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Underground Hydrogen Touted As ‘Significant’ Clean Energy Resource In First U.S. Hearing

Underground Hydrogen Touted As ‘Significant’ Clean Energy Resource In First U.S. Hearing

The Senate held the first congressional hearing on geologic hydrogen, a promising new form of clean energy generated naturally underground, that’s attracted growing interest and investment over the past year.

The Committee on Energy and Natural Resources, chaired by West Virginia’s Sen. Joe Manchin, heard testimony on Wednesday from the Energy Department’s advanced research unit, the U.S. Geological Survey and Pete Johnson, CEO of Koloma, the best-funded startup in the geologic hydrogen space. They concurred that more research is needed to identify the most abundant, promising sites and to develop techniques to amplify the natural production process, but were upbeat about the outlook.

“The potential for geologic hydrogen represents a paradigm shift in the way we think about hydrogen as an energy source,” Evelyn Wang, director of DOE’s Advanced Research Projects Agency-Energy told Senators. “This new source of hydrogen could lower energy costs and increase our nation’s energy security and supply chains.”

Federal scientists have begun working with universities and energy companies to find ways to map and locate potentially large pockets of hydrogen as current estimates are inadequate, said the Geological Survey’s Geoffrey Ellis. “The estimated in-place global geologic hydrogen resource ranges from 1000s to potentially billions of megatons,” he told the committee. “Given our understanding of other geologic resources, the vast majority of the in-place hydrogen is likely to be in accumulations that are either too far offshore or too small to ever be economically recovered. However, if even a small fraction of this amount could be recovered that would constitute a significant resource.”

Hydrogen is already heavily used in industry, including at oil refineries, chemical plants and as a key ingredient in ammonia for fertilizer. But nearly all of it is made by extracting hydrogen from natural gas, a dirty process that emits large amounts of carbon dioxide. Like green hydrogen — a new clean form of the element made from water and electricity, ideally from renewable power — the geologic variety is carbon-free. Scientists believe it’s generated in underground pockets of iron-rich rock in warm, moist conditions that are extremely common. Uniquely, it’s an energy source that’s just sitting there, not one that needs to be created.

“All other forms of hydrogen require more energy to produce than the hydrogen itself holds,” Koloma’s Johnson said. “This is incredibly clean energy. In multiple third-party lifecycle analyses and peer-reviewed journal articles, geologic hydrogen has been found to have a very low carbon footprint. In addition, geologic hydrogen will result in lower land use and lower water consumption than any other form of hydrogen.”

Johnson, Wang and Ellis also noted that drilling or mining for hydrogen leverages techniques used by the oil and gas industry. It’s also likely to aid domestic ammonia production.

“Hydrogen is a great feedstock and it’s used to create ammonia for fertilizer,” said Wang. “If we could really stimulate and extract this hydrogen and produce very large quantities at very low cost I think this could have significant implications to help and support farmers.”

Johnson provided no details about when Denver-based Koloma, which has raised over $300 million from investors including Bill Gates’s Breakthrough Energy Ventures, Energy Impact Partners and Amazon, would begin commercial extraction of hydrogen but is cautiously optimistic.

“This will take time, money and effort to figure out. Nobody has all the answers today,” he told the committee. “The early data looks promising and I believe that geologic hydrogen can play a very large role as we decarbonize the U.S. energy economy.”

 

 


 

 

Source    Forbes

 

Hydrogen’s potential in the net-zero transition

Hydrogen’s potential in the net-zero transition

Hydrogen as a climate solution is generating a lot of excitement right now. Approximately $10 billion worth of hydrogen projects are being announced each month, based on activity over the past six months. Policy packages such as the recent Inflation Reduction Act in the United States and the Green Deal Industrial Plan in Europe support hydrogen production and use. According to McKinsey research, demand is projected to grow four- to sixfold by 2050. Hydrogen has the potential to cut annual global emission2050s by up to 20 percent by 2050.

Today, most hydrogen is produced with fossil fuels. This type is commonly known as grey hydrogen, which is used mostly for oil and gas refining and ammonia production as an input to fertilizer. To maximize hydrogen’s potential as a decarbonization tool, clean hydrogen production must be scaled up. One variety of clean hydrogen is known as green hydrogen, which can be made with renewables instead of fossil fuels. Another variety, often called blue hydrogen, can be produced with fossil fuels combined with measures to significantly lower emissions, such as carbon capture, utilization, and storage. Clean hydrogen has the potential to decarbonize industries including aviation, fertilizer, long-haul trucking, maritime shipping, refining, and steel.

Total planned production for clean hydrogen by 2030 stands at 38 million metric tons annually—a figure that has more than quadrupled since 2020—but there is a long way to go to meet future demand. According to McKinsey analysis, demand for clean hydrogen could grow to between 400 million and 600 million metric tons a year by 2050.

To scale clean hydrogen, three things must happen. First, production costs need to come down so that hydrogen can compete on price with other fuels. One way to keep costs down is by producing hydrogen in locations with abundant, cheaper renewable energy—where the wind blows or the sun shines. While renewables development has accelerated in recent years, a lack of available land could become an issue for the deployment of renewables and could limit location options for green-hydrogen producers. Constructing plants for both renewable generation and green-hydrogen production has become more expensive recently because of increased material and labor costs and constrained supply chains.

“Approximately $10 billion worth of hydrogen projects are being announced each month, based on activity over the past six months.”

Second, building up infrastructure, particularly for transportation of hydrogen, will be key. The most efficient way to transport hydrogen is through pipelines, but these largely need to be built or repurposed from current gas infrastructure. Investment is critical in this and other areas across the value chain, including electrolyzer capacity (electrolyzers use electricity to produce green hydrogen) and hydrogen refueling stations for hydrogen-powered trucks.

Third, more investments will be needed to help advance this solution. Our work with the Hydrogen Council, a CEO-led group with members from more than 140 companies, has shown that achieving a pathway to net zero would require $700 billion in investments by 2030. Despite the recent momentum, McKinsey research last year showed a $460 billion investment gap. Additionally, many announced projects still need to clear key hurdles before they can scale. Producers of clean hydrogen, for example, are looking to address the commercial side of investment risk by solidifying future demand, often in the form of purchase agreements.

A set of actions can help accelerate the hydrogen opportunity, to realize its decarbonization potential and the growth opportunity for businesses. Progress will likely require collaboration among policy makers, industries, and investors. Policy makers can continue supporting the hydrogen economy through measures such as production tax credits or by setting uptake targets. These actions should help boost private investors’ confidence in the future markets for hydrogen and hydrogen-based products. Industry can increase capacities, such as by ramping up production of electrolyzers, and build partnerships through the value chain. Investors can help industry by structuring and financing new ventures, as well as by developing standards for how hydrogen projects can be assessed and how risks can be managed.

As the energy transition unfolds, hydrogen will increasingly be a consideration for both businesses and governments. While the challenges to scaling hydrogen are real, so are the opportunities.

 

 


 

 

By  Markus Wilthaner

Source  McKinsey & Company

 

WSP USA to manage world’s largest green hydrogen underground storage project

WSP USA to manage world’s largest green hydrogen underground storage project

WSP USA was awarded the engineering, procurement and construction management contract (EPCM) for the underground storage portion and related surface facilities of a major clean energy storage infrastructure to build the world’s largest green hydrogen production and storage facility.

WSP was selected by a joint venture between Magnum Development and Mitsubishi Power to lead all EPCM phases of the ACES Delta underground storage facility in Utah, beginning with Phase I, which consists of the developing two large salt caverns capable of holding a total of 11,000 metric tons of hydrogen.

The firm will also be responsible for the solution mining infrastructure, water and power supply facilities, brine management, and will assist with environmental compliance for the energy hub.

The ACES Delta project involves converting renewable power into green hydrogen that can be stored in commercial-scale solution mined caverns. When completed it will provide 100 percent clean energy seasonal storage capabilities, thereby deploying technologies and strategies essential to a decarbonized future for the western U.S. power grid.

“Green hydrogen is the future in renewables,” said Andres Fernandez, national hydrogen market lead for WSP, a leading engineering and professional services consultancy. “Green hydrogen is particularly unique because it only uses renewable sources combined with advance technology in electrolysis to generate hydrogen. WSP is honored to be part of an innovative team that will deliver the next generation of renewable energy and drive the green energy transition.”

ACES Delta will capture intermittent renewable generation and shape the product into reliable and dispatchable electricity, making the project’s seasonal storage capabilities ideal for integrating renewable energy facilities with the existing energy infrastructure. Each cavern will hold the equivalent of 150 gigawatt hours (GWh) of carbon-free dispatchable energy, which is equivalent to 40,000 megawatts of lithium ion batteries. This stored green hydrogen becomes an energy reserve that can be released to produce fuel for electric power generation at any time.

 

The project will use Utah’s unique geological salt domes to store green hydrogen in two massive salt caverns. Image: Mitsubishi Power

 

The overall project will enhance grid reliability and efficiency through optimization of existing transmission line loads, while creating the ability to move excess generation from highly productive renewable energy generation months with little electric load to cover demand during high-load periods. It also reduces the need to overbuild renewables and new transmission assets.

The massive natural geological salt formation is adjacent to the Intermountain Power Project (IPP) near Delta, with transmission interconnections to major demand centers throughout the west and significant renewable energy resource opportunities in the region.

“Using salt caverns for seasonal energy storage is a significant opportunity to empower hydrogen as an energy carrier and significantly expand energy storage resources throughout the U.S.,” Fernandez said. “This will further support the increased build-out of renewable energy thus reducing America’s carbon footprint. WSP is leveraging decades of experience in underground storage experience to provide a full suite of services around the hydrogen economy. This project reinforces WSP’s leadership in underground storage and positions the company to become a key player in developing hydrogen hubs.”

After nearly two years of engineering effort, WSP is grateful for the opportunity to support ACES Delta for the project execution phase and contribute to the advancement of the hydrogen economy in the U.S., at a time when the industry is poised for significant growth. This project consolidates WSP global leadership in underground liquid and gas storage facilities, including hydrogen, and aligns with WSP’s mission to help its clients and communities become Future Ready®.

 

About WSP USA

WSP USA is the U.S. operating company of WSP, one of the world’s leading engineering and professional services firms. Dedicated to serving local communities, we are engineers, planners, technical experts, strategic advisors and construction management professionals. WSP USA designs lasting solutions in the buildings, transportation, energy, water and environment markets. With more than 12,000 employees in 200 offices across the U.S., we partner with our clients to help communities prosper. wsp.com

 


 

Source CSR WIRE