News
U.S. Invests USD2.2B in Clean Hydrogen Hubs
The USA is ploughing USD2.2 billion into gulf coast and Midwest Hydrogen hubs to accelerate clean power, and mitigate climate change impacts.
United States: The U.S. Department of Energy stated on Wednesday that it has funded as much as $2.2 billion to centers on the Gulf Coast and in the Midwest to develop hydrogen, a new source of energy which is costly to produce using renewable power, as reported by Reuters.
IMPORTANCE
However, hydrogen supporters, including the Biden administration, argue that low-emissions hydrogen can curb climate change by powering manufacturers like aluminum, cement, steel, and transportation. The current global hydrogen is produced predominantly now with fossil resources with no carbon capture, at a cost significantly lower than the cost of clean hydrogen.
Sponsors expect clean hydrogen with renewable electricity, natural gas with carbon capture, and nuclear power to be produced commercially in the coming years.
Much remains unknown about how hydrogen will fare under President-elect Donald Trump; nonetheless, the awards originate from the US dollar 1.2bn 2021 infrastructure law.
KEY QUOTE
The move signals “our deep commitment to strengthening America’s energy security and boosting our economic and global competitiveness while also tackling the climate crisis,” said U.S. Energy Secretary Jennifer Granholm.
BY THE NUMBERS
In this regard, the administration provides up to seven billion US dollars in federal grants. In the previous year, two partially located hub projects received awards.
The new Gulf Coast hydrogen hub based in Texas received up to $1.2 billion on Wednesday, whereas the new Midwest hydrogen hub with locations in Illinois, Indiana, Iowa, and Michigan got up to $1 billion.
The Gulf Hub plans to manufacture hydrogen using water by the process of electrolysis and from natural gas using carbon capture storage technologies, as reported by Reuters.
The Midwest hub’s goal is to generate hydrogen from wind and natural gas in combination with carbon capture and nuclear energy.
The plan unveiled by the Biden administration will put the U.S. en route to generate 50 million metric tonnes of clean hydrogen fuel by 2050.
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