Renewable energy firm RIC Energy has partnered with Cadiz, Inc. to build a 50-tonne-per-day green hydrogen plant in the Mojave Desert, which the companies claim with be the largest of its kind in California.
Planned to be built at Cadiz’s agrisolar operation, 100% solar energy will be used to power electrolysers to produce green hydrogen that will comply with the “strictest regulations” of the Inflation Reduction Act’s (IRA) 45V tax credit (see below).
The 34,000-acre Cadiz Ranch site is also host to a project that claims to reduce recurrent groundwater loss from evaporation to supply water for up to 400,000 people across the region over the next 50 years.
Using the facility’s aquifer system, Cadiz will supply up to 500 acre-feet of water per year for hydrogen production.
Also situated at a crossroads of major rail, pipeline and highway infrastructure the companies plan to transport hydrogen to customers in Southern California.
“It is the ideal for green hydrogen production – the largest hydrogen production facility in California,” said Cadiz CEO, Susan Kennedy.
Additionally, the companies have plans for on-site electricity storage, along with compression and liquefaction equipment.
“This is an exciting opportunity for RIC Energy,” said Jonathan Rappe, CEO of RIC Energy North America. “In a single location, that is close to roads, train lines and pipeline, we have all the water, land and sun right at hand to build and operate what will be one of the world’s largest self-sufficient green hydrogen facilities to date.”
Under more future plans, the partners have said the site is “ideal” for future hydrogen pipelines serving the Los Angeles region.
“The hydrogen can also be blended locally with natural gas for transport via on-site and nearby existing gas transmission pipeline networks, with the objective of serving California’s burgeoning hydrogen market and meeting California’s mandate to deliver 90% clean electricity by 2035,” the firms said.
45V tax credit requirements
Under rules proposed by the Treasury in December 2023, US green hydrogen producers will have to source renewable electricity from the same regional grid, from assets that are no older than three years old at the time of hydrogen production start-up, to gain access to the 45V’s top tier $3/kg PTC.
It also mandates that producers must match renewable electricity and electrolyser operation within the same calendar year until 2027, before hourly matching from 2028.
However, the rules are still yet to be confirmed.
