A significant step toward increasing hydrogen generation for use in transportation was made this past Friday when the White House announced funding for seven regional hydrogen hubs.
According to a White House news release, $7 billion will be allocated to the seven regional hubs in the Mid-Atlantic, Appalachian, California, Gulf Coast, Heartland, Midwest, and Pacific Northwest under the Bipartisan Infrastructure Law. According to the U.S. Department of Energy, the law allocates $8 billion in total for the hydrogen hub project, with the final $1 billion set aside for coordinating end uses.
The regional centers will also “catalyze more than $40 billion in private investment and create tens of thousands of good-paying jobs,” according to the White House, bringing the total public and private investment in hydrogen hubs to close to $50 billion. Project labor agreements are necessary for three of the seven.
The centers intend to create more than three million metric tons of hydrogen annually collectively, or almost one-third of the Biden administration’s 2030 output target. According to the White House, this will prevent 25 million metric tons of carbon dioxide emissions from end uses. This includes trucking, where hydrogen has been promoted as a substitute for commercial trucks that run on batteries.
The method used to manufacture the hydrogen will, however, determine how the hubs will actually affect the environment. Hydrogen can be created using solar, wind, or nuclear energy, biomass, or natural gas with carbon capture, as the White House press release emphasizes. However, at the moment, fossil fuels or their equivalent plant- or bio-based fuels are used to produce 96% of the world’s hydrogen.
Experts warned that depending on the technology used to produce the hydrogen, the hubs for hydrogen production could be as filthy as coal when they were first proposed in 2021. According to the White House, “roughly two thirds” of the money for the current project is related to the creation of “green” hydrogen through electrolysis.
The high cost of hydrogen makes it difficult to commercialize it on a wide scale. In ten years, the Energy Department wants to cut the price of “clean hydrogen” by 80% to just $1 per kilogram. According to the definition of clean hydrogen, it must be produced with a carbon intensity of no more than 2 kilos of carbon dioxide equivalent each kilogram of hydrogen produced.
Cost-reduction projections for hydrogen have been overly optimistic. According to a 2020 IHS Markit analysis, renewable energy-derived hydrogen might be cost-competitive by 2030. Additionally, the California Energy Commission stated in 2020 that by 2025, the cost of hydrogen for fuel-cell vehicles might be equal to that of gasoline.
However, the proposed investment in the seven hydrogen hubs makes the costs associated with investing in electric semi-charging appear low. According to reports, Tesla is asking the federal government for $100 million to build nine charging stations for semi-trucks. For heavy rigs, Daimler is preparing a $650 million U.S. network that offers both charging and hydrogen choices.
FAQ’s(Frequently asked questions)
Q: What are hydrogen hubs?
A: Hydrogen hubs are networks of clean hydrogen producers, potential clean hydrogen consumers, and connective infrastructure located in close proximity. They are designed to produce, store, and distribute clean hydrogen to a variety of end users, including the transportation sector.
Q: How do hydrogen hubs work?
A: Hydrogen hubs work by producing clean hydrogen from a variety of sources, such as renewable energy, fossil fuels with carbon capture and storage, and nuclear energy. The hydrogen is then stored and distributed to end users through a variety of methods, such as pipelines, trucks, and ships.
Q: Why are hydrogen hubs important for trucking?
A: Hydrogen hubs are important for trucking because they can provide a clean and reliable source of fuel for heavy-duty vehicles. Hydrogen trucks can travel longer distances on a single tank of fuel than diesel trucks, and they produce zero emissions.
Q: When will hydrogen hubs be widely available?
A: Hydrogen hubs are still in their early stages of development, but they are expected to become more widely available in the next 5-10 years. The US government has recently announced $8 billion in funding for seven regional hydrogen hubs, which is a significant investment in this technology.
Q: What are the challenges of developing hydrogen hubs?
A: There are a number of challenges to developing hydrogen hubs, including:
- The cost of producing clean hydrogen is still relatively high.
- There is a lack of infrastructure to store and distribute hydrogen.
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Q: How can we overcome these challenges?
A: The challenges of developing hydrogen hubs can be overcome by:
- Investing in research and development to reduce the cost of producing clean hydrogen.
- Building out the infrastructure to store and distribute hydrogen.
- Providing financial incentives to encourage the purchase of hydrogen vehicles.