In the United States (US), Air Products, Inc., and AES Corporation have announced plans to invest approximately US$4 billion to build, own and operate a green hydrogen production facility in Wilbarger County, Texas (TX) to produce hydrogen for the heavy-duty transportation sector.
According to a statement, this mega-scale renewable power-to-hydrogen project includes approximately 1.4 GW of wind and solar power generation, along with electrolyzer capacity capable of producing over 200 tonnes per day of green hydrogen, making it the largest green hydrogen facility in the United States.
Target heavy-duty vehicles
Subject to receipt of local permits, and local, state, and federal incentives, the facility, which is targeted to begin commercial operations in 2027, will serve a growing demand for zero-carbon intensity fuels for the mobility market as well as other industrial markets.
This project will capitalize on AES’ position as one of the nation’s largest renewable energy developers and its global leadership in innovations such as energy storage systems and supplying around-the-clock clean energy to data centers, said Andrés Gluski, President and CEO of AES.
It will yield a totally clean source of energy on a massive scale, and, if all the green hydrogen were used in the heavy-duty truck market, it would eliminate more than 1.6 million tonnes of carbon dioxide (CO2) emissions annually when compared to diesel use in heavy-duty vehicles (HDVs).
Over the project’s lifetime, it is expected to avoid more than 50 million tonnes of CO2, the equivalent of avoiding emissions from nearly five billion gallons of diesel fuel.
We are very pleased to partner with the world leader in hydrogen, Air Products, for this first-of-its-kind mega-scale green hydrogen facility in the United States. We will build more than 1 GW of new solar and wind facilities to provide zero-carbon energy for electrolysis and related production facilities. AES believes that green hydrogen has a key role to play in decarbonizing transportation and accelerating the future of energy, said Andrés Gluski said.
Air Products and AES – including Alberta Investment Management Company (AIMCo), an investor in AES’ clean energy business in the United States with 25 percent ownership in the business’ growth projects – will jointly and equally own the renewable energy and electrolyzer assets, with Air Products serving as the exclusive off-taker and marketer of the green hydrogen under a 30-year contract.
We are very pleased to announce this exciting joint venture with AES, which is one of the leading renewable energy companies in America. The new facility in Texas will be, by far, the largest mega-scale clean hydrogen production facility in the United States to use wind and sun as energy sources, said Seifi Ghasemi, President, and CEO of Air Products.
The project would create more than 1 300 construction and 115 permanent operations jobs, as well as about 200 transportation and distribution jobs. It is also expected to generate approximately US$500 million in tax benefits to the state over the course of the project’s lifetime while extending Texas’ energy leadership.
We have been working on the development of this project with AES for many years and it will be competitive on a world scale while bringing significant tax, job, and energy security benefits to Texas. We are excited to move forward and make clean green hydrogen available to US customers in the near future, said Seifi Ghasemi.
Demand for green hydrogen for mobility and industrial applications is expected to grow exponentially across the United States over the next decade.
The growth in demand is supported by green hydrogen’s role in net-zero ambitions announced by several states and major corporations.
