Iwatani, SG H2 to launch closed-loop green H2 transportation ecosystem in California

US waste-to-hydrogen company SG H2 Energy has joined forces with Japanese industrial giant Iwatani Corp (TYO:8088) and the City of Lancaster in California to produce green hydrogen from waste paper and recycled water and supply it to the transportation industry.

The project is set to create California’s first closed-loop green hydrogen ecosystem for transportation, SG H2 Energy said on Friday. It will enable the production of up to 11,000 kg of green hydrogen daily at the so-called SG H2 Lancaster plant.

The facility will be located at a 5-acre (2.02-ha) site in Lancaster, with its construction planned to be launched in the first quarter of next year. Hydrogen production will start in the third quarter of 2023.

The project partners have signed an agreement that kickstarts the project’s front-end engineering and design phase. SG H2 Energy will lead the production process, while Iwatani will buy a large portion of the green hydrogen output and transport it to its network of refuelling stations for light and heavy duty fuel cell vehicles.

The City of Lancaster will co-own the production facility and will facilitate the supply of guaranteed feedstock of waste paper.

“This green hydrogen eco-system is environmentally superior, economically competitive and ready to scale,” said SG H2 CEO Robert T Do. He added that the company is “moving quickly” to build similar green hydrogen eco-systems, both in California and globally.

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