Gas

Green Hydrogen Coalition details scale-up of hydrogen market pricing target for Los Angeles

Green Hydrogen Coalition details scale-up of hydrogen market pricing target for Los Angeles
(Illustration GTI.)

A coalition which includes Mitsubishi Power, Southern California Gas and other utilities is launching a hydrogen market initiative aimed at achieved green H2 procurement at $1.50 per kilogram by 2030.

The Green Hydrogen Coalition announced the launch of HyDeal LA in conjunction with the Los Angeles Department of Water and Power (LADWP). HyDeal LA hopes to achieve at-scale and economic hydrogen procurement within the Los Angeles Basin by that timeline.

“As Governor (Gavin) 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 California 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.”

Green Hydrogen Council is a partner with POWERGEN International. Find out more about PGI

Green hydrogen is a carbon-free resource, and energy carrier that can be produced from electrolysis powered by renewable resources. 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–such as in power generation with gas-fired turbines–green hydrogen can enable deep decarbonization of hard-to-abate sectors, enable the repurposing of valuable existing infrastructure and an affordable, responsible energy transition, according to the release on the Mitsubishi website.

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