| 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.
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