Womble Bond Dickinson
Summary
Although reliance on coal has been declining, even in 2021, coal still supplied over 10% of the United States’ energy consumption, according to the EIA. But, in a matter of approximately 15 years, many hope that Verne’s vision may be realized to have hydrogen emerge as a plentiful, flexible, and inexpensive source for many of our energy and transportation needs, while significantly reducing the carbon impact on the world around us. In a relatively short period of time (by 2050), the Biden-Harris administration hopes to achieve a zero net carbon impact for the United States economy. In part to further that goal, on November 15, 2021, President Biden signed into law the Infrastructure Investment and Jobs Act, often referred to as the “Bipartisan Infrastructure Law.” The Bipartisan Infrastructure Law, among other things, includes a number of incentives and programs related to clean drinking water, high-speed internet, and clean energy initiatives. Many have focused on the significant expenditures related to solar panel and battery technologies and associated manufacturing. But the Bipartisan Infrastructure Law also contains billions of dollars targeted for the development and commercialization of hydrogen as a significant fuel to decrease reliance on fossil fuels and the related carbon emissions associated with such fuels.
More specifically, the Bipartisan Infrastructure Law seeks to establish a number of regional clean hydrogen hubs — a network of clean hydrogen producers, consumers, and infrastructure. They aim to advance the use of clean hydrogen in various sectors, such as manufacturing, transportation, and energy storage with the ultimate goal of scaling hydrogen production to make it cost competitive and cost effective.
As a significant step toward such commercialization, seven Regional Hydrogen Hubs recently were selected to receive up to a combined $7 billion in public funds pursuant to the Bipartisan Infrastructure Law. The law provides for up to $8 billion in such hydrogen-related projects. Under the approved hubs’ applications, such funds would be joined by $40 billion in private funds to further the use of hydrogen in energy production, transportation, agricultural production, and steel and glass manufacturing. The Regional Hydrogen Hubs also strive to lower-costs associated with hydrogen production, storage methodologies and facilities, as well as to facilitate the commercialization of carbon capture technologies.
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