Clifford Chance advises DoE on hydrogen financing
The work on an innovative clean hydrogen project strengthens Clifford Chance's credentials as a leader in transactions accelerating the energy transition.
Leading international law firm Clifford Chance advised the US Department of Energy’s Loan Programs Office (DOE LPO) on a US$ 504.4 million loan guarantee for the Advanced Clean Energy Storage Project, an innovative clean hydrogen production and storage facility capable of providing long-term seasonal energy storage.
Advanced Clean Energy Storage in Delta, Utah, will be the world’s largest clean hydrogen storage facility, allowing the Intermountain Power Agency to replace an existing coal-fired power plant with hybrid combined cycle gas turbines capable of operating on hydrogen fuel. Advanced Clean Energy Storage will convert excess renewable energy to hydrogen via alkaline electrolysis that can be stored in salt caverns until the Intermountain Power Agency’s converted IPP Renewed Project is needed.
The IPP Renewed Project is expected to become operational in 2025 when the existing coal-fired generating units are shut down, and the combined cycle gas turbines will operate on a 30% blended fuel provided by Advanced Clean Energy Storage. The IPP Renewed Project will use increasing amounts of hydrogen as feedstock to transition to 100% hydrogen by 2045.
This work continues Clifford Chance’s extensive record in energy transition transactions, including recently advising Japan Bank for International Cooperation (JBIC) on acquiring US$110 million of preferred shares in NuScale Power, LLC (NuScale) to promote the development of clean advanced nuclear power technology and renewable energy solutions.
