hydrogen

The federal government’s Hydrogen Production Tax Credit (PTC), also known as 45V, provides the highest incentives for hydrogen produced using clean sources of power generation, like wind and solar. That might seem like great news for current and potential hydrogen producers looking to take advantage of the credit, since the U.S. has added significant renewable generation capacity in the last several years, but the reality is much different. In today’s RBN blog, we’ll explain how “additionality” fits into the “three pillars” of clean hydrogen, how it would be calculated under the proposed guidance, and some ways the rules might be adjusted to give hydrogen producers and power generators a little more flexibility. 

The Biden administration has placed some big bets on clean hydrogen, seeing it as a replacement fuel for some hard-to-abate industries and putting it at the heart of its long-term decarbonization efforts. All of these bets are backed by a brand-new tax credit. But the goal isn’t just to drive production of more hydrogen — it’s also to make hydrogen in a specific way, with measurable decreases in greenhouse gas (GHG) emissions. That means producing hydrogen that qualifies for the tax credit is going to be a lot easier said than done. The proposed rules include a concept called deliverability — one of the “three pillars” of clean hydrogen — that adds further challenges to producers hoping to cash in on the tax credit and puts into further peril any number of potential projects. In today’s RBN blog, we’ll explain how deliverability works, how it fits into the proposed rules, and the challenges it will pose for hydrogen producers and power generators alike. 

The long-delayed rules around the federal government’s Hydrogen Production Tax Credit (PTC), also known as 45V, have been the subject of heated debate (and lobbying) since passage of the Inflation Reduction Act (IRA) in August 2022. While some industry groups argued for looser guidelines around the PTC that would allow the low-carbon hydrogen industry to grow quickly, others called for a stricter set of rules from the start, arguing that an approach that was too lax would lead to an increase in greenhouse gas (GHG) emissions. In today’s RBN blog, we’ll look at how those newly published rules rely on the so-called “three pillars” of clean hydrogen, how they prioritize production of green hydrogen at the expense of its blue and pink varieties, and explain the rules around temporal matching and why it might be hard to hit the administration’s 2028 target date for implementation. 

The U.S. Supreme Court will hear oral arguments January 17 in a pair of cases that are poised to capsize the so-called Chevron Deference, a 40-year-old legal doctrine that provides a key foundation for modern administrative law. It’s a big deal – big enough that we’re willing to wade into a little bit of legalese to help make sense of it. So strap in because in today’s RBN blog, we’ll explain what the Chevron Deference is, why it’s worth knowing about, how it applies to two cases that could alter its application, and how a ruling that limits or eliminates the doctrine’s usage and application could transform energy industry regulation.

The U.S. Supreme Court will hear oral arguments January 17 in a pair of cases that are poised to capsize the so-called Chevron Deference, a 40-year-old legal doctrine that provides a key foundation for modern administrative law. It’s a big deal – big enough that we’re willing to wade into a little bit of legalese to help make sense of it. So strap in because in today’s RBN blog, we’ll explain what the Chevron Deference is, why it’s worth knowing about, how it applies to two cases that could alter its application, and how a ruling that limits or eliminates the doctrine’s usage and application could transform energy industry regulation.

Crude oil, natural gas and NGL production roared back in 2023. All three energy commodity groups hit record volumes, which means one thing: more infrastructure is needed. That means gathering systems, pipelines, processing plants, refinery units, fractionators, storage facilities and, above all, export dock capacity. That’s because most of the incremental production is headed overseas — U.S. energy exports are on the rise! If 2023’s dominant story line was production growth, exports and (especially) the need for new infrastructure, you can bet our blogs on those topics garnered more than their share of interest from RBN’s subscribers. Today we dive into our Top 10 blogs to uncover the hottest topics in 2023 energy markets. 

If you’re vying for billions in federal dollars, a predictable selection process with measurable criteria is probably what you’re hoping to see. And while there was much speculation about what projects would be ultimately picked for the Department of Energy’s (DOE) regional clean hydrogen hubs initiative, H2Hubs, the selections made October 13 included no curve balls and matched the agency’s previous guidance. In today’s RBN blog, we’ll look at the selections and how they fit into the DOE’s stated criteria. 

When you’re in competition for billions in federal dollars, you need more than just a sensible approach and a strong economic case. You need a real competitive advantage. That’s what Hy Stor Energy believes it has with its proposed Mississippi Clean Hydrogen Hub (MCHH). It sees off-the-grid renewable power and extensive salt-dome storage capabilities as the surest path to decarbonization for a myriad of industrial needs. In today’s RBN blog, we look at the overall strategy behind the MCHH, the plan to produce 100% green hydrogen, and how Hy Stor hopes to beat the competition and secure Department of Energy (DOE) funding for a regional hydrogen hub.

Considerable time and effort has been spent tracking the federal government’s plan to spend billions of dollars to create a number of regional hydrogen hubs. News about the Department of Energy’s (DOE) hub-selection process has been hard to come by, especially since the potential applicants weren’t publicly disclosed at the time of the agency’s informal cutdown in late 2022 and many potential developers, for competitive reasons, have elected to play their cards very close to the vest. In today’s RBN blog, we’ll publish the DOE’s full list of 33 encouraged proposals for the first time, examine some of the plans that were combined in an effort to produce a stronger joint application, and share a little about the concept papers that didn’t make the DOE’s informal cut.

Clean hydrogen’s supporters often tout its growth potential, boosted in no small way by the billions of dollars in federal subsidies that will soon go toward supporting the buildout of an extensive series of regional hubs across the U.S. Clean hydrogen has its share of detractors, too, who question how much of a fixture it can become in the U.S. energy mix and wonder about its reliance on all those federal subsidies. But there’s one thing just about everyone seems to agree on — nobody likes the seemingly ubiquitous hydrogen color scheme, with arguments that it is too simplistic, has become too politicized, and puts the industry’s focus on the wrong things. In today’s RBN blog, we look at the limitations of the hydrogen color scheme, the risks of relying on it too extensively, and how the new tax credit for clean hydrogen puts the focus on carbon intensity (CI) instead.

There’s been a lot written about the federal government’s plan to provide billions of dollars in financial support to create a limited number of regional hydrogen hubs but not a lot of insight about how those hub proposals are being crafted to meet the Department of Energy’s (DOE) selection criteria. The details and strategies behind those plans have been hard to come by because few of the initial concept papers were made public while others remain a mystery, even months after the first informal winnowing of candidates. One exception is the Leading in Gulf Coast Hydrogen Transition (LIGH2T) hub proposal being prepared by a consortium that includes a large group of states, some key commercial partners, several universities and the National Energy Technology Laboratory (NETL). In today’s RBN blog, we look at what we know about the LIGH2T proposal, which will submit a full application by the April 7 deadline, and how it addresses three key factors likely to play a role in the selection process.

As the push for decarbonization in the transportation sector gathers momentum, electrofuels — also known as eFuels, which are produced by using electricity to combine the hydrogen molecules from water with the carbon from carbon dioxide (CO2) — are beginning to attract attention as an alternative fuel with three important selling points in today’s environment. First, eFuels are available now and can be made with current technology, although there is a lot of room for future improvements and growth. Second, because they are considered drop-in replacements, they are essentially indistinguishable from the fossil-based conventional fuels in use today, which means they can be used without any changes to the existing energy infrastructure. Third, they can capitalize on a rapidly growing set of hydrogen and CO2 suppliers eager to secure a diversified set of offtakers. In today’s RBN blog, we look at HIF Global’s approach to eFuels production, its demonstration plant in Chile and its big plans for Texas and beyond.

It’s not the most accurately named piece of legislation, but that doesn’t mean the Inflation Reduction Act (IRA) might not have an outsized impact on everything from electric vehicles (EVs) and hydrogen production to greenhouse gas (GHG) emissions and carbon-capture projects. There’s plenty of potential for things to happen in the long run, but before then, a lot needs to get done — including the rules and regulations that will guide the IRA’s implementation. In today’s RBN blog, we look at why the IRA remains a work in progress, the critical role that rulemaking will play, and potential impediments to the law’s long-term success.

The U.S. is gearing up to provide billions of dollars in financial support for a series of regional clean hydrogen hubs and had what amounts to an informal cutdown at the end of December, announcing that 33 project proponents had been formally encouraged to submit a full application this spring. Although the Department of Energy (DOE) didn’t name any of the projects on the “encouraged” list, we’ve been able to identify many of the proposals — and add five more in today’s blog — even though a lot of project details remain under wraps. In today’s RBN blog, we’ll look at the new projects on our list and examine the major factors that are likely to influence a project’s viability.

The U.S. has committed billions of dollars over the last couple of years to clean-energy initiatives, everything from advanced fuels and carbon-capture technology to renewable energy and electric vehicles. The “all-of-the-above” approach also includes clean hydrogen, whose development the U.S. Department of Energy (DOE) has deemed crucial to meeting the Biden administration’s goals of a 100% clean electric grid by 2035 and net-zero carbon emissions by 2050. As part of its efforts, the U.S. plans to provide generous financial support for the buildout of several hydrogen hubs — initial concept papers were submitted last year by dozens of applicants for the federal largesse, and the DOE recently provided formal “encouragement” to 33 proponents to submit a full application this spring, in what amounts to an informal cutdown, but declined to name them. In today’s RBN blog, we examine the 18 projects we’ve been able to identify that survived the trimming, what they tell us about the selection process, and how it compares to our previous expectations.