Tuesday, April 25, 2023

The hydrogen race is on, and who will the winners be.

Happy Tuesday!

Did anyone read The Houston Chronicle’s Business Section on Saturday, April 22, 2023 when they reprinted CQ-Roll Call’s article called, “Hydrogen energy gets ready for its close-up – Federal Officials are reviewing ‘hubs’ with $8 billion from the infrastructure law”?  The article is about everyone trying to get in on the $9.5 billion available through various legislation and tax credits.  The hydrogen boom is either going to extend our dependence on fossil fuels or it will help us clean up our planet.  The Energy Department is in charge of $8 billion, and they are looking for six to ten hydrogen hubs throughout the country.  Earlier this month the window closed on proposals for the hubs, they had received 79 proposals, and are expected to make a decision later this year.  The Port of Corpus Christi was one of the proposals submitted as well as a hub for the Houston area. 

The IRS is making the rules for the tax credits which will expire 2032 for making green hydrogen as opposed the blue hydrogen which is the most common form now.   The two ways to make hydrogen is to use electrolysis to break apart water (Green Hydrogen) or to split natural gas by high heat into carbon dioxide and hydrogen (Blue Hydrogen). 

There are still limited uses for hydrogen.  At this time, EV batteries outsell hydrogen fuel cell batteries.  There are more electric battery charging stations (61,487) than hydrogen fueling stations (62).   Hydrogen is used by fertilizer companies to make ammonia and petroleum refineries use it too.  

The hydrogen hubs are a way to show, if it can help cut emissions and clean up the air.  As groups around the country submitted proposals as to why they should get money for their ideas.  Lawmakers around the country are trying to press the Department of Energy to pick their local hubs to get the federal money.

Hydrogen could be good for the economics of an area because it is expected to bring good paying jobs to the areas.  With more hydrogen made, more pipelines will have to be designed and built because we only have 1,600 miles.  The drawback is, if the hydrogen leaks it would have a major impact on the environment.   As they say big dreams take big risks, so hopefully all this effort going into hydrogen will pay off, and it will help clean up the environment.  If you would like to read the article from CQ-Roll Call, please click the link: Hydrogen energy gets ready for its close-up as US funds flow - Roll Call

If you would like to read about the proposed hydrogen hub, please click the link for the Port of Corpus Christi or check out our previous Blog on the topic: Port of Corpus Christi Horizons Clean Hydrogen Hub and Trans Permian H2Hub Merge to Create Integrated Regional Clean Hydrogen Hub Proposal « Port of Corpus Christi(portofcc.com)

If you would like to read about the Houston area hub, please click the link to check out The Houston Chronicle: Houston hydrogen hub projects advance in race for $7B in DOE funds(houstonchronicle.com)

Don’t forget to check out our ESC’s website or contact us via the email in the blog, if you have a project you would like to see get off the ground!

We hope you have a great night and week!

*Disclaimer – please note there may be a fee involved to see this article in CQ-Roll Call and the article in The Houston Chronicle.