Kit Carson Electric Cooperative (KCEC), a utility in New Mexico, has been awarded $231 million from the U.S. Department of Agriculture (USDA) to develop green hydrogen and solar energy facilities integrated with long-duration energy storage (LDES).

This funding is part of the USDA’s $6 billion investment under the Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs, as reported by PV-Tech.

KCEC plans to allocate the grant to its Questa Green Hydrogen Project, focusing on green hydrogen production in Taos County, New Mexico, including the Picuris and Taos Native American Pueblo communities.

The initiative includes custom hydrogen facilities and co-located solar plants at closed mine Superfund wastewater treatment sites, along with LDES installations capable of up to 16 hours of storage. While the technology specifics were not disclosed, KCEC confirmed plans for battery energy storage systems (BESS).

This project aligns with New Mexico’s Energy Transition Act (ETA), which mandates rural electric cooperatives to achieve 100% carbon-free resources by 2050, with at least 80% from renewables. It also supports the Tri-State Responsible Energy Plan aimed at eliminating coal emissions in New Mexico and Colorado.

KCEC CEO Luis A. Reyes Jr. expressed gratitude for the USDA grant, stating, “This will be a game-changer for KCEC, ensuring a reliable power supply even during emergencies like wildfires or extreme natural disasters.”

The USDA’s funding is part of its broader initiative, which includes $4.37 billion in rural utility investments under the New ERA program, benefiting 10 rural electric cooperatives, six of which are incorporating BESS into their grids.