Kit Carson Electric Cooperative (KCEC) has been awarded $231 million in funding to develop a renewable energy facility that will produce 104 MW of power from green hydrogen and solar energy, complemented by Battery Energy Storage Systems (BESS) in Northern New Mexico. The facility is part of KCEC’s efforts to enhance the resilience of its power distribution system across its service area.

The project will utilize solar generation to power green hydrogen facilities, repurpose wastewater from a former mining site, and incorporate long-duration energy storage technology that lasts up to 16 hours. The development will be a major step in transforming KCEC’s energy infrastructure, ensuring greater system reliability and resilience. Additionally, the facility is expected to be the first of its kind, a fully clean-powered green hydrogen production plant in the U.S.

“This USDA RUS announcement awarding KCEC $231 million in funding is among the most significant milestones in the coop’s history,” said KCEC Board Chairman Bobby Ortega. “This financial award will bring to fruition the first green hydrogen project of this type done by an electric cooperative in the nation.” He added, “The KCEC Board and CEO have an innovative vision for the coop’s future while delivering affordable, reliable clean energy to our members today and well into the future.”

CEO Luis A. Reyes Jr. expressed, “We are thrilled and extend our gratitude to the USDA for granting this opportunity to our rural electric cooperative in northern New Mexico. This will be a game-changer for KCEC, ensuring a reliable power supply even during challenging conditions and allowing first responders and the community to access life-saving power during emergencies such as wildfires or extreme natural disasters.”

The project is expected to provide energy to approximately 25,000 homes and create $298 million in economic benefits for rural communities. It will also generate up to 350 local jobs during construction. The clean energy initiative is projected to reduce climate pollution by nearly 98,000 tons annually, equivalent to over 20,700 gasoline-powered vehicles.

The partnership with Guzman Energy has enabled KCEC to pursue large-scale projects like this one while meeting the State of New Mexico’s Energy Transition Act goals. This initiative is a pivotal move in KCEC’s long-term energy transition strategy, which aims to position the cooperative as one of the cleanest in the country.

“The New ERA funded project not only allows us to achieve this but also will bring the economic opportunities needed in the Village of Questa, NM and surrounding communities,” said Ortega. With its renewable energy expansion, KCEC continues to pave the way for a cleaner, more resilient energy future.