With a Billion-Dollar Federal Contract, California Launches Statewide Clean Hydrogen Energy Network
By Emily Vidovich. Emily has a background in environmental journalism and sustainability and is a member of the George Washington University Class of 2019.
In July, California’s hydrogen hub signed a contract with the U.S. Department of Energy that activates up to $12.6 billion for the expansion of clean energy infrastructure statewide. The funding deal includes up to $1.2 billion in federal funding and $11.4 billion in private investment.
The deal marks the official launch of the California hub—formally known as the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES). Nationwide, there are seven hydrogen hubs—the formal name for regional networks of hydrogen production and distribution infrastructure. The hubs are part of a $7 billion federal initiative to build clean hydrogen infrastructure to help the U.S. reach its goals for fighting climate change, including carbon pollution-free electricity by 2035 and a 50 percent emissions reduction by 2030.
In order for hydrogen to be a climate-friendly, zero-emissions fuel source, it must be produced using renewable resources. Currently, 95 percent of hydrogen produced in the United States is obtained through an emissions-heavy process called steam-methane reforming. The alternative process, hydrogen electrolysis, uses electricity to separate the water molecules into their component elements—oxygen and hydrogen—to isolate hydrogen in a gaseous state. Hydrogen electrolysis does not create greenhouse gas emissions, but many current facilities are powered by electricity obtained from fossil fuels.
However, this does not have to be the case—hydrogen plants fueled by renewable energy are gaining traction globally. This is what ARCHES plans to do in California. When hydrogen electrolysis is powered by renewable energy, the result is so-called ‘clean hydrogen,’ and the only byproducts are oxygen and water. Hydrogen is uniquely able to supplant fossil fuels in hard to decarbonize sectors—such as maritime shipping, heavy-duty trucking, steelmaking, and cement production—making clean hydrogen a critical component of a fossil fuel free future.
Clean hydrogen is currently more expensive to produce than fossil fuels or renewable energy sources such as solar. Funding for hydrogen hubs aims to subsidize the cost of producing and scaling hydrogen production until it can become competitive. According to the Los Angeles Times, ARCHES estimates that clean hydrogen could become cost-competitive by 2032.
California’s new federal funding for clean hydrogen will be handed out to dozens of tightly coordinated projects. The Los Angeles Department of Water and Power and Northern California Power Agency will both transition power plants to renewable hydrogen, helping to transition the statewide grid away from fossil fuels. Several new clean hydrogen production sites will also be created, and the hydrogen produced there will fuel projects statewide. ARCHES estimates that 220,000 well-paying jobs will be created by the hydrogen hub, primarily in disadvantaged communities.
Other initiatives of California’s hydrogen hub include replacing diesel-powered cargo-handling equipment in the Ports of Los Angeles and Long Beach with hydrogen fuel cell equivalents and building hydrogen fueling stations so that thousands of hydrogen fuel cell-powered heavy-duty trucks and buses can replace standard diesel models. These projects will not only fight climate change by reducing fossil fuel emissions, they will also reduce pollution, especially in highly-impacted communities like the Port of Los Angeles.
Diesel-fueled cargo ships, freight trains, and semi-trucks are abundant in port operations. Because of this, there are markedly increased levels of air pollution, especially fine particulate matter (PM2.5) pollution, in port communities. Exposure to air polluted with heightened levels of PM2.5, particularly chronic exposure, has been linked to asthma, cancer, heart attack, stroke, and other life-threatening outcomes. ARCHES estimates that the reduction in local pollutants brought about by the transition to hydrogen fuel cells will result in $2.95 billion per year in decreased healthcare costs statewide.
From our campus in the heart of the Port of Los Angeles, AltaSea is a proud partner of the ARCHES network and a supporter of the bright future for public health and local job creation that will be brought around by transitioning port infrastructure and vehicles to hydrogen fuel cells and other renewable energy sources.
With clean hydrogen positioned to be a critical component of California’s clean energy future, there has never been a better time to learn more about the important—but sometimes hard to comprehend—energy source. With this in mind, AltaSea is hosting a hydrogen-focused open house on October 19th. The event, entitled “Hydrogen’s Role in a Sustainable Future,” will feature guest speakers who are leading the clean hydrogen revolution as well as display booths from various AltaSea blue economy partners. The event is open to the public, and more information can be found here.
