Questa hydrogen, solar facility set for June groundbreaking following year of uncertainty

QUESTA — Questeños lost a key economic engine when a molybdenum mine operated since 1920 closed down permanently in 2014, but a new source of jobs and local energy is now on the horizon as Kit Carson Electric Cooperative aims to break ground on a green hydrogen and solar facility this summer.

The project is designed to provide a maximum of 41 hours of long-duration energy store, allowing it be delivered when needed most. The facility would use a cutting-edge method that splits water molecules into pure hydrogen, which is considered to be an efficient, flexible and low-emission energy source.

“With funding secured and major milestones completed, we’re moving forward with the project that will strengthen long-term reliability for northern New Mexico," said KCEC CEO Luis Reyes. "The Questa Hydrogen and Solar Facility is designed to deliver long-duration energy storage and help ensure our members have resilient, dependable power, especially during extreme emergency events and severe winter conditions."

The announcement that the project is moving forward comes after a year of funding uncertainty for green energy projects across the nation.

The U.S. Department of Agriculture awarded KCEC with a $231 million grant to finance the project one year ago, but the cancellation of $15.4 million for solar and battery storage at the co-op — part of a nationwide pullback on renewables funding by the Trump administration — cast some doubt on the future of the Questa project.

The public utility, which provides energy to Taos, Colfax and Rio Arriba counties, announced this week it reached key design and regulatory milestones in 2025 despite pressure from Washington.

Construction and operation of the new facility is expected to cost an estimated $231 million and would generate hundreds of jobs for the region.

Preliminary hydrogen site layouts for Questa, as well as Taos and Picuris, were completed in September, and environmental assessments for all three locations were submitted to the USDA Rural Utility Service in November.

The 50MW solar array planned for Questa is meant to be community-owned, with the intention of generating "ongoing returns through power sales and associated tax revenues that support both local and state government revenues," according to a press release from the co-op.

The project could generate up to 350 construction jobs in addition to long-term operational roles, with an estimated $298 million regional benefit over the first five years of the project, with $206 million directly benefiting the village of Questa, plus roughly $44 million in new tax revenue, KCEC estimates.

John Miller is the Albuquerque Journal’s northern New Mexico correspondent. He can be reached at jmiller@abqjournal.com.