Mitsubishi Power, Texas Brine sign agreement to develop large-scale hydrogen storage

Author: Ruth Liao

2021/05/14

HOUSTON (ICIS)—Mitsubishi Power Americas, a subsidiary of Japanese conglomerate Mitsubishi, and privately-owned Texas Brine have announced on 12 May an agreement to develop large-scale, long-duration hydrogen storage solutions.

The partnership aims to focus on existing sites controlled by Texas Brine, evaluating their suitability for hydrogen storage both in existing and new salt caverns. Texas Brine and affiliates has salt positions in New York, Virginia, Louisiana and Texas, according to a joint statement by the two companies.

Salt deposits are naturally formed geological features that can be used for bulk storage of natural gas, however the US also has numerous hydrogen storage facilities around the Gulf Coast.

According to the joint-release statement, the companies will also explore greenfield opportunities for applications that can benefit from hydrogen storage, such as brine and dry salt production.

Brine, which is a mixture of salt and water, is also used as a feedstock in petrochemicals in chlor-alkali manufacturing, and has other industrial purposes when dehydrated.

UTAH HUB PROPOSED

Mitsubishi Power Americas, along with company Magnum Development, separately announced on 11 May that the companies have submitted an application for up to $595m as part of a federal loan program.

The funds, if awarded, would provide debt financing and help advance the proposed Advanced Clean Energy Storage Project in Delta, Utah. The proposed project includes the potential development of a 1GW electrolyser that could be powered by renewable energy to produce roughly 450 metric tonnes/day of green hydrogen.

The Title 17 Innovative Energy Loan Guarantee Program is part of the US Department of Energy’s loan program office.

Financial advisor Haddington Ventures, which is the equity sponsor for Magnum Development, is submitting the Part II application this summer.

OTHER AGREEMENTS

Mitsubishi Power intends to grow its portfolio of hydrogen-ready gas turbines close to large-scale hydrogen storage, also announced a joint development agreement in September 2020 with power utility Entergy to collaborate on decarbonisation projects to Energy’s utility businesses.

Mitsubishi Power is also working on three projects to develop its hydrogen-ready gas turbines at three power projects: Agate Power’s Danskammer Project in New York, Balico’s Chickahominy power project in Virginia and EmberClear’s Harrison Power project in West Virginia.