Southeastern Hydrogen Hub Eyed by 6 Major Electric Utilities
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Six large electric utilities are conspiring to develop a hydrogen hub in the southeastern U.S. The 6 utilities – Dominion Energy, Duke Energy, Louisville Gas & Electric Co. (LG&E), Kentucky Utilities Co. (KU), Southern Co., and the Tennessee Valley Authority (TVA) – have formed an alliance to participate in the DOE’s $8 billion hydrogen hub program funded by the Infrastructure Investment and Jobs Act (IIJA). Here?s a rundown of what it means.
Background of the Southeastern Hydrogen Hub
Hydrogen is seen as a solution to the overall energy decarbonization effort happening across the industry, because it can be transported, stored, combusted, or even used as a feedstock. Because of its flexibility, a recent report from the Hydrogen Council estimates that demand for hydrogen will exceed 660 million tons by 2050. As such, as of Oct. 2022, over 680 large hydrogen-project proposals, totaling $240 billion, have been announced.
This is why the DOE is so invested in building out a hydrogen infrastructure. The program, known as H2Hubs, is viewed as a key part of the IIJA-required National Clean Hydrogen Strategy and Roadmap. H2Hubs envisions funding anywhere from 6-10 hydrogen hubs. Applications are due April 2023 and projects will be selected in the 4Q 2023.
While the specifics of the hydrogen generation process associated with the southeastern hydrogen hub are still under development, potential options include creating hydrogen via electrolysis with electricity from renewable energy or nuclear power, or making it from natural gas by utilizing a carbon capture process.
All in all, many experts agree that hydrogen is going to be a critical element of the transition to clean energy. However, it’s an emerging technology, which means that billions of dollars are needed to get to critical mass. That said, once things are up and running, utilities that had the foresight to get in on the game early will have an advantage – thus, the impetus for the development of the southeastern hydrogen hub.
