AVANGRID Poised to Build Green Hydrogen Future

Rhea-AI Summary

AVANGRID (NYSE: AGR) has submitted responses to the U.S. Department of Energy’s Request for Information on low-cost clean hydrogen development. Projects include a 20 MW electrolyzer in Connecticut aiming to produce 2.9 million kg of hydrogen annually and create up to 800 jobs. In New York, a hydrogen facility in Rochester supports zero-emissions transport. Other initiatives span Maine, the Gulf Coast, and Oregon. This effort aligns with the DOE’s Energy Earthshot Initiative to promote clean energy solutions.

Positive

• Proposed 20 MW electrolyzer in Connecticut could produce 2.9 million kg of hydrogen annually.
• Potential job creation of 400 – 800 jobs in economically disadvantaged communities.
• Collaboration with local authorities in New York for zero-emissions transportation.
• Initiatives span multiple states, demonstrating nationwide commitment to green hydrogen.

Negative

• None.

AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, announced today that it has submitted multiple responses as part of the U.S. Department of Energy’s Request for Information (RFI) on ways to enable low-cost clean hydrogen at scale, outlining green hydrogen concepts for Connecticut, New York, Maine, Oregon and the Gulf Coast.

“We believe the time for green hydrogen as a viable clean energy fuel has come,” AVANGRID CEO Dennis V. Arriola said. “Our partners at Iberdrola in Spain and at ScottishPower in the UK are already developing commercial scale green hydrogen projects. For example, Iberdrola is building the largest plant producing green hydrogen for industrial use in Europe. AVANGRID’s access to this global expertise, combined with our U.S. based partners and supporters, provides us with a unique advantage to help accelerate the commercial production of green hydrogen in the U.S.”

Multiple project concepts submitted by AVANGRID as part of the RFI are outlined below.

Connecticut -- Electrolyzer and Hydrogen Storage

One of AVANGRID’s RFI responses proposes constructing a 20 MW electrolyzer and hydrogen storage facility for its Connecticut gas and electric utilities, potentially powered by renewable energy from offshore wind and supplemented by additional solar or grid-based renewable electricity. It is estimated the project could produce roughly 2.9 million kg of hydrogen per year, yielding an annual emissions reduction of approximately 25,000 tons of CO₂ and potentially creating 400 – 800 jobs in economically disadvantaged communities.

New York – Utilizing Hydrogen for Transportation in Rochester

In collaboration with local area transportation authorities in Rochester, New York, Rochester Gas & Electric (RG&E) is assessing opportunities to construct a multi-use hydrogen production and distribution facility, which could support a range of hydrogen uses, including transportation applications to meet zero-emissions fleet goals.

Maine – Exploring Hydrogen for Multiple Applications

In Maine, AVANGRID’s local subsidiary, Central Maine Power (CMP), has begun exploring how to collaboratively help advance green hydrogen consumption in existing manufacturing processes, for enhanced renewable natural gas production, and in transportation applications such as trucking and aviation.

Gulf Coast – Leveraging Avangrid Renewables Wind Generation to Develop Green Hydrogen and Green Ammonia

Representing its nationwide presence and leading renewables fleet, Avangrid Renewables has additionally identified opportunities to support green hydrogen for industrial use on the Gulf Coast and provide cleaner solutions that strengthen the U.S.’s domestic energy leadership.

For instance, a large-scale electrolysis project in Corpus Christi, Texas would convert low-cost Texas wind power into green hydrogen and ultimately into green ammonia. The ambitious commercial-scale project demonstrates the scalability of the technology, its path to cost-competitiveness, and green hydrogen’s value as an important component in an economywide clean energy transition.

Oregon – Leveraging Klamath Cogeneration Plant for Hydrogen Production

In Oregon, AVANGRID’s RFI response proposes the colocation of green hydrogen production at Avangrid Renewables’ Klamath Cogeneration Plant. The intent would be to make the facility a source for fuel flexibility as the combined-cycle natural gas plant balances the intermittency of the energy generated by AVANGRID’s 1,300 MW Northwest wind farm fleet. The proposed project would include a ~20 MW electrolyzer to enable a two percent blend of green hydrogen into the plant’s fuel supply. This project has the potential to generate 3,000 metric tons of green hydrogen annually.

The DOE’s RFI seeks information from industry, investors, developers, academia, research laboratories, government agencies, and other stakeholders on potential hydrogen demonstration projects in the United States. It is part of the DOE’s recently announced Energy Earthshot Initiative to accelerate breakthroughs of more abundant, affordable, and reliable clean energy solutions within the decade.

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT, with approximately $38 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs approximately 7,000 people and has been recognized by Forbes and Just Capital as one of the 2021 JUST 100 companies – a list of America’s best corporate citizens – and was ranked number one within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2021 for the third consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.

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FAQ

What is AVANGRID's plan for green hydrogen in Connecticut?

AVANGRID plans to construct a 20 MW electrolyzer and hydrogen storage facility in Connecticut, aiming to produce approximately 2.9 million kg of hydrogen annually.

How many jobs could AVANGRID's hydrogen project create?

The hydrogen project in Connecticut is expected to create between 400 to 800 jobs in economically disadvantaged communities.

What state partnerships is AVANGRID pursuing for hydrogen applications?

AVANGRID is partnering with local transportation authorities in Rochester, New York, to assess hydrogen production and distribution for transportation applications.

What is the significance of AVANGRID's RFI submissions for green hydrogen?

AVANGRID's RFI submissions highlight its commitment to advancing green hydrogen technology across several states, supporting the DOE's Energy Earthshot Initiative.

What initiatives is AVANGRID exploring in Maine for hydrogen?

In Maine, AVANGRID is exploring green hydrogen applications in manufacturing processes, renewable natural gas production, and transportation.