LADWP Joins HyDeal LA, Targets Green Hydrogen at $1.50/kilogram by 2030

By May 17, 2021 5   min read  (902 words)

May 17, 2021 |

Fuel cells works, hydrogen, hydeal, green hydrogen, fuel cells

LOS ANGELES— Today, the Green Hydrogen Coalition in conjunction with the Los Angeles Department of Water and Power (LADWP) and other key partners, announced the launch of HyDeal LA, an initiative to achieve at-scale green hydrogen procurement at $1.50/kilogram in the Los Angeles Basin by 2030.

HyDeal LA is a collaboration of developers, green hydrogen off-takers, integrators, equipment manufacturers, investors, and advisors coalescing to overcome the biggest barrier to the green hydrogen economy—its high cost—by launching a commercial green hydrogen cluster at scale.

Green hydrogen is an abundant, carbon-free, and safe energy carrier that can be produced from renewable electricity and water or organic waste. It can be used as a carbon-free fuel and can provide long-duration seasonal energy storage. When used as an alternative to fossil fuels, green hydrogen can enable deep decarbonization of hard-to-abate sectors, enable the repurposing of valuable existing infrastructure and an affordable, responsible energy transition. Benefits to the economy include stable pricing, energy diversity, and increased economic development by reducing our need to import fossil fuels. Green hydrogen can be used to power anything from a power plant, to a steel mill, to a hydrogen fuel cell vehicle.

“As Governor Newsom said during the release of the May Revise Budget last Friday, we need to focus on green hydrogen in this country, and California needs to compete in this space,” said Dee Dee Myers, Senior Advisor to the Governor and Director of the Governor’s Office of Business and Economic Development. “Delivering on the promise of green hydrogen means collaboration and implementation, which are the foundations of the HyDeal LA initiative. Success means clean air, reliable power, zero-emission transportation, and importantly jobs and sustainable economic development.”

Independent studies, including the recently completed Los Angeles 100% Renewable Energy Study, point to the need for renewably fueled combustion turbines—available for limited periods—to achieve reliable 100% renewable electricity.

“Green hydrogen is the key to reliably achieving 100% renewable energy,” states Martin Adams, General Manager and Chief Engineer at LADWP. “We are pleased to join the HyDeal LA effort, which includes an innovative and expanding vendor and development community, to support and help catalyze the supply chain needed to achieve large-scale, low-cost green hydrogen power supply for our local in basin plants.”

Joining HyDeal LA marks another significant initiative around green hydrogen for LADWP, which is leading the conversion of the Intermountain Power Project in Delta, Utah to the world’s first gas turbine intentionally designed and built to operate on 100% carbon free green hydrogen by 2035.

HyDeal LA is part of HyDeal North America, a commercialization platform launched by the Green Hydrogen Coalition, which is dedicated to deploying green hydrogen at scale for multi-sectoral decarbonization. HyDeal LA is modeled after HyDeal Ambition, a similar project in Europe committed to producing and purchasing 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 (CVA), Cranmore Partners, Energeia, Marathon Capital, Sheppard Mullin, and Strategen. Phase 1 of HyDeal LA will architect the high value competitive supply chain necessary to achieve $1.50/kg delivered green hydrogen in the LA Basin, and achieve in-principle agreement on the necessary terms and conditions to achieve production, storage, transport and delivery of green hydrogen at scale—all of which will be required to establish the green hydrogen ecosystem and economy in Los Angeles.

Paul Browning, President and CEO of Mitsubishi Power Americas, says, “As a leader in utility scale green hydrogen projects in the Western United States and globally, Mitsubishi Power is dedicated to achieving affordable green hydrogen costs in Los Angeles and around the world. Together with our customers and partners, we are creating a Change in Power.”

“Green hydrogen presents a significant opportunity for our gigawatt-scale solar farms to deliver decarbonized energy to multiple sectors,” said Dr. Henry Yun, President and CEO of 174 Power Global. “We are thrilled to be part of HyDeal LA and creating the path forward for electrifying our fuel supply.”

“In Southern California, the confluence of geography, visionary climate policies, and public-private partnerships like HyDeal LA mean we are well positioned to develop transformative, pragmatic and globally scalable solutions toward an integrated, and carbon-free energy system,” said Scott Drury, SoCalGas CEO. “Hydrogen will play an important part in helping SoCalGas reach our goal of achieving net-zero emissions by 2045, in keeping utility bills affordable for families and businesses, and in keeping energy reliable and resilient as we make the transition.”

In addition to the project supporters, diverse advisors are supporting the initiative, including Rachel Fakhry, Senior Policy Analyst at the Natural Resource Defense Council. Says Fakhry, “Green electrolytic hydrogen is a promising resource to help our path towards decarbonization, create a healthier environment, and clean up the air for local communities.”

Janice Lin, Founder and President of the Green Hydrogen Coalition, agrees, stating, “Green hydrogen is a game changer in achieving deep decarbonization of multiple sectors, and Los Angeles is the perfect place to launch the first HyDeal North America. LA has all the ingredients for success—visionary municipal leadership, forward-thinking utility partners, major off-takers committed to a low carbon future including power generation, industry, and port refueling operations, and lots of available renewable energy sources for green hydrogen production.”

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