Xcel proposes hydrogen energy hub in eastern Colorado
DENVER — Xcel Energy Inc. (NYSE: XEL), if the U.S. Department of Energy approves, will build a clean-energy hydrogen hub on the eastern plains of Colorado.
The hub is an element of Xcel’s plan to transition from carbon-fired electricity generation to clean energy. The Western Interstate Hydrogen Hub LLC would be interconnected with distribution systems in New Mexico, Utah and Wyoming, in addition to Colorado.
“We’re ushering in the next generation of clean energy technology in Colorado with significant benefits for our customers and the environment,” Bob Frenzel, Xcel Energy chairman, president and CEO, said in a press statement. “The strong partnership with our Western states and other energy providers demonstrates regional commitment to increasing economic impact while achieving carbon goals for our customers.”
Xcel Energy-Colorado’s hydrogen hub is one of eight projects in the WISHH proposal. The location for the hub provides the company with “geography favorable for underground hydrogen storage,” the press statement said.
“The investment in these eight hydrogen projects is a crucial step to achieving shared energy independence goals and my goal of 100% renewable energy in Colorado by 2040,” said Gov. Jared Polis.
Robert Kenney, president of Xcel-Colorado, said the project will add millions of dollars to the state economy. The potential for DOE funding benefits customers, accelerates clean energy goals and delivers affordable energy, he said.
If successful, the application could lead to $1.25 billion in federal dollars awarded for the entire four-state region. If completed, the company’s project will reduce carbon emissions by more than 750,000 tons per year, the press statement said.
Xcel Energy is also part of the Heartland Hydrogen Hub, a similar project involving the states of Montana, North Dakota, Minnesota, South Dakota and Wisconsin.