Norway's Nel ASA has experienced a setback after Hy Stor Energy LP, based in Washington, cancelled its 1-GW preliminary agreement for the Mississippi Clean Hydrogen Hub (MCHH) project.
The cancellation of the capacity reservation agreement, which was initially signed in April, has not been accompanied by any official explanation from Hy Stor.
Nel ASA clarified that since the capacity reservation does not qualify as order intake according to its accounting standards, the termination will not impact its order backlog.
The MCHH project is poised to establish the largest zero-carbon, off-grid hydrogen production and salt cavern storage hub in the United States, with the capability to store over 70,000 tonnes of green hydrogen.
The facility is designed to produce and store green hydrogen for distribution to various sectors, including business, industrial, transportation, and utilities throughout Mississippi, neighboring states, and the broader Eastern U.S.
In the previous year, Hy Stor sought federal funding from the Department of Interior's USD 7-billion Regional Clean Hydrogen Hubs program; however, its proposal was not among those awarded funding.
