OMAHA (DTN) -- A hydrogen energy project in Minnesota and the Dakotas that includes plans to "decarbonize" fertilizer production is among seven regional clean hydrogen hubs that were awarded $7 billion in grants Friday by the Biden administration.
The White House and the Department of Energy rolled out the projects, which will involve 16 states to increase the development of "low-cost, clean hydrogen." The $7 billion in funding comes from the Bipartisan Infrastructure Law passed in 2021.
At least one project will include work on lowering fertilizer emissions while another one points to Sustainable Aviation Fuel.
The regional projects are expected to create more than $40 billion in private investment and create tens of thousands of jobs, the White House stated. Collectively, the hydrogen "hubs" will produce more than 3 million metric tons (mmt) of "clean hydrogen" annually that will essentially replace fossil fuels and eliminate 25 mmt of carbon dioxide emissions annually as well -- roughly the same emissions as more than 5.5 million gas-powered cars.
The Biden administration considered the clean hydrogen projects as crucial to helping lower emissions for heavy-duty machinery, as well as the chemical, steel and cement industries.
"Unlocking the full potential of hydrogen -- a versatile fuel that can be made from almost any energy resource in virtually every part of the country -- is crucial to achieving President (Joe) Biden's goal of American industry powered by American clean energy, ensuring less volatility and more affordable clean energy options for American families and businesses," said U.S. Secretary of Energy Jennifer M. Granholm. "With this historic investment, the Biden-Harris administration is laying the foundation for a new, American-led industry that will propel the global clean-energy transition while creating high-quality jobs and delivering healthier communities in every pocket of the nation."
One of the projects, the Heartland Hydrogen Hub, is based in Minnesota, North Dakota and South Dakota, and also includes Montana and Wisconsin. The project, which will receive up to $925 million, is touted as leveraging "... the region's abundant energy resources to help decarbonize the agricultural sector's production of fertilizer, decrease the regional cost of clean hydrogen, and advance the use of clean hydrogen in electric generation and for cold climate space heating."
The Heartland project will open equity ownership to both Native American Tribes and farmer cooperatives "that will allow local farmers to receive more competitive pricing for clean fertilizer."
The Heartland project also expects to generate more than 3,880 jobs -- more than 3,000 of which will be tied to the construction of the project. The Heartland Hydrogen Hub includes Xcel Energy, Marathon Petroleum Corporation and TC Energy and will work with the University of North Dakota's Energy & Environmental Resource Center.
"Clean fuels are a critical component of enabling economy-wide decarbonization," said Bob Frenzel, Xcel Energy chairman, president and CEO. "The Heartland Hydrogen Hub is a game-changing initiative that demonstrates how we're accelerating the development of the next generation of clean energy technology with significant benefits for our customers and the environment. The strong partnership with our Upper Midwest states and other energy providers demonstrates our commitment to increasing economic impact while achieving carbon reduction goals for our customers."
Gary Wertish, president of the Minnesota Farmers Union, said farmers will benefit from the investments in the Heartland Hydrogen Hub.
"The hydrogen hub will help kickstart the production of green fertilizer in our region, which is a critical strategy for decarbonizing the agricultural supply chain," Wertish said. "The cooperative model that is included with this project is another exciting example of how a transition to a low-carbon economy can lead to rural rejuvenation."
Xcel, in its news release, noted the company will use its nuclear, solar and wind power in the upper Midwest to produce hydrogen that will blend into its power generation, as well as natural-gas distribution, agriculture and industrial uses.
North Dakota Gov. Doug Burgum praised the announcement that the Heartland project had been awarded the funds. He noted the project would help address agricultural needs in the region. "North Dakota is already an energy and ag powerhouse, and we're excited to build on our reputation as states that feed and fuel the world with environmental stewardship and a focus on innovation over regulation to meet our nation's evolving energy needs," Burgum said.
Along with the Heartland Hydrogen Hub, other funded projects include the Midwest Hydrogen Hub, Midwest Alliance for Clean Hydrogen -- MachH2 -- including Illinois, Indiana, Michigan. The Midwest Hydrogen Hub will receive up to $1 billion to help decarbonize steel and glass production, power generation, refining and heavy-duty transportation. That project also mentions ties to help develop Sustainable Aviation Fuel (SAF).
There was aggressive competition among states for the 16 projects. Left out, for instance, was a partnership between Iowa, Missouri and Nebraska, which entered into an agreement last spring to create the "Mid-Continent Clean Hydrogen Hub," specifically to seek one of the Department of Energy grants.
Not everyone is on board with funding projects to lower hydrogen emissions. The Center for Biological Diversity criticized the projects, for instance, pointing to the energy it will likely take from coal or natural gas to produce cleaner-burning hydrogen.
"Hydrogen is another bait-and-switch from an administration that continues to break its promises to aggressively tackle climate change and help communities achieve a just, equitable transition to renewable energy," Associated Press quoted Soni Grant, who works with the Center for Biological Diversity.
Selected projects for negotiation include:
-- Appalachian Hydrogen Hub. Appalachian Regional Clean Hydrogen Hub -- ARCH2 -- including West Virginia, Ohio, and Pennsylvania. With up to $925 million in federal funding, the project will use the region's ample access to low-cost natural gas to produce low-cost clean hydrogen and permanently store the associated carbon emissions.
-- California Hydrogen Hub. Alliance for Renewable Clean Hydrogen Energy Systems -- ARCHES. The California Hydrogen Hub will receive up to $1.2 billion for decarbonizing public transportation, heavy-duty trucking, and port operations -- key emissions drivers in the state and sources of air pollution that are among the hardest to decarbonize.
-- Gulf Coast Hydrogen Hub. HyVelocity H2Hub -- Texas. The Gulf Coast Hydrogen Hub, funded up to $1.2 billion, will be centered in the Houston region, the traditional energy capital of the United States. It will help kickstart the clean-hydrogen economy with its plans for large-scale hydrogen production using both natural gas with carbon capture and renewables-powered electrolysis to drive down the cost of hydrogen.
-- Mid-Atlantic Hydrogen Hub. Mid-Atlantic Clean Hydrogen Hub -- MACH2 -- including Pennsylvania, Delaware, New Jersey. The Mid-Atlantic Hydrogen Hub will receive up to $750 million to repurpose historic oil infrastructure and use existing rights-of-way to develop renewable hydrogen production facilities from renewable and nuclear electricity.
-- Pacific Northwest Hydrogen Hub. PNW H2 -- including Washington, Oregon, and Montana. The Pacific Northwest Hydrogen Hub will receive up to $1 billion to produce clean hydrogen exclusively via electrolysis, a process of using electricity to split water into hydrogen and oxygen. It's anticipated widescale use of electrolyzers will play a key role in driving down electrolyzer costs, making the technology more accessible to other producers, and reducing the cost of hydrogen production.
Chris Clayton can be reached at Chris.Clayton@dtn.com
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