As the world transitions toward cleaner energy sources, hydrogen has emerged as a vital player in the energy landscape. While production and end use of hydrogen is critical to achieving a robust hydrogen economy, large-scale storage solutions are needed to bridge the gap between the two. From stationary and portable power to transportation, all applications of hydrogen need storage capacity in one form or another, and there are a variety of ways to do so.
There are many ways to store and distribute hydrogen, as a compressed gas, in liquid form, in chemical compounds like ammonia or methanol. As more hydrogen is produced in the United States, we need to expand our storage options into larger vessels, tanks, and explore other opportunities. One significant opportunity for large-scale, long-term hydrogen storage is utilizing our country’s underground geological formations such as salt caverns, aquifers, depleted oil and gas fields, hard rock caverns, and coal seams.
Underground Hydrogen Storage
Underground storage of energy assets is not a new development. The U.S. Strategic Petroleum Reserves are currently stored in underground salt caverns ranging in size from 6 to 37 million barrels of crude oil. Naturally occurring underground salt formations offer an opportunity for long-duration hydrogen storage by injecting hydrogen gas into caverns created by solution mining. Several FCHEA members are currently involved in this space, and in this blog post we will highlight them.
The ACES Delta Hub, a joint project led by FCHEA member Mitsubishi Power Americas with partner Chevron U.S.A.’s New Energies Company, is a large-scale clean hydrogen facility under development that is designed to produce, store, and deliver green hydrogen to the western U.S. Based in Delta, Utah, the hub will initially be capable of converting 220 MW of renewable energy into ~100 tons per day of green hydrogen, which will then be stored in two massive salt caverns with a storage capacity of more than 300 GWh of dispatchable clean energy. The project is supported by a $504.4 million loan guarantee from the U.S. Department of Energy’s Loan Programs Office.
Source: U.S. Department of Energy
In the gulf coast region of Texas, FCHEA member NeuVentus recently announced plans to develop up to 12 salt caverns to store hydrogen and other related fuels. NeuVentus also secured the exclusive right to develop hydrogen cavern storage on certain acreage and rights to obtain easements for related infrastructure over 3,000 acres above and adjacent to the Moss Bluff Salt Dome. This includes groundwater production, brine disposal, and high voltage electrical access, and would be suitable for datacenter, SAF and other industrial users of clean hydrogen who will require reliability of supply. Located in the heart of the HyVelocity region, NeuVentus anticipates its first cavern at Moss Bluff for hydrogen storage will begin commercial operation between 2027 and 2029.
FCHEA looks forward to supporting the industry as underground hydrogen storage develops further, and other innovative storage solutions expand and emerge, including advocating for refinements to the final Treasury guidance under the Section 48E hydrogen storage investment tax credit to ensure this technology achieves its significant potential.
