The hydrogen hub that's planned for Whiting landed $22.2 million in initial federal funding to begin a project being touted as a "giant leap for Indiana and the entire Midwest."
The Midwest Alliance for Clean Hydrogen, or MachH2, signed an agreement with the U.S. Department of Energy for the phase one grant for a project expected to make Northwest Indiana's heavy industry more carbon-friendly and sustainable for the long term. The initial funding will cover planning, design, development and community and labor engagement to help get the hydrogen hub project started.
The Department of Energy picked seven hydrogen hubs around the country through a competitive process. It plans to invest $7 billion in industrial-scale hydrogen production in the hope of decarbonizing greenhouse gas-intensive industries like steelmaking.
MachH2 is the fourth of the seven hydrogen hubs to land initial funding. It is expected to eventually get up to $1 billion in federal funding.
“Federal investment in hydrogen hubs represents a once-in-a-lifetime opportunity to significantly reduce emissions from hard-to-decarbonize industries, create new clean energy jobs, clean our air and invest in historically overburdened communities,” MachH2 CEO Dorothy Davidson said in an announcement of the funding. “By moving into Phase 1 with $22.2 million in federal funding, MachH2 will help accelerate the clean hydrogen economy and we are looking forward to working with communities throughout the Midwest to deliver the benefits of the clean energy future. We are also appreciative to the DOE for its commitment to ensuring there is a robust clean hydrogen marketplace ready to meet the demand.”
MachH2 is a network of hydrogen production, distribution and consumption sites in Indiana, Illinois, Michigan, Iowa and other Midwest states. As part of the project, BP is planning to build a commercial hydrogen production facility near its BP Whiting Refinery that would supply Northwest Indiana steel mills and other customers with hydrogen to replace fossil fuels.
“Today marks another giant leap for Indiana and the entire Midwest. We enjoy a long, proud history of manufacturing and transportation — which also happens to be the life blood of America. With these new resources we will continue to lead the nation through our shared commitments to job creation, economic investment and innovation,” said Gov. Eric Holcomb. “I‘m proud to join other heartland states as a member of MachH2. Today’s Phase 1 award announcement brings our hydrogen hub one step closer to generating thousands of local, family-sustaining careers well into the future.”
“I look forward to continuing Governor Holcomb’s success in creating jobs for hardworking Hoosiers in industries where Indiana excels and leading the way in critical technologies of the future,” said Governor-elect Mike Braun. “The hydrogen hub offers the opportunity to grow our national economy, and I look forward to working with other hub leaders across the Midwest.”
The project is not without its critics. Environmental groups, including Just Transition Northwest Indiana, Earthjustice, the Chicago Southeast Environmental Task Force and the Illinois Clean Jobs Coalition staged a rally at Tod Park in East Chicago over the weekend to express concerns that it would be "dirty hydrogen" made from fossil fuels. They called for the production of clean hydrogen made with renewable energy.
“MachH2 has not meaningfully engaged frontline communities or provided transparent plans for producing green hydrogen. We know that MachH2 will produce hydrogen from fossil fuels, and without a proactive consideration of the climate and community impacts, we can only assume that it will pull massive amounts of clean energy from our electricity grid, negating whatever energy it produces and increasing pollution from fossil fuel plants that make up for the energy that is diverted," Earthjustice Senior Attorney Lauren Piette said. “There is a role for green hydrogen produced by new renewable energy sources to clean up what we cannot electrify, like steel manufacturing. But as it stands, the only ‘green’ in MachH2 seems to be our tax dollars going to fund another handout for the fossil fuel industry that harms communities and undermines our climate progress.”
MachH2 said it is agreeing to a community benefits package to ensure the project helps surrounding communities. The hydrogen hub will create about 12,000 jobs, including in construction. MachH2 said it will create new long-term career pathways in the hydrogen and clean energy industries.
The first phase is expected to take about 12 to 18 months. The ultimate goal is to be able to produce more than 1,000 metric tons of hydrogen per day to replace coal and other fossil fuels for hard-to-decarbonize industrial operations like steel mills.
© Copyright 2024, nwitimes.com, Munster, IN