US Awards up to $2.2 Billion to Speed Clean-hydrogen Development
The U.S. Department of Energy announced on Wednesday that it had awarded up to $2 billion to centers in the Gulf Coast and the Midwest for the development of hydrogen, a new source of energy which is costly to produce with renewable power.
Why it's important
Hydrogen supporters, such as the administration of Joe Biden believe that low carbon hydrogen can combat climate change by fueling industries like aluminum, cement and steel, along with long-haul transport. Most hydrogen produced today is made from fossil fuels, which emit unabated gases. This produces hydrogen at a fraction the price of clean hydrogen.
Supporters of clean hydrogen hope that it will be commercially produced in the coming years using renewable energy, nuclear power, natural gas with carbon capture and combined natural gas.
The 2021 bipartisan Infrastructure Law, which was passed in 2016, awarded the prizes for the hydrogen technology.
KEY QUOTE
The move "signals our deep commitment to strengthen America's energy and economic security, while also tackling climate change," said U.S. Secretary of Energy Jennifer Granholm.
By the Numbers
Federal grants of up to $7 billion are being awarded by the administration. Two hub projects located partially in Pennsylvania were awarded last year.
The Gulf Coast Hydrogen Hub in Texas received up to $1.2 Billion on Wednesday, while the Midwest Hub, which includes locations along the industrial corridors of Illinois, Indiana and Michigan, will receive up to $1 Billion.
The Gulf hub proposes producing clean hydrogen by electrolysing water and natural gas, with the emissions captured and stored below.
Midwest hub will produce hydrogen using wind energy, natural gases with carbon capture and nuclear.
Biden's administration claims that the plan will put the U.S. in a position to produce 50,000,000 metric tons (50,000,000 gallons) of clean hydrogen fuel before 2050. (Reporting and editing by Rod Nickel; Timothy Gardner)
(source: Reuters)
