Xcel Energy, Heartland Hydrogen Hub has been selected for a federal award worth up to $925 million

MINNEAPOLIS (AP) — The U.S. Department of Energy has selected the Heartland Hydrogen Center, including several clean hydrogen projects from Xcel Energy, for award negotiations to receive up to $925 million. The award will serve as a catalyst for the future hydrogen ecosystem in the upper Midwest.

The Heartland Hydrogen Center (HH2H) is one of seven centers selected to receive funding. The center brings together Xcel Energy, Marathon Petroleum Corporation and TC Energy, in collaboration with the University of North Dakota Energy and Environmental Resources Center, to produce and use low-carbon hydrogen on a commercial scale in Minnesota, Wisconsin, South Dakota, North Dakota and Montana. . The center aims to reduce carbon emissions by more than one million metric tons annually, which is equivalent to taking 220,000 gasoline-powered cars off the road.

“Clean fuels are critical to enabling economy-wide decarbonization. The Heartland Hydrogen Center is a game-changing initiative that demonstrates how we are accelerating the development of next-generation clean energy technology with significant benefits for our customers and the environment.” said Bob Frenzel, Chairman, President and CEO For Xcel Energy. “The strong partnership with our states in the Upper Midwest and other energy providers demonstrates our commitment to increasing economic impact while meeting our customers’ carbon reduction goals.”

Clean fuels in general, and the Heartland Hydrogen Center in particular, are a key part of Xcel Energy’s vision to generate zero carbon and net zero emissions from natural gas distribution by 2050. Hydrogen is a clean molecule that can reduce carbon emissions in the environment of a variety of sectors. The company plans to use its existing and future nuclear, solar and wind resources in the Upper Midwest to produce hydrogen for blending into power generation, existing natural gas distribution systems and other agricultural and industrial applications.

For its projects within the center, Xcel Energy expects to receive a significant portion of the federal award, which is subject to negotiations. In its application, Xcel Energy proposed investing up to $2 billion over a decade in clean hydrogen production equipment and infrastructure, representing 75% of the full program costs for the company’s portion of the center. As a member of the Heartland Hydrogen Hub team, Xcel Energy is prepared to implement and finance its portion of the project to build and operate safe, clean hydrogen infrastructure in the region and deliver the benefits of green hydrogen and clean fuels to the clean energy workforce. and local communities.

Xcel Energy’s clean energy leadership

Xcel Energy has nearly 20 years of experience leading the clean energy transition. The company has reduced carbon emissions by 55% from 2005 levels in the upper Midwest, and remains on track to reduce carbon emissions by 85% by 2030 while moving toward a vision of achieving Minnesota’s 100% carbon-neutral standard by 2040.

“This federal funding will inject hundreds of millions of dollars into the upper Midwest economy, helping to deliver an affordable project for our customers,” said Chris Clark, president of Xcel Energy for Minnesota, South Dakota and North Dakota. “It provides vital financial support for clean energy infrastructure that will provide reliable, low-cost renewable energy to the communities we serve.”

In total, the Heartland Hydrogen Center expects to create approximately 3,900 direct jobs, which includes construction and operational jobs throughout all phases of the project. The Center has engaged with communities, tribes and other stakeholders to identify strategies and programs to promote shared prosperity in the project area.

The Department of Energy’s Regional Clean Hydrogen Hubs (H2Hubs) will launch a national network of clean hydrogen producers and consumers and connected infrastructure while supporting clean hydrogen production, storage, delivery, and end-use. H2Hubs are part of President Biden’s agenda to invest in America. Congress approved funding for H2Hubs in the bipartisan Infrastructure Act of 2021. These centers will accelerate the deployment of clean hydrogen on a commercial scale, helping to generate clean, dispatchable energy, creating a new form of energy storage, and decarbonizing heavy industry, agriculture and transportation. Together, they will also reduce 25 million metric tons of end-use carbon dioxide emissions each year — an amount roughly equivalent to the combined annual emissions of 5.5 million gasoline-powered cars — and create tens of thousands of good-paying jobs across the country. While supporting healthier communities and enhancing America’s energy security.

“Unlocking the full potential of hydrogen – a versatile fuel that can be made from virtually any energy source in almost every part of the country – is critical to achieving President Biden’s goal of an American industry powered by American clean energy, ensuring lower volatility and affordability.” “Clean energy options are available to American families and businesses,” said US Energy Secretary Jennifer Granholm. “With this historic investment, the Biden-Harris Administration is laying the foundation for a new U.S.-led industry that will advance the global clean energy transition while creating high-quality jobs and providing healthier communities in every pocket of the country.”

All of Xcel Energy’s federal and state policymakers, along with labor unions, supported the effort through their shared interest in U.S. energy production, energy security, job creation, economic development, and environmental stewardship.

Detailed design of the project will begin after the Heartland Hydrogen Hub concludes award negotiations. Development of the project will likely continue until 2035. The public will have an opportunity to review Xcel Energy’s planned investments through the regulatory process. This process has built-in customer protections to ensure Xcel Energy is unlocking the benefits of this new clean energy technology in the most affordable ways.

To learn more about how Xcel Energy is developing hydrogen for a low-carbon future, visit XcelEnergyHydrogen.com.

(tags for translation) Renewable Energy

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