The U.S. Department of Energy released draft guidance Sept. 22 that proposes a definition of a clean hydrogen hub, offering developers a glimpse into which infrastructure projects may be eligible for federal funding.
The proposed draft standard would consider a clean hydrogen project as one that emits no more than 4 kilograms of carbon dioxide per kilogram of hydrogen produced.
The proposal comes as the DOE gets ready to open applications for $8 billion in grants, made available for the development of at least four regional hydrogen hubs. The program, funded by the bipartisan infrastructure law of 2021, is part of the Biden administration's push to develop a national hydrogen economy.
The Clean Hydrogen Production Standard "is not a regulatory standard, and DOE may not necessarily require future funded activities to achieve the standard," the guidance stated. However, hydrogen hubs must "demonstrably aid achievement" of the target.
Hydrogen emits only oxygen and water when combusted, offering a carbon-free alternative to natural gas. The majority of industrial hydrogen worldwide today is produced by steam methane reforming, a carbon-intensive process.
The DOE has prioritized lowering the price of green hydrogen, which uses zero-carbon electricity to split the hydrogen and oxygen in water. Alternatively, blue hydrogen uses carbon capture technology to mitigate the emissions of the steam methane reforming process. According to the DOE, both technologies are "generally expected to be capable" of achieving the Clean Hydrogen Production Standard.
The carbon threshold would apply to the full life-cycle of the production process, from "well to gate." According to the DOE, this standard is in line with the definition of clean hydrogen production set by Congress, which established a threshold of 2 kilograms of CO2 per kilogram of hydrogen produced.
Such projects would also be eligible for at least 20% of the hydrogen production tax credits authorized by the Inflation Reduction Act.
Stakeholders have until Oct. 20 to submit comments on the proposal.
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