Heliogen agrees green hydrogen offtake with City of Lancaster

US artificial intelligence (AI)-enabled concentrated solar specialist Heliogen Inc (NYSE:HLGN) and the City of Lancaster have signed a definitive contract on a previously contemplated partnership for the construction of a green hydrogen generation facility to meet the city’s biofuel needs.

The formally agreed partnership, which represents Lancaster’s first hydrogen offtake agreement, follows a memorandum of understanding signed in November. Under the agreed terms, Lancaster will be buying green hydrogen at USD 10 (EUR 9.35) per kg.

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The planned facility, dubbed Proxima, will leverage Heliogen’s patented technology to use AI and advanced computer vision software to concentrate sunlight with mirrors and produce up to 1,500 tonnes of carbon-free hydrogen per year. The site could help support other projects within the city and region, including the production of sustainable aviation fuel (SAF) and the sale and distribution of hydrogen fuel for industrial processes such as long-haul trucking, cement and mining.

Heliogen earlier this year announced that it has completed the preliminary design and has also secured a site for the Proxima project.

“Heliogen’s unique ability to create carbon-free hydrogen holds immense promise to fuel our municipal fleet at the lowest carbon intensity. Hydrogen is the future and we invite other cities to join us on the path to decarbonisation as a way to tackle climate change,” Lancaster’s mayor R Rex Parris commented.