A group of investors, including Canada-based Manulife, Alberta Investment Management Corporation (AIMCo), and the Ontario Teachers’ Pension Plan Board, along with Singapore’s GIC, announced today a $650 million commitment to finance the largest green hydrogen platform in the world.
The financing will be provided through Haddington ESP I, a syndication program formed by venture capital firm Haddington Ventures. Haddington ESP I will provide construction equity for projects developed by the Advanced Clean Energy Storage Joint Venture (ACES Delta).
Ang Eng Seng, Chief Investment Officer of Infrastructure for GIC, said:
“We firmly believe that green hydrogen will play a key role in decarbonization in the US, where long-duration storage will be essential for the higher penetration of renewable power, and to meet fluctuating inter-season power demand.”
ACES Delta is a joint venture between Mitsubishi Power Americas and Magnum Development and is developing the green hydrogen storage hub near Delta, Utah with electrolyzer capacity to produce up to 100 metric tonnes of green hydrogen per day under a contract with the Intermountain Power Agency (IPA).
John Strom, Managing Director of Haddington Ventures, said:
“The ACES Delta hub will be larger than any existing green-hydrogen production and storage site by a factor of 10, which is the scale needed for electric utilities. The project uniquely leverages readily scalable electrolyzer technologies with multiple large salt dome storage caverns to make a meaningful environmental contribution.”
The initial funding from Haddington ESP will be used to fund a project to use renewable energy resources to power 220 MW of electrolyzers that will split water into hydrogen and oxygen. The resulting green hydrogen will be stored in salt-dome storage caverns and made available to IPA, which plans to use it in its natural gas plant to generate electricity for its project participants.
According to Haddington Ventures, following the equity funding, construction of the hydrogen hub can begin this month, with operations expected to commerce in 2025.
Adam Wise, Head of Natural Resources and Sustainable Solutions, Manulife, said:
“We believe ACES Delta is uniquely positioned to build a large-scale green hydrogen production and storage platform to serve growing customer demand. This investment supports our objectives to help facilitate the decarbonization of energy sources and grow our $42 billion portfolio of green investments.”