The Alaska Gasline Development Corp. (AGDC) submitted a proposal for a hydrogen-production hub in the state to the U.S. Department of Energy (DOE) on Nov. 7.
The DOE said in February that the 2021 Bipartisan Infrastructure Law includes $8 billion for regional clean hydrogen hubs to support efforts to cut U.S. emissions.
"The Alaska Hydrogen Hub concept anticipates using $850 million in DOE funding along with $3.75 billion in private-sector funds, backed by offtake agreements from hydrogen customers in the U.S. and Asia," the Alaskan state-owned AGDC said.
The proposal envisions the hub initially producing over 600 tons of hydrogen a day, well over DOE's minimum requirement of 50 tons per day for successful projects, before eventually ramping up to making 1,600 tons daily.
Hydrogen, a clean energy source, has a wide range of uses including generating electricity and powering fuel cells in zero-emission vehicles.
AGDC is also developing the $38.7 billion Alaska LNG project that would move gas currently in northern Alaska across the state.
The hub would use natural gas feedstock from the Alaska LNG project, the least carbon-intensive LNG project in the U.S., and sequester carbon released during production, AGDC said.
The project is supported by companies, including Australian natural gas producer Santos Ltd. and agricultural chemicals maker Agrium U.S., which owns an idle ammonia plant near the planned facility of the Alaska LNG Project.
AGDC said last month that it will study the feasibility of producing ammonia, a hydrogen-rich fuel, in the state's Cook Inlet region with Japan's Mitsubishi Corp. and TOYO Engineering Corp. and Hilcorp Alaska.
Recommended Reading
Dispatch from the LNG Front: Development Not ‘Paused’ so much as Slowed
2024-04-04 - Analysts: Low prices may stall upcoming gas gathering projects that are needed for an expected boom.
Woodside Brings in the Know-how
2024-04-01 - Woodside Energy Group CEO Meg O’Neill is relying on technical sophistication to guide the Australian giant as it takes on three challenging projects in the U.S. Gulf of Mexico.
CERAWeek: Tecpetrol CEO Touts Argentina Conventional, Unconventional Potential
2024-03-28 - Tecpetrol CEO Ricardo Markous touted Argentina’s conventional and unconventional potential saying the country’s oil production would nearly double by 2030 while LNG exports would likely evolve over three phases.
US Expected to Supply 30% of LNG Demand by 2030
2024-02-23 - Shell expects the U.S. to meet around 30% of total global LNG demand by 2030, although reliance on four key basins could create midstream constraints, the energy giant revealed in its “Shell LNG Outlook 2024.”
Permian Gas Finds Another Way to Asia
2024-04-30 - A crop of Mexican LNG facilities in development will connect U.S. producers to high-demand markets while avoiding the Panama Canal.