The construction site of Avina's green hydrogen facility aims to support California's environmental goals.
Avina is constructing a new green hydrogen facility in Vernon, California, in partnership with Vernon Public Utilities. Scheduled for completion in 2025, the facility will produce 4 metric tons of compressed green hydrogen daily and eliminate approximately 130,000 metric tons of carbon dioxide emissions annually. It will become the largest clean hydrogen project in the U.S., contributing significantly to California’s environmental efforts despite challenges posed by changing federal policies. The project utilizes advanced electrolyzer technology and aims to reduce hydrogen fuel prices to competitive levels.
A new green hydrogen facility being constructed by Avina, a company based in New Jersey, is taking shape along the Los Angeles River in Vernon, California. In collaboration with Vernon Public Utilities, this project, scheduled to be finished by October 2025, aims to produce up to 4 metric tons of compressed green hydrogen each day. Upon its operational launch, the facility is expected to eliminate approximately 130,000 metric tons of carbon dioxide emissions annually, making it a significant player in California’s environmental efforts.
Once complete, this facility will be the largest clean hydrogen project in the United States, featuring on-site dispensing capabilities to allow nearby fleets to refuel directly. The importance of this project is further underscored by its development amidst increasingly unfavorable federal policies, particularly during the Trump administration. The administration has scaled back subsidies and grants for renewable energy efforts, focusing more on fossil fuels.
Among the federal policies impacting the green hydrogen sector is the “Big Beautiful Bill”, which aims to eliminate federal tax incentives for new hydrogen projects that start operations after January 1, 2028. Despite these federal obstacles, California remains committed to hydrogen as a strategy to achieve carbon neutrality by 2045. Significant investments have been made at the state level, indicating strong support for renewable energy initiatives, including this hydrogen facility.
To bring this ambitious project to life, Avina has secured funding and grants from several organizations, including CalStart, the California Energy Commission, and investors such as Chart Industries and KBR. Central to the facility’s operation will be the use of large electrolyzer machines powered entirely by renewable energy to split hydrogen from water. This method prioritizes clean hydrogen production, mitigating environmental concerns associated with traditional hydrogen production methods.
The facility will utilize 30,000 to 40,000 gallons of groundwater daily sourced from Vernon’s own groundwater resources, which alleviates concerns about relying on imported water supplies. With the plant’s anticipated capabilities, hydrogen fuel prices aim to drop to around $10 per kilogram, making it competitive with diesel fuels. Current hydrogen prices range between $20 and $30 per kilogram, indicating a potential for substantial cost reductions.
Experts speculate that successful operation of the Vernon facility could demonstrate the cost-effectiveness of green hydrogen technology, particularly important for the heavy-duty transportation sector, which is notoriously difficult to decarbonize. The transition to green hydrogen has the potential to significantly impact public health by improving air quality, as hydrogen combustion emits only water vapor.
While the project has garnered optimism, it has also drawn mixed reactions. Environmental groups have raised concerns about water usage and the possibility of emissions from gray hydrogen derived from natural gas. Other ongoing hydrogen initiatives within California include Element Resources’ proposed $1.85 billion Lancaster Clean Energy Center, aiming to produce 22,000 tons of green hydrogen annually by 2027, and the Los Angeles Department of Water and Power’s conversion of the Scattergood Generating Station to a hydrogen-ready facility by 2035.
California lawmakers are advocating for the preservation of federal funding for the state’s hydrogen hub, highlighting hydrogen’s role in the nation’s energy strategy. The expanding green hydrogen market is being closely watched, with forecasts indicating that it could account for up to 22% of global energy by 2050. Advances in electrolyzer technology and the declining costs of renewable energy are expected to further enhance the feasibility of green hydrogen production.
In summary, Avina’s green hydrogen facility represents a critical step in California’s journey toward building a sustainable energy economy. Despite the challenges posed by shifting federal policies, this project embodies the state’s commitment to innovation and environmental responsibility as it strives to meet its ambitious climate goals.
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