Xcel Energy, Heartland Hydrogen Hub selected for up to $925 million federal award
13 Octobre 2023 - 1:00PM
Business Wire
U.S. Department of Energy award will advance development of new,
clean technology and reduce carbon emissions
The U.S. Department of Energy has selected the Heartland
Hydrogen Hub, including multiple clean hydrogen projects from Xcel
Energy, for award negotiations to receive up to $925 million. The
award will serve as a catalyst for a future hydrogen ecosystem in
the Upper Midwest.
The Heartland Hydrogen Hub (HH2H) is one of seven selected to
receive funding. The hub includes Xcel Energy, Marathon Petroleum
Corporation and TC Energy, in collaboration with the University of
North Dakota’s Energy & Environmental Resource Center, to
produce and use low-carbon hydrogen at commercial scale in
Minnesota, Wisconsin, South Dakota, North Dakota and Montana. The
hub aims to reduce carbon emissions by more than 1 million metric
tons per year, the equivalent of taking 220,000 gasoline-powered
cars off the road.
“Clean fuels are a critical component of enabling economy-wide
decarbonization. The Heartland Hydrogen Hub is game-changing
initiative that demonstrates how we’re accelerating the development
of the next generation of clean energy technology with significant
benefits for our customers and the environment,” said Bob Frenzel,
Xcel Energy chairman, president and CEO. “The strong partnership
with our Upper Midwest states and other energy providers
demonstrates our commitment to increasing economic impact while
achieving carbon reduction goals for our customers.”
Clean fuels in general, and the Heartland Hydrogen Hub in
particular, are a key part of Xcel Energy’s vision for zero-carbon
generation and net-zero emissions from natural gas distribution by
2050. Hydrogen is a clean molecule that can reduce carbon emissions
in 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 to blend into power generation, existing natural
gas distribution systems, and other agricultural and industrial
applications.
For its projects within the hub, Xcel Energy expects to receive
a large portion of the federal award, subject to negotiations. In
its application, Xcel Energy proposed investing up to $2 billion
over a decade for clean hydrogen producing equipment and
infrastructure, representing 75% of full program costs for the
company’s portion of the hub. As a member of the Heartland Hydrogen
Hub team, Xcel Energy is prepared to execute and fund its portion
of the project to build and operate safe, clean hydrogen
infrastructure in the region and bring 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 55%
from 2005 levels in the Upper Midwest and remains on track to
reduce carbon emissions 85% by 2030 as it moves toward a vision to
meet Minnesota’s 100% carbon-free benchmark 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—Minnesota, South Dakota and North Dakota. “It
provides vital financial support for clean energy infrastructure
that will deliver reliable, low-cost renewable energy to the
communities we serve.”
In total, the Heartland Hydrogen Hub anticipates creating
approximately 3,900 total direct jobs, which includes construction
and operating jobs across all phases of the project. The hub has
engaged with communities, tribes, and other stakeholders to
identify strategies and programs to promote shared prosperity in
the project region.
The Department of Energy's Regional Clean Hydrogen Hubs (H2Hubs)
will kickstart a national network of clean hydrogen producers,
consumers, and connective infrastructure while supporting the
production, storage, delivery, and end-use of clean hydrogen. The
H2Hubs are part of President Biden’s Investing in America agenda.
Congress approved funding for H2Hubs in the bipartisan 2021
infrastructure law. The hubs will accelerate the commercial-scale
deployment of clean hydrogen—helping generate clean, dispatchable
power, create a new form of energy storage, and decarbonize heavy
industry, agriculture and transportation. Together, they will also
reduce 25 million metric tons of carbon dioxide emissions from
end-uses each year—an amount roughly equivalent to 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 strengthening America's energy
security.
“Unlocking the full potential of hydrogen—a versatile fuel that
can be made from almost any energy resource in virtually every part
of the country—is crucial to achieving President Biden’s goal of
American industry powered by American clean energy, ensuring less
volatility and more affordable clean energy options for American
families and businesses,” said U.S. Secretary of Energy Jennifer M.
Granholm. “With this historic investment, the Biden-Harris
Administration is laying the foundation for a new, American-led
industry that will propel the global clean energy transition while
creating high quality jobs and delivering healthier communities in
every pocket of the nation.”
All of Xcel Energy’s federal and state policymakers, along with
labor unions, have supported the effort through their shared
interest in U.S. energy production, energy security, job creation,
economic development and environmental stewardship.
Project detailed design will begin after the Heartland Hydrogen
Hub finishes award negotiations. Project development will likely
continue through 2035. The public will have an opportunity to
review Xcel Energy’s planned investments through the regulatory
process. The process has built-in protections for customers to
ensure that Xcel Energy unlocks the benefits of this new clean
energy technology in the most affordable way.
To learn more about how Xcel Energy is advancing hydrogen for a
low-carbon future, visit XcelEnergyHydrogen.com.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers
millions of homes and businesses across eight Western and
Midwestern states. Headquartered in Minneapolis, the company is an
industry leader in responsibly reducing carbon emissions and
producing and delivering clean energy solutions from a variety of
renewable sources at competitive prices. For more information,
visit xcelenergy.com or follow us on X, formerly known as Twitter,
and Facebook.
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