Hawaii won’t be a clean-hydrogen production and distribution hub under a
$7 billion federal initiative.
Federal officials announced Friday that seven hydrogen hub plans across the country were selected for the funding, and a bid from Hawaii didn’t make
the cut.
The local bid was led by the Hawaii State Energy Office in partnership with about 40 companies and other government entities.
Mark Glick, the state’s chief energy officer, was disappointed about Hawaii’s plan not being picked but said the effort was exemplary and beneficial.
“Hawaii gained considerable knowledge that could accelerate the development of (hydrogen) in Hawaii in support of our quest for greater energy security, resilience and jobs in the clean energy sector,” he said in a statement. “HSEO and our partners now have a better understanding of the role that hydrogen can potentially play regarding critical energy services for resilience hubs and heavy-duty trucks and buses that can also contribute towards achieving our carbon-negative goals.”
James Kunane Tokioka, director of the state Department of Business, Economic Development and Tourism, said he is proud of the work done by the Hawai‘i-Pacific H2 Hub consortium.
“From the concept paper to the full application, we gained invaluable experience through this process,” he said in a statement. “At DBEDT, we look forward to working with the Hawaii State Energy Office and our partners on continuing to identify opportunities for clean energy investments, good paying jobs, and improved energy security.”
The Hawaii consortium proposed to create hydrogen, possibly using geothermal and solar energy, to make fuel to power heavy-duty ground transportation vehicles, ships, planes and the electrical grid as well as for fertilizer and export.
The U.S. Department of Energy announced in September 2022 that it was making available up to
$7 billion from the Bipartisan Infrastructure Law as an incentive for the private sector to establish six to 10 hubs producing clean hydrogen as a foundation for a national hydrogen energy network. Winning projects were expected to contribute matching investments.
Hawaii’s Energy Office and partners submitted a 20-page concept paper by early November, facing 78 other contenders, and later became one of 33 bidders encouraged to submit detailed applications.
Participating partners
included Hawaiian Electric, Kauai Island Utility Cooperative, Puna Geothermal
Venture, Hawaii Gas, the state Department of Transportation, the Hawaii Natural Energy Institute at the University of Hawaii, the National Renewable Energy Lab, Swiss-based energy firm Hitachi Zosen Inova and New York-based hydrogen development firm Enso Infrastructure.
Criteria for awards included growth potential, market competitiveness, job creation and speed for starting operations, among other things.
Projects selected for awards were:
>> Appalachian Hydrogen Hub, which intends to produce hydrogen from low-cost natural gas and was viewed as having a strategic location for the development of hydrogen pipelines, fueling stations and carbon dioxide storage. This project covering West Virginia, Ohio and Pennsylvania is to receive up to $925 million.
>> California Hydrogen Hub, which intends to produce hydrogen from renewable energy and biomass. This project to receive up to $1.2 billion is described as being “a blueprint”
for decarbonizing public transportation, heavy-
duty trucking and port
operations.
>> Gulf Coast Hydrogen Hub, which is based along the coast of Texas and could receive up to $1.2 billion. This project aims to make hydrogen from natural gas and renewable energy for storage in salt caverns and delivery via pipeline for use at fueling stations to power trucks, refineries, ammonia production, marine uses and other things.
>> Heartland Hydrogen Hub, which in part intends to produce fertilizer. This project spanning Minnesota, North Dakota and South Dakota is to receive up to $925 million.
>> Mid-Atlantic Hydrogen Hub, which aims to produce hydrogen using renewable and nuclear power for various transportation, manufacturing and industrial uses. This project is to receive up to $750 million and is based in Pennsylvania, Delaware and New Jersey.
>> Midwest Hydrogen Hub, which is to receive up to $1 billion to produce
hydrogen for steel and
glass production, power generation, refining,
heavy-duty transportation and aviation fuel. This project covers Illinois, Indiana and Michigan, and could expand into other neighboring states.
>> Pacific Northwest
Hydrogen Hub, which aims to produce hydrogen using renewable energy for uses including heavy-duty transportation. This project spanning Washington, Oregon and Montana is to receive up to $1 billion.
The seven projects combined are expected to spur more than $40 billion in private investment and create about 112,000 permanent jobs along with many more temporary construction jobs.
According to the White House, the seven projects aim to produce more than
3 million metric tons of clean hydrogen annually, representing nearly one-third of a 2030 U.S. clean
hydrogen goal.
The White House also said the projects as planned would eliminate 25 million metric tons of carbon
dioxide emissions annually, or roughly as much as
produced by 5.5 million
gasoline-powered cars.