BayoTech says it will bring a new hydrogen generation station to Albuquerque under an agreement with New Mexico Gas Co.
The hydrogen hub will be located on property owned by New Mexico Gas Co. The facility is meant to support the natural gas utility's decarbonization goals, according to BayoTech, a hydrogen production and services company.
Specifically, the hydrogen will be used for a project for the blending of hydrogen into New Mexico Gas'distribution system for natural gas. Doing so will allow the regular users of natural gas to switch to a hydrogen-gas blend with the same infrastructure. Hydrogen creates water when combusted as opposed to greenhouse gases.
Refueling stations, backup power systems and fuel cell vehicle fleet operators will also be able to use the hydrogen produced, according to BayoTech. The production station in Albuquerque is just the first that BayoTech plans to deploy in an effort to bring its localized hydrogen production platform to the U.S. and U.K.
By offering production of hydrogen in close proximity to where the hydrogen would be used, and with its proprietary platform, BayoTech contends it can provide hydrogen services in a more sustainable manner.
“With the commissioning of a BayoTech hydrogen hub in Albuquerque, transportation and industry in New Mexico will now have a local source of reliable, economical clean hydrogen to decarbonize their businesses,” said Mo Vargas, CEO of BayoTech, in a prepared statement.
BayoTech's Albuquerque production site is planned to become operational in mid-2022. It is anticipated to create eight to 12 full-time jobs plus 20 temporary jobs in manufacturing and construction, according to BayoTech chief marketing officer Catharine Reid. The company's platform uses steam methane reformation, wherein methane is heated with steam to produce hydrogen, and is based off tech first developed at Sandia National Laboratories.
Reid told Albuquerque Business First in a Dec. 3 email that "generally our hydrogen hubs are located on 0.5 acres."
The announcement comes after a string of partnerships and a significant funding round were disclosed by BayoTech. In particular, a financing agreement with Newlight Partners wherein the startup said it would receive as much as $157 million, which was announced in January. In September, Emerson Electric Co. announced an agreement with BayoTech to enable the production of hydrogen after BayoTech acquired a gas services business called IGX Group Inc.
“BayoTech’s investment in Albuquerque today will move New Mexico closer towards our ambitious goal of net zero carbon emissions by 2050,” said Gov. Michelle Lujan Grisham in a prepared statement provided by BayoTech. Grisham was scheduled to be part of a formal announcement held on Friday for the new facility in Albuquerque.
