The Alaska Gasline Development Corp says it has submitted a concept paper to the US Department of Energy for an Alaskan low-carbon hydrogen hub, Kallanish reports.

The Alaskan proposal calls for initial production of 600 short tons/day of hydrogen, eventually growing to 1,600 st/d of hub capacity, the state-owned agency says. The project would utilise natural gas feedstock from the developing Alaska liquified natural gas project. That project would transport natural gas from Alaska’s North Slope and turn it into LNG for shipment to markets. Carbon would be captured and sequestered. It is being supported by the state agency and its partners. The concept paper is the initial step in the DOE grant process.

The Alaska hydrogen project is seeking $850 million in federal funds to go with $3.75 billion in private-sector funds, backed by offtake agreements from customers in the US and Asia. Advantages include available natural gas and proximity to markets including Asia, supporters say. The DOE has $8 billion and is expected to back 6-10 hydrogen hubs across the US. That money will be awarded in late 2023 or early 2024. Other parties have filed notice of also seeking those funds.

Last month, the Alaska agency signed a separate agreement to evaluate the commercial feasibility of producing ammonia from natural gas via the LNG project and sequestering the captured carbon dioxide in the Cook Inlet area on Alaska’s southern shore. Partners on that project are Mitsubishi Corp, TOYO Engineering Corp, and Hilcorp Alaska.