Large Scale Hydrogen Storage Developments

By Nova Thayer

Renewable energy from solar and wind can be intermittent so as the United States looks to transition to clean energy, large-scale energy storage options become even more crucial. Current battery systems face difficulties in storing the energy required by the grid during non-peak production hours at the size and scale needed as renewable energy development continues to ramp up. Hydrogen is emerging as a significant opportunity for this space as it allows for vast quantities of clean energy to be stored for long durations for peak demand and seasonal energy balancing. In this blogpost, we will take a closer look at some of the hydrogen storage projects that are underway in the United States, where companies are working to create and utilize storage commercially to supplement solar, wind, and gas.

Hydrogen can be generated from solar or wind-powered electrolysis using excess renewable electricity during peak production hours. As night falls or wind speeds slow, the hydrogen is then utilized in the electric grid to offset the lack of production. On a larger scale, hydrogen also plays an important role in seasonal energy storage, where hydrogen is created with abundant solar energy in summer months, and is then used to fuel the grid during the cold and cloudy winter months, solving an important bottleneck for the United States’ clean energy transition.

For more background on hydrogen storage, see our previous post on the subject. The industry has expanded significantly since that blogpost, and there are now several new promising projects from FCHEA members and others in the industry.

In Mississippi, FCHEA member Hy Stor Energy is working with The Gulf States Renewable and Electrification Industries Association (GSREIA) and Connor, Clark & Lunn Infrastructure to create the Mississippi Clean Hydrogen Hub. Mississippi’s geology is abundant with large underground salt formations that are accessible to water, which can be converted into storage facilities for hydrogen. The Mississippi Clean Hydrogen Hub is looking to produce around 110 million kilograms of clean hydrogen annually once it enters commercial service in 2025 using these salt caverns and the state’s existing gas infrastructure for storage. The project aims to become a blueprint for future hydrogen hubs across the Southeast United States where similar underground formations can be utilized.

In Texas, FCHEA member Air Liquide has created one of the United States’ largest hydrogen storage sites, with approximately 300 billion cubic feet available for hydrogen storage. The site works in tandem with Air Liquide’s Texas-based hydrogen network, which includes a large hydrogen production center, the La Porte Industrial Complex, and over 200 miles of hydrogen pipelines. The storage facility is crucial for the expansion of hydrogen projects in the region.

Utah is leading the way when it comes to hydrogen storage in the Western United States. Mitsubishi Heavy Industries, Magnum Development, FCHEA member Black & Veatch, and Chevron are partnering to revamp the Intermountain Power Plant, which was responsible for 16% of Los Angeles’ power in 2020. The goal is to initially operate the gas power plant with a 30% clean hydrogen and 70% natural gas fuel mix, with an eventual shift to 100% clean hydrogen. Crucially, the plant is also right next to a naturally occurring underground salt dome, which allows easy storage for hydrogen. Mitsubishi believes that if the project is successful, due to the large underground salt caverns in the area, the plant could become a hydrogen hub for much of the Western United States. Mitsubishi also believes that the 100% clean hydrogen mix could be achieved as soon as this decade.

The Intermountain Power Plant outside Delta, Utah (LA Times)

Offshore hydrogen production and storage, where an offshore wind farm uses excess energy to produce hydrogen and then ship it to the mainland for use or storage, is in early stages of commercialization in the U.S. However, several European countries like Denmark and Germany have already sponsored several offshore hydrogen projects. One example is Danish energy company Orsted’s first offshore wind and hydrogen farm that went into operation in early 2022, and other similar projects are expected to receive funding soon.

While hydrogen-specific storage is increasing, there is also growing interest in ammonia and other energy-dense carbon-neutral liquid fuels (CNLF) as alternative sources and carriers of hydrogen. Ammonia has higher energy density than liquid hydrogen, is much less flammable than hydrogen and can be transported and stored as a liquid at room temperature and pressure, thus eliminating need for cryogenic handling or compression. As ammonia is used for broad agricultural and industrial applications, a well-developed global ammonia infrastructure exists for safe handling and transport which is being leveraged to reduce the costs of the hydrogen economy.

More hydrogen storage projects are expected to appear in the near future as demand and use grows around the world. In the United States, the passage of the Infrastructure Investment and Jobs Act, which allocates $9.5 billion for hydrogen energy and storage, will help support more large-scale deployments and regional hubs. As both governments and companies look to quickly decarbonize, hydrogen is rising to the occasion both as a fuel and a storage mechanism for renewable energy in industrial regions across the United States, leveraging the natural resource advantages across the country.