City looking at partnership with global energy firm

LANCASTER — The City Council will consider a proposed agreement to create a public-private partnership between the city and SGH2, a global energy firm that will bring the first-ever hydrogen power plant for market consumption to Lancaster.

The City Council on Tuesday will consider whether to authorize City Manager Jason Caudle or his designee to negotiate, finalize and execute a master agreement regarding the partnership among the city and SFH2 Lancaster Project Co. LLC and SGH2 Lancaster Holding Co. LLC.

According to the proposed agreement, Lancaster will fast-track the development review process, act as an advocate for the proposed project with external permitting agencies, and support SGH2’s efforts to obtain grant funding for the projects from other levels of government.

The proposed project will be constructed on a privately owned parcel currently zoned industrial. Lancaster will guarantee SGH2 a portion of its waste stream to support the project. SGH2, in return, will provide Lancaster with a 5% stake in the company, according to a staff report.

Lancaster announced last May that SGH2 would bring its hydrogen technology to the city. Mayor R. Rex Parris Parris has advocated for hydrogen as a new way to further decarbonize the city.

SGH2 is part of Washington-based Solenga Group, will use proprietary

technology that gasifies any kind of waste — in this case, recycled mixed paper — to make hydrogen. The “greener than green” hydrogen reduces carbon emissions two to three times more than green hydrogen produced using electrolytes and renewable energy, and is five to seven times cheaper, according to the company.

The City Council meeting is scheduled to start at 5 p.m. Tuesday. The meeting will be conducted telephonically due to ongoing restrictions during the COVD-19 pandemic.

To watch the meeting visit the City’s website at www.cityoflancasterca.org/ connect/ public- meetings, tune in to Channel 28. Public comments can be made by dialing 1-877-853-5160, using Meeting ID 949 9803 5160# Password 864953#