AES Participating in Two Clean Hydrogen Hubs Awarded Funding by US Department of Energy
Up to $2.4 Billion Will Support the Development and Scaling of Clean Hydrogen Infrastructure in California and Along the Gulf Coast
ARLINGTON, Va., Oct. 13, 2023 /PRNewswire/ -- The AES Corporation (NYSE: AES) announced today that it is part of two Regional Clean Hydrogen Hubs receiving funding from the US Department of Energy. The two selections stand to receive up to $2.4 billion of grant funding allocated by the Bipartisan Infrastructure Law (BIL) to develop Clean Hydrogen Hubs across the country.
AES is part of two of the awarded hubs: the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) Hub in California, which was allocated up to $1.2 billion, and the HyVelocity Hub in the Gulf Coast of Texas and Louisiana, which was allocated up to $1.2 billion. Through these Hubs, AES expects to secure funding for new green hydrogen projects which it will own and operate in those regions, along with associated renewables.
"We are very pleased that two of the Regional Clean Hydrogen Hubs in which AES is participating were selected by the DOE to receive grants," said Andrés Gluski, AES President and Chief Executive Officer. "These announcements, together with our joint venture in North Texas with Air Products, consolidate AES' position as one of the leaders in producing Green Hydrogen in America."
Over the past year, over 30 regional consortiums consisting of a variety of governments, private companies, academic institutions and non-profits were formed to compete for the Department of Energy's Hydrogen Hub funding. The Regional Clean Hydrogen Hubs program was established by the BIL and has allocated $7 billion to build 7 regional clean hydrogen hubs across the US, with a focus on creating networks of hydrogen producers, consumers and local infrastructure that advances the availability and use of clean hydrogen. Development plans for the hubs in which AES is participating are expected to be finalized over the next several years with operations commencing in the latter part of the decade.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, rates of return consistent with prior experience and the COVID-19 pandemic.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2022 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.
Any Stockholder who desires a copy of the Company's 2022 Annual Report on Form 10-K filed March 1, 2023 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company's website at www.aes.com.
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