Learn About Hydrogen & Carbon Capture Projects Coming to the Appalachian Basin


Learn About Hydrogen & Carbon Capture Projects Coming to the Appalachian Basin

The U.S. Department of Energy (DOE) is expected to announce monetary awards totaling some $7 billion for six to ten Hydrogen Hubs before the end of 2023.

The Appalachian Hydrogen & Carbon Capture Conference V will provide the latest, most comprehensive hydrogen hub information on Nov.30th 2023, at the Hilton Garden Inn Southpointe/Pittsburgh. The program is presented by Shale Directories and the H2- CCS Network.

the Bipartisan Infrastructure Law (BIL) mandates that two of the Hydrogen Hubs be based on natural gas. Currently, natural gas accounts for 95% of Hydrogen production, according to the DOE.

The Appalachian Basin is an ideal candidate to become a Hydrogen Hub, offering among the lowest natural gas prices in the world, typically below Henry Hub pricing. Four hydrogen projects have been announced in the Appalachian Basin over the last three years.

“The hydrogen investment opportunities for the Appalachian basin quickly reaches into the tens of billions of dollars. Our Appalachian H2-CCS Conference is the fifth, as organizations look to hear from the leaders in this high-growth sector and translate learnings into opportunities,” said Tom Gellrich, CEO and founder, H2-CCS Network.

The Hydrogen Hubs will be a central driver in helping communities nationwide benefit from clean energy investments, good-paying jobs, and improved energy security, according to DOE.

Clean hydrogen hubs will create networks of hydrogen producers, consumers, and local connective infrastructure to accelerate the use of hydrogen as a clean energy carrier that can deliver or store tremendous amounts of energy.

The production, processing, delivery, storage, and end-use of hydrogen, including innovative uses in the industrial sector, are crucial to DOE’s strategy for achieving a 100% clean electrical grid by 2035, and net-zero carbon emissions by 2050.

DOE last December sent so-called Letters of Encouragement to 33 public-private teams of the 79 that initially expressed interested in the DOE funding. The 33 were advised to submit a complete application, due by April 7, 2023.

Each Hydrogen Hub is required to provide a minimum of 50% non-federal cost share (50% of the total project cost including both DOE share and recipient cost share, for a total project cost of $800 million to $2.5 billion), to be executed over roughly 8-12 years (or sooner) depending on the size and complexity of the hub.

In 2022 alone, private equity and venture firms spent over $5 billion on hydrogen-related companies due to passage of the 2021 Infrastructure Investment and Jobs Act.

DOE divided full program funding into four phases of competition that will lead to go/no-go decisions, it said. The first phase includes planning and analysis to make sure the proposal is technologically and financially viable. Phase 2 will finalize engineering design, labor agreements and more.

The 2022 Inflation Reduction Act provides hydrogen tax credits 45Q of up to $3 per kilogram based the lifecycle carbon emissions. .

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