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DOE’s Regional Hydrogen Hubs: Climate Solution, or Climate Disaster?

Ignoring Climate Scientists and Environmental Justice Advocates, DOE Awards Billions to Fossil Fuel Hydrogen

By Abbe Ramanan - Linked In, October 30, 2023

On October 13th, the U.S. Department of Energy announced the recipients of the Regional Clean Hydrogen Hubs (“H2Hubs”) funding. H2Hubs will award up to $7 billion to seven regional hydrogen hubs around the country. Disappointingly, more than half of the money from this massive federal investment will go towards Hubs producing hydrogen from fossil fuels with carbon capture and storage (CCS), also known as blue hydrogen. This massive investment ignores major concerns cited by climate scientists, environmental justice advocates, and clean energy experts.

One major concern identified by climate scientists is especially worrying: hydrogen gas leaked into the atmosphere is an indirect greenhouse gas that extends the lifetime of methane in the atmosphere, which means hydrogen has 35 times the climate warming impacts of CO2. A massive buildout of hydrogen infrastructure at this scale, without further research into how to safely and securely transport and store hydrogen, will almost certainly lead to significant short-term warming.

Although DOE has stated that each Hub’s projected benefits played a large role in determining awards, the H2Hubs process has suffered from a lack of transparency. Prospective awardees were not required to publish their proposals publicly, so while many of the Hubs promise community benefits, how these community benefits will be generated – and how those benefits will outweigh the potential harms of each Hub – remain opaque. DOE is hosting a series of local engagement opportunities for each Hub, which will hopefully provide opportunities to cut through the hype and learn more about what these projects will mean for the communities impacted.

While we don’t know much about these Hubs, what we do know suggests that most of these projects will do more harm than good:

Biden Funding for Hydrogen Hubs Threatens Communities, Exacerbates Climate Crisis

By Patrick Sullivan, Center for Biological Diversity; Karen Feridun, Better Path Coalition; Peter Hart, Food and Water Watch; Maya van Rossum, Delaware Riverkeeper Network - Carbon Capture and Storage (CCS) Facts, October 13, 2023

WASHINGTON, D.C. – The Biden administration announced today that it will fund seven hydrogen hubs with $7 billion in taxpayer dollars to rapidly expand the production, transport, and use of hydrogen across the nation – sacrificing communities, worsening localized pollution and water crises, doubling down on national sacrifice zones, and perpetuating our reliance on fossil fuels. 

“Throwing billions at hydrogen hubs deepens our dependence on fossil fuels and worsens the climate emergency,” said Maggie Coulter, an attorney at the Center for Biological Diversity’s Climate Law Institute. “President Biden should be urgently investing in proven and increasingly affordable solar and wind energy. It’s wasteful and misguided to fund false solutions like hydrogen that only further burden frontline communities.”

The Department of Energy’s announcement to fund regional hydrogen hubs in the Mid-Atlantic, Appalachia, the Gulf Coast, California, the Midwest, the Dakotas/Minnesota, and the Pacific Northwest flies in the face of the numerous adverse impacts such hubs will have on communities. Billions of dollars in funding for the planned hydrogen buildout subjects already disproportionately adversely affected communities to more pollution and dangerous infrastructure.

“Today’s announcement is a pledge of allegiance to dirty energy by the Biden administration. It is at once a betrayal of environmental justice communities that have been suffering at the hands of the same polluting industries that will now benefit from this misappropriation of taxpayer dollars and of future generations who will suffer the climate chaos hydrogen hub development guarantees,” said Karen Feridun, Co-founder of the Better Path Coalition in Pennsylvania.

Earlier this year, over 180 regional and national climate, community and environmental groups urged the Department of Energy to reject the “hydrogen hype” and ditch funding to expand hydrogen-based technologies touted as climate solutions by the fossil fuel industry. In fact, the vast majority of hydrogen is generated from fossil fuels, and it itself is an indirect greenhouse gas. 

“The build out of massive hydrogen infrastructure is little more than an industry ploy to rebrand fracked gas. The Biden Administration has clearly fallen for this scam hook, line and sinker. This multi-billion dollar bet on greenwashed dirty energy will undermine efforts to address the climate crisis, while increasing pollution of our air and water, and milk taxpayers for billions in new fossil fuel subsidies,” said Jim Walsh, Policy Director of Food & Water Watch. 

“The avalanche of funding from the Infrastructure Law to create Hydrogen Hubs threatens to doom our national commitment to keep the earth from global climate catastrophe. Efforts to replace greenhouse gas emitting energy sources with renewable and truly clean energy will be undone by these subsidies to support methane and other polluting fuels that will make matters worse. Our government must stop investing in dirty energy and instead launch a full-on campaign for non-polluting renewables,” said Maya van Rossum, the Delaware Riverkeeper, leader of Delaware Riverkeeper Network.

Hydrogen production requires massive amounts of water; takes more energy to produce than it generates; is more likely to explode and burns hotter than conventional fossil fuels; and is more corrosive to pipelines – increasing threats in already overburdened communities, and extending our nation’s reliance on fossil fuels. 

“We need an ambitious transition away from dirty energy, not another taxpayer subsidy that enables Big Oil to repackage fossil fuels as so-called clean energy,” said Sarah Lutz, Climate Campaigner at Friends of the Earth US. “The Biden Administration should not be funding hydrogen infrastructure that will lock in decades more of dirty energy production in frontline communities already overburdened with pollution.”

Appalachian Economy Sees Few Gains From Natural Gas Development, Report Says

By Jon Hurdle - Inside Climate News, August 23, 2023

Natural gas production in the Appalachian region of the United States has failed to produce promised increases in jobs and income since the fracking boom began there in the late 2000s, with economic stagnation likely to persist now that output of the fuel has passed its peak, according to a report issued on Tuesday.

The study from the Ohio River Valley Institute, a nonprofit research group, found that gas-producing areas of Pennsylvania, Ohio and West Virginia lost more than 10,000 jobs from 2008 to 2021 and that their personal income growth trailed that of the three states and the U.S. as a whole. Their population dropped by more than 46,000 during the period.

Even though gross domestic product of the 22-county region surged at four times the rate of the states overall from 2008 to 2019, little of that new wealth helped local economies because natural gas investment is mostly made in capital, not labor, and because many of the industry’s workers came from distant areas like Texas or Oklahoma where oil and gas skills were more readily available, the report said.

“GDP, which is often cited as a principal barometer of economic health, failed to produce commensurate gains in local measures of prosperity and well-being, including job, income and population growth,” it said.

Frackalachia Update: Peak Natural Gas and the Economic Implications for Appalachia

By Sean O'Leary - Ohio River Valley Institute, August 22, 2023

By the first quarter of 2020, EQT Corporation, the nation’s largest domestic producer of natural gas, was supplying more than 4 billion cubic feet of natural gas per day. Just a decade earlier, EQT’s output wasn’t even one-tenth as much and the company ranked an undistinguished 25th for output among US producers. But EQT had the good fortune and foresight to base all of its operations in Appalachia, which made it the greatest beneficiary of what turned out to be the world’s richest natural gas field. 

In those early days of 2010, when EQT was the scuffling little guy trying to find a place among giants, such as ExxonMobil, the company employed just 1,815 people. But, by 2020, when EQT’s production had surpassed that of ExxonMobil and all others, its employee count mushroomed to . . . 624.

Yes, EQT’s head count actually declined by nearly two-thirds between 2010 and 2020. In fairness, some of EQT’s job reduction was attributable to its spin-off of Equitrans Midstream (EQM) in 2018. But, even if you add EQM’s 2020 head count to EQT’s, combined employment at the two companies was only 1,395 in 2020, still a quarter smaller than EQT’s workforce in 2010.

EQT’s tale of skyrocketing output accompanied by a shrinking workforce helps us understand important things about the shale gas industry. It helps explain why, as the Ohio River Valley Institute documented in 2021, the Appalachian natural gas boom failed to deliver what had been expected to be hundreds of thousands of new jobs for the region. And it demonstrates that as the natural gas industry matures, it becomes less jobs-intensive and its already meager contributions to economic development and prosperity become even fewer. The dynamic is simple. As a larger share of output comes from existing wells and fewer new ones are dug and work is completed on the construction of processing plants and pipelines, fewer workers are needed. 

Consequently, if production stagnates and the only need for new wells is to replace those that retire, the economic value of the gas industry to Appalachia may diminish even further. And if the Energy Information Administration is correct in its most recent forecast for domestic natural gas production between now and 2050, that is exactly the scenario Appalachia and its natural gas industry are facing.

According to the EIA’s “Annual Energy Outlook 2023”, Appalachian natural gas production likely peaked in 2022. Although this year’s events may prove that forecast to be incorrect in the short term, the long-term trend is clear. Production is leveling off. Indeed, data show that Appalachian production began to plateau as early as 2019. And, as this report will show, economic outcomes in the 22 counties in Ohio, Pennsylvania, and West Virginia that are responsible for 90% of Appalachian gas production deteriorated even further since 2019, which was the last year examined in ORVI’s original study of the Appalachian natural gas boom’s economic impacts in the counties where it is concentrated – an area christened “Frackalachia.”

Download a copy of this publication here (PDF).

Daniel Randall RMT at the XRTU Hub, The Big One

Clara Paillard from Unite Grassroot Climate Justice Caucus at the Big One Trade Union hub

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GMB needs to embrace the Green New Deal

By Pablo John, GMB for a Green New Deal - Greener Jobs Alliance, October 16, 2022

Recently, the GMB’s General Secretary caused outcry by declaring support for fracking and calling Green New Deal activists bourgeois. For those outside of GMB this statement may seem surprising but to understand where such statements come from you need to look at GMB’s history.

GMB has been around for a long time and it has seen every form of de-industrialisation and modernisation under the sun. For a lot of GMB members “modernisation” means a loss of work, a loss of conditions and anti-union policy. So naturally, the union is suspicious of change when it is couched in these terms.

Its roots in the legacy fossil fuel industry run deep. So for a lot of people in GMB, the promises of good quality jobs in renewables seem too good to be true; they’ve been promised similar things before.

So what can we do in the climate movement to win over GMB members? Well, there are two prongs: reassurance of current GMB members and recruitment of new, young renewables workers into GMB.

For workers, the benefits of the green new deal are massive. A full transition from fossil fuels to fully renewable energy sources could create more than three times as many jobs in these sectors than in oil and gas. By current estimates, the growth of jobs in wind energy exceeds the number of oil jobs affected by a transition to renewables. 

There is also a division of age, as a 23-year-old who works in renewables, most GMB members don’t look like me. Whilst a lot of legacy energy jobs are in fossil fuels, most new energy jobs are in renewables. This means many of my friends in the renewable industry aren’t unionised, because they don’t feel GMB represents us.

A lot of these new renewable start-ups are not union-friendly and it will take a lot of work to get inside these sites. But if we don’t we’ll be replacing one set of BP and Shell billionaires with another set of renewables billionaires. We need rapid transit away from fossil fuels in the next 10 years, we need to make that change or it will be done to us for the benefit of the billionaires.

So climate activists need to meet trade unionists where they are, but above all, we need to ensure any transition is worker-led. We can’t have a top-down transition of giant companies sacking workers and rehiring non-unionised workers in their wind farms. It needs to be a bottom-up movement, with politicians, workers and the climate movement hand in hand.

My union, GMB, needs to follow the examples of the TSSA and FBU in wholeheartedly supporting a Green New Deal. While everyone has a stake in the transition to renewables, who better than the workers of GMB to design, implement and power the green new deal?

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