June 08, 2023 • Paul Rodden • Season: 2023 • Episode: 221
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In episode 221, The United States Department of Energy finally releases their National Clean hydrogen strategy and roadmap. I'll go over the announcement and cover a few details from the roadmap in today's hydrogen podcast.
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The United States Department of Energy finally releases their National Clean hydrogen strategy and roadmap. I'll go over the announcement and cover a few details from the roadmap in today's hydrogen podcast.
So the big questions in the energy industry today are, how is hydrogen the primary driving force behind the evolution of energy? Where's capital being deployed for hydrogen projects globally? And where are the best investment opportunities for early adopters who recognize the importance of hydrogen? I will address the critical issues and give you the information you need to deploy capital. Those are the questions that will unlock the potential of hydrogen, and this podcast will give you the answers. My name is Paul Rodden, and welcome to thehydrogen podcast.
In a report on June 5 from the US Department of Energy, the Biden Harris administration releases the first ever National Clean hydrogen strategy and roadmap to build a clean energy future accelerate American manufacturing boom. The Biden Harris administration on June 5 released the US National Clean hydrogen strategy and roadmap a comprehensive framework for accelerating the production processing, delivery, storage and use of clean hydrogen, a versatile and flexible energy carrier that can be produced with low or zero carbon emissions. Achieving commercial scale hydrogen deployment is a key component of President Biden's investing in America agenda and critical to building a strong clean energy economy while enabling our long term decarbonisation objectives. Estimates indicate that America's growing hydrogen economy has the potential to add 100,000 net new direct and indirect jobs by 2030. Developed by the US Department of Energy or the DOE in partnership with other federal agencies. The strategy and roadmap underscores the President's whole of government approach to addressing the climate crisis and achieving a carbon free grid by 2035.
And zero emissions economy by 2050. And a quote from US Secretary of Energy Jennifer Granholm, accelerating the deployment of hydrogen is key to achieving President Biden's vision for an affordable secure, clean energy future. That's why the DoD worked alongside our federal partners to develop the US National Clean hydrogen strategy and roadmap that will lay the foundation for a strong and productive partnership between the public and private sectors, and will guide government and industry to realize the full potential of this incredibly versatile energy resource. And in a quote from Ali Zaidi, the Assistant to the President and national climate advisor, President Biden understands that growing America's clean hydrogen capability can spur good paying union jobs, support local economic development and help decarbonize industries, long seen as quote, hard to decarbonize. This roadmap will align the private and public sectors on a shared path to drive faster toward a cleaner more secure energy future.
Clean hydrogen offers substantial economic benefits that will help create 10s of 1000s of new good paying jobs across the country, particularly in underserved communities. According to doE's pathways to commercial lift off clean hydrogen report, America's growing hydrogen economy has the potential to add a 100,000 new direct and indirect jobs by 2030 by enabling the development of diverse domestic clean energy pathways across multiple sectors of the economy, clean hydrogen will strengthen the American energy independence and accelerate the American manufacturing boom that has already created over 800,000 jobs since President Biden took office. Clean hydrogen is set to play a vital future role in reducing emissions from some of the most energy intensive sectors in our economy, including industrial and chemical processes, and heavy duty transportation.
Clean hydrogen can also support the expansion of variable renewable power by providing a means for long duration energy storage, and offers flexibility and multiple revenue streams for all types of clean power generation, including renewables, advanced nuclear and other innovative technologies. The strategy and roadmap provides snapshots of hydrogen production, transport, storage and use in the United States today and a vision for how clean hydrogen will contribute to national decarbonisation goals across multiple sectors in the future. It examines future demand scenarios, with strategic opportunities for the domestic production of 10 million metric tons of clean hydrogen annually by 2030 20 million metric tons annually by 2040 and 50 million annually by 2050. It also complements a historic nine and a half billion dollar investment for clean hydrogen through the President's bipartisan infrastructure law.
Ongoing research and development efforts across the federal government as well as strong policy incentives, including a new production The tax credit for clean hydrogen and historic inflation Reduction Act. The strategy and roadmap identifies three key strategies to ensure that clean hydrogen is developed and adopted as an effective decarbonisation tool, including one targeting strategic high impact uses for clean hydrogen, which will ensure that clean hydrogen will be utilized and the highest benefit applications were limited alternatives exist such as the industrial sector, heavy duty transportation, and long duration energy storage to an able a clean grid. Number two, reducing the cost of clean hydrogen by catalyzing innovation and scale stimulating private sector investments and developing the clean hydrogen supply chain and three, focusing on regional networks with large scale clean hydrogen production and in use in close proximity enabling maximum benefit from infrastructure investment, driving scale and facilitating market lift off while leveraging place based opportunities for equity, inclusion and environmental justice. To ensure the US National Clean hydrogen strategy and roadmap addresses the needs and incorporates input from the broadest possible array of hydrogen stakeholders.
It was released in draft form for the public comment in September of last year. The final version released on June 5, reflects feedback from across the Biden Harris administration, stakeholders in the industry, academia and the nonprofit sector, as well as state, local and tribal governments. It also incorporates findings from DOD March 2023 report, pathways to commercial liftoff clean hydrogen, giving the rapidly evolving market technology and policy environment as well as community needs and engagement. The strategy and roadmap was designed to be a living document that will be updated at least every three years. Okay, so the US has finally released its final hydrogen roadmap, something that we have been waiting for for quite a while.
Now. This announcement, while timely doesn't really dive into too much of what the 100 page roadmap document covers. So in the little time I have left in this podcast, I'll try to dive into some of the lesser known incentives the plan highlights these include notes from the IRA, such as grants and loans for auto manufacturing facilities to manufacture clean vehicles, including fuel cell electric vehicles, grants for industrial demonstration projects, including hydrogen technologies for the industrial sector, loans to help, retool, repower, repurpose or replace energy infrastructure to avoid reduce, utilize or sequester air pollutants or anthropogenic emissions of greenhouse gases.
Competitive tax credits for facilities that manufacture hydrogen and fuel cell technologies, including fuel cell vehicles and fueling infrastructure, a tax credit for producing sustainable aviation fuels or SAF and a technology neutral tax credit for clean fuels, which can include hydrogen feedstock in the production process grants to reduce emissions at ports, which could fund deployments of fuel cells and grants for clean heavy duty vehicles including FCEVs and incentives for the deployment of carbon dioxide capture utilization and storage. The announcement also covers in good detail the h2o at scale project.
So we we've covered on the show in the past, and as a project we're very excited about one other piece that I would like to highlight is their use of waves to introduce hydrogen throughout the US. The first wave includes focusing on hydrogen for forklifts and other material handling equipment, refineries, transit buses, long haul heavy trucks, heavy machinery and mining, construction and agriculture and ammonia production. The second wave includes medium duty trucks, regional ferries, certain industrial chemical production, steel production, energy storage and power generation and aviation. And the third wave includes power backup and stationary power, methanol, containerships cement and then blending with existing natural gas networks. I think it's very interesting that they include blending as the third wave of this application.
Now overall, the roadmap does a good job of outlining the various verticals of the hydrogen industry and covers the economics in very good detail. It also highlights the various use cases for hydrogen and how different industries should leverage hydrogen and their respective decarbonisation efforts. But what I like most about this roadmap is the coverage given to every facet of hydrogen generation, each technology including SMR, ATR, electrolytic hydrogen and even pyrolysis. And so As they say better late than never for this report to come out. But I would rather the DOE take more time to develop a roadmap like this one, instead of just jumping into a program that makes no economic sense. This is a very good plan and one that I hope gets taken seriously by everyone involved in the hydrogen industry.
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