Flagship US hydrogen project under fire by activists

US hydrogen hub faces early challenges: The Biden administration’s USD 6 bn flagship Appalachian Regional Clean Hydrogen Hub (ARCH2) is facing opposition as environmentalists and local communities express concern over its effectiveness, The Financial Times reports. The project aims to produce blue hydrogen from gas and carbon capture by mid-2030, but its environmental impact and commercial viability are still in question by climate experts, with over 50 local environmental groups calling for a suspension of negotiations on the project.

Why the opposition? Despite the potential of blue hydrogen to decarbonize sectors like shipping and cement production, researchers argue that the fuel still generates emissions and relies on unproven carbon capture technology, FT adds. One study found that blue hydrogen’s emissions footprint is 20% greater than burning gas or coal for heat, leading critics to argue that funding should focus on green hydrogen rather than prolonging fossil fuel reliance. Many view blue hydrogen as an attempt by the oil and gas industry to greenwash the energy transition.

Funding and supply management are also off track: Securing funding and customers also remains a challenge as only 6% of US hydrogen projects have secured supply agreements, the news outlet added. The lack of final rules for the green incentive package the Inflation Reduction Act’s clean hydrogen production tax credit is also further complicating the sector’s development.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• France gets a decarbonized wind turbine foundation: French green energy company Valorem and Hoffmann Green Cement Technologies have successfully poured the world’s first wind turbine foundation using zero-clinker decarbonized concrete. The 18 MW project, located at the Plaine des Moulins wind farm in Vienne, utilized 630 cbm of decarbonized concrete, achieving a reduction of 33 tons of CO2 emissions and marking a 32% decrease compared to traditional concrete. (Statement)
• TotalEnergies + EnBW bag German offshore wind tender: France’s energy giant TotalEnergies and German energy company EnBW Energie Baden-Württemberg have secured a EUR 3 bn offshore wind project auction. Total secured the seabed rights to develop 1.5 GW of wind capacity in the North Sea while EnBW acquired the rights for the remaining area for 1 GW capacity, both set to be operational by 2031. (Bloomberg)