The global energy company SGH2 is bringing the world’s biggest green hydrogen production facility to Lancaster. The plant will feature SGH2’s pioneering technology, which uses recycled mixed paper waste to produce “greener than green” hydrogen that reduces carbon emissions by two to three times more than green hydrogen produced using electrolysis and renewable energy, and is five to seven times cheaper. SGH2 green hydrogen is cost competitive with “gray” hydrogen produced from fossil fuels like natural gas, which comprises the majority of hydrogen used in the United States.
The City of Lancaster will host and co-own the green hydrogen production facility, according to a recent memorandum of understanding. The SGH2 Lancaster plant will be able to produce up to 11,000 kilograms of green hydrogen per day, and 3.8 million kilograms per year – nearly three times more than any other green hydrogen facility, built or under construction, anywhere in the world. The facility will process 42,000 tons of recycled waste annually. The City of Lancaster will supply guaranteed feedstock of recyclables, and will save between $50 to $75 per ton in landfilling and landfill space costs. California’s largest owners and operators of hydrogen refueling stations (HRS) are in negotiation to purchase the plant’s output to supply current and future HRS to be built in the state over the next ten years.
“As the world, and our city, cope with the coronavirus crisis, we are looking for ways to ensure a better future. We know a circular economy with renewable energy is the path, and we have positioned ourselves to be the alternative energy capital of the world. That’s why our partnership with SGH2 is so important,” said Lancaster Mayor R. Rex Parris. “This is game-changing technology. It not only solves our air quality and climate challenges by producing pollution-free hydrogen. It also solves our plastics and waste problems by turning them into green hydrogen, and does it cleaner and at costs far lower than any other green hydrogen producer.”
Developed by NASA scientist Dr. Salvador Camacho and SGH2 CEO Dr. Robert T. Do, a biophysicist and physician, SGH2’s proprietary technology gasifies any kind of waste – from plastic to paper and from tires to textiles – to make hydrogen. The technology has been vetted and validated, technically and financially, by leading global institutions including the US Export-Import Bank, Barclays and Deutsche Bank, and Shell New Energies’ gasification experts.
“The world needs some good news right now, and we have it. Affordable, mass-produced, reliable green hydrogen is the missing link needed to decarbonize the world,” said Dr. Do. “We provide that link. We are the only company in the world delivering green hydrogen that is cost competitive with the cheapest, dirtiest hydrogen made from coal and gas, and much less expensive than other green hydrogen. Our technology can scale quickly and produce fuel 24/7, year-round.”
Unlike other renewable energy sources, hydrogen can fuel hard-to-decarbonize heavy industrial sectors like steel, heavy transport, and cement. It can also provide lowest-cost long-term storage for electrical grids relying on renewable energy. Hydrogen can also reduce and potentially replace natural gas in all applications. Bloomberg New Energy Finance reports that clean hydrogen could cut up to 34% of global greenhouse gas emissions from fossil fuels and industry.
“Countries around the world are waking up to the critical role green hydrogen can play in increasing energy security and lowering greenhouse gas emissions. But, until now, it has been too expensive to adopt at scale,” said Hanna Breunig, PhD, of Lawrence Berkeley National Laboratory’s (Berkeley Lab) Sustainable Energy Systems Group.
A consortium of leading global companies and top institutions have joined with SGH2 and the City of Lancaster to develop and implement the Lancaster project, including: Fluor, Berkeley Lab, UC Berkeley, Thermosolv, Integrity Engineers, Millenium, HyetHydrogen, and Hexagon. Fluor, a global engineering, procurement, construction and maintenance company, which has best-in-class experience in building hydrogen-from-gasification plants, will provide front-end engineering and design for the Lancaster facility. SGH2 will provide a complete performance guarantee of the Lancaster plant by issuing a total output guarantee of hydrogen production per year, underwritten by the largest reinsurance company in the world.