The Joint Committee on Natural Gas focused on hydrogen, beginning with a presentation on the Federal Program for Hydrogen Fuels from Andrew Robinson, Director of Economic Development for Senator Joe Manchin.
Speaking Tuesday at the Capitol, Mr. Robinson told the committee that Congress basically passed 10 years of legislation in one year with the Bipartisan Infrastructure Act. He said that although West Virginia is historically known as an energy community, it is becoming an innovative energy community.
“Innovative companies are coming to us, using innovation that provides cleaner and more efficient energy,” Mr. Robinson said.
Explaining the funding, Mr. Robinson said the bipartisan infrastructure law will provide $8.5 billion in carbon capture funds as a means for fossil fuels to burn in a cleaner manner so industries can stay alive. It also will provide $750 million to coal communities for innovative manufacturing and energy production and $11.3 million for abandoned mine lands. The act further provides $8 billion for regional clean-hydrogen hubs.
Additional funding is provided by the Inflation Reduction Act (IRA), which includes another $8.3 billion investment in coal production. The biggest piece of the IRA is another $4 billion for innovative energy manufacturing exclusively for coal communities, such as areas that used to have a coal-burning power plant.
“This reinvests back into communities,” Mr. Robinson said.
Production tax credits for hydrogen also are in IRA. West Virginia natural gas and coal can be used to create hydrogen and recruit hubs to the state, he said.
“Senator Manchin is very optimistic that we can attract and build a hydrogen hub in West Virginia,” Mr. Robinson concluded.
The next presentation was “West Virginia’s Role as a Leader in Hydrogen Fuels.”
Arria Hines, CEO of Allegheny Science & Technology (AST), told the committee her company is based in West Virginia.
“We are an ‘all-of-the-above’ energy company, as Senator Manchin likes to call us,” she said.
Why hydrogen now? The bipartisan infrastructure law and the IRA provides the ability to develop a clean-hydrogen hub, she said.
The hydrogen hub requires a regional approach, and it will connect producers and users throughout the United States, Ms. Hines said.
The Department of Energy (DOE ) will award six to 10 hubs, requiring a minimum of a 50% cost share for industry.
“It will be executed over eight to 10 years, but industry doesn’t want to take that long, so we are hoping this time frame will be expedited,” Ms. Hines said. Key factors include production, showing a life-cycle development, and having buyers.
Why West Virginia?
She said this is an unprecedented time in the energy sector, and West Virginia is centered in the nation’s second-largest gas-producing region with substantial private-investment interests.
Ms. Hines said West Virginia already has engagement and support from labor, community colleges, and many other organizations, including West Virginia University and Marshall University. West Virginia also has a connected energy-delivery structure that she described as a critical component.
She said Senators Manchin and Shelley Moore Capito, Congressman David McKinley, and Governor Jim Justice put together the West Virginia Clean Hydrogen Coalition. The West Virginia Development Office contacted AST to assist based on its experience with DOE.
“We pulled together an industry day on July 28, meeting with a lot of industry,” Ms. Hines said.
Prior to that, she said, there was a request for information to gauge interest, a review of available technologies, and discussions about the investment requirement.
She added that they developed a memorandum of understanding with AST, several companies, WVU, the state of West Virginia, and many others. She said 150 interested participants included three transit authorities, eight community and technical colleges, several labor and job organizations, and many others.
Ms. Hines said steel operations, cement factories, refineries, and other manufacturing facilities produce a lot of carbon, and tax credits mean a lot to those industries.
“Savvy businesses will take advantage of this opportunity, and we want to create it in West Virginia,” Ms. Hines said.
The Justice 40 initiative, authored by the White House, is also an important factor, she said.
“We have to show a 40% impact (not necessarily dollars) to disadvantaged communities. I was born and raised in a holler in West Virginia, and I know what it means to be disadvantaged,” she said.
Justice 40 calls for lessening burdens that affect disadvantaged communities.
In describing the path forward, partners are looking for Department of Energy approval. The application is due April 27, 2023.
“We need business plans, responsibility matrix, and many other components,” she said.
She described community outreach and engagement as important components.
”We have to connect with communities. We have to keep the energy and momentum in our communities, including availability of training,” she said.
Regarding hydrogen production, she said, the Legislature must pass laws by modeling other states. She provided a to-do list for legislators, including:
· identify best practices;
· enable uniform standards;
· address trucking and fueling;
· have a community benefits plan.
“If you know of anyone in your communities we should be talking to, connect me with people,” she asked of legislators.
Delegate Evan Hansen of Monongalia County asked Ms. Hines whether she could help them visualize what this will look like in size, what it looks like on the ground, pipelines, and the scale.
She explained that it is conceptual at this point, and the projects are not defined.
“Right now, we’re looking at at least five projects throughout our region, with connecting pipelines and water from the Ohio River. There will be multiple locations, including existing facilities that they want to convert,” she responded.
She noted there could be multiple locations in West Virginia, as well as training facilities.
Delegate Hansen asked how Justice 40 would apply to communities in West Virginia. She directed him to the DOE website, which defines disadvantaged communities throughout the U.S. |