hydrogen

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.

If clean hydrogen is not a significant contributor to the U.S. energy mix by the 2030s, it won’t be because Congress and the Biden administration didn’t try. First, last year’s Bipartisan Infrastructure Law provided the Department of Energy (DOE) with up to $8 billion to support the development of several regional hydrogen hubs, plus another $1 billion to back efforts to halve the cost of producing hydrogen via renewables-powered electrolysis. Then, this year’s Inflation Reduction Act (IRA) provided tax credits for investing in new production facilities and producing clean hydrogen — incentives generous enough to spur announcements for at least an initial round of multibillion-dollar projects. In today’s RBN blog, we discuss highlights from our new Drill Down Report on the variety of hydrogen-hub proposals the feds will be reviewing.

If clean hydrogen is not a significant contributor to the U.S. energy mix by the 2030s, it won’t be because Congress and the Biden administration didn’t try. First, last year’s Bipartisan Infrastructure Law provided the Department of Energy (DOE) with up to $8 billion to support the development of several regional hydrogen hubs, plus another $1 billion to back efforts to halve the cost of producing hydrogen via renewables-powered electrolysis. Then, this year’s Inflation Reduction Act (IRA) provided tax credits for investing in new production facilities and producing clean hydrogen — incentives generous enough to spur announcements for at least an initial round of multibillion-dollar projects. In today’s RBN blog, we discuss highlights from our new Drill Down Report on the variety of hydrogen-hub proposals the feds will be reviewing.

In our view, there are two or three clear leaders in the competition for billions of dollars in U.S. support for clean-hydrogen hubs — for example, it would be hard to imagine the Department of Energy (DOE) passing over hub proposals in Texas, Louisiana or the Marcellus/Utica. At the same time, there’s a lot to be said for plans to develop hydrogen hubs in California, North Dakota and, we might add, the Rockies, a region with extensive energy-related infrastructure and a long list of prospective clean-hydrogen end-users, not to mention at least two projects to convert coal-fired power plants to hydrogen. In today’s RBN blog, we discuss a multistate push to make the Rockies a hotbed of hydrogen-related activity.

PADD 2 — the 15-state region that includes both the Midwest and the Great Plains — is a major player in U.S. hydrocarbon production and refining, not to mention energy consumption, with its rich mix of industry and farming. It’s also bound to be a hot spot in the energy transition, given its vast wind resources, scores of ethanol plants, and extensive plans for carbon capture and sequestration (CCS). Not surprisingly, there also may be a clean hydrogen hub or two in PADD 2’s future — after all, it’s got natural gas in spades, plus lots of zero-carbon nuclear plants, countless wind farms, and more existing and potential hydrogen end-users than you can shake a stick at. In today’s RBN blog, we discuss the PADD 2 proposals now under development and why they may have a good shot at winning Department of Energy (DOE) support.

The U.S. Department of Energy has laid out a clear set of criteria for the six to 10 clean hydrogen hubs it will select next year to receive up to $8 billion in federal support. For example, DOE wants at least one hub to use renewable energy to make hydrogen, another to use nuclear power, and another to use fossil fuels with carbon capture and sequestration (CCS). It also wants diversity among hydrogen end-users — geographic diversity too (at least two hubs must be in areas with the greatest natural gas resources) — and the department says it will give extra weight to proposals likely to create the most opportunities for skilled training and long-term employment. Yet another factor that’s sure to boost the prospects for hydrogen hub proposals in the heart of the Marcellus/Utica Shale is the looming presence of West Virginia Senator Joe Manchin, the Energy & Natural Resources Committee chairman who helped make hydrogen hub funding — and the rest of last year’s $1-trillion-plus infrastructure bill (and this year’s Inflation Reduction Act) — a reality. In today’s RBN blog, we discuss the hydrogen hub proposals now under development in northern West Virginia, western Pennsylvania and eastern Ohio.

Last week, the U.S. Department of Energy (DOE) unveiled its timeline for receiving and reviewing proposals to develop six to 10 clean-hydrogen hubs and said its aim was to decide by the fall of next year which projects will share up to $7 billion in DOE support. The competition for those dollars is sure to be fierce, with some of the strongest proposals likely to come from states like Texas and California that have a lot of renewable energy and ambitions to be leaders in the energy transition. Also, there is a joint effort by three states east and north of Texas to develop a hydrogen hub that would take advantage of their existing and planned hydrogen-production and wind assets, natural gas supply, refinery and pipeline infrastructure, and carbon sequestration potential. In today's RBN blog, we discuss the DOE's recent announcement and the three-state hydrogen-hub plan, which is dubbed H2ALO.

Last year’s $1 trillion-plus infrastructure law calls for the U.S. Department of Energy (DOE) to invest up to $8 billion over five years to support the development of four or more U.S. hydrogen hubs. It’s a safe bet that the DOE will determine that at least one location along the Gulf Coast is worthy of its support — and maybe even a couple, given the extent of existing hydrogen supply, demand and midstream infrastructure already in place in Texas and Louisiana in particular. We’d also be willing to wager that California will be another beneficiary of the federal government’s hydrogen-hub largess. Not only does the nation’s most populous state have extraordinary potential for clean-hydrogen development, its public and private sectors have been aggressively pursuing climate-friendly energy alternatives for decades. In today’s RBN blog, we examine the various efforts underway to develop hydrogen-related infrastructure — and hydrogen demand — in the Golden State.

It wouldn’t be hard to work up a checklist of the qualities that a major clean hydrogen hub should offer. Easy access to low-cost natural gas for methane reforming, and to carbon sequestration sites for captured carbon dioxide (CO2). Plentiful wind and solar energy to power electrolyzers that split water into hydrogen and oxygen. Lots of available land for clean hydrogen and ammonia production facilities. Nearby refineries and other industrial consumers of hydrogen. And don’t forget export terminals, because the rest of the world will continue to demand U.S.-sourced energy. Well, as we discuss in today’s RBN blog, Corpus Christi seems to check all the boxes.

As a piece of legislation makes its way through Congress, the name it’s given can say a lot about its overall importance and what it intends to accomplish, but also a little bit about the current political environment. Surging inflation has been one of the biggest stories of the past year and politicians of all stripes have been looking for ways to ease the pressure on consumers. Those concerns were a big reason why the Biden administration’s Build Back Better Act (BBBA), which included several climate- and energy-related measures, ultimately died in Congress late last year. The Inflation Reduction Act of 2022, which Democrats in Washington hope to pass soon, embraces the fight against inflation and includes other significant provisions, but clean energy is at the heart of the bill. In today’s RBN blog, we look at the legislation's climate and clean-energy initiatives — including a methane-reduction program, more tax credits for electric vehicles, and incentives for renewable energy and clean hydrogen — and how they would help reduce greenhouse gas (GHG) emissions.

California faces a broad set of challenges when it comes to reducing wildfires, which have been increasingly frequent and intense over the last decade — impacting the lives of those dealing with the threat, not to mention effects on the economy and environment. Separately, the state has been working to reduce transportation-related pollution and incentivize the development and use of a wide array of alternative fuels. Yosemite Clean Energy (YCE), which announced plans for its first plant site in late 2021, has an approach it says will not only make the state a cleaner and safer place but also foster the development of new transportation fuels. In today’s RBN blog, we look at YCE’s plans to turn wood waste into renewable fuels, how its unique “Stump to Pump” approach relies on partnerships with local communities, and the green hydrogen and renewable natural gas it plans to produce at sites across California.

In case you hadn’t noticed, many of the largest, most successful companies in the U.S. and Canada are placing big bets on the energy transition. Take “blue” hydrogen, which is produced by breaking down natural gas into hydrogen and carbon dioxide and capturing and sequestering most of the CO2, and blue ammonia, which is made from blue hydrogen and nitrogen. Last fall, Air Products & Chemicals announced a multibillion-dollar project in Louisiana, and now it’s a joint venture of Enbridge and Humble Midstream, which is planning a large, $2.5 billion-plus blue hydrogen/ammonia project down the Texas coast, at Enbridge’s massive marine terminal in Ingleside. In today’s RBN blog, we discuss what we’ve learned about the companies’ plan.