Haddington Ventures has formed Haddington ESP I to provide construction equity for projects developed by the Advanced Clean Energy Storage Joint Venture, which will be the largest green hydrogen platform in the world upon completion. With this equity funding, construction can begin in June 2022, and hydrogen hub operations are scheduled to commence in 2025.
The investors in Haddington ESP are Alberta Investment Management Corporation, GIC, Manulife Financial Corporation (Manulife) and Ontario Teachers’ Pension Plan Board (Ontario Teachers’). In addition to the investors’ initial $650 million equity commitment, they have additional rights to increase their collective investment to $1.5bn.
“This is a pivotal investment for western states seeking to meet their aggressive decarbonization goals,” said John Strom, Managing Director of Haddington Ventures. “The ACES Delta hub will be larger than any existing green-hydrogen production and storage site by a factor of 10, which is the scale needed for electric utilities. The project uniquely leverages readily scalable electrolyzer technologies with multiple large salt dome storage caverns to make a meaningful environmental contribution.”
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ACES Delta is developing the green hydrogen storage hub near Delta, Utah, with electrolyzer capacity to produce up to 100 metric tonnes per day of green hydrogen under a long-term contract with the Intermountain Power Agency (IPA). IPA is comprised of 23 Utah municipalities and owns the Intermountain Power Project (IPP). IPP supplies power to the IPA members, six rural electric cooperatives, and municipal utilities in Southern California, including Los Angeles, Burbank and Glendale.
The initial funding from Haddington ESP will finance a project to use renewable energy resources to power 220 megawatts of electrolyzers that will split water into hydrogen and oxygen. The resulting zero-carbon green hydrogen will be stored in salt-dome storage caverns and made available on demand to IPA, which intends to utilize the hydrogen in its combined-cycle natural gas plant to generate electricity for its project participants.
Construction of the initial phase of the hub, which is now underway, will help create up to 400 local construction jobs throughout the 3-year construction cycle, and will contribute significant property tax revenue to the local county services such as law enforcement, infrastructure, and others.
ACES Delta is a joint venture between Mitsubishi Power Americas and Magnum Development, a managed portfolio company of Haddington Ventures. The Haddington/Magnum team brings experience in underground salt storage development, construction, and operation while Mitsubishi Power Americas brings experience and technological support for the electrolyzers and other power related elements. For additional information, please visit aces-delta.com.
“AIMCo is excited to be participating in the ACES Delta Platform alongside strategic partners, which are aligned in supporting the Delta site becoming a key hydrogen production & storage hub for the Western US. Hydrogen is expected to play a vital role in meeting many industries and stakeholders’ current and future decarbonization goals. We see the long-term contracted nature of the initial Project fitting well within the strategic objectives of our client’s portfolios and the potential for future investment in this growing sector.”
Ben Hawkins, Head, Infrastructure, Renewables & Sustainable Investing AIMCo
“We firmly believe that green hydrogen will play a key role in decarbonization in the US, where long-duration storage will be essential for the higher penetration of renewable power, and to meet fluctuating inter-season power demand. As a long-term investor, we are pleased to partner with this strong group of likeminded developers and equity partners to position ourselves well for the growing hydrogen economy.”
Ang Eng Seng, Chief Investment Officer of Infrastructure for GIC
“Manulife is thrilled to expand its longstanding investment relationship with Haddington Ventures and partner alongside these strategic investors in projects developed by ACES Delta. We believe ACES Delta is uniquely positioned to build a large-scale green hydrogen production and storage platform to serve growing customer demand. This investment supports our objectives to help facilitate the decarbonization of energy sources and grow our $42 billion portfolio of green investments.”
Adam Wise, Head of Natural Resources and Sustainable Solutions, Manulife
“We’re proud to be investing in one of the largest and most advanced green hydrogen projects in the U.S.. Ontario Teachers’ is committed to decarbonization and the energy transition and we believe green hydrogen production and storage will play an essential role in this transition. We see the ACES Delta platform as the beginning of a long-term partnership with a top-quality developer,” said Chris Ireland, Managing Director, Greenfield and Renewables at Ontario Teachers’.
Legal representation to Haddington ESP investors was provided by Sidley Austin LLP, while Haddington Ventures was represented by Willkie Farr & Gallagher LLP
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