SGH2 energy is launching the world’s largest green renewable hydrogen facility in partnership with the City of Lancaster, California. The Lancaster plant will feature SGH2’s pioneering technology, which uses recycled mixed paper waste to produce “greener than green” hydrogen that reduces carbon emissions by two to three times more than green hydrogen produced using electrolysis and renewable energy, and is five to seven times cheaper.
The City of Lancaster will host and co-own the green hydrogen production facility, according to a recent memorandum of understanding. The SGH2 Lancaster plant will be able to produce up to 11,000 kilograms of green hydrogen per day, and 3.8 million kilograms per year – nearly three times more than any other green hydrogen facility, built or under construction, anywhere in the world. The facility will process 42,000 tons of recycled waste annually. The City of Lancaster will supply guaranteed feedstock of recyclables, and will save between US$50 to US$75 per ton in landfilling and landfill space costs. California’s largest owners and operators of hydrogen refueling stations (HRS) are in negotiation to purchase the plant’s output to supply current and future HRS to be built in the state over the next ten years.
Unlike other renewable energy sources, hydrogen can fuel hard-to-decarbonize heavy industrial sectors like steel, heavy transport, and cement. It can also provide lowest-cost long-term storage for electrical grids relying on renewable energy. Hydrogen can also reduce and potentially replace natural gas in all applications.
A consortium of leading global companies and top institutions have joined with SGH2 and the City of Lancaster to develop and implement the Lancaster project, including Fluor, Berkeley Lab, UC Berkeley, Thermosolv, Integrity Engineers, Millenium, HyetHydrogen, and Hexagon. Fluor, a global engineering, procurement, construction, and maintenance company, which has best-in-class experience in building hydrogen-from-gasification plants, will provide front-end engineering and design for the Lancaster facility. SGH2 will provide a complete performance guarantee of the Lancaster plant by issuing a total output guarantee of hydrogen production per year, underwritten by the largest reinsurance company in the world.
The Lancaster plant will be built on a 5-acre site, which is zoned heavy industrial. SGH2 anticipates breaking ground in Q1 2021, start-up and commissioning in Q4 2022, and full operations in Q1 2023.
The Lancaster plant output will be used at hydrogen refueling stations across California for both light- and heavy-duty fuel cell vehicles.