Element Resources is targeting a 1Q24 final investment decision for a green hydrogen production facility in development in Lancaster, California.
The Houston-based company had previously said it would reach FID before the end of this year for the facility, which will be capable of producing between 20,000 and 24,000 tons per year of green hydrogen.
“We have secured land and water rights and have made substantial progress in permitting, equipment selection, and off take development,” the company said in a news release. “We are presently aiming for a final investment decision by 1Q24.”
The company is evaluating the potential of systematic expansion of green hydrogen production in the Lancaster area and surrounding environs to keep pace with what it calls significant prospective demand for green hydrogen, SAF, and other hydrogen derivates.
The mobility, aviation, agriculture, mining, and industrial sectors have all shown keen interest in the potential of green hydrogen and its derivates throughout California and the region, the company said.
A new Memorandum of Understanding between Lancaster and Element Resources further proves Lancaster’s commitment to becoming the first US Hydrogen City.
“We are addressing the challenges of designing, constructing, and operating a green hydrogen facility reliant solely upon photovoltaic solar,” the release continues.
The utilization of power supplied by public utilities via the electricity grid is impractical insofar as the cost per kilowatt renders the use of ‘grid’ electricity impractical on an economic basis for green hydrogen in California.
Coupled with the costs of interconnection and the time lag for obtaining the interconnection, grid electricity is impractical. Grid electricity may not be 100% renewable, effectively introducing carbon into the production of hydrogen.
