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Hydrogen Hubs: Another Step Toward a Decarbonized Future

Many have heard of hydrogen as an up-and-coming energy source that helps reduce our carbon footprint. Hydrogen development for decarbonization is more advanced in Europe and other parts of the world; however, there’s recently been a significant push for researching and constructing hydrogen-related infrastructure here in the U.S.

In June, as part of the Infrastructure Investment and Jobs Act (IIJA) signed into law last fall, the U.S. Department of Energy (DOE) authorized an unprecedented $8 billion in funding for creating regional clean hydrogen hubs (H2Hub). The H2Hub program is part of the DOE’s strategy for achieving a 100% clean electrical grid by 2035 and net-zero carbon emissions by 2050.

Despite the technological and environmental hurdles arising from the integration of hydrogen into our energy system, H2Hubs have the potential to play a unique role in the global movement toward a decarbonized future.

What Is an H2Hub?

An H2Hub is a network of clean hydrogen producers, consumers and local connective infrastructure in geographical proximity—a system that expedites using hydrogen as a clean energy source.

Producing and using hydrogen is not new. An infrastructure of hydrogen production sources, pipeline transportation, cavern storage and end-users between southeastern Texas and western Louisiana (known as TX-LA) became operational in 2007. Later, the pipeline was expanded to New Orleans, making it 600 miles long and the world’s largest hydrogen supply pipeline network. Currently, hydrogen is also used in industries such as agriculture, refining and petrochemicals.

Most of the TX-LA hydrogen production is generated through a chemical process called Steam Methane Reforming (SMR), using methane from natural gas to produce hydrogen in large quantities. The TX-LA pipeline network, however, is not equipped to capture and store the carbon dioxide byproduct—also known as Carbon Capture and Sequestration (CCS)—and therefore, in that respect, does not meet the DOE’s definition of lowering the carbon footprint through an H2Hub.

However, it does demonstrate the intended integration of hydrogen connective infrastructure: it spans production, transportation (pipelines), storage (caverns) and distribution to end-users. From this perspective, TX-LA is an H2Hub.

Hydrogen Drivers

The IIJA funding of H2Hubs promotes the expansion of hydrogen infrastructure that aims to integrate hydrogen into the energy system as a near-zero-carbon replacement to burning fossil fuel. To optimize regional H2Hub funding opportunities, various states have formed alliances with private parties and other entities (e.g., public-private partnerships). Energy companies are proposing their own H2Hubs to integrate with existing pipeline and energy-user infrastructure.

While a smaller carbon footprint and major funding opportunities are primary drivers influencing H2Hub development, another significant driver is the need for long-term, high-capacity renewable energy storage. Renewable energy is immediately available during peak solar and wind energy production periods. Because weather conditions (short- and long-term) do not necessarily align with consumption patterns, there is a need for this energy to be stored and released for use during periods of low solar and wind production.

Batteries can store this energy on a short-term, low-capacity basis. However, they lack the storage and discharge capacity to meet the renewable power production and electrical demand disparity.

Conversely, hydrogen produced from renewable energy can be compressed, stored in underground salt caverns at an immense capacity and released on demand as a large-scale, nearly carbon-free energy source.

Hydrogen Integration

Infrastructure that integrates hydrogen into the energy system varies widely. It includes not only the delivery of hydrogen, but its production and transportation as well.

For large-scale integration of hydrogen into our electrical grid, expansive renewable energy farms (wind and solar) are necessary for supplying electric power to hydrogen plants. The plants need electricity to power the electrolysis process, which splits water into hydrogen and oxygen. As a result, raw water and treatment systems are essential.

Once hydrogen is produced, storage and distribution infrastructure must exist for delivery to end-users. Power plants with hydrogen-burning capability must be built, as well as electric transmission lines that can deliver the hydrogen-produced electricity to a regional electrical system. This infrastructure expansion will be sizeable and, in turn, require environmental approvals.

Another integration example is solid waste-to-hydrogen hubs. These hubs collect and transport waste, synthesize it into zero-carbon hydrogen, and then deposit it into hydrogen storage tanks. Hydrogen from small-scale production, like waste-to-hydrogen hubs, can be delivered to nearby industrial end-users, transported to fueling stations or regional end-users via tanker-truck, or blended into a larger natural gas or dedicated hydrogen pipeline.

Integrating SMR-produced hydrogen would require CCS process equipment and either an on-site sequestration process or a pipeline to transport the carbon dioxide to an off-site location.

As demonstrated by these examples, hydrogen integration into the energy economy requires extensive and varied infrastructure development.

H2Hub Hurdles

Despite strong drivers for H2Hub development, there are significant hurdles as well, including, most notably, the technology curve and environmental approvals.

The technology needed to improve the efficiency and reduce the cost of electrolysis continues to evolve, as does the science of developing hydrogen compression, piping, storage and combustion systems. As the demand for these systems continues to increase, so, too, will the need for technological advancement.

As with most infrastructure planning and construction, potential environmental impacts and associated approvals must be considered and addressed. Environmental studies, impact-mitigating design features, permits and associated approvals can be quite extensive.

Every project is likely to be unique, with some having vastly different hurdles than others. While one project, for example, may include extensive routing and siting for new solar and wind farms and associated electric transmission lines, others may require extensive air permitting for CCS or hydrogen combustion.

Future of H2Hubs

As the U.S. continues toward a net-zero carbon economy, H2Hubs look to play a major role in reducing the carbon footprint while helping address the disparity between electrical demands and renewable energy supply.

The growing interest and investment in the H2Hubs program move us closer to overcoming the technological and environmental challenges of today—leading us toward a more sustainable, carbon-neutral tomorrow.

Article originally published in the Fall 2022 issue of Currents. Subscribe today to stay current on environmental insights and regulatory updates that impact your projects.