WA hydrogen production to get a boost from share of $1B in funding

Washington, Oregon and Montana will receive $1 billion from the federal Department of Energy to establish eight hydrogen production sites across the three states.

The money, allocated to the Pacific Northwest Hydrogen Association, comes from a new program funded by the 2021 Bipartisan Infrastructure Law and makes the Pacific Northwest one of seven hydrogen hubs across the country, according to Washington Sens. Patty Murray and Maria Cantwell.

Hydrogen is a colorless, flammable gas that does not emit carbon or greenhouse gases when combusted. Currently it is used for producing fertilizer and refining petroleum, though advocates say it could one day be used to replace natural gas to heat buildings or power long-haul trucks or ships through hydrogen fuel cells.

The proposed production sites include Bellingham, Centralia, East Wenatchee and Kennewick in Washington; Portland, Boardman and Baker City in Oregon; and St. Regis in Montana.

These “nodes” were selected so there will be access to hydrogen along transportation corridors, like Interstates 5 and 90 and Interstates 82 and 84 in Central Washington and Oregon, said Chris Green, chairman of the Pacific Northwest Hydrogen Association.

“If this is really going to be real and the market is going to take hold … you’ll need production near places where there is use,” he said.

Centralia College, Puget Sound Energy, Portland General Electric, Douglas County Public Utility District and 13 companies or organizations, including Amazon, Mitsubishi Power Americas and the Northwest Seaport Alliance, have proposed projects as part of the Pacific Northwest Hub.

The specific details of how the money will be spent is subject to negotiation with the Department of Energy, said Green.

The project’s total funding is projected to be $8.8 billion and will require pipelines, trailers to transport the hydrogen, storage silos and infrastructure for heavy-duty trucks, according to the Department of Energy. The projects aim to reduce emissions from the equivalent of roughly 220,000 gasoline-powered cars, according to the department. The remaining funding for the project is expected to come from project developers and private entities, Murray’s office said.

Hydrogen is used for refining petroleum, treating metals, producing fertilizer and processing foods, according to the U.S. Energy Information Administration. Around 95% of that production in the U.S. is currently “gray hydrogen” and is made with natural gas that releases carbon pollution into the atmosphere. “Green hydrogen” is made by splitting water through electrolysis.

In an interview, Cantwell said the goal of the production hubs is not to simply replace gray hydrogen but to make hydrogen more available as an energy source for sectors like aviation, agriculture and heavy industry that use gas and diesel and are hard to decarbonize.

While passenger cars can eventually be powered by batteries, large vehicles like planes, ships and long-haul trucks will be harder to decarbonize and will need to rely on alternative fuels or hydrogen, Green said.

Replacing the U.S.’ current consumption of gray hydrogen would take about 10 million metric tons of green hydrogen each year, according to 2021 estimates, which would require a whopping 57,000 megawatts of electricity generation, roughly equal to all of the nation’s current wind, solar and geothermal production.

Green said hydrogen largely is used to refine petroleum, and broad expansion of renewable power is needed generally.

The other hydrogen hubs are in Appalachia, California, Texas, the Heartland (including Minnesota, North and South Dakota), the mid-Atlantic and the Midwest. While the Pacific Northwest hub intends to produce hydrogen exclusively through electricity, other hubs will use a mix of sources including nuclear, biomass and natural gas.

The seven hubs are expected to generate 3 million metric tons of hydrogen each year, which is approximately a third of the U.S.’ 2030 production goal, according to the Department of Energy.

The new program in the Pacific Northwest intends to produce it using electricity generated through hydropower, according to a news release from the senators’ offices. Green said in the short term the companies will likely purchase renewable energy but companies may chose to eventually acquire wind and solar production themselves.

The Pacific Northwest Hydrogen Association was picked over 79 applicants. The project is projected to create 8,050 construction jobs and 350 permanent jobs, according to the Department of Energy.

A project in Douglas County to produce hydrogen from excess electricity from the Wells Dams broke ground in 2021. The hydrogen production was delayed a few times due to supply chain issues, the coronavirus pandemic and permitting but is slated for spring or summer 2024, according to Douglas County Public Utility District spokesperson Meaghan Vibbert.