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N.M. Delegation Welcomes $231 Million for Kit Carson Electric Cooperative's Green Hydrogen Project

WASHINGTON U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.), and U.S. Representative Teresa Leger Fernández (D-N.M.) welcomed $231 million in federal funding for Kit Carson Electric Cooperative (KCEC) and Village of Questa, N.M. Green Hydrogen Project from the U.S. Department of Agriculture’s (USDA) Empowering Rural America (New ERA) Program

This funding will support the construction of 104 megawatts of clean, renewable energy from hydrogen and solar facilities with battery energy storage systems in rural New Mexico. The project will power nearly 25,000 homes annually and reduce climate pollution by 98,000 tons each year — equivalent to removing over 20,700 gasoline-powered cars from the road. It will create up to 350 jobs during construction and generate approximately $298 million in economic output, with a total tax impact of more than $44 million over the next five years. This critical renewable project, combined with other initiatives, will significantly reduce KCEC's overall power costs for its members.

“I’m proud to welcome $231 million for Kit Carson Electric Cooperative’s innovative green hydrogen project — a transformative investment that I’ve proudly supported and advocated for,” said Heinrich, Ranking Member of the Senate Energy and Natural Resources Committee. “New Mexico has the expertise and ability to be a world leader in advanced energy solutions. This first-of-its-kind project will help us achieve this goal – all while creating new, high-quality jobs for the Village of Questa, lowering energy costs, and generating more clean, reliable power for rural communities in northern New Mexico. Kit Carson and its local partners are working to create a better, healthier future for the next generation to inherit, and putting New Mexico on the cutting edge while they do it.”

“This investment is a major step forward to bolster clean energy production and strengthen local economies in northern New Mexico. I’m proud to welcome $231 million in funding for Kit Carson Electric Cooperative’s green hydrogen project which will help power homes, lower costs, and create new job opportunities,” said Luján. “Throughout my time in Congress, I’ve been proud to champion investments for Kit Carson and the Village of Questa, and I’ll continue working to deliver for all New Mexicans.”

"When the Mayor of Questa first told me about this clean hydrogen project, I knew I would do whatever I could to help get it off the ground. It has everything you would want—transforming a mine that employed thousands but left behind environmental contamination and a community in need of jobs, a technology to generate energy in as clean a manner as possible, and visionary leadership at Kit Carson and the local elected officials," said Leger Fernández. "This $231 million-dollar investment in Kit Carson Electric Cooperative's green hydrogen project is a shining example of how New Mexico is leading the way toward a cleaner, more sustainable energy future for our enchanted economy. By creating hundreds of good-paying jobs, lowering energy costs, and cutting harmful emissions, this project will empower northern New Mexico's communities while making sure we leave a healthier planet for our children and grandchildren."

“The funding award opportunity from the New ERA Program through the Rural Utilities Service would go toward the KCEC and Village of Questa, NM Green Hydrogen Project, an innovative clean energy project benefiting the entire KCEC service territory in northern New Mexico,” said KCEC CEO Luis A. Reyes Jr.  “This innovative project is equal parts bold and achievable. By repurposing reclaimed water from a closed mine for green hydrogen generation, we are providing our member owners a way to control a brighter future for an area in need of economic development within a state laser focused on sustainable and reliable energy solutions.”

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