A drop in one bucket can be transformative in another.
A vision to expand the energy landscape and spark economic growth where it’s needed
THEY HAVE SUN, WATER, WIND, AND STORAGE— AND A POWERFUL OPPORTUNITY.
The Situation
It’s about perspective. A single drop falling into an industrial-size vessel might escape notice altogether. Yet, in a smaller container, that very same drop could make all the difference. Now, imagine that “drop” represents a $1 billion grant and the impact those funds can have on a small, underserved community. It could be transformative.
That’s what motivated one visionary team aiming to transform the hydrogen landscape in the United States. Green hydrogen energy production, at scale, requires sun, water, wind, and storage; and the Gulf of Mexico is among the world’s largest regions for salt domes, which are well-suited to hold large amounts of hydrogen. This private equity-funded startup intended to establish a clean hydrogen hub away from more established energy centers, in a Gulf Coast community where economic growth from such a hub could be more impactful.
The team was leveraging its significant commercial experience and capabilities to bring a commercial project online when opportunity emerged: a federal grant program to support the creation of 6–10 regional clean hydrogen hubs across America. The CEO believed these federal funds could have a profound impact on the operation and the surrounding community, which may not have had similar opportunities. A $1 billion grant could help drive economic transformation and support an equitable energy transition and resilience. The decision to apply was simple.
The application, however, became complex. It required bandwidth—and time—the small team couldn’t provide, along with hundreds of pages of application materials and supporting ideas. The team realized it couldn’t tackle this challenge alone. The stakes were too high.
THE SOLVE
A PLAN FOR LOWERING CARBON AND UPLIFTING COMMUNITIES
The Impact
Out of more than 80 applicants at the start of the process, the client was down selected to a group of 33 by the Department of Energy (DOE), but was not one of the 6-8 hubs funded for this particular grant. The client team did not let this setback break their resolve. Deloitte’s work with the client resulted in new learnings, new tools, and extensive materials that its team can use to gain new collaborators and debt funding.
Tools Deloitte helped the client build and/or access include:
- An integrated multiyear project plan and corresponding budgets.
- A comprehensive financial model that can be adapted for other applications.
- A model for assessing carbon emissions impact reduction.
- A DOE emissions impact model, typically the purview of environmental engineers and scientists.
- A risk register and holistic risk management plan.
- A framework—and overall compliance plan—for cybersecurity.
- Staffing plans.
- A robust community benefits plan.
Before engaging Deloitte, the client worked for several years to gain the land access for the regional clean hydrogen hub. Now, in addition to a bold vision for the Gulf Coast region and its salt domes, the client has a pathway, budget, and plan for it to become a reality.
LET'S CONNECT.
Do these challenges sound familiar?
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