OCED Observatory Newsletter, Issue 1: Hydrogen Hub Prototypes Are Emerging
Emerging hydrogen hub prototypes are demonstrating significant differences as they emerge, including variations in leadership models, organization, rollout plans, systemic focus, and sources of power, to name a few.
Contents
DOE: OCED Hydrogen Hubs Program. 2
DOE: Other Activity Related to Hydrogen. 2
Colorado, New Mexico, Utah, Wyoming (WISSH) 3
New York, Connecticut, Massachusetts, New Jersey 4
Oklahoma, Louisiana, Arkansas (NG) 4
Other State Hydrogen Activity 4
Upcoming events, deadlines, and meetings 6
Would you like to receive the OCED Observatory Newsletter by email? Contact Hannah Boyles.
From the Staff
Prototype: This newsletter is a first, provisional product from the “OCED Observatory,” a project of ITIF’s Center for Clean Energy Innovation that seeks to track and assess the work of the U.S. Department of Energy’s recently-established Office of Clean Energy Demonstrations.
The current issue is focused on hydrogen hubs, as a core use case for OCED activities. Future issues may expand to other OCED programs. We welcome your comments and feedback! Please send them to Hannah Boyles at ITIF, who works with Robin Gaster of Incumetrics and David Hart of ITIF to produce the newsletter.
The Big Picture
Hub activity. The emerging hydrogen proto-hubs are demonstrating significant differences. Some are state-led (NY, WV, OH). Some are industry-led (LA, SoCal, OH). Some focus on an extended network (Houston), others on a specific project (UT). Some have detailed rollout plans (Houston), others are barely a paper framework (WV, GA). Some focus on feedstocks, others on hydrogen production, or storage, or end-uses. Power sources for hydrogen production are varied (though the MNHH (Midwest) proto-hub has a free lane on nuclear right now). Coalition development varies considerably—some appear to be well advanced with a crowd of private sector and technical partners (NY, HETI, UT, MNHH). Others have no significant partners at all yet (WV). Some already appear committed to DEI (NY) but most have at best verbal nods.
June news highlights: CA formally announces hub plan. Chevron drops out of ACES (UT) immediately after LPO announces loan guarantee. New GA hub activity. Several new states show interest, ranging from WA legislation to KY exploration.
DOE: OCED Hydrogen Hubs Program
▪ Announcements: DOE issues NOI for hydrogen hubs.
▪ Personnel: Upcoming.
▪ Office structure: Upcoming.
▪ Inter-office and inter-agency cooperation: Upcoming.
DOE: Other Activity Related to Hydrogen
▪ EERE H2 matchmaker database and GUI in public beta testing. Unfortunately, no data download. Self-reported. Far less useful than it could be.
▪ EERE to manage $500m clean hydrogen equipment manufacturing program.
Regional Hydrogen Hubs
California
▪ LA City Council unanimously approves application to DOE for hub funding (May 17). The Los Angeles Department of Water and Power (LADWPP) and the Port of Los Angeles will coordinate local effort to submit a hydrogen hub proposal to DOE, focused on powering hard-to-electrify industries through the electrolysis of renewable energy.
▪ SoCalGas’s Angeles Link would support the integration of more renewable electricity resources like solar and wind into the current SoCalGas NG network, aimed at significantly reducing GHG from electric generation and other hard-to-electrify sectors of the Southern California economy. This may be the private sector dimension of the LA City Council motion. Detailed regulatory filing here.
▪ Governor Newsome announces support for CA hydrogen hub. Updated Scoping Plan underscores role of hydrogen in state plans.
▪ CARB produces a required (and highly positive) assessment of the H2 vehicle fueling network.
Colorado, New Mexico, Utah, Wyoming (WISSH)
▪ WISHH. The four participating states announced the Western Inter-State Hydrogen Hub (WISSH), building on Utah’s ACES project and on Colorado’s roadmap for low-carbon hydrogen. Industry-led project, RFI response available. Colorado has also commissions own report on low-carbon hydrogen.
▪ I-WEST. It’s unclear how WISHH fits with the Intermountain West Energy & Transitions initiative (I-WEST), supported by DOE and LANL, which brings together states, regional universities and colleges, research institutions, local communities and Native American nations. I-WEST claims to focus on creating a sustainable-energy economy, but is very research-heavy.
Georgia
▪ A coalition is being organized by Sen. Jon Ossoff, which also includes Atlanta Mayor Andre Dickens and executives from Delta Air Lines, Georgia Power and UPS and others. Note “These “hubs,” an Ossoff aide tells Axios, are envisioned as networks or clusters of production and research facilities where investment will flow and smart minds will gather—not one large single building or complex.” Plug power announces a new hydrogen plant in SE Georgia, while Mitsubishi/Ga Power/EPRI demonstrate 20 percent hydrogen blending with NG at scale.
Midwest
▪ The Midwest Nuclear Hydrogen Hub (MNHH) is led by U. Toledo, and has responded to the DOE RFI. Includes 5 national labs, 4 universities, 13 identified industry participants led by GE and Plug Power, and overlaps with the Ohio Clean Energy Hub Alliance (see E.2). It’s the only nuclear oriented hub proposal so far.
▪ The Upper Midwest Hydrogen Hub, convened by the Great Plains Institute, claims to be a multi-state, multi-sector approach to accelerate the emergence of a hydrogen market ecosystem. There is no additional information available.
▪ The Midwestern Hydrogen Partnership is led by the U. Illinois and Argonne. Currently just a handful of partners and no detailed public plans.
New York, Connecticut, Massachusetts, New Jersey
▪ NY has signed MOUs with CT, MA, and NJ to prepare a joint hub proposal. Led by NYSERDA, the rollout announces 40 partners: mostly utilities, big energy and related tech companies (e.g. ConEd), plus some startups (e.g. Plug Power), non-profits (e.g. Empire State Development), and a surprising number of universities (e.g. NYU, RIT, SUNY). Strong research component, and emphasis on community engagement and equity. NYSERDA and NREL are separately developing a hydrogen strategy for NY.
Ohio, West Virginia
▪ The Northern Appalachian Industrial and Ohio Clean Hydrogen Hub is led by corporate partners EQT Corporation, Equinor, GE Gas Power, Marathon Petroleum (including its affiliate MPLX), Mitsubishi Power, Shell Polymers and U.S. Steel.
▪ The Ohio Clean Energy Hub Alliance (OH2) includes several utilities, the Midwest Hydrogen Center of Excellence (MHCE), Stark Area Regional Transit Authority, Ohio Chamber of Commerce, Battelle, and hydrogen car maker Hyperion. Supported by a study from Cleveland State University, another participant.
▪ The West Virginia Hydrogen Hub Coalition wasformally announced by Sens. Manchin and Caputo, Governor Justice, and Rep. McKinley (all WV). It will compete with the Northern Appalachia group and possibly OH2.
Oklahoma, Louisiana, Arkansas (NG)
▪ The HALO hydrogen hub coalition will repurpose depleted oil and gas reservoirs and use geological formations for hydrogen storage and carbon capture. The RFI response from HALO is available here.
Texas
▪ More than 70 companies and organizations have signed up to support the Houston Energy Transition Initiative (HETI). Effort heavily focused on hydrogen, building on previous H2Scale funding from DOE and reflecting a very bullish report on clean hydrogen from the Greater Houston Partnership. HETI is the most ambitious hub proposal yet announced, covering multiple major nodes on a dispersed hydrogen network. See here for overview.
▪ Apex Clean Energy will partner with Ares Management Corporation, energy infrastructure developer EPIC Midstream Holdings, and the Port of Corpus Christi to explore a “gigawatt-scale” hydrogen project, leveraging wind and solar.
Other State Hydrogen Activity
Arizona
▪ Arizona Public Service, Salt River Project, Tucson Electric Power, and Southwest Gas are joining forces with Arizona State, the University of Arizona, and Northern Arizona University to form the “Center for an Arizona Carbon-Neutral Economy,” which plans to establish a regional, H2 hub.
Connecticut
▪ Formed a state hydrogen taskforce, to meet within 60 days and report in Jan 2023.
Illinois
▪ Senate bill 3613 would create the hydrogen economy act and the hydrogen economy task force to report by December 1 annually.
Kentucky
▪ Hydrogen hub working group formed (January), led by government, to pursue DOE funding. No further details yet.
Washington
▪ Washington State passed SB5910 bill to invest $2 million to support an application for regional clean hydrogen hub. Bill offers additional support for hydrogen, driven in part by a new bipartisan Hydrogen Caucus in the House. New Office of Renewable Fuels approved.
International
▪ European Investment Bank published a report on discussions with investors about hydrogen. Focus on missing demonstration/scaleup funding (May 2022).
▪ Germany has launched H2Global, a €900m subsidy scheme to import green hydrogen from non-EU countries.
▪ The UK will finalize a plan to subsidize the production of low-carbon hydrogen by the end of this year, with the first support contracts for projects scheduled in 2023.
▪ The UK government published Atmospheric Implications of Increased Hydrogen Use which estimates that one tonne of hydrogen may generate 6-16x the impact of 1 tonne of CO2 on global warming.
Reports and Papers
▪ FCHEA published a roadmap to the hydrogen economy. Many of the key industry players participated. ND.
▪ The Congressional Research Service published an analysis of the FY2022 appropriations for the DOE Office of Energy Efficiency and Renewable Energy (EERE).
Other notes
▪ State liability laws in Nebraska, Indiana, Wyoming, and West Virginia allow the transfer of some or all of long-term liability related to carbon capture and underground storage projects to the state. Some legislation has drawn support from oil companies. See also EDF criticisms.
▪ Mitsubishi and Citibank are planning a hub and spoke hydrogen network for North America. Mitsubishi is already a partner of some proto-hubs (e.g. Bakken).
▪ According to FERC Chairman Richard Glick, interconnection queues are clogged with 1,000 GW of generation and 400 GW of energy storage across the country—the process takes on average 3.7 years with a 75 percent dropout rate.
Upcoming Events, Deadlines, and Meetings
▪ Long Duration Energy Storage Program: DOE invites input on $505M BIL program design (by 6/16)
▪ Innovative Energy Technologies Loan Guarantee Program: DOE requests input on redesign (by 7/1)
End User Activity
▪ Chevron pulls out of planned stake in the ACES project.
▪ BP announces a 40 percent stake in the Asian Renewable Energy Hub, a $30 billion venture to cover 2,500 square miles of Western Australia with wind turbines and solar farms to produce 26 gigawatts of power—around a third of Australia’s entire grid—for electrolyzers that will make green hydrogen.
Editors’ Recommendations
September 12, 2022
