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Courtesy Photo Kit Carson CEO Luis Reyes and Questa Mayor John Ortega discuss the Green Hydrogen Project at the Building Advanced Energy Summit in Albuquerque, NM in September 2024

$95.6 Million Granted to Fund Green Hydrogen Project in Questa

Kit Carson Electric Cooperative (KCEC) announced via press release that it received a $95.6 million award to fund green hydrogen in Questa. The grant is from the Empowering Rural America Program through the U.S. Department of Agriculture (USDA).


The green hydrogen project has been underway for three years with support from local and national leaders. The project is an innovative clean energy initiative which will benefit the entire KCEC service territory in northern New Mexico while repurposing reclaimed water from the closed Chevron mine.


“This project’s success sends a clear message: New Mexico is, and will continue to be, a national leader in clean hydrogen,” said Governor Michelle Lujan Grisham. “Not only will this facility substantially upgrade Northern New Mexico’s energy resilience, but it will also provide hundreds of jobs to our state’s rural communities.”

Governor Michelle Lujan Grisham


This funding announcement is in addition to a $500,000 award KCEC received from the United States Department of Energy earlier this year to fund planning and safety studies for the proposed project.
This funding will support the production, infrastructure, and adoption of clean hydrogen in targeted communities of New Mexico, specifically in the Village of Questa and Town of Taos, as well as for two federally recognized Tribes of Native American Pueblo People – Picuris Pueblo and Taos Pueblo.

“I worked hard to pass the transformative clean energy investments in the Inflation Reduction Act so we could achieve our ambitious climate goals while creating good-paying careers and substantially lowering utility costs for hardworking New Mexicans,” said Senator Martin Heinrich. “This includes the new Empowering Rural America Program that aims to dramatically expand clean power generation and delivery to rural communities like the ones in Northern New Mexico served by the Kit Carson Electric Coop. I’m pleased to see Kit Carson’s application for this program advance. I will continue working to deliver strong investments to communities all across our state to build a cleaner, healthier, and more affordable energy future.”

– Senator Martin Heinrich


“This project will create jobs in Questa while providing green energy for our regional communities, including Questa. It’s a big deal for our local community and economy. I am grateful to KCEC for getting this award. It’s a major step in redefining Questa from an old mining community into a new green energy community. This will also start to redefine our post mining economy and bring much needed jobs as well as potential tax revenue to the Village of Questa. This is the culmination of several years of hard work and great partnerships.”

Questa Mayor John Ortega


As part of the planned project, each of these communities will have custom green hydrogen facilities and corresponding renewable energy generation technology within their borders. Once complete, the KCEC Questa Green Hydrogen Project will signify a leap forward in actualizing green hydrogen generation. “By moving substantially closer to fully funding this important and innovative project, our community has proven we can tackle big goals when we work together,” said Bobby Ortega, president of the KCEC Board of Trustees.


The project includes utilizing solar generation to power facilities, co-siting facilities alongside a closed mine Superfund wastewater treatment plant, and creating long-duration (up to 16 hours) energy storage technology. The project will also stimulate jobs and new economic impact for the Village of Questa.
Once completed, the project will transform KCEC’s energy infrastructure and exponentially increase system resiliency.


The awarded project in the Village of Questa could serve as a blueprint for other communities to combine clean energy transition projects with local economic development stimulus.


“This is a big deal for a collection of small-town communities,” said Kit Carson Electric Cooperative CEO Luis A. Reyes Jr. “KCEC is extremely grateful to the USDA, RUS, our elected officials and community groups who have shown it is possible to progress multiple important goals at once with a big idea that brings our communities brighter, more resilient futures. This project is transformative as it ushers in the next generation of renewable electric generation technology that addresses the country’s growing energy needs.”

Kit Carson Electric Cooperative CEO Luis A. Reyes Jr


“I worked hard to pass the transformative clean energy investments in the Inflation Reduction Act so we could achieve our ambitious climate goals while creating good-paying careers and substantially lowering utility costs for hardworking New Mexicans,” said Senator Martin Heinrich. “This includes the new Empowering Rural America Program that aims to dramatically expand clean power generation and delivery to rural communities like the ones in Northern New Mexico served by the Kit Carson Electric Coop. I’m pleased to see Kit Carson’s application for this program advance. I will continue working to deliver strong investments to communities all across our state to build a cleaner, healthier, and more affordable energy future.”

Senator Martin Heinrich

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