|
By
Clarion Energy Content Directors
October
13, 2023
The day has arrived: Here are the
recipients of $7 billion in federal hydrogen hub funding
(Source: U.S. Department of Energy.)
See our previous coverage of the H2Hubs program here
The U.S. Department of Energy (DOE) on Oct. 13 named seven regional
clean hydrogen hubs to receive $7 billion in federal funding, a
long-awaited announcement for an initiative aimed at accelerating the
commercial-scale deployment of clean hydrogen and driving down its
cost.
Funded by Infrastructure Investment and Jobs Act (IIJA), the seven
H2Hubs are located around the U.S. and aim to jumpstart a national
network of clean hydrogen producers, consumers and connective
infrastructure. Each hub will include clean hydrogen production,
storage, delivery and end-use components.
Clean Hydrogen is expected to play a particularly important role in
cleaning up hard-to-decarbonize sectors like refining, chemicals and
heavy-duty transport.
Another major driver for
clean hydrogen: Signed into law last year, the Inflation Reduction Act
(IRA) includes a suite of tax incentives for project developers and is
aimed at jumpstarting the industry. But the U.S. Treasury
Department will need to determine how to account for the emissions
from electricity used to make electrolytic hydrogen. Read
our full primer with different viewpoints from the industry here.
The H2Hubs are expected to collectively produce three million metric
tons of hydrogen annually, reaching nearly a third of the 2030 U.S.
production target and lowering emissions from these industrial sectors
that represent 30 percent of total U.S. carbon emissions.
In the power sector, hydrogen can be combusted in gas turbines for
decarbonization or be used as a form of long-duration energy storage.
According to DOE’s previously-released Liftoff
reports, clean hydrogen production has the potential to scale from
nearly zero today to close to 10 million metric tons per year (MMTpa)
in 2030 across the power, industrial and transportation sectors. That
number could jump to 50 MMTpa by 2050.
Plug Power CEO John Marsh recently
joined the Factor This! podcast and said he believes the U.S.
could become a green hydrogen superpower. He specifically addressed
the Regional Clean Hydrogen Hubs program.
Here are the selected projects
Appalachian Hydrogen Hub (Or
Appalachian Regional Clean Hydrogen Hub – ARCH2): The
Appalachian Hydrogen Hub includes West Virginia, Ohio , Kentucky and
Pennsylvania and will leverage the region’s access to natural gas to
produce low-cost clean hydrogen and store the associated carbon
emissions (A process known as “Blue Hydrogen”).
The ARCH2 hub includes a diverse group of partner companies, including
Battelle, Air Liquide, The Chemours Company, CNX Resources Corp,
Dominion Energy Ohio, Empire Diversified Energy, EQT Corporation,
Fidelis New Energy, First Mode, Hog Lick Aggregates, Hope Gas Inc.,
Independence Hydrogen Inc., KeyState Energy, MPLX, Plug Power and TC
Energy.
The hub is expected to bring job opportunities to workers in coal
communities.
“I am so honored to announce that today the U.S. Department of Energy
has selected the Appalachian Regional Clean Hydrogen Hub for up to
$925 million in federal support under the Bipartisan Infrastructure
Law,” said
Sen. Joe Manchin (D – W.V.) said the award “means West Virginia and
the Appalachian region will be the new epicenter of hydrogen in the
United States of America.”
Amount: up to $925 million
California Hydrogen Hub (Or
Alliance for Renewable Clean Hydrogen Energy Systems – ARCHES): The
California Hydrogen Hub will produce hydrogen exclusively from
renewable energy and biomass.
Through the application process, ARCHES identified several projects up
and down the state—many shovel-ready—supporting three essential
hard-to-decarbonize end-use sectors: heavy-duty vehicles, power plants
and ports.
ARCHES is supported by over 400 organizations and individuals
representing state and local governments, higher education
institutions, business and industry leaders, organized labor and
community advocates.
“Today we are moving from concept to reality – advancing clean,
renewable hydrogen in California which is essential to meeting our
climate goals,” said Gov. Gavin Newsom (D).
Amount: up to $1.2 billion
Gulf Coast Hydrogen Hub (HyVelocity
H2Hub): The Gulf Coast Hydrogen Hub will
be centered in the Houston, Texas region. Large-scale hydrogen
production is planned using both natural gas with carbon capture and
renewables-powered electrolysis.
The Gulf Coast is well-situated for a clean hydrogen hub as it
contains the world’s largest concentration of existing hydrogen
production assets, customers, and energy infrastructure. This includes
a network of 48 hydrogen production plants and over 1,000 miles of
hydrogen pipelines.
HyVelocity includes seven core industry participants: AES Corporation,
Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Orsted,
and Sempra Infrastructure. HyVelocity is administered by GTI Energy
and includes organizing participants like The University of Texas at
Austin, the Center for Houston’s Future and Houston Advanced Research
Center.
“This investment represents a pivotal step in decarbonizing our planet
and revolutionizing mobility, serving as a powerful example of
successful public-private partnerships in scaling up hydrogen and
advancing the energy transition,” said Katie Ellet, President of
Hydrogen Energy & Mobility of North America for Air Liquide.
Amount: up to $1.2 billion
Heartland Hydrogen Hub: The
Heartland Hydrogen Hub includes Minnesota, North Dakota, South Dakota
and aims to help decarbonize the agricultural sector’s production of
fertilizer, decrease the regional cost of clean hydrogen, and advance
the use of clean hydrogen in electric power generation and for cold
climate space heating.
The hub includes Xcel Energy, Marathon Petroleum Corporation and TC
Energy, in collaboration with the University of North Dakota’s Energy
& Environmental Resource Center.
Xcel Energy expects to receive a large portion of the federal award
for projects within the hub.
The utility plans to use existing and future nuclear, solar and wind
resources in the Upper Midwest to produce hydrogen to blend into power
generation, existing natural gas distribution systems and other
agricultural and industrial applications.
Amount: up to $925 million
Mid-Atlantic Hydrogen
Hub (Mid-Atlantic Clean Hydrogen Hub – MACH): The
Mid-Atlantic Hydrogen Hub includes Pennsylvania, Delaware and New
Jersey. It anticipates developing hydrogen production facilities from
renewable and nuclear electricity using both established and
innovative electrolyzer technologies.
Anchor partners include Air Liquide, Bloom Energy, Braskem, Chesapeake
Utilities, The City of Philadelphia, DRS, DuPont, Enbridge, Holtec,
PGW, PSEG and SEPTA.
Amount: up to $750 million
Midwest Hydrogen Hub (Midwest
Alliance for Clean Hydrogen – MachH2): The
hub includes Illinois, Indiana, Michigan. Hydrogen uses include steel
and glass production, power generation, refining, heavy-duty
transportation and sustainable aviation fuel.
Hydrogen will be produced with renewables, natural gas and nuclear
energy.
A sampling of members in MachH2 include ADL Ventures, Air Liquide,
Argonne National Laboratory, Big Rivers Electric, Bloom Energy, ComEd,
Constellation, GTI Energy, Holtec, Hydrogen Technologies Inc.,
Invenergy, NiSource, Plug Power, Rockwell Automation and several large
Midwest universities.
“Our hub and the region bring an unparalleled supply of clean energy,
significant regional hydrogen demand, heavy industry, and an ideal
location at the crossroads of America – all of which was recognized by
the DOE’s selection of MachH2,” said Dr. Dorothy Davidson, CEO of
MachH2.
Amount: up to $1 billion
Pacific Northwest Hydrogen Hub (PNW
H2): The Pacific Northwest Hydrogen
Hub includes Washington, Oregon, Montana and plans to produce clean
hydrogen exclusively via electrolysis.
Association partners include the Consortium for Hydrogen and Renewably
Generated E-Fuels (CHARGE) Network, Renewable Hydrogen Alliance (RHA),
Washington Green Hydrogen Alliance, Washington State University,
Pacific Northwest National Laboratory, and many private corporations,
utilities, and ports.
The hub believes its widescale use of electrolyzers will drive down
the costs for this equipment.
Amount: up to $1 billion
DOE’s $7 billion investment in the hubs will be met by awardees’
combined cost share of more than $40 billion.
Before funding is issued, the Department and the applicants will
undergo a negotiation process. DOE notes it could cancel negotiations
and rescind the selection for any reason during that time.
Learn more about the seven H2Hubs selected here.
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
509 995 1879 Cell, Pacific Time Zone.
General office: 509-254 6854
4501 East Trent Ave.
Spokane, WA 99212
|
