- “hydrogen Power: Unveiling Its Potential As A Clean Energy Source In 2023”
- Industrial Vehicle Technology September 2022 Page 54
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“hydrogen Power: Unveiling Its Potential As A Clean Energy Source In 2023” – One of the nation’s largest renewables trade groups unveiled updated proposals Thursday on how “green” hydrogen production should be counted under the Affordable Care Act, highlighting the challenge facing the Biden administration as it prepares tax guidelines that could determine the level of fossil fuel gas. .
The American Clean Energy Association (ACP) is the most influential voice in the hydrogen debate, given its size and the number of members likely to be involved in the industry’s future. In December, it submitted preliminary comments to the Treasury Department about the advent of high yield guidance. Inflation Act credits for clean hydrogen.
“hydrogen Power: Unveiling Its Potential As A Clean Energy Source In 2023”
The group’s revised plan Thursday made concessions to environmentalists on some issues but sparked controversy on others, while alienating nuclear and fuel cell advocates.
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Green hydrogen usually refers to a zero-emission process where fuel is extracted from water using renewable electricity. But experts say whether hydrogen is low-carbon may depend in part on where and how manufacturers source their energy.
Instead of building new solar or wind facilities and using the electricity from those sites to make hydrogen, some potential developers want to use grid power that may rely on fossil fuels. They say they should still be eligible for tax credits if they offset fossil fuel use by reaching power purchase agreements or other agreements that benefit renewable energy operators across the United States.
However, environmentalists and some university researchers say that the availability of loans under the Anti-Inflation Act should come with strict conditions to reduce the generation of the national grid, which they fear could happen due to the production of green hydrogen.
ACP, whose ranks include prominent energy companies with plans to reduce green hydrogen production, previously advocated the use of grid power in its December comments to the Treasury. At the time, the group said relying on the national grid to produce hydrogen could lower costs and help develop new clean industries.
Industrial Vehicle Technology September 2022 Page 54
But in its revised proposal, the group reversed its position and embraced parts of a plan pushed by environmentalists to reduce grid emissions.
However, his position differed from environmentalists by saying hydrogen manufacturers should not have to comply with “clock-based” requirements for as long as a decade. Under hourly benchmarking, which environmentalists support, developers would have to compare their hourly consumption of grid power with the hourly production of electricity from a new renewable facility.
The group said projects that begin construction in 2029 should be subject to clock matching, as well as any project that will be put into service after 2032. Under the plan, projects that began construction before 2029 will also benefit from a ten-year “grandfathering” policy, meaning that they will not have to follow hourly symmetry until 2039.
ACP officials said the revised proposals provide a “sweet spot” that balances emissions concerns with the need to persuade manufacturers.
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“What we are proposing today is a big step from where we were in December,” said Jason Grumet, CEO of the group, during a call with reporters.
The plan strikes “a balance that encourages new clean local industries while ensuring immediate and long-term climate benefits,” Grumet said.
Under the group’s proposal, hydrogen producers could only use grid power if they were also financing new sources of clean energy production — a concept known as “surplus.” The new clean power would also have to be in the same grid area as where the hydrogen production was occurring or in a neighborhood with strong transmission links.
In its plan, ACP split with other major energy trade groups that have called for greater flexibility for hydrogen producers.
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Those groups include oil and gas majors such as Shell PLC, the American Renewable Energy Council, the American Chamber of Commerce’s International Energy Institute and the Edison Electric Institute, which represents investor-owned utilities.
The EEI has said hourly matching requirements could “increase the price of hydrogen produced” and “significantly restrict” the adoption of fossil fuels, for example.
Nuclear power advocates targeted the supplemental requirement, saying that requiring developers to bring new sources of clean electricity generation online could prevent existing nuclear plants from participating in the hydrogen industry. Without additions, proponents hope that existing nuclear plants can participate in power deals with hydrogen producers who want to offset their use of grid power.
“As the largest producer of carbon-free energy in the United States, removing existing nuclear power from qualifying for the Clean Hydrogen Emissions Tax would eliminate one of our most valuable hard-sector decarbonization assets,” said John Kotek, senior. vice president of policy development and public affairs at the Nuclear Energy Institute, in an email.
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Similarly, the Fuel Cell and Hydrogen Energy Association is “concerned that the positions outlined by the American Clean Power Association, especially on additions, will slow the development of the first generation of clean hydrogen devices,” Frank Wolak, CEO of the group, in a statement.
But he said the hourly matching requirements — such as the 2032 phase-out date and the ten-year “grandfather” system — are too lax.
Some studies have shown that hourly matching requirements may be possible for many green hydrogen producers to meet at once, while still making a good profit, said Fakhry.
“Time synchronization will end from day one,” said Fakhry, adding that there is “no technical or economic reason” to wait.
For Long Haul Trucking, Hydron Sees Long Term Potential Of Hydrogen
The wait could cause grid generation to increase because of green hydrogen production, he said. “The whole system [of demand] simply collapses, depending on its effectiveness in preventing increased production.”
A previous study co-authored by Ricks found that without strict requirements for producers, making green hydrogen could be worse for the climate than making conventional “gray” hydrogen from natural gas.
“The application of lax standards to an industry that has already been successfully reduced would be to throw away the benefits of this subsidy without achieving any social benefits,” he added.
Grumet said the majority of hydrogen production will occur during the years when the more stringent hourly comparative requirements come into effect.
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He added that the demands his group is seeking for hydrogen manufacturers will come at a high financial cost — albeit one that is worth maintaining the fuel’s climate credibility.
“These safeguards are not meaningless. They will raise the cost of green hydrogen production and will restrict early market entry,” said Grumet. He and ACP maintain that the cost of electrical appliances will be cheaper due to the increased rate.
But he added that the requirements were necessary to keep “confidence in the industry” and to calm a “cautious debate” on what the Treasury should do in its next guidance.
“We are trying to find a good place … so that the industry can be successful,” he added. Comprehensive decommissioning of the power system will not be possible without burning clean H2 for electricity production, senior executives at Siemens. Energy and Equinor tells Recharge
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Why would anyone use renewable energy to make green hydrogen and then burn it to generate electricity? The round-trip efficiency would be less than 40%, so every 10kWh of wind or solar power would produce less than 4kWh of electricity.
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And why would anyone make blue hydrogen from natural gas and carbon capture and storage (CCS) – with all the added costs of reforming the methane and compressing/pouring, transporting and storing the H
And yet energy giants such as Siemens Energy, Equinor and SSE believe there is a bright future for hydrogen power plants. Why?
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Germany’s Siemens Energy – which was spun off from its parent company Siemens last year – is now offering hydrogen power solutions to customers.
“If I have renewable energy, convert it to hydrogen and re-electrify it, with a cycle efficiency of less than 40%, it only makes sense if you use hydrogen as long-term storage and compensation for different generators,” says Erik Zindel, vice president of Nokia Energy’s president of hydrogen production sales.
“If you really want to [store energy] for days, weeks, months, or for seasonal storage – which is using solar energy from summer to winter, or wind energy from autumn to summer – you need to store electricity in a way of chemicals.
“You still need [clean] energy for the dark periods of winter, when there is no sun and no wind blowing for two or three weeks – you need to have a supply of hydrogen.”
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He tells Recharge that large-scale hydrogen storage will also help reduce the curtailment of wind and solar power during wind/solar periods.
“Once you get into the green field of hydrogen, you can increase the amount of renewables you want to build on the grid because you can use the extra renewable energy [that would be reduced because it can’t be sold],” Zindel. he explains.
And oxygen] and by being able to store that extra energy as hydrogen, you can allow the electrical system to expand the reactors by
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