The Green Hydrogen Coalition in conjunction with the Los Angeles Department of Water and Power (LADWP) and other key partners, announced the launch of HyDeal LA, an initiative to achieve at-scale green hydrogen procurement at $1.50/kilogram in the Los Angeles Basin by 2030. HyDeal LA is a collaboration of developers, green hydrogen off-takers, integrators, equipment manufacturers, investors, and advisors coalescing to overcome the biggest barrier to the green hydrogen economy — its high cost — by launching a commercial green hydrogen cluster at scale.
Green hydrogen is an abundant, carbon-free, and safe energy carrier that can be produced from renewable electricity and water or organic waste. It can be used as a carbon-free fuel and can provide long-duration seasonal energy storage. When used as an alternative to fossil fuels, green hydrogen can enable deep decarbonization of hard-to-abate sectors, enable the repurposing of valuable existing infrastructure and an affordable, responsible energy transition. Benefits to the economy include stable pricing, energy diversity, and increased economic development by reducing our need to import fossil fuels. Green hydrogen can be used to power anything from a power plant to a steel mill to a hydrogen fuel cell vehicle.
Independent studies, including the recently completed Los Angeles 100% Renewable Energy Study, point to the need for renewably fueled combustion turbines — available for limited periods — to achieve reliable 100% renewable electricity.
HyDeal LA is part of HyDeal North America, a commercialization platform launched by the Green Hydrogen Coalition, which is dedicated to deploying green hydrogen at scale for multi-sectoral decarbonization. HyDeal LA is modeled after HyDeal Ambition, a similar project in Europe committed to producing and purchasing 3.6 million tons of green hydrogen per year for the energy, industry, and mobility sectors at €1.5/kilogram (kg) before 2030.
In addition to LADWP, HyDeal LA leaders include 174 Power Global, Mitsubishi Power, and SoCalGas. Key implementation partners include Clifford Chance, Corporate Value Associates (CVA), Cranmore Partners, Energeia, Marathon Capital, Sheppard Mullin, and Strategen. Phase 1 of HyDeal LA will architect the high value competitive supply chain necessary to achieve $1.50/kg delivered green hydrogen in the LA Basin, and achieve in-principle agreement on the necessary terms and conditions to achieve production, storage, transport and delivery of green hydrogen at scale – all of which will be required to establish the green hydrogen ecosystem and economy in Los Angeles.