Decarbon Debrief: Will H2 Hubs Unleash the Hydrogen Economy?
Market demand is still the concern according to project developers.
🚨 The Lead
The top story of the week.
This week the Appalachia Regional Hub and HyVelocity Hub announced completed applications for the U.S. Department of Energy’s (DOE) Hydrogen Hub. It’s a $7 billion funding opportunity for 10 hydrogen hubs in the U.S.
There were 33 applicants encouraged to submit H2 hub proposals with several states participating in multiple hub efforts. The DOE is anticipating pre-selection interviews this summer and selected hubs will be notified in the fall of 2023 with awards happening in winter of 2023 (or early 2024). After selection, detailed planning and negotiation begins.
Source: CATF H2 Hub Map
Todd’s Take:
One piece of the announcement caught my attention in the ARCH2 release.
ARCH2 has grown to over 160 strategic partners and stakeholders, including private sector industry leaders, utilities, universities, non-profits, and transportation and state entities from Ohio, Kentucky, and Pennsylvania, interested in building a hydrogen economy in northern Appalachia.
To my knowledge, this is the largest hub in terms of partners and stakeholders. The hydrogen hype is real and everyone wants a piece. It’s an exciting time in the industry.
Yet, every project developer I talk to is looking for demand and offtake agreements. If you are looking at the hydrogen value chain, market demand is the piece that is likely holding you back.
Today, the hydrogen value chain really only exists in two places in the U.S.:
California’s ports and fueling stations
Gulf Coast of Texas and Louisiana where 1,000s of miles of H2 pipelines exist with 48 production facilities
Bring demand and hydrogen supply will follow.
✨ This Week in Decarbonization
Highlights from the week’s most popular stories in industrial decarbonization.
☁️ Noya Closes $11M Series A To Accelerate the World's Transition to Carbon Negativity With Innovative Direct Air Capture technology (DAC)
❇️ Appalachian Regional Clean Hydrogen Hub Submits Multi-State Application for the Department of Energy's Hydrogen Hub
🌊 HyVelocity Gulf Coast Hydrogen Hub Applies for U.S. Department of Energy Regional Clean Hydrogen Hub Funding
🚨 Hawaiʻi Gas Issues Request for Proposals for Renewable Natural Gas and Renewable Hydrogen
♻️ Cemvita Unveils eCO2 Pilot Plant: Transforming CO2 Emissions into Renewable Feedstocks and Fertilizers
🏭 NET Power Selects Zachry Group to Build Its First Utility-Scale Clean Power Plant
💨 New wind farm program gives Pennsylvania, New Jersey, and Maryland residents choice and transparency among energy suppliers
💡 Liberty Launches Liberty Power Innovations with $78 M Acquisition of Siren Energy
👇 The Local
Regional and local updates for industrial decarbonization projects in North America.
The Texas Legislature is reviewing bills to provide state incentives to additional clean energy projects, like carbon capture, hydrogen, and emissions reduction efforts. Read more about the HB 1158 Bill here.
☁️ Capture This CO2
A single carbon capture or hydrogen project in industrial decarbonization.
Donaldsonville Nitrogen Complex CCS
🏭 Operator: CF Industries
📌 Location: Gulf Coast
⛽ Industry: Ammonia
🦺 Project Status: Early Development
🌱 Project Type: Commercial
♻️ CO2 Capture Amount: 2 million tons per year
The Donaldsonville Nitrogen Complex is the world’s largest ammonia production facility, and CF Industries plans to dehydrate and compress carbon dioxide in order to transport carbon dioxide via pipeline to sequestration sites. ExxonMobil will partner with CF Industries to capture 2 million metric tons of CO2 and Enlink will transport the CO2 to the sequestration site. This equipment is expected to be installed and operational by 2025. The project allows CF Industries to deliver “blue ammonia” or lower carbon ammonia globally.
🌍 Elsewhere
Highlights from research, data, or media partners covering the Energy Transition.
Universities across the world are taking notice that the energy markets are changing.
LSU is the first university to offer a concentration in CCUS. Colorado School of Mines launched initiatives to address the interdisciplinary challenges of carbon capture and utilization. Stanford University’s School of Sustainability will create a focus for carbon dioxide removal or CDR. UCLA is also making the news with their CO2 efforts.
UCLA’s Carbon Management effort
That's it for this week. If you'd like to dive into the data a little more with me, hit reply.