Can DOE make clean hydrogen a thing?

Your guide to the political forces shaping the energy transformation

Apr 07, 2023 View in browser   By Lamar Johnson POLITICO illustration/Photos by iStock The Department of Energy hopes to achieve liftoff for a hydrogen fuel that helps the U.S. achieve its net-zero climate emissions goals. The department is gearing up to review dozens of proposals to build the nation's first "hubs" for developing low-carbon hydrogen. How the department spends $8 billion set aside by Congress to build the bones of a nascent energy source could also help define "clean hydrogen" more precisely, E&E News' David Iaconangelo writes. "So all eyes are watching. Both in the U.S. and globally," Nichole Saunders, a senior attorney at the Environmental Defense Fund, told David. Hydrogen is the energy frontier du jour. Wind farm operators appear just as eager as natural gas producers to see where hydrogen goes. Can it be developed into a cheap enough, efficient enough, clean enough alternative to fossil fuels? And its biggest boosters say it's an answer for hard-to-electrify sectors like steel production and other heavy industry. Pick a color: A rainbow of colors in the clean hydrogen lexicon describe how the fuel is actually produced. "Green" hydrogen is made from renewable electricity and water. "Blue" hydrogen is derived from natural gas, but uses technology to capture its carbon emissions. The 2021 bipartisan infrastructure law requires DOE to create hubs that use different feedstocks and that are located in different regions of the country. The agency was directed to tie the hubs to fossil fuels, renewable energy and nuclear energy. Further, it's supposed to show how hydrogen can be used in the power, transportation, heavy industry and residential and commercial heating sectors. There are also hefty tax incentives in the landmark climate law — but only for hydrogen that's considered clean by climate standards. What's next? Federal subsidies for hydrogen are the Biden administration's olive branch to the oil and gas industry. Energy Secretary Jennifer Granholm describes it as a new way to make money, especially for the natural gas industry, which is eager to send hydrogen to market through its network of pipelines. But environmental groups are watching closely, too. Some are concerned that publicly funded hydrogen hubs would use too much water and prolong the life of natural gas, a major source of climate-unfriendly methane emissions. At some point, hydrogen makers will face perhaps the biggest question of all: Does the fuel have a market? It's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Lamar Johnson, filling in for regular host Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to ljohnson@eenews.net. Listen to today’s POLITICO Energy podcast Today in POLITICO Energy's podcast: POLITICO's Marie French explains why Democratic New York Gov. Kathy Hochul was pushing to rewrite the state's landmark climate law and why she dropped her insistence on changing how the state's emissions are calculated. Featured story An executive order from President Joe Biden directs the Office of Information and Regulatory Affairs to alter regulations across the federal government. | Patrick Semansky/AP Photo What's going on with WOTUS President Biden issued just the second veto of his presidency on Thursday, overriding a Congressional Review Act resolution aimed at striking the administration's definition of "waters of the United States," or WOTUS, E&E News' Jeremy Dillon writes. The resolution passed both chambers with strong Republican support and some backers in the Democratic Party, but congressional Republicans lack the support necessary to overturn the veto. That has not stopped some in the GOP from pushing for an override vote that would likely fail, E&E News' E.A. Crunden writes. On the state side, Idaho and Texas have already successfully gotten injunctions on the rule, and other states have begun legal action, as well. Power Centers Rewriting the rules on regulations The Office of Information and Regulatory Affairs is updating its guidance and best practices on how to do rulemaking for the first time since the Reagan administration, E&E News' Jean Chemnick writes. The move fulfills an Inauguration Day executive order from Biden to take advances in science and economics into account to put a larger focus on equity and justice. France-China collab French President Emmanuel Macron and Chinese leader Xi Jinping reached an agreement to have their countries deepen their relationships on trade, space, climate and more to cap off Macron's trip to China, POLITICO Europe's Clea Caulcutt and Stuart Lau write. The pair also released a joint statement calling for peace in Ukraine and expressing a need to ensure the security of Ukraine's nuclear power plants and other nuclear facilities. The statement, notably, doesn't mention Russia, which invaded Ukraine and considers China an ally, by name.   GO INSIDE THE 2023 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is proud to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage, insider nuggets and unparalleled insights from the 2023 Global Conference, which will convene leaders in health, finance, politics, philanthropy and entertainment from April 30-May 3. This year’s theme, Advancing a Thriving World, will challenge and inspire attendees to lean into building an optimistic coalition capable of tackling the issues and inequities we collectively face. Don’t miss a thing — subscribe today for a front row seat.     In Other News The Los Angeles Angels' Brett Phillips warms up as rain clouds pass before a spring training baseball game against the Arizona Diamondbacks in Scottsdale, Ariz. | Ashley Landis/AP Photo Climate change = more home runs?: A new study has linked more than 500 Major League Baseball home runs to higher-than-average temperatures. While that was just around 1 percent of home runs in that span, researchers theorize that climate change could play a larger role in the future. A look ahead at Willow: Oil and gas workers from across the country are flocking to Alaska in hopes of getting work on ConocoPhillips' Willow project. Executives are set to drill for generations, while workers are planning to retire after years of employment on the project, even as scientists warn against new oil and gas drilling. Subscriber Zone An electric Ford F-150 Lightning pickup truck outside a Walmart store in Island City, Ore. | David Ferris/POLITICO's E&E News A showcase of some of our best subscriber content. Walmart is making an EV charging play and installing and owning charging stations at "thousands" of Walmart and Sam's Club stores. The move has major implications for others in the charging space. A missing piece of guidance on the EV tax credit has the industry unsure of who is in danger of not receiving consumer credits. An undefined provision of "foreign entities of concern" is leaving automakers with connections to China in the lurch. Producing oil in the Gulf of Mexico releases more methane than previously reported. A new study places the largest blame on a single type of platform in shallow waters, while emissions inventories for deeper water production were more accurate. That's it for today, folks. Thanks for reading, and have a great weekend!   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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