AGDC Plans to Build a Hydrogen Production Hub in Alaska

State-owned Alaska Gasline Development Corp (AGDC) has sent a proposal to the U.S. Department of Energy (DOE) on Monday to build a hydrogen production hub in the state. The DOE said earlier this year 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,” AGDC said.

The plan proposes for the hub to initially produce over 600 tons of hydrogen per day, over DOE’s minimum requirement of 50 tons per day for successful projects, before eventually ramping up to making 1,600 tons daily.

The company has also been developing the $38.7 billion Alaska LNG project, which 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.

Australian natural gas producer Santos and agricultural chemicals maker Agrium US are among the companies that support the project. Agrium also owns an idle ammonia plant near the planned facility of the Alaska LNG Project.

AGDC also announced last month that it will conduct a feasibility study for production of ammonia, a hydrogen rich fuel, in Alaska with Japan’s Mitsubishi and TOYO Engineering and Hilcorp Alaska.

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