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Business & Economy

The 'hydrogen economy' is coming. What does that mean for Ohio?

A steam methane reformer, which can extract hydrogen from methane found in natural gas
Courtesy of the United States Department of Energy
A steam methane reformer, which can extract hydrogen from methane found in natural gas

Work is underway to launch a massive new hydrogen program in Appalachia. Project leaders say it will help with the urgent task of transitioning Ohio and the rest of the country to cleaner energy.

Hydrogen’s chief byproduct is water – not planet-warming carbon pollution. And supporters say it could help fuel industries that have been stubbornly difficult to decarbonize.

The Biden administration is betting big on using this fuel source to clean up the energy grid. The Appalachian Regional Clean Hydrogen Hub, which Ohio is a part of, is alone set to receive $925 million.

But some experts and advocates said the details will matter when it comes to how well hydrogen can actually help with this goal.

WYSO’s Adriana Martinez-Smiley spent the last month digging into the hope – and hype – behind the so-called hydrogen economy and how it may affect Ohio.

“You unfortunately cannot electrify everything. So you have to look at another fuel source that will be able to (work). And if you're looking for a low carbon fuel source, hydrogen is really kind of that perfect fuel to allow that to happen."

Why the U.S. is looking to hydrogen

Hydrogen is attractive because it doesn’t create carbon emissions when burned. This matters if the U.S. is going to reach its goal of a 100% clean electrical grid by 2035 and net-zero carbon emissions by 2050.

There are a variety of applications for the element, said Eric Lang, principal research engineer with the University of Dayton Research Institute.

Appalachian Regional Clean Hydrogen Hub is determining potential siting and facility options throughout the region, with proposed sites in Ohio, West Virginia, and Pennsylvania.
U.S. Department of Energy
Appalachian Regional Clean Hydrogen Hub is determining potential siting and facility options throughout the region, with proposed sites in Ohio, West Virginia, and Pennsylvania.

“It can be used as a feedstock for other chemical reactions, or it can be used as an energy source in what's called a fuel cell, which converts hydrogen back to water. Or, it can be used as a combustion fuel, like you might (use) propane or gasoline,” Lang said.

The U.S. Department of Energy is trying to spur the technology with its hydrogen hub program, with seven hydrogen hubs to serve their respective regions.

Ohio is one of three states comprising the Appalachian hydrogen hub, which is slated to receive up to $925 million. Columbus-based organization Battelle is acting as the project coordinator for the hub.

This hub will be responsible for producing hydrogen from natural gas. This process creates carbon dioxide, so capturing and storing the carbon is also necessary to reduce pollution. This type of hydrogen is called blue hydrogen.

Hydrogen can be the answer to making hard-to-decarbonize sectors like steel and cement production move away from fossil fuels, where other renewable forms of energy may not be the most practical, according to Shawn Bennett, energy and resilience division manager at Battelle.

"All of the money that the government is spending and all of the tax subsidies — our tax money — that they will be spending on blue hydrogen is a mistake."

“You unfortunately cannot electrify everything. So you have to look at another fuel source that will be able to (work). And if you're looking for a low carbon fuel source, hydrogen is really kind of that perfect fuel to allow that to happen,” Bennett said.

Big expectations for hydrogen impact

The hub expects to reduce CO2 emissions by 9 million metric tons per year – equivalent to emissions from 2 million gas-powered cars.

And it’s expected to create 21,000 jobs in the region and produce $6 billion in investments in Appalachia.

The U.S. Treasury is finalizing rules around a tax credit called 45v, which would offer tax breaks for hydrogen producers.

Bennett said this tax credit will help hydrogen infrastructure like pipelines and fueling stations be built out over time.

“The intent of 45v was to incentivize or catalyze and de-risk a hydrogen economy. So, the importance of 45v was to bring down the price of hydrogen, so it would be adopted quicker,” he said.

Recently, the U.S. Department of Energy announced the hub received $30 million for the first phase of planning, analysis and design of hydrogen facilities in the area.


Solution or 'a mistake'?

However, some are not so optimistic about hydrogen uses.

Take David Schlissel from the Cleveland-based Institute for Energy Economics and Financial Analysis, an organization that advocates for renewable energy. He said the greenhouse gas reductions from blue hydrogen are being overinflated.

“We have to eliminate the world's addiction to fossil fuels, and 45v doesn’t do that. All of the money that the government is spending and all of the tax subsidies – our tax money – that they will be spending on blue hydrogen is a mistake,” he said.

Schlissel said the government isn’t making considerations like potential for gas leaks during blue hydrogen production and a lack of established carbon capture technology.

Others share similar concerns.

The Appalachian Hydrogen Hub held a virtual community briefing event last month. During the session, hundreds of comments from community members came in.

Some of the questions raised include what pollution controls the hub will put in place on facilities, requests for more transparency on project locations and more.

Sunita Satyapal, director for the Hydrogen and Fuel Cell Technologies office with the Department of Energy, said local engagement will continue to be a part of the expansion of hydrogen technology and infrastructure.

“That will bring in the community and help to better define the projects, and reduce any potential negative impacts right from the beginning,” Satyapal said.

The first phase for the Appalachian hydrogen hub will happen over the course of 36 months.

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Adriana Martinez-Smiley (she/they) is the Environment and Indigenous Affairs Reporter for WYSO. They grew up in Hamilton, Ohio and graduated from Northwestern’s Medill School of Journalism in June 2023. Before joining WYSO, her work has been featured in NHPR, WBEZ and WTTW.

Email: amartinez-smiley@wyso.org
Cell phone: 937-342-2905