When an energy project comes to fruition, many people do not recognize the constant hurdles that existed along the way, preventing the project developers from executing it earlier. After a well-documented delay, Questa green hydrogen project is expected to start construction in June 2026, which is a massive win not only for New Mexico but for America in general. There has been a common trend in 2026 where countries are all looking to hit the ground running and execute projects in the earlier half of the year, so it will be exciting to assess how they all pan out.
Reviewing the Questa green hydrogen project and future expectations
The Kit Carson Electric Cooperative (KCEC) brought the positive news regarding the now-imminent Questa green hydrogen project. What has changed since the delay is that the state of New Mexico has now managed to secure federal funding, which can assist in executing the meticulous planning that has taken place for multiple years. When the construction process finally ends, the state will enjoy its largest-ever renewable hydrogen facility.
Although the primary objective of an energy project is to generate electricity, it often opens up doors to other benefits, such as the creation of employment opportunities for residents, particularly during the construction phase. This is particularly important for the state of New Mexico,o considering that it once had a thriving mine named the Chino Copper mine, which was economically lucrative for its people but unfortunately, was closed down in 2020 following the COVID-19 outbreak.
There are high stakes hanging on this one project found in the state of New Mexico, as project developers are hoping that it will successfully cover a multitude of areas. Importantly, the region will join other US states in achieving decarbonization.
How did the initial planning of New Mexico’s hydrogen project lead to its eventual delay
When news first broke regarding the state’s upcoming hydrogen facility, many people were excited and already envisioning how they would benefit from it. However, all the plans had to be set aside due to the numerous hurdles that arose. The initial planning of the project intended for it to become the cornerstone of New Mexico’s renewable energy endeavors, which could then be built upon in the future. Questa Green is aiming to merge its solar power portfolio with an electrolyzer-based hydrogen facility. The upcoming plant is set to produce green hydrogen by splitting water with renewable energy, which is a non-carbon-emitting process and will crucially provide electricity when there is no solar energy.
Addressing the elephant in the room: Why was the Questa green project delayed?
Although the project is now expected to move forward in 2026, many people have not forgotten about the past delay, and even further, they are aware that there may be more hurdles in the future that can prevent the project’s completion. In the first instance, the project was delayed when federal renewable energy funding, inclusive of about US$15.4 million for solar, was withdrawn. To some people, the funding withdrawal conveyed that the state of New Mexico was not highly prioritized compared to other regions like Florida.
Greener pastures ahead: How New Mexico is expected to benefit from the hydrogen project
Fortunately, the state was able to move on from the initial delay after KCEC secured a US$231 million grant through the Department of Agriculture, which meant the project could advance. The state will reap rewards starting from the June construction period, where a total of 350 jobs will be opened up. Furthermore, the combined solar and hydrogen initiatives are expected to generate about US$298 million over the first five years.
The state of New Mexico can now breathe a huge sigh of relief after the delay of the initial project has now seemingly been met with overwhelming success. This makes New Mexico part of the 2026 hydrogen projects that are expected to have an overall significant impact.
