Fusion Fuel, Electus Energy plan 75-MW solar-to-hydrogen project in California

Fusion Fuel (NASDAQ:HTOO) and hydrogen mobility developer Electus Energy plan to develop a green hydrogen project of about 75 MW in Bakersfield, California.

The companies today announced the signing of a joint venture agreement for the solar-to-hydrogen project that would use Fusion Fuel’s HEVO technology and is seen to cost EUR 175 million (USD 181.6m).

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The partners expect to make a final investment decision in early 2024 and commission the facility in the first half of 2025. The installation would be able to produce up to 9,300 tonnes of hydrogen per year, enough to support over 1,000 Class 8 trucks or buses per day, according to the announcement.

The companies have signed a land-lease agreement for a site for the project in Kern County. Fusion Fuel has also hired Black & Veatch to conduct a concept study and is also working with Cornerstone Engineering and Headwaters Solutions.

“Due to the unique combination of solar irradiance, California tax incentives, and proximity to large-scale offtake, Bakersfield is the ideal project to anchor our North American strategy,” said Fusion Fuel’s chief commercial officer Jason Baran.

Zachary Steele, co-head of Fusion Fuel, which has been focused on Iberia, added that the passage of the Reduction Act has accelerated the company’s plans for North America. The firm will also be evaluating an investment in a US production facility to complement its new factory in Benavente, Portugal, said Steele.

Andrew Greene, Electus Energy’s chief executive officer and co-founder, commented: “The most critical part of implementing any successful hydrogen mobility program is the ability to source reliable, clean hydrogen fuel at an attractive price, and we believe our partnership with Fusion Fuel will help lower the cost of fuel for our customers and accelerate the adoption of zero-emission hydrogen vehicles for all automotive applications, including heavy trucking, public transportation and automobiles.”

(EUR 1 = USD 1.037)