Heliogen, Inc., a provider of AI-enabled concentrating solar energy technology, has executed a definitive contract with The City of Lancaster, California to produce green hydrogen to be purchased by Lancaster for the city’s growing green hydrogen fuel needs.
The partnership represents Lancaster’s first hydrogen offtake agreement, according to a news release.
The green hydrogen will be produced at Heliogen’s Proxima hydrogen facility in Lancaster and will leverage Heliogen’s innovative technology using AI and advanced computer vision software to concentrate sunlight with mirrors, producing carbon-free hydrogen with significant economic development potential. As part of the agreement, Heliogen will provide green hydrogen to the City and will certify its carbon intensity, a measure of the CO2 emitted per kilogram of hydrogen produced. Proxima could ultimately help support other projects within the city and region, including sustainable aviation fuel, and sales and distribution of hydrogen fuel for industrial processes such as long-haul trucking, cement, and mining.
The agreement between Heliogen and Lancaster builds upon the previously announced MOU between the parties to establish a clean hydrogen generation facility, and is expected to contract hydrogen conforming to SAE J2719 hydrogen fuel cell vehicle specifications at a $10/kg offtake price. The wholesale-level price represents significant cost savings for the city amid rapidly increasing prices at hydrogen filling stations across California, with the average hydrogen pump price reaching an all-time high of $21.28/kg in November 2022, according to data provided to Hydrogen Insight by S&P Global Commodity Insights.
The collaboration furthers the City’s vision to become a model and leader for hydrogen as a clean, alternative energy source for municipalities. Lancaster, the nation’s first city to embrace hydrogen power, is an inaugural winner of the U.S. Department of Energy’s H2 Twin Cities Initiative.
“We are excited to advance our strategic relationship with The City of Lancaster and support its needs for green hydrogen fuel at scale,” said Christie Obiaya, Chief Executive Officer at Heliogen. “This agreement underscores the incredible potential to rapidly develop and commercialize green hydrogen as a key pathway for a decarbonized economy. I am proud of the Heliogen team for its work to demonstrate the value of our patented breakthrough technology to produce cost-effective green hydrogen, which will accelerate adoption of this critical, multi-use form of clean fuel all over the world.”
“As America’s first hydrogen city, Lancaster is proud to pioneer innovative solutions to drive change and decarbonize our economy,” said R. Rex Parris, Mayor, City of Lancaster. “Heliogen’s unique ability to create carbon-free hydrogen holds immense promise to fuel our municipal fleet at the lowest carbon intensity. Hydrogen is the future and we invite other cities to join us on the path to decarbonization as a way to tackle climate change.”
Heliogen has completed preliminary configuration designs and secured a site for Proxima.
