Heliogen Inc. has executed a definitive contract with the city of Lancaster, Calif. to provide green hydrogen fuel, the company announced in a June 6 press release.

The green hydrogen will be produced by Heliogen at its Proxima facility in Lancaster. In addition to providing green hydrogen to Lancaster, it will also certify its carbon intensity.

The deal piggybacks off a memorandum of understanding made in late 2022 between the city and Heliogen to establish a clean hydrogen generation facility.

“This agreement underscores the incredible potential to rapidly develop and commercialize green hydrogen as a key pathway for a decarbonized economy,” said Christie Obiaya, Heliogen’s CEO.

The deal is expected to cost the city $10/kg of green hydrogen, a cost savings when compared to the rapid price increase for hydrogen across the state.

“Heliogen’s unique ability to create carbon-free hydrogen holds immense promise to fuel our municipal fleet at the lowest carbon intensity,” said R. Rex Parris, mayor of Lancaster. “Hydrogen is the future and we invite other cities to join us on the path to decarbonization as a way to tackle climate change.”