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St. Cloud seeks $3.5 million from RDA to keep green hydrogen electrolyzer project on track
Summary
City of St. Cloud officials told the Senate Energy Committee they need $3.5 million from the Renewable Development Account to add battery storage and overcome grid‑capacity limits for a first‑of‑a‑kind green hydrogen project at the city wastewater treatment plant. The committee laid the bill over for possible inclusion.
The Saint Cloud Green Hydrogen Project, described to the Senate Energy, Utilities, Environment and Climate Committee on March 5, would use an electrolyzer at the city’s water treatment facility to produce hydrogen, oxygen and waste heat for on‑site uses. City officials requested $3,500,000 from the Renewable Development Account to add battery storage to the project after an interconnection review revealed grid capacity constraints.
Tracy Hodel, public services director for the city of St. Cloud, said the electrolyzer for the project is on order and expected to arrive in the fall, but the utility provider would not extend existing export controls that previously prevented excess renewable energy from flowing back to the grid. To continue the project at scale and supply off‑takers who had expressed interest, St. Cloud identified adding a battery as a practical fix and requested $3.5 million in RDA funds to cover that missing piece.
Hodel said the treatment facility already integrates combined‑heat‑and‑power, solar, nutrient and heat recovery and became net‑zero in 2020. She told the committee the project has been in development for nearly three years and expects the electrolyzer to enable wider decarbonization across manufacturing, transportation, heating and power sectors by producing green hydrogen.
Questions from senators focused on whether the bill’s appropriation language matched RDA authority and on whether the city had anticipated the battery requirement in its project budget. Senator Klein asked counsel about the proposed fund source when the bill text appeared to refer to the general fund; senators and counsel discussed the intent to use RDA funds. Senator Green asked why the battery was not included in the original scope; Hodel replied that changes during interconnection review and emerging grid‑capacity constraints required the battery addition.
The committee laid Senate File 17 13 over for possible inclusion. No committee vote to appropriate funds was recorded at the March 5 hearing; the bill will be considered again.
