Episode 162 | Hydrogen Hubs | Hydrogen & Fuel Cells Technology Office
Hydrogen isn’t an energy source, like nuclear or solar, but it is increasingly perceived as the idea energy carrier. The Department of Energy believes the fastest way to ramp up a hydrogen infrastructure is to form “H2Hubs.” In September 2022, they announced an additional $7 billion for the program ($8 billion total).
“Many people call hydrogen the ‘Swiss Army Knife’ of clean energy,” says Dr. Sunita Satyapal, Director of the Hydrogen and Fuel Cells Technologies Office. “Once you have it, it’s a carbon-free molecule.”
In addition to oversight of the H2Hubs program, HFTO has also recently released a 2050 Roadmap, outlining a vision for hydrogen goals, which include producing 50 million metric tons (MMT) annually of “clean (i.e. carbon free) hydrogen” by 2050.
Today, the United States produced approximately 10 MMT of hydrogen—mostly from natural gas, producing CO2. DOE wants to see 10 MMT produced from clean hydrogen by 2030. Sunita believes that most of that initial clean supply will be used by existing H2 customers, refiners and ammonia producers.
As hydrogen production grows, Sunita believes hard-to-decarbonize vehicles like long-haul trucks will convert to H2. Hydrogen would then likely be used for long-duration energy storage, where it can be compressed and stored in caverns, for instance.
The H2Hubs make sense because they aim to match clean hydrogen producers with offtakers. “The key is to not focus only on the production because we have to avoid stranded assets and make sure we have those offtakers,” says Sunita. “If they’re relatively close in proximity, that could help reduce the investment needed for the pipelines and infrastructure.”
The pipeline question was one I really homed in on. A vast network of H2-grade transportation could take decades and tremendous amounts of investment. While trying to minimize any new pipelines for the H2Hubs program, DOE is also working on their HyBlend Initiative, aimed at examining existing pipeline infrastructure. Sunita says early reports indicate as much as 8% blended H2 in natural gas is possible on many existing pipelines. Hawaii Gas currently boasts as much as 12% on their specially-designed network, and SoCal Gas is exploring blends up to 20%.
That gets us to passenger vehicles. How soon could you conceivably drive cross-country on hydrogen filling stations? California currently boasts over 60 retail stations. You can buy a hydrogen-powered car, but hydrogen costs nearly $8-equivalent to gasoline. One manufacturer is giving customers $15,000 in complimentary fuel to make up the difference.
Sunita says hydrogen cost is one of their biggest focuses. Their Hydrogen Energy Earthshot (2021) aims to reduce clean hydrogen costs down to $1 per kilogram in one decade (“111.”). The 2021 baseline was $5/kg. HFTO has also awarded 9 small companies $2.6 million as part of the Hydrogen Shot Incubator. And the Inflation Reduction Act currently has a $3/kg production tax credit.
For now, the hub strategy holds the greatest promise of synergy between government, science, and industry. Sunita says at least 30 countries now have a hydrogen strategy and many may be replicating DOE’s hub model as well.
“That concept of clusters or hubs is one that many countries have been looking at.”
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