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AGDC submits Alaska hydrogen hub proposal
Concept paper to US Department of Energy supported by Agrium US, Salamatof Native Association, Alaska CCUS Consortium, UAF Kristen Nelson Petroleum News
The Alaska Gasline Development Corp. said Nov. 7 that it has submitted a concept paper for an Alaska Hydrogen Hub to the U.S. Department of Energy. The hub is supported by Agrium U.S., Salamatof Native Association, Alaska CCUS Consortium - which includes ASRC Energy Services, Santos and Storegga - and the University of Alaska Fairbanks’ Alaska Center for Energy and Power.
Funding for hydrogen hubs was included in the 2021 Infrastructure Investment and Jobs Act, with the funds expected to be awarded in late 2023 or early 2024. AGDC said DOE envisions selecting six to 10 hubs and awarding up to $7 billion to support production and delivery of clean hydrogen energy.
Guidelines require that a qualifying hub produce a minimum of 50 tons of hydrogen per day, and AGDC said the Alaska hub anticipates initial production of more than 600 tons per day, eventually growing to 1,600 tons per day.
The Alaska Hydrogen Hub would use natural gas feedstock from the Alaska LNG Project with the associated carbon sequestered.
AGDC said a lifecycle analysis of the Alaska LNG Project found that the Alaska project would have the lowest carbon intensity of any U.S. liquefied natural gas project.
DOE requires funding from the project along with federal funding. “The Alaska Hydrogen Hub concept anticipates using $850 million in DOE funding along with $3.75 billion in private-sector funds, backed by offtake agreements from hydrogen customers in the U.S. and Asia,” AGDC said.
Cook Inlet ammonia production In early October AGDC announced an agreement to assess the potential for zero-carbon ammonia production in the Cook Inlet region. Parties to the agreement are AGDC, Mitsubishi Corp., TOYO Engineering Corp. and Hilcorp Alaska.
The memorandum of understanding is to evaluate the commercial feasibility of using North Slope natural gas delivered to Southcentral by the Alaska LNG Project to produce carbon-free ammonia, with carbon dioxide generated to be captured and sequestered in underground geologic formations in Cook Inlet.
AGDC said Alaska hydrogen production was also discussed with Japanese energy leaders during the Alaska LNG Summit in Tokyo on Oct. 24.
Project advantages In its Nov. 7 release, AGDC listed advantages of an Alaska Hydrogen Hub:
*North Slope natural gas estimated at 200 trillion cubic feet, would be transported by the AGDC-backed Alaska LNG Project for in-state use and for conversion to LNG for export.
*Availability of underground geologic formations in Cook Inlet for storage of carbon released in the production of ammonia. AGDC said geologists have estimated Cook Inlet has 50 gigatons of carbon sequestration capacity.
*Agrium’s idle ammonia plant is next to the planned Alaska LNG Project LNG facility.
“Using Alaska LNG as a springboard for launching the Alaska Hydrogen Hub will generate clean, competitively priced energy, create new high-paying jobs for Alaskans, and position the U.S. as a reliable energy partner for our allies overseas,” said AGDC President Frank Richards.
U.S. Sen. Lisa Murkowski noted that the Alaska LNG Project is fully permitted “and adding hydrogen production to this project enhances and extends Alaska LNG’s financial rationale and climate benefits.”
U.S. Sen. Dan Sullivan said: “With Alaska LNG and the Alaska Hydrogen Hub as the cornerstones of the Alaska LNG Project, Alaska has the resources and expertise to be an innovative energy provider for generations.”
Alaska Gov. Mike Dunleavy said: “Natural gas is a key ingredient for hydrogen production, and the increasing global demand for low-carbon hydrogen is also fueling progress for Alaska LNG.”
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