Magnum Development LLC and Mitsubishi Power Americas Inc. have secured a $504 million loan guarantee from the U.S. Department of Energy (DOE) to develop what could be the world’s largest industrial green hydrogen hub in Delta, UT.

The loan is DOE’s first in more than 10 years for a renewable energy project, Mitsubishi Power said.

The financing “helps generate a viable market for hydrogen and will make it scalable in the western United States and electrical grid, creating the fundamental infrastructure necessary to deploy this zero-carbon energy source,” the firm added.

The hub, called Advanced Clean Energy Storage I LLC (ACES I), is designed to initially produce up to 100 metric tons/d of green hydrogen from renewable energy through 220 MW of electrolyzers.

The...