World’s largest ‘green hydrogen’ offtake deal signed in California by waste-to-H2 start-up

June 4, 2021

Washington DC-based waste-to-hydrogen company SGH2 Energy will supply 3,850 tonnes of “greener-than-green” H2 annually to two of California’s largest owners and operators of hydrogen refuelling stations under a ten-year contract.

SGH2 claims the deal, whose financial terms were not released, is the first and only long-term green hydrogen off-take agreement thus far globally. “The world is moving to green hydrogen, and we aim to accelerate that process,” said SGH2 CEO Robert Do.

The carbon-negative H2 will be produced from biogenic waste and biomass at the company’s planned production facility in the City of Lancaster north of Los Angeles. The hydrogen is said to be carbon-negative because the waste would otherwise rot in landfills and emit methane, a greenhouse gas 84 times more potent than CO2 over a 20-year period. It thus calculates its carbon intensity as negative 188kg of CO2 equivalent per megajoule, compared to 20kg for coal-derived H2 and zero for standard green hydrogen.

The plasma-enhanced gasification plant is scheduled to open in the summer of 2023 and will be owned jointly in a public-private partnership by the city and SGH2. They did not provide cost of construction. It will produce up to 11,000 kg daily at full operation in baseload capacity of 350 days per year.

The hydrogen will be compressed into 11 tube tanker trailers every 24 hours for distribution across southern California, with the gas providing enough fuel for 2,000 cars or 250 heavy-duty buses or trucks daily.

Read more here.

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