Renewables became the second-most prevalent U.S. electricity source in 2020


2020 us renewables graph

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2020 U.S. Renewable Electricity Generation set a record as wind, solar, hydro, biomass, and geothermal produced 834 billion kWh, surpassing coal and nuclear, second only to natural gas in nationwide power output.

 

Key Points

The record year when renewables made 834 billion kWh, topping coal and nuclear in U.S. electricity.

✅ Renewables supplied 21% of U.S. electricity in 2020

✅ Coal output fell 20% y/y; nuclear slipped 2% on retirements

✅ EIA forecasts renewables rise in 2021-2022; coal rebounds

 

In 2020, renewable energy sources (including wind, hydroelectric, solar, biomass, and geothermal energy) generated a record 834 billion kilowatthours (kWh) of electricity, or about 21% of all the electricity generated in the United States. Only natural gas (1,617 billion kWh) produced more electricity than renewables in the United States in 2020. Renewables surpassed both nuclear (790 billion kWh) and coal (774 billion kWh) for the first time on record. This outcome in 2020 was due mostly to significantly less coal use in U.S. electricity generation and steadily increased use of wind and solar generation over time, amid declining consumption trends nationwide.

In 2020, U.S. electricity generation from coal in all sectors declined 20% from 2019, while renewables, including small-scale solar, increased 9%. Wind, currently the most prevalent source of renewable electricity in the United States, grew 14% in 2020 from 2019, and the EIA expects solar and wind to be larger sources in summer 2022, reflecting continued growth. Utility-scale solar generation (from projects greater than 1 megawatt) increased 26%, and small-scale solar, such as grid-connected rooftop solar panels, increased 19%, while early 2021 January power generation jumped year over year.

Coal-fired electricity generation in the United States peaked at 2,016 billion kWh in 2007 and much of that capacity has been replaced by or converted to natural gas-fired generation since then. Coal was the largest source of electricity in the United States until 2016, and 2020 was the first year that more electricity was generated by renewables and by nuclear power than by coal (according to our data series that dates back to 1949). Nuclear electric power declined 2% from 2019 to 2020 because several nuclear power plants retired and other nuclear plants experienced slightly more maintenance-related outages.

We expect coal-fired generation to increase in the United States during 2021 as natural gas prices continue to rise and as coal becomes more economically competitive. Based on forecasts in our Short-Term Energy Outlook (STEO), we expect coal-fired electricity generation in all sectors in 2021 to increase 18% from 2020 levels before falling 2% in 2022. We expect U.S. renewable generation across all sectors to increase 7% in 2021 and 10% in 2022, and in 2021, non-fossil fuel sources accounted for about 40% of U.S. electricity. As a result, we forecast coal will be the second-most prevalent electricity source in 2021, and renewables will be the second-most prevalent source in 2022. We expect nuclear electric power to decline 2% in 2021 and 3% in 2022 as operators retire several generators.

 

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Completion of 1st fast-charging network 'just the beginning' for electric car owners in N.L.

Newfoundland EV Fast-Charging Network enables DC fast charging along the Trans-Canada Highway, from Port aux Basques to St. John's, with Level 3 stations, reducing range anxiety and accelerating electric vehicle adoption.

 

Key Points

A DC fast charging corridor with Level 3 stations every 70 km, enabling EV road trips and easing range anxiety.

✅ 14 Level 3 DC fast chargers across the Trans-Canada Highway

✅ Charges most EVs to 80% in under an hour, $15/hr prorated

✅ Expansion planned into Labrador with 19 additional fast chargers

 

The first electric vehicle fast-charging network is now up and running across Newfoundland, which the province's main energy provider hopes will make road trips easier for electric car owners and encourage more drivers to go electric in the future.

With the last of the 14 charging stations coming online in Corner Brook earlier this month, drivers now have a place to charge up about every 70 kilometres along the Trans-Canada Highway, where 10 new fast-charging stations in N.B. are being planned, from Port aux Basques to St. John's, along with one in Gros Morne National Park.

Jennifer Williams, president & CEO of Newfoundland and Labrador Hydro, says many potential electric vehicle owners have been hesitant to give up on gasoline without fast chargers available across the island.

"The majority of people who were interested in EVs said one of the major barriers to them was indeed not having a fast-charging network that they could access," she said.

"We really believe that this is going to help people cross over and become an EV owner."

The charging network was first announced in October 2019, with an eye to having all 14 chargers up and running by the end of 2020. When work began, Newfoundland and Labrador was the only province in Canada without any publicly available Level 3 chargers, even as NB Power's public charging network was expanding elsewhere.

After some COVID-19 pandemic-related delays, the stations are now up and running and can charge most EVs to 80 per cent in less than an hour at a prorated cost of $15 an hour

"The pandemic did have some effect, but we're there now and we're really happy and this is just the beginning," said Williams.

Public charging becoming 'a non-issue'
That's encouraging for Jon Seary, an electric car owner and a co-founder of advocacy group Drive Electric N.L. He says the lack of fast chargers has been the "deal breaker" for many people looking to buy electric vehicles.

"Now you can drive right across the province. You can choose to stop at any of these to top up," Seary said.

Joe Butler, who is also a co-founder of the group, says the fast chargers have already made trips easier as they've come online across the island.

"In the past, it was a major impediment, really, to get anywhere, but now it's changed dramatically," said Butler.

"I just came back from Gros Morne and I had two stops and I was home, so the convenience factor if you just travel occasionally outside of town makes all the difference."

Jon Seary and Joe Butler stand with a slower level-two charging station on Kenmount Road in St. John's. 'We are at the cusp now of seeing a huge upswing in electric vehicle adoption,' Seary said. (Gavin Simms/CBC)
Seary said according to numbers from provincial motor vehicle registration, there were 195 electric cars on the road at the end of 2020, but he estimates that there are now closer to 300 vehicles in use in the province — with the potential for many more.

"We are at the cusp now of seeing a huge upswing in electric vehicle adoption," he said, even though Atlantic Canadians have been less inclined to buy EVs so far. 

"The cost of the cars is coming way down, and has come down. More places are selling them and the availability of public charging is becoming a non-issue as we put more and more charging stations out there."

The future is electric but the province's infrastructure is lagging behind, says non-profit
But Seary said there is still more work to be done to improve the province's charging infrastructure to catch up with other parts of the country. 

"We are lagging the rest of the country," Seary said, even as the N.W.T. encourages more residents to drive EVs through new initiatives.

"We have opportunities for federal funding for our charging infrastructure and it needs to be moving now. We have the surplus from Muskrat Falls to use and we have a climate that's not going to wait … this is the time to get going with this now."

Williams said together with Newfoundland Power, N.L. Hydro is now working on 19 more fast chargers to be placed elsewhere in the province and into Labrador, where the N.L. government has promoted EV adoption but infrastructure has lagged in some areas.

"We've heard very loudly and very clearly from the folks in Labrador, as well as other parts of the province, that they want to have charging stations in their neck of the woods too," she said.

"Putting them in Labrador, we believe that we'll help people get over that concern and that fear. There are EV owners in Labrador … so we believe it can work there as well."

With more chargers and electric vehicles comes less reliance on burning fossil fuels, and utilities like Nova Scotia Power are piloting vehicle-to-grid integration to amplify benefits, and Williams said 21 tonnes of greenhouse gas emissions have already been offset with the chargers as they've come online over the past few months.

"It actually does equate to as if you had powered a whole house all year, but the important part to remember [is that] these are an enabler. Putting these in place is enabling people to purchase electric vehicles," she said.

"You do 90 per cent of your charging at home, so if we're seeing about 20 tonnes has been offset in the short period of time they've been in service, for the vehicles that are charging at home, imagine how much they're actually offsetting. We figure it's well in excess of 200 tons."

 

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Prairie Provinces to lead Canada in renewable energy growth

Canada Renewable Power sees Prairie Provinces surge as Canada Energy Regulator projects rising wind, solar, and hydro capacity in Alberta, Saskatchewan, and Manitoba, replacing coal, expanding the grid, and lowering emissions through 2023.

 

Key Points

A CER outlook on Canada's grid: Prairie wind, solar, and hydro growth replacing coal and cutting emissions by 2023.

✅ Prairie wind, solar capacity surge by 2023

✅ Alberta, Saskatchewan shift from coal to renewables, gas

✅ Manitoba strengthens hydro leadership, low-carbon grid

 

Canada's Prairie Provinces will lead the country's growth in renewable energy capacity over the next three years, says a new report by the Canada Energy Regulator (CER).

The online report, titled Canada's Renewable Power, says decreased reliance on coal and substantial increases in wind and solar capacity will increase the amount of renewable energy added to the grid in Alberta and Saskatchewan. Meanwhile, Manitoba will strengthen its position as a prominent hydro producer in Canada. The pace of overall renewable energy growth is expected to slow at the national level between 2021 and 2023, in part due to lagging solar demand in some markets, but with strong growth in provinces with a large reliance on fossil fuel generation.

The report explores electricity generation in Canada and provides a short-term outlook for renewable electricity capacity in each province and territory to 2023. It also features a series of interactive visuals that allow for comparison between regions and highlights the diversity of electricity sources across Canada.

Electricity generation from renewable sources is expected to continue increasing as demand for electricity grows and the country continues its transition to a lower-carbon economy. Canada will see gradual declines in overall carbon emissions from electricity generation largely due to Saskatchewan, Alberta, Nova Scotia and New Brunswick replacing coal with renewables and natural gas. The pace of growth beyond 2023 in renewable power will depend on technological developments; consumer preferences; and government policies and programs.

Canada is a world leader in renewable power, generating almost two-thirds of its electricity from renewables with hydro as the dominant source, and the country ranks in the top 10 for hydropower jobs worldwide. Canada also has one of the world's lowest carbon intensities for electricity.

The CER produces neutral and fact-based energy analysis to inform the energy conversation in Canada. This report is part of a portfolio of publications on energy supply, demand and infrastructure that the CER publishes regularly as part of its ongoing market monitoring.

Report highlights

  • Wind capacity in Saskatchewan is projected to triple and nearly double in Alberta between 2020 and 2023 as wind power becomes more competitive in the market. Significant solar capacity growth is also projected, with Alberta adding 1,200 MW by 2023, as Canada approaches a 5 GW solar milestone by that time.
  • In Alberta, the share of renewables in the capacity mix is expected to increase from 16% in 2017 to 26% by 2023, with a renewable energy surge supporting thousands of jobs. Similarly, Saskatchewan's renewable share of capacity is expected to increase from 25% in 2018 to 33% in 2023.
  • Renewable capacity growth slows most notably in Ontario, where policy changes have scaled back growth projections. Between 2010 and 2017, renewable capacity grew 6.8% per year. Between 2018 and 2023, growth in Ontario slows to 0.4% per year as capacity grows by 466 MW over this period.
  • New large-scale hydro, wind, and solar projects will push the share of renewables in Canada's electricity mix from 67% of installed capacity in 2017 to 71% in 2023.
  • Hydro is the dominant source of electricity in Canada accounting for 55% of total installed capacity and 59% of generation, though Alberta's limited hydro stands as a notable exception, with B.C., Manitoba, Quebec, Newfoundland and Labrador, and Yukon deriving more than 90% of their power from hydro.
  • The jurisdictions with the highest percentage of non-hydro renewable electricity generation are PEI (100%), Nova Scotia (15.8%), and Ontario (10.5%).
  • In 2010, 62.8% of Canada's total electricity generation (364 681 GW‧h) was from renewable sources. By 2018, 66.2% (425 722 GW‧h) was from renewable sources and projected to be 71.0% by 2023.

 

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Canadian electricity associations aligning goals toward net-zero by 2050

Electricity Alliance Canada champions clean power, electrification, and net-zero, uniting renewable energy, hydropower, nuclear, wind, and solar to decarbonize Canada with sustainable, reliable, affordable electricity across sectors by 2050, economywide growth.

 

Key Points

A national coalition advancing clean power and electrification to help achieve Canada's net-zero by 2050.

✅ Coalition of six Canadian electricity associations

✅ Promotes electrification and clean, reliable power

✅ Aims net-zero by 2050, coal phase-out by 2030

 

Six of Canada’s leading electricity associations have created a coalition to promote clean power’s role, amid a looming power challenge for the country, in a sustainable energy future.

The Electricity Alliance Canada’s mandate is to enable, promote and advocate for increased low or no-carbon electricity usage throughout the economy to help achieve the nation’s net-zero emissions target of 100 percent by 2050, with net-zero electricity regulations permitting some natural gas generation along the way.

The founding members are the Canadian Electricity Association, the Canadian Nuclear Association, the Canadian Renewable Energy Association, Electricity Human Resources Canada, Marine Renewables Canada, and WaterPower Canada, and they aim to incorporate lessons from Europe's power crisis as collaboration advances.

“Electricity will power Canada’s energy transition and create many new well-paying jobs,” reads the joint statement by the six entities. “We are pleased to announce this enhanced collaboration to advance discussion and implement strategies that promote greater electrification in a way that is sustainable, reliable and affordable. Electricity Alliance Canada looks forward to working with governments and energy users to capture the full potential of electricity to contribute to Canada’s net-zero target.”

Canada is much further along than many nations when it comes decarbonizing its power generation sector, yet it is expected to miss 2035 clean electricity goals without accelerated efforts. More than 80 percent of its electricity mix is fueled by non-emitting hydroelectric and nuclear as well as wind, solar and marine renewable generation, according to the Alliance. By contrast, the U.S. portion of non-emitting electricity resources is closer to 40 percent or less.

The remainder of its coal-fired power plants are scheduled to be phased out by 2030, according to reports, though scrapping coal-fired electricity could be costly and ineffective according to one report.

Hydropower leads the way in Canada, with nearly 500 generating plant producing an average of 355 TWh per year, according to the Canadian Hydropower Association. Nuclear plants such as Ontario Power Generation’s Darlington station and Bruce Power also contribute massive-scale and carbon-free electricity capacity, as debates over Ontario's renewable future continue.

Observers note that clean, affordable electricity in Ontario should be a prominent election issue this year.

 

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Wind Turbine Operations and Maintenance Industry Detailed Analysis and Forecast by 2025

Wind Turbine Operations and Maintenance Market is expanding as offshore and onshore renewables scale, driven by aging turbines, investment, UAV inspections, and predictive O&M services, despite skills shortages and rising logistics costs.

 

Key Points

Sector delivering inspection, repair, and predictive services to keep wind assets reliable onshore and offshore.

✅ Aging turbines and investor funding drive service demand

✅ UAV inspections and predictive analytics cut downtime

✅ Offshore growth offsets skills and logistics constraints

 

Wind turbines are capable of producing vast amounts of electricity at competitive prices, provided they are efficiently maintained and operated. Being a cleaner, greener source of energy, wind energy is also more reliable than other sources of power generation, with growth despite COVID-19 recorded across markets. Therefore, the demand for wind energy is slated to soar over the next few years, fuelling the growth of the global market for wind turbine operations and maintenance. By application, offshore and onshore wind turbine operations and maintenance are the two major segments of the market.

 

Global Wind Turbine Operations and Maintenance Market: Key Trends

The rising number of aging wind turbines emerges as a considerable potential for the growth of the market. The increasing downpour of funds from financial institutions and public and private investors has also been playing a significant role in the expansion of the market, with interest also flowing toward wave and tidal energy technologies that inform O&M practices. On the other hand, insufficient number of skilled personnel, coupled with increasing costs of logistics, remains a key concern restricting the growth of the market. However, the growing demand for offshore wind turbines across the globe is likely to materialize into fresh opportunities.

 

Global Wind Turbine Operations and Maintenance Market: Market Potential

A number of market players have been offering diverse services with a view to make a mark in the global market for wind turbine operations and maintenance. For instance, Scotland-based SgurrEnergy announced the provision of unmanned aerial vehicles (UAVs), commonly known as drones, as a part of its inspection services. Detailed and accurate assessments of wind turbines can be obtained through these drones, which are fitted with cameras, with four times quicker inspections than traditional methods, claims the company. This new approach has not only reduced downtime, but also has prevented the risks faced by inspection personnel.

The increasing number of approvals and new projects is preparing the ground for a rising demand for wind turbine operations and maintenance. In March 2017, for example, the Scottish government approved the installation of eight 6-megawatt wind turbines off the coast of Aberdeen, towards the northeast. The state of Maryland in the U.S. will witness the installation of a new offshore wind plant, encouraging greater adoption of wind energy in the country. The U.K., a leader in UK offshore wind deployment, has also been keeping pace with the developments, with the installation of a 400-MW offshore wind farm, off the Sussex coast throughout 2017. The Rampion project will be developed by E.on, who has partnered with Canada-based Enbridge Inc. and the UK Green Investment Bank plc.

 

Global Wind Turbine Operations and Maintenance Market: Regional Outlook

Based on geography, the global market for wind turbine operations and maintenance has been segmented into Asia Pacific, Europe, North America, and Rest of the World (RoW). Countries such as India, China, Spain, France, Germany, Scotland, and Brazil are some of the prominent users of wind energy and are therefore likely to account for a considerable share in the market. In the U.S., favorable government policies are backing the growth of the market, though analyses note that a prolonged solar ITC extension could pressure wind competitiveness. For instance, in 2013, a legislation that permits energy companies to transfer the costs of offshore wind credits to ratepayers was approved. Asia Pacific is a market with vast potential, with India and China being major contributors aiding the expansion of the market.

 

Global Wind Turbine Operations and Maintenance Market: Competitive Analysis

Some of the major companies operating in the global market for wind turbine operations and maintenance are Gamesa Corporacion Tecnologica, Xinjiang Goldwind Science & Technologies, Vestas Wind Systems A/S, Upwind Solutions, Inc, GE Wind Turbine, Guodian United Power Technology Company Ltd., Nordex SE, Enercon GmbH, Siemens Wind Power GmbH, and Suzlon Group. A number of firms have been focusing on mergers and acquisitions to extend their presence across new regions.

 

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Michigan solar supporters make new push to eliminate rooftop solar caps

Michigan Distributed Energy Cap Repeal advances a bipartisan bill to boost rooftop solar and net metering, countering DTE and Consumers Energy claims, expanding energy freedom, jobs, and climate resilience across investor-owned utility territories.

 

Key Points

A Michigan bill to remove the 1% distributed energy cap, expanding rooftop solar, net metering, and clean energy jobs.

✅ Removes 1% distributed generation cap statewide

✅ Supports rooftop solar, net metering, and job growth

✅ Counters utility cost-shift claims with updated tariffs

 

A bipartisan group of Michigan lawmakers has introduced legislation to eliminate a 1% cap on distributed energy in the state’s investor-owned utility territories.

It’s the third time in recent years that such legislation has been introduced. Though utilities and their political allies have successfully blocked it to date, through tactics some critics say reflect utilities tilting the solar market by incumbents, advocates see an opportunity with a change in state Republican caucus leadership and Michigan’s burgeoning solar industry approaching the cap in some utility territories.

The bill also has support from a broad swath of legislators for reasons having to do with job creation, energy freedom and the environment, amid broader debates over states' push for renewables and affordability. Already the bill has received multiple hearings, even as DTE Energy and Consumers Energy, Michigan’s largest private utilities, are ramping up attacks in an effort to block the bill. 

“It’s going to be vehemently opposed by the utilities but there are only benefits to this if you are anybody but DTE,” said Democratic state Rep. Yousef Rabhi, who cosigned HB 4236 and has helped draft language in previous bills. “If we remove the cap, then we’re putting the public’s interest first, and we’re putting DTE’s interest first if we keep the cap in place.” 

The Michigan Legislature enacted the cap as part of a sweeping 2016 energy bill that clean energy advocates say included a number of provisions that have kneecapped the small-scale distributed energy industry, particularly home solar. The law caps distributed energy production at 1% of a utility’s average in-state peak load for the past five years. 

Republicans have controlled the Legislature and committees since the law was enacted, amid parallel moves such as the Wyoming clean energy bill in another state, and previous attempts to cut the language haven’t received House committee hearings. However, former Republican House leader Lee Chatfield has been replaced, and already the new bill, introduced by Republican state Rep. Gregory Markkanen, the energy committee’s vice chair, has had two hearings. 

Previous attempts to cut the language were also a part of a larger package of bills, and this time around the bill is a standalone. The legislation is also moving as Consumers and Upper Peninsula Power Co. have voluntarily doubled their cap to two percent, which advocates say highlights the need to repeal the cap . 

Rabhi said there’s bipartisan support because many conservatives and progressives view it as an infringement on customers’ energy freedom since the cap will eventually effectively prohibit new distributed energy generation. Legislators say the existing law kills jobs because it severely limits the clean energy industry’s growth, and Rabhi said he’s also strongly motivated by increasing renewable energy production to address climate change. 

In February, Michigan Public Service Commission Chairman Dan Scripps testified to the House committee, with observers also pointing to FERC action on aggregated DERs as relevant context, that the commission is “supportive in taking steps to ensure solar developers in Michigan are able to continue operating and thus support in concept the idea of lifting or eliminating the cap” in order to protect the home solar industry. 

The state’s solar industry has long criticized the cap, and removing it is a “no brainer,” said Dave Strenski, executive director of Solar Ypsi, which promotes rooftop solar in Ypsilanti. 

“If they have a cap and we reach that cap, then rooftop solar is shut down in Michigan,” he said. “The utilities don’t mind solar as long as they own it, and that’s what it boils down to.”  

The state’s utilities see the situation differently. Spokespeople for DTE and Consumers told the Energy News Network that lifting the cap would shift the cost burden of maintaining their territory-wide infrastructure from all customers to low income customers who can’t afford to install solar panels, often invoking reliability examples such as California's reliance on fossil generation to justify caution.

The bill “doesn’t address the subsidy certain customers are paid at the expense of those who cannot afford to put solar panels on their homes,” said Katie Carey, Consumers Energy’s spokesperson. 

However, clean energy advocates argue that studies have found that to be untrue. And even if it were true, Rabhi said, the utilities told lawmakers in 2016 that a new inflow/outflow tariff that the companies successfully pushed for to replace net metering dramatically reduced compensation for home solar users and would address that inequality. 

“DTE’s and Consumers’ own argument is that by making that change, distributed generation is no longer a ‘burden’ on low income customers, so now we have inflow/outflow and the problem should be solved,” Rabhi said. 

He added that claims that DTE and Consumers are looking out for low-income customers are disingenuous because they have repeatedly fought larger allowances for programs that help those customers, and refuse to “dip into their massive corporate profits and make sure poor people don’t have to pay as much for electricity.”

“I don’t want to hear a sob story from DTE about how putting solar panels on the house is going to hurt poor people,” he said. “That is entirely the definition of hypocrisy — that’s the utilities using poor people as a pawn and that’s why people are sick of these corporations.” 

The companies have already begun their public relations attack designed to help thwart the bill. DTE and Consumers spread money generously among Republicans and Democrats in the Legislature each cycle, and the two companies’ dark money nonprofits launched a round of ads targeting Democratic lawmakers, reflecting the broader solar wars playing out nationally. Several sit on the House Energy Committee, which must approve the bill before it can go in front of the full Legislature. 

The DTE-backed Alliance For Michigan Power and Consumers Energy-funded Citizens Energizing Michigan’s Economy have purchased dozens of Facebook ads alluding to action by the legislators, though there hasn’t been a vote. 

Facebook ads aren’t uncommon as they get “bang for their buck,” said Matt Kasper, research director with utility industry watchdog Energy And Policy Institute. Already hundreds of thousands of people have potentially viewed the ads and the groups have only spent thousands of dollars. The ads are likely designed to get Facebook users to interact with the legislators on the issue, Kasper said, even if there’s little information in the ad, and the info in the ad that does exist is highly misleading.

DTE and Consumers spokespersons declined to comment on the spending and directed questions to the dark money nonprofits. No one there could be reached for comment.

 

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What to know about DOE's hydrogen hubs

U.S. Clean Hydrogen Hubs aim to scale production, storage, transport, and use as DOE and the Biden administration fund regional projects under the infrastructure law, blending green and blue hydrogen, carbon capture, renewables, and pipelines.

 

Key Points

Federally funded regional projects to make, move, and use low-carbon hydrogen via green, blue, and pink routes.

✅ $7B DOE funding via infrastructure law

✅ Mix of green, blue, pink hydrogen pathways

✅ Targets 10M metric tons annually by 2030

 

New details are emerging about the Biden administration’s landmark plans to build out a U.S. clean hydrogen industry.

On Friday, the Department of Energy named the seven winners of $7 billion in federal funds to establish regional hydrogen hubs. The hubs — funded through the infrastructure law — are part of the administration’s efforts to jump-start an industry it sees as key to achieving climate goals like the goal of 100 percent clean electricity by 2035 set by the administration. The aim is to demonstrate everything from the production and storage of hydrogen to its transport and consumption.

“All across the country, from coast to coast, in the heartland, we’re building a clean energy future here in America, not somewhere else,” President Joe Biden said while announcing the hubs in Philadelphia.

From 79 initial proposals, DOE chose the following: the Mid-Atlantic Hydrogen Hub, Appalachian Hydrogen Hub, California Hydrogen Hub, Gulf Coast Hydrogen Hub, Heartland Hydrogen Hub, Midwest Hydrogen Hub and Pacific Northwest Hydrogen Hub.

Many of the winning proposals are backed by state government leaders and industry partners, and by Southeast cities that have ramped up clean energy purchases in recent years as well. The Midwest hub, for example, is a coalition of Illinois, Indiana and Michigan — supported by politicians like Illinois Gov. J.B. Pritzker (D), as well as such companies as Air Liquide, Ameren Illinois and Atlas Agro. The mid-Atlantic hub is supported by Democratic members of Congress representing the region, including Delaware Sens. Chris Coons and Tom Carper and Rep. Lisa Blunt Rochester.

The administration hopes the hubs will produce 10 million metric tons of “clean” hydrogen annually by 2030. But much about the projects remains unknown — including how trends like cheap batteries for solar could affect clean power supply — and dependent on negotiations with DOE.


A win for ‘blue’ hydrogen?
Nearly all hydrogen created in the U.S. today is extracted from natural gas through steam methane reformation. The emissions-intensive process produces what is known as “grey” hydrogen — or “blue” hydrogen when combined with carbon capture and storage.

Four recipients — the Appalachian, Gulf Coast, Heartland and Midwest hydrogen hubs — include blue hydrogen in their plans, though the infrastructure law only mandated one.

That has drawn the ire of environmentalists, who argue blue hydrogen is not emissions-free, partly because of the potential for methane leaks during the production process.

“This is worse than expected,” Clean Energy Group President Seth Mullendore said after the recipients were announced Friday. “The fact that more than half the hubs will be using fossil gas is outrageous.”

Critics have also pointed out that many of the industry partners backing the hub projects include oil and gas companies. The coalitions are a mix of private-sector groups — often including renewable energy developers — and government stakeholders. Proposals have also looped in universities, utilities, environmental groups, community organizations, labor unions and tribal nations, among others.

“The massive build out of hydrogen infrastructure is little more than an industry ploy to rebrand fracked gas,” said Food & Water Watch Policy Director Jim Walsh in a statement Friday. “In a moment when every political decision that we make must reject fossil expansion, the Biden administration is going in the opposite direction.”

The White House has emphasized that roughly two-thirds of the $7 billion pot is “associated” with the production of “green” hydrogen, which uses electricity from renewable sources. Two of the chosen proposals — in California and the Pacific Northwest — are making green hydrogen their focus, reflecting advances such as offshore green hydrogen being pursued by industry leaders, while three other hubs plan to include green hydrogen alongside hydrogen made with natural gas (blue) or nuclear energy (pink).

Many hubs plan to use several methods for hydrogen production, and globally, projects like Brazil's green hydrogen plant highlight the scale of investment, but the exact mix may change depending on which projects make it through the DOE negotiations process. The Midwest hub, for example, told E&E News it’s pursuing an “all-of-the-above” strategy and has projects for green, blue and “pink” hydrogen. The mid-Atlantic hub in southeastern Pennsylvania, Delaware and New Jersey will also generate hydrogen with nuclear reactors.

Energy Secretary Jennifer Granholm has described clean hydrogen as a fresh business opportunity, especially for the natural gas industry, which has supported the concept of sending hydrogen to market through its pipeline network. Lawmakers like Sen. Joe Manchin (D-W.Va.) — who said the Appalachian hub will make West Virginia the “new epicenter of hydrogen” — have pushed for continuing to use natural gas to make hydrogen in his state.

“Natural gas utilities are committed to exploring all options for emissions reduction as demonstrated by the 39 hydrogen pilot projects already underway and are eager to participate in a number of the hubs,” said American Gas Association President and CEO Karen Harbert in a statement Friday.

Green hydrogen also has faced criticism. Some groups argue that the renewable resources needed to produce green hydrogen are limited, even with sources such as wind, solar and hydropower technology, so funding should be reserved for applications that cannot be easily electrified, mostly industrial processes. There also is uncertainty about how the Treasury Department will handle hydrogen made from grid electricity — which can include power from fossil fuel plants — in its upcoming guidance on the first-ever tax credit for clean hydrogen production.

“Even the cleanest forms of hydrogen present serious problems,” Walsh said. “As groundwater sources are drying up across the country, there is no reason to waste precious drinking water resources on hydrogen when there are cheaper, cleaner energy sources that can facilitate a real transition off fossil fuels.”

But Angelina Galiteva, CEO of the hub in drought-prone California, said hydrogen will enable the state “to increase renewable penetration to reach all corners of the economy,” noting parallel initiatives such as Dubai's solar hydrogen plans that illustrate the potential.

“Transitioning to renewable clean hydrogen will pose significantly less stress on water resources than remaining on the current fossil path,” she said.

 

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