Marathon Petroleum withdraws from $925 million Prairie Horizon Hydrogen Project.
Marathon Petroleum Corp. announces $2 billion investment in Dickinson halted for the Prairie Horizon Hydrogen project, as they shift focus to optimizing existing assets in North Dakota.
Marathon Petroleum Corp. (MPC) announced Wednesday that it will no longer pursue the development of the proposed Prairie Horizon Hydrogen (PHH) project, which was to be part of the Heartland Hydrogen Hub (HH2H).
The PHH project, still in its development stage, was a component of the HH2H initiative, focused on advancing clean hydrogen production and reducing carbon emissions across the Upper Midwest. This project, planned to be located in Dickinson in Stark County, was a collaboration between TC Energy and MPC.
HH2H is promoted as a regional clean energy project in the U.S., aiming to decarbonize various sectors by producing low-carbon hydrogen. The initiative involves collaboration among multiple states — North Dakota, Minnesota, Montana, and Wisconsin — and was selected by the U.S. Department of Energy (DOE) for up to $925 million in funding in October 2023 as part of President Biden’s Investing in America agenda.
Jamal T. Kheiry, corporate communications at MPC, said:
After careful consideration, MPC has decided to no longer pursue the development of the proposed project that was to be part of the Heartland Hydrogen Hub.
“We are focusing our North Dakota resources on maximizing the efficiency and optimizing the operations of our many existing assets in the state, including our Dickinson Renewable Diesel Facility, our Mandan Refinery, our joint venture soybean processing facility with ADM, our logistics systems, and our natural gas processing facilities. We are committed to continuing our role in North Dakota’s energy industry, providing a variety of fuels that power our economy, enhance people’s lives, and support an energy-diverse future.”
Sen. John Hoeven reported in a statement from October 2023 that of the DOE’s grant, $500 million was set to go to the Marathon renewable diesel facility in Dickinson. Additionally, Marathon and TC Energy were set to invest another $1.5 billion in the facility, bringing the total projected investment to $2 billion.
TC Energy and MPC met with Dickinson residents in a community-focused open house to provide information and answer questions for locals in August 2023. The provided timeline showed anticipated construction starting in 2026 and operation begining in 2028-29.
In early March, the PHH project turned down a $75 million state-forgivable loan meant to support the project. They explained that their method of using natural gas to produce hydrogen did not match the program’s requirement for using electrolysis technology.
In a statement provided to the Dickinson Press, MPC shared their gratitude for the support, “MPC is appreciative of the Department of Energy’s support, particularly the Office of Clean Energy Demonstration (OCED) in the collaboration on MPC and TC Energy’s proposed project within the selected Heartland Hydrogen Hub (HH2H). HH2H advanced through the regional clean hydrogen hub program because of the strong leadership of the Energy and Environmental Research Center (EERC). MPC recognizes and thanks the HH2H team—EERC, TC Energy, and Xcel Energy—for their support on the hydrogen hub endeavor, including MPC’s contemplated project,” added Kheiry.
The EERC did not offer an immediate comment on the news of MPC’s decision to pull out.
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Marathon Petroleum withdraws from $925 million Prairie Horizon Hydrogen Project. source
