Credit: (AP Photo/Gregorio Borgia)The Biden administration is allocating $7 billion to jump-start a clean hydrogen market nationwide, viewed as a potential source of low-cost fuel that could help achieve its aggressive climate goals, particularly for transportation and heavy industry.
In disclosing the awards Friday, President Joe Biden announced the establishment of seven hydrogen hubs, including one in the mid-Atlantic that would serve portions of southern New Jersey, Pennsylvania and Delaware as a step to lower to carbon emissions. The award for that hub is up to $750 million.
Touted by proponents as a significant step to curbing emissions in energy-intensive sectors while creating tens of thousands of new jobs, the hydrogen initiative, however, has met with skepticism from environmental groups who fear it could increase pollution from fracked gas and divert clean energy from other uses.
The dispute revolves around the uses of so-called green hydrogen, which creates a clean fuel using renewable sources, such as wind and solar, and blue hydrogen that is derived, in part, from natural gas.
“We need strong guardrails to ensure that U.S. hydrogen does not create an emissions mess, and that we are not subsidizing hydrogen that is clean in name only,’’ said Erik Kamrath, federal hydrogen advocate at the NRDC (Natural Resources Defense Council).
“This provides an exciting stimulus for green hydrogen, but includes a concerning focus on blue hydrogen and diverting clean-energy sources that are currently powering our homes, which will make it steeper path to align hydrogen to U.S. climate goals,’’ he said.
U.S. Secretary of Energy Jennifer Granholm described the investment as laying the foundation of a new American-led industry while creating high-quality jobs. “Unlocking the full potential of hydrogen — a versatile fuel that can be made from almost any energy resource in the country — is crucial to achieving President Biden’s goal of American industry (powered) by American clean energy.’’
In addition to the Mid-Atlantic Hub, the six other regional hubs are the Appalachian Hydrogen Hub serving West Virginia, Ohio and Pennsylvania; California; the Gulf Coast (Texas); Heartland (Minnesota, North Dakota, and South Dakota); Midwest (Illinois, Indiana and Michigan); and Pacific Northwest (Washington, Oregon and Montana).
The list of regional hubs failed, however, to include any money for a Northeast Regional Hydrogen Hub proposed by New York, New Jersey, Connecticut, Maine, Massachusetts, Rhode Island and Vermont. The states had sought $1.25 billion in funding from the Department of Energy.
In a statement, Gov. Phil Murphy said he was pleased with the award of the Mid-Atlantic Hub, saying it will provide opportunities for economic growth, jobs and clean-energy development.
But Ed Potosnak, executive director of the New Jersey League of Conservation Voters, expressed disappointment the Northeast hydrogen proposal was not selected, saying it would have provided stronger protections for the health and safety of workers and communities than the one selected, the Mid-Atlantic Hub.
“As proposed, this project would mean doubling down on fossil fuels and require enhancements and reconstruction of expensive fossil fuel infrastructure, leaving working families to shoulder the high costs,’’ he said.
The state was not part of the Mid-Atlantic application, but PSE&G and Rowan University were partners in both the Northeast and Mid-Atlantic Hubs.
Clean hydrogen can be produced from a mix of domestic energy resources, including renewables, nuclear and fossil fuels. The process involves electrolysis, splitting water using energy sources.
The seven hubs span 18 states (there are 11 all told, with four added for demonstrations). The hubs will offer diverse ways of producing hydrogen: five hubs will demonstrate renewable-based production; four use fossil fuels with carbon capture systems and two involve nuclear production.
“This first of its in-demonstration project presents real opportunities to position the U.S. as a leader in the clean-hydrogen economy while helping us achieve our climate goals and improving public heath,’’ said Holly Reuter, climate and clean energy implementation director at Clean Air Task Force.
But Maya van Rossum, the Delaware Riverkeeper, called the decision misplaced, ill-advised and having devastating consequences for the environment.
