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Big Oil’s Hydrogen Hustle Exposed
By staff - Sunflower Alliance, March 27, 2024
The federal government is providing big bucks to projects that produce hydrogen as a “climate solution.” Most hydrogen produced today is fueled by fossil gas (methane) — so not really a solution at all.
Climate advocates have been advocating for “guardrails” on the program to make sure the hydrogen projects that receive federal money are really produced by new renewable energy.
But this report from Friends of the Earth reveals ways that Big Oil and other polluters are scheming to make the federal rules as lax as possible. They’re campaigning to add loopholes to the guardrails.
Under pressure from environmental groups, the Biden administration drafted guidelines for the federal subsidies that said qualifying hydrogen projects had to meet the requirements of the three guardrails. They had to be:
- powered by renewable capacity built within three years of the hydrogen facility (additionality/incrementality)
- connected to the same regional grid as the hydrogen production
(regionality/deliverability) - able to match renewable energy usage on an hourly basis with hydrogen production, albeit starting in 2028 (time-matching).
Fossil interests are calling for the three guardrails to be removed, weakened to the point of irrelevance, or failing that, waived for ‘first mover’ projects. They’re hoping to grab federal money intended for green energy,
Download a copy of this publication here (PDF).
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