Concentrated solar power firm Heliogen said it signed a contract with the city of Lancaster, California, to produce green hydrogen for the city’s growing green hydrogen fuel needs. The deal represents Lancaster’s first hydrogen offtake agreement.

The hydrogen is expected to be produced at Heliogen’s Proxima hydrogen facility in Lancaster and will use Heliogen’s concentrating solar power technology. As part of the deal, Heliogen will certify the hydrogen’s carbon intensity, a measure of the CO2 emitted per kilogram of hydrogen produced.

The agreement is expected to deliver hydrogen conforming to SAE J2719 hydrogen fuel cell vehicle specs at a $10/kg offtake price. The average hydrogen pump price was as high as $21.28/kg in November, according to market data quoted by a press release announcing the deal. The Biden administration has a goal to achieve a $1/kg price in the next decade.

Heliogen said it completed preliminary configuration designs and secured a site for Proxima.

In other news related to clean hydrogen, the Department of Energy released what it is calling the U.S. National Clean Hydrogen Strategy and Roadmap, a framework intended to speed up the production, processing, delivery, storage, and use of clean hydrogen.