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electricity generation in the United States peaked at 2,016 billion kWh in 2007 and much of that capacity has been replaced by or converted to natural gas-fired generation since then.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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Massachusetts Issues Energy Storage Solicitation Offering $10M

Massachusetts Energy Storage Solicitation offers grants and matching funds via MassCEC and DOER for grid-connected, behind-the-meter projects, utility partners, and innovative business models, targeting 600 MW, clean energy leadership, and ratepayer savings.

 

Key Points

MassCEC and DOER matching-fund program for grid-connected storage pilots, advancing innovation and ratepayer savings.

✅ $100k-$1.25M matching funds; 50% cost share required

✅ Grid-connected, utility-partnered and behind-the-meter eligible

✅ 10-15 awards; proposals due June 9; install within 18 months

 

Massachusetts released a much-awaited energy storage solicitation on Thursday offering up to $10 million for new projects.

Issued by the Massachusetts Clean Energy Center (MassCEC) and the Department of Energy Resources (DOER), the solicitation makes available $100,000 to $1.25 million in matching funds for each chosen project.

The solicitation springs from a state report issued last year that found Massachusetts could save electricity ratepayers $800 million by incorporating 600 MW of energy storage projects. The state plans to set a specific energy storage goal, now the subject of a separate proceeding before the DOER.

The state is offering money for projects that showcase examples of future storage deployment, help to grow the state’s energy storage economy, and contribute to the state’s clean energy innovation leadership.

MassCEC anticipates making about 10-15 awards. Applicants must supply at least 50 percent of total project cost.

The state is offering money for projects that showcase examples of future storage deployment, help to grow the state’s energy storage economy, and contribute to the state’s clean energy innovation leadership.

MassCEC anticipates making about 10-15 awards. Applicants must supply at least 50 percent of total project cost.

The state plans to allot about half of the money from the energy storage solicitation to projects that include utility partners. Both distribution scale and behind-the-meter projects, including net-zero buildings among others, will be considered, but must be grid connected.

The solicitation seeks innovative business models that showcase the commercial value of energy storage in light of the specific local energy challenges and opportunities in Massachusetts.

Projects also should demonstrate multiple benefits/value streams to ratepayers, the local utility, or wholesale market.

And finally, projects should help uncover market and regulatory issues as well as monetization and financing barriers.

The state anticipates teams forming to apply for the grants. Teams may include public and private entities and are are encouraged to include the local utility.

Proposals are due June 9. The state expects to notify winners September 8, with contracts issued within the following month. Projects must be installed within 18 months of receiving contracts.

 

 

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Shanghai Electric Signs Agreement to Launch PEM Hydrogen Production Technology R&D Center, Empowering Green Hydrogen Development in China

Shanghai Electric PEM Hydrogen R&D Center advances green hydrogen via PEM electrolysis, modular megawatt electrolyzers, zero carbon production, and full-chain industrial applications, accelerating decarbonization, clean energy integration, and hydrogen economy scale-up across China.

 

Key Points

A joint R&D hub advancing PEM electrolysis, modular megawatt systems, and green hydrogen industrialization.

✅ Megawatt modular PEM electrolyzer design and system integration

✅ Zero-carbon hydrogen targeting mobility, chemicals, and power

✅ Full-chain collaboration from R&D to EPC and demonstration projects

 

Shanghai Electric has reached an agreement with the Dalian Institute of Chemical Physics of the Chinese Academy of Sciences (the "Dalian Institute") to inaugurate the Proton Exchange Membrane (PEM) Hydrogen Production Technology R&D Center on March 4. The two parties signed a project cooperation agreement on Megawatt Modular and High-Efficiency PEM Hydrogen Production Equipment and System Development, marking an important step forward for Shanghai Electric in the field of hydrogen energy.

As one of China's largest energy equipment manufacturers, Shanghai Electric is at the forefront in the development of green hydrogen as part of China's clean energy drive. During this year's Two Sessions, the 14th Five-Year Plan was actively discussed, in which green hydrogen features prominently, and Shell's 2060 electricity forecast underscores the scale of electrification. With strong government support and widespread industry interest, 2021 is emerging as Year Zero for the hydrogen energy industry.

Currently, Shanghai Electric and the Dalian Institute have reached a preliminary agreement on the industrial development path for new energy power generation and electrolyzed water hydrogen production. As part of the cooperation, both will also continue to enhance the transformational potential of PEM electrolyzed water hydrogen production, accelerate the development of competitive PEM electrolyzed hydrogen products, and promote industrial applications and scenarios, drawing on projects like Japan's large H2 energy system to inform deployment. Moreover, they will continue to carry out in-depth cooperation across the entire hydrogen energy industry chain to accelerate overall industrialization.

Hydrogen energy boasts the biggest potential of all the current forms of clean energy, and the key to its development lies in its production. At present, hydrogen production primarily stems from fossil fuels, industrial by-product hydrogen recovery and purification, and production by water electrolysis. These processes result in significant carbon emissions. The rapid development of PEM water electrolysis equipment worldwide in recent years has enabled current technologies to achieve zero carbon emissions, effectively realizing green, clean hydrogen. This breakthrough will be instrumental in helping China achieve its carbon peak and carbon-neutrality goals.

The market potential for hydrogen production from electrolyzed water is therefore massive. Forecasts indicate that, by 2050, hydrogen energy will account for approximately 10% of China's energy market, with demand reaching 60 million tons and annual output value exceeding RMB 10 trillion. The Hydrogen: Tracking Energy Integration report released by the International Energy Agency in June 2020 notes that the number of global electrolysis hydrogen production projects and installed capacity have both increased significantly, with output skyrocketing from 1 MW in 2010 to more than 25 MW in 2019. Much of the excitement comes from hydrogen's potential to join the ranks of natural gas as an energy resource that plays a pivotal role in international trade, as seen in Germany's call for hydrogen-ready power plants shaping future power systems, with the possibility of even replacing it one day. In PwC's 2020 The Dawn of Green Hydrogen report, the advisory predicts that experimental hydrogen will reach 530 million tons by mid-century.

Shanghai Electric set its focus on hydrogen energy years ago, given its major potential for growth as one of the new energy technologies of the future and, in particular, its ability to power new energy vehicles. In 2016, the Central Research Institute of Shanghai Electric began to invest in R&D for key fuel cell systems and stack technologies. In 2020, Shanghai Electric's independently-developed fuel cell engine, which boasts a power capacity of 66 kW and can start in cold temperature environments of as low as -30°C, passed the inspection test of the National Motor Vehicle Product Quality Inspection Center. It adopts Shanghai Electric's proprietary hydrogen circulation system, which delivers strong power and impressive endurance, with the potential to replace gasoline and diesel engines in commercial vehicles.

As the technology matures, hydrogen has entered a stage of accelerated industrialization, with international moves such as Egypt's hydrogen MoU with Eni signaling broader momentum. Shanghai Electric is leveraging the opportunities to propel its development and the green energy transformation. As part of these efforts, Shanghai Electric established a Hydrogen Energy Division in 2020 to further accelerate the development and bring about a new era of green, clean energy.

As one of the largest energy equipment manufacturing companies in China, Shanghai Electric, with its capability for project development, marketing, investment and financing and engineering, procurement and construction (EPC), continues to accelerate the development and innovation of new energy. The Company has a synergistic foundation and resource advantages across the industrial chain from upstream power generation, including China's nuclear energy development efforts, to downstream chemical metallurgy. The combined elements will accelerate the pace of Shanghai Electric's entry into the field of hydrogen production.

Currently, Shanghai Electric has deployed a number of leading green hydrogen integrated energy industry demonstration projects in Ningdong Base, one of China's four modern coal chemical industry demonstration zones. Among them, the Ningdong Energy Base "source-grid-load-storage-hydrogen" project integrates renewable energy generation, energy storage, hydrogen production from electrolysis, and the entire industrial chain of green chemical/metallurgy, where applications like green steel production in Germany illustrate heavy-industry decarbonization.

In December 2020, Shanghai Electric inked a cooperation agreement to develop a "source-grid-load-storage-hydrogen" energy project in Otog Front Banner, Inner Mongolia. Equipped with large-scale electrochemical energy storage and technologies such as compressed air energy storage options, the project will build a massive new energy power generation base and help the region to achieve efficient cold, heat, electricity, steam and hydrogen energy supply.

 

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Canada is a solar power laggard, this expert says

Canada Distributed Energy faces disruption as solar, smart grids, microgrids, and storage scale utility-scale renewables, challenging centralized utilities and accelerating decarbonization, grid modernization, and distributed generation across provinces like Alberta.

 

Key Points

Canada Distributed Energy shifts from centralized grids to local solar, wind, and storage for reliable low-carbon power.

✅ Morgan Solar and Enbridge launch Alberta Solar One, 13.7 MW.

✅ Optical films boost panel efficiency, lowering cost per watt.

✅ Strong utilities slow adoption of microgrids and smart grids.

 

By Nick Waddell

Disruption is coming to electricity generation but Canada has become a laggard when it comes to not just adoption of alternative energy sources but in moving to a more distributed model of electricity generation. That’s according to Mike Andrade, CEO of Morgan Solar, whose new solar project in conjunction with Enbridge has just come online in Alberta, a province known as a powerhouse for both green and fossil energy in Canada.

“There’s a lot of inertia to Canada’s electrical system and I don’t think that bodes well,” said Andrade, who spoke on BNN Bloomberg on Thursday. 

“Canada is one of the poorest places for uptake of solar, as NEB data on solar demand indicates,” Andrade said, “I believe a lot of it has to do with the fact that we have strong provincial utilities that have their mandates and their chosen technologies.”

Alberta Solar One, a 13.7 MW power facility near Lethbridge, Alberta, had its unveiling this week amid red-hot solar growth in Alberta that shows no sign of slowing. It’s a 36,500-panel farm constructed by Enbridge in a quick six-month turnaround as part of the power company’s pledge to become a carbon-free generator by 2050. Along with solar, Enbridge has made big investments in offshore and onshore wind farms in the United States, while also producing so-called green hydrogen at an Ontario plant.

Private company Morgan Solar considers the Alberta Solar One project as the first utility-scale validation of its technology, which uses optical films to redirect light onto photovoltaic cells to further power production. 

“We use an advanced modelling system and a variety of tools to design very simple optical systems that can be easily inserted into a panel,” Andrade said. “They cost less and bring down the cost per watt. It captures light that would otherwise miss the cells and so you get more power per cell area than any other commercial technology at this point.”

Like renewables in general, solar energy has been thrust into the spotlight as governments worldwide aim to make good on their climate change and emissions pledges, with analyses showing zero-emissions electricity by 2035 is possible in Canada, and convert power generation from fossil fuels to alternative sources. 

The market has paid attention, too, driving up values on renewable energy stocks across the board, including solar stocks, as provinces like Alberta explore selling renewable energy into broader markets. Last year, the Invesco Solar ETF, which tracks the MAC Global Solar Energy Index, soared 234 per cent, while Canadian companies with solar assets like Algonquin Power and Northland Power have been winners over the past few years.

Canadian cleantech companies involved in the solar power sector have also fared well, with names like UGE International (UGE International Stock Quote, Chart, News, Analyst. Financials TSXV:UGE), Aurora Solar and 5N Plus (5N Plus Stock Quote, Chart, News, Analysts, Financials TSX:VNP) having attracted investor attention of late.

Currently, part of the push in alternative energy involves the move from centralized to a more distributed picture of power generation, where solar panels, wind turbines and small modular nuclear reactors can operate close to or within sources of consumption like cities.

But Andrade says Canada has a lot of catching up to do on that front, especially as its current system seems devoted to maintaining the precedence of large, centralized power production — along with the utility companies that generate it.

“Canada is going to be left with this big, old fashioned hub and spoke model, and that’s increasingly going to be out-competed by a distributed grid, call them smart grids or micro grids,” Andrade said.

“That’s the future that solar is going to drive along with storage, and I personally don’t think Canada is prepared for it, not because we can’t do it but because regulatory and incumbency is holding us back from doing that,” he said.

“We pay our utilities, saying, ‘You invest capital and we’ll give you a fixed return on capital.’ Well, guess what? You’re going to get large, centralized capital projects which are going to get big central generation hub and spoke distribution,” Andrade said.

Ahead of the Canadian federal government’s tabling next week of its first budget in two years, many in the energy sector will be taking notes on the Liberal government’s investments in the so-called green recovery after the economic downturn, with renewable energy proponents hoping for further support, noting Alberta’s renewable energy surge could power thousands of jobs, to shift Canada’s resource sector away from fossil fuels.

By comparison, President Biden in the US recently unveiled his $2-billion infrastructure plan which put precedence on greening the country’s power grid, encouraging the adoption of electric vehicles and supporting renewable resource development, and Canadian studies suggest 2035 zero-emission power is practical and profitable as well across the national grid. 

On disruption in power generation, Andrade said there are parallels to be drawn from information technology, which has historically made a point of discarded outdated models along the way.

“I was at IBM, and they had the mainframe business and that got blown up. I also worked with Nortel and Celestica and they got blown up —and it wasn’t due to having better central hub and spoke systems. They got beat up by this distributed system,” Andrade said. 

“The same thing is going to happen here and the disruption is coming in electricity generation as well,” he said.

 

About The Author - Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

 

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0 to 180 km in 10 minutes: B.C. Hydro rolls out faster electric vehicle charging

B.C. Hydro fast EV charging stations roll out 180 kW DC fast chargers, power sharing, and rural network expansion in Surrey, Manning Park, Mackenzie, and Tumbler Ridge to ease range anxiety across northern B.C.

 

Key Points

180 kW DC chargers with power sharing, expanding B.C.'s rural EV network to cut range anxiety and speed up recharging.

✅ 180 kW DC fast charging: ~180 km added in about 10 minutes

✅ Power sharing enables two vehicles to use one unit simultaneously

✅ Expands rural charging coverage to cut range anxiety for northern B.C.

 

B.C. Hydro has unveiled plans to install new charging stations it says can add as much as 180 kilometres worth of range to the average electric vehicle in 10 minutes.

The utility says the new 180-kilowatt units will be added to its network, expanding stations in southern B.C. as soon as this fall, with even more scheduled to arrive in 2024.

The first communities to get the new faster-charge stations are Surrey, Manning Park and, north of Prince George, Mackenzie and Tumbler Ridge, while the Lillooet fast-charging site is already operational.

B.C. Hydro president Chris O'Riley says both current and prospective electric vehicle owners have said they want improved coverage in more rural parts of the province in order to address range anxiety, as the utility has warned of a potential EV charging bottleneck if demand outpaces infrastructure.

"We are listening to feedback from our customers," he said.

The new stations will also be the first from B.C. Hydro to offer power sharing, which lets two different vehicles use the same unit to charge at the same time.

The adoption of electric vehicles in B.C. is much higher in southern urban areas than rural, northern ones, according to statistics from the provincial government made available in 2022, as the province leads the country in going electric according to recent reports.

The figures showed about one in every 45 people owns a zero-emission vehicle in the southwest regions of the province, but that number drops to one in 232 in the Kootenays, where the region makes electric cars a priority through local initiatives, and one in 414 in northern B.C.

The number of public charging stations closely corresponds to the number of zero-emission vehicles in various regions.

The Vancouver area has more than 500 fast-charging ports, according to ChargeHub, a website that tracks charging stations in North America. 

In contrast, the route from Prince George to Fort Nelson via Dawson Creek along Highway 97, part of the B.C. Electric Highway network connecting the region — a distance of more than 800 kilometres — has just three locations where a vehicle can be charged to 80 per cent power in an hour or less, creating challenges for people hoping to travel the route.

The disparity is also clear in a just-published analysis from the non-profit Community Energy Association, which acts as an advisory group to government associations. 

It found that while there is roughly one charging port every three square kilometres in Metro Vancouver, the number drops to one every 250 square kilometres in the Regional District of East Kootenay and one every 3,500 square kilometres in the Peace River Regional District, in the province's northeast.

"The more infrastructure we can get across the region ... the more the adoption of electric vehicles will increase," said the association's director of transportation initiatives, Danielle Weiss.

"We are excited to hear that B.C. Hydro is also viewing rural areas as a key focus for their new, enhanced charging technology."

B.C. Hydro says it currently has 153 charging units at 84 locations across the province with plans to add an additional 3,000 ports over the next 10 years, with provincial EV charger rebates supporting home and workplace installations as well.

 

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New Kind of 'Solar' Cell Shows We Can Generate Electricity Even at Night

Thermoradiative Diode Power leverages infrared radiation and night-sky cooling to harvest waste heat. Using MCT (mercury cadmium telluride) detectors with photovoltaics, it extends renewable energy generation after sunset, exploiting radiative cooling and low-power density.

 

Key Points

Technology using MCT infrared diodes to turn radiative Earth-to-space heat loss into electricity, aiding solar at night.

✅ MCT diodes radiate to cold sky, generating tiny current at 20 C

✅ Complements photovoltaics by harvesting post-sunset infrared flux

✅ Potential up to one-tenth solar output with further efficiency gains

 

Conventional solar technology soaks up rays of incoming sunlight to bump out a voltage. Strange as it seems, some materials are capable of running in reverse, producing power as they radiate heat back into the cold night sky environment.

A team of engineers in Australia has now demonstrated the theory in action, using the kind of technology commonly found in night-vision goggles to generate power, while other research explores electricity from thin air concepts under ambient humidity.

So far, the prototype only generates a small amount of power, and is probably unlikely to become a competitive source of renewable power on its own – but coupled with existing photovoltaics technology and thermal energy into electricity approaches, it could harness the small amount of energy provided by solar cells cooling after a long, hot day's work.

"Photovoltaics, the direct conversion of sunlight into electricity, is an artificial process that humans have developed in order to convert the solar energy into power," says Phoebe Pearce, a physicist from the University of New South Wales.

"In that sense, the thermoradiative process is similar; we are diverting energy flowing in the infrared from a warm Earth into the cold Universe."

By setting atoms in any material jiggling with heat, you're forcing their electrons to generate low-energy ripples of electromagnetic radiation in the form of infrared light, a principle also explored with carbon nanotube energy harvesters in ambient conditions.

As lackluster as this electron-shimmy might be, it still has the potential to kick off a slow current of electricity. All that's needed is a one-way electron traffic signal called a diode.

Made of the right combination of elements, a diode can shuffle electrons down the street as it slowly loses its heat to a cooler environment.

In this case, the diode is made of mercury cadmium telluride (MCT). Already used in devices that detect infrared light, MCT's ability to absorb mid-and long-range infrared light and turn it into a current is well understood.

What hasn't been entirely clear is how this particular trick might be used efficiently as an actual power source.

Warmed to around 20 degrees Celsius (nearly 70 degrees Fahrenheit), one of the tested MCT photovoltaic detectors generated a power density of 2.26 milliwatts per square meter.

Granted, it's not exactly enough to boil a jug of water for your morning coffee. You'd probably need enough MCT panels to cover a few city blocks for that small task.

But that's not really the point, either, given it's still very early days in the field, and there's potential for the technology to develop significantly further in the future.

"Right now, the demonstration we have with the thermoradiative diode is relatively very low power. One of the challenges was actually detecting it," says the study's lead researcher, Ned Ekins-Daukes.

"But the theory says it is possible for this technology to ultimately produce about 1/10th of the power of a solar cell."

At those kinds of efficiencies, it might be worth the effort weaving MCT diodes into more typical photovoltaic networks alongside thin-film waste heat solutions so that they continue to top up batteries long after the Sun sets.

To be clear, the idea of using the planet's cooling as a source of low-energy radiation is one engineers have been entertaining for a while now. Different methods have seen different results, all with their own costs and benefits, with low-cost heat-to-electricity materials also advancing in parallel.

Yet by testing the limits of each and fine-tuning their abilities to soak up more of the infrared bandwidth, we can come up with a suite of technologies and thermoelectric materials capable of wringing every drop of power out of just about any kind of waste heat.

"Down the line, this technology could potentially harvest that energy and remove the need for batteries in certain devices – or help to recharge them," says Ekins-Daukes.

"That isn't something where conventional solar power would necessarily be a viable option."

 

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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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