrogen energy storage offers an opportunity to create an infrastructure for clean energy resources throughout the U.S. to benefit industries such as power, transportation, and manufacturing that are targeting net zero carbon emissions.
