Published by Todd Bush on December 17, 2024
President Biden's ambitious plan to build seven regional hydrogen hubs with $7 billion in federal funding is facing unexpected backlash—not from conservative corners but from environmental groups.
These hubs, designed to accelerate the production and use of hydrogen as a cleaner energy alternative, aim to reduce greenhouse gas emissions and support industries difficult to decarbonize, like manufacturing and heavy transportation.
However, environmentalists argue the hydrogen push may cause more harm than good.
The regional hubs are crucial to Biden's long-term climate goals, which aim for net-zero emissions by 2050.
The Department of Energy (DOE) views hydrogen as a key solution to replacing fossil fuels in industries that are hard to electrify. Yet, critics claim the benefits are overblown. "I think the public needs to understand that green hydrogen is a misnomer," said Tracy Carluccio, deputy director of the Delaware Riverkeeper Network.
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One contentious project under Biden's plan is the Mid-Atlantic Clean Hydrogen Hub (MACH2), spanning Pennsylvania, New Jersey, and Delaware.
MACH2 promises significant economic growth and a cleaner energy transition. Matthew Krayton, spokesperson for MACH2, defended the hub, saying it targets "the 15% of the economy that’s hard to abate, such as transportation and heavy manufacturing."
Despite assurances, opposition remains fierce. Environmental groups like the Delaware Riverkeeper Network argue MACH2 could exacerbate pollution.
Carluccio described the plan as "very misleading to the public because of the pollution that will result," adding it could "make the climate crisis worse."
Other proposed hubs, like the Appalachian Regional Clean Hydrogen Hub (ARCH2), face similar scrutiny. Funded with up to $925 million, ARCH2 would rely heavily on "blue hydrogen" derived from natural gas—a method that raises both economic and environmental concerns.
The irony of this situation lies in the unexpected alignment between environmentalists and President-elect Donald Trump, who remains skeptical of hydrogen projects.
Trump has dismissed hydrogen as unsafe, quipping at an October rally, “You know the story with hydrogen, it’s great until it blows up.”
For Biden, this alliance poses a unique challenge. With contracts still in negotiation and funds yet to be fully allocated, environmental groups are stepping up their campaigns to halt hydrogen funding.
Organizations like the Delaware Riverkeeper Network and the Ohio River Institute have launched letter-writing campaigns and meetings to lobby the DOE to reconsider.
Sean O’Leary, senior researcher at the Ohio River Institute, likened the hydrogen push to the failed promises of the natural gas boom in Appalachia. "Because the Appalachian hub is a blue hydrogen hub derived from natural gas, that creates a problem for us both economically and environmentally," O'Leary said.
The DOE and Treasury Department are racing against the clock to finalize contracts and tax credit rules before Biden leaves office.Under the Inflation Reduction Act, hydrogen producers stand to benefit from up to $34 billion in tax incentives. However, if the funding process stalls, it could fall into the hands of a Trump administration that’s openly hostile to hydrogen development.
Experts warn that the slow progress and increasing opposition could threaten the project’s success.
"The point of the hub is to break through the chicken and the egg," said Todd Allen, co-director of the University of Michigan’s MI-Hydrogen project. “If you are using fossil fuels to develop it, then you are not moving in a cleaner direction.”
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Hydrogen is celebrated as a cleaner alternative to coal and oil. It can power cars, steelmaking, and heavy industries that are challenging to electrify.
The DOE claims the hubs will reduce carbon emissions by 25 million metric tons annually.
However, this reduction represents less than 0.5% of total U.S. emissions.
Critics argue that hydrogen production methods, particularly "blue hydrogen," are not as clean as promised. While "green hydrogen" is derived using renewable energy, its production remains costly and limited.
Environmentalists highlight the hidden downsides of hydrogen. When burned, hydrogen emits nitrogen oxide (NOx), a pollutant linked to respiratory issues and smog formation. This has led to skepticism over claims that hydrogen is pollution-free.
Carluccio’s Delaware Riverkeeper Network has been vocal about MACH2’s lack of transparency. She criticized MACH2 for failing to make project details accessible until her group filed records requests.
Proponents of the hubs argue that the projects will jump-start private investment, creating tens of thousands of clean energy jobs.
For instance, Biden estimated that the $7 billion in federal spending would drive $40 billion in private investment.
But skeptics point to past failures, particularly in regions like Appalachia.
O’Leary recalled how the natural gas boom failed to deliver its economic promises, leading to job losses and declining incomes.
The effectiveness of hydrogen as clean energy depends heavily on how it is produced. Blue hydrogen, derived from natural gas, risks undermining climate goals if emissions aren’t captured efficiently.
On the other hand, green hydrogen—created using renewable energy like wind or solar—is still expensive and underdeveloped.
Experts like Todd Allen argue that government incentives are necessary to drive innovation. “The hub is designed to incentivize private investment, which can eventually drive down emissions and costs,” he explained.
Without these efforts, the U.S. risks falling behind in the global clean energy race.
Biden’s regional hydrogen hubs represent a bold step toward a cleaner energy future, but their success is far from guaranteed.
The growing divide between environmentalists, policymakers, and industry stakeholders underscores the complexity of clean energy solutions.
As the DOE scrambles to finalize agreements, the outcome of Biden’s hydrogen push could have lasting consequences for his climate legacy.
Whether the hubs deliver on their promises or deepen environmental divides remains to be seen.
For now, the debate rages on, with stakeholders on all sides watching closely.
Environmentalists like Carluccio aren’t backing down, while supporters of MACH2 and similar projects remain optimistic that hydrogen can play a meaningful role in reducing emissions.
In the end, the fate of the hydrogen hubs may determine whether Biden’s green energy ambitions can stand the test of time.
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