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Pennsylvania

Green hydrogen: A climate change solution or fossil fuel bait and switch?

By Susan Phillips - Alleghany Front, April 30, 2024

On the campus of a former DuPont facility in Newark, Delaware, a group of researchers are working to create what they say is key to solving the world’s climate crisis — an affordable way to make hydrogen using renewable energy.

“It’s not a question of technical feasibility. It is a question of figuring out what is the lowest cost to produce that hydrogen,” said Balsu Lakshmanan, chief technology officer for the start-up Versogen. “We are displacing bad hydrogen with good hydrogen.”

“Bad hydrogen”

The world is full of what he referred to as “bad hydrogen.” Nearly all the hydrogen used today is made with natural gas, in a process known as “steam methane reformation,” or through coal using gasification. And while hydrogen burns clean when used in fuel cell cars, trucks and buses — emitting only water vapor — climate warming gasses like carbon dioxide are released during hydrogen production.

Ten million metric tons of hydrogen are produced in the U.S. every year. More than 1,600 miles of pipeline transports it — primarily in the Gulf Coast.

The bulk of the hydrogen is not used to power vehicles but as part of oil refining, including those in the Philadelphia region. It’s also used to help feed us all — it’s used to make ammonia, a key ingredient in fertilizer.

Maya van Rossum, the Delaware Riverkeeper, Shouts Down Pennsylvania Gov. Shapiro Over a Proposed ‘Hydrogen Hub’

By Kiley Bense - Inside Climate News, March 12, 2024

Activists want more public participation in a proposal to produce hydrogen in southeastern Pennsylvania. Touted by the Biden administration as “crucial” to the nation’s climate goals, advocates fear the federally-funded project will create more pollution and further burden environmental justice communities.

Protestors disrupted a public meeting on Monday about a federally-funded “hydrogen hub” to be located in southeastern Pennsylvania, southern New Jersey and Delaware that would produce, transport and store the controversial fuel at sites across the region.

While the Biden administration considers these hubs a key part of its climate agenda that would decarbonize greenhouse-gas intensive sectors of the economy like heavy industry and trucking, climate activists consider hydrogen a false solution based on unproven technology that will only lead to more fossil fuel extraction and further pollute the environment.

Minutes after Governor Josh Shapiro took the stage at a union hall in northeast Philadelphia to speak in support of the project, which will be funded with $750 million from the Department of Energy as part of the Bipartisan Infrastructure Law, the Delaware Riverkeeper, Maya van Rossum, stood up from her seat and demanded his attention.

“The Department of Energy said that community engagement is supposed to be a highest priority. You have yet to have a meeting with the impacted community members to hear what they have to say,” she shouted, interrupting Shapiro as he was speaking about the buy-in for hydrogen hubs at all levels of government in Pennsylvania. “When are you going to have a meeting with those community members?” she asked.

Pennsylvania’s Bad Bet: Why Shell Didn't Save Appalachia with Plastics

By Nick Messenger, Kathy Hipple, and Anne Keller - Ohio River Valley Institute, January 25, 2024

In November 2022, over ten years after Shell’s first public announcement of site selection for the project, and after five years of construction, Shell Chemical Appalachia Polymers opened its ethane cracker plant in Beaver County, Pennsylvania. The plant, which refines ethane, a natural gas liquid, into plastic pellets used to produce single-use plastics, was heralded as the beginning of a plastics industry renaissance in Appalachia. At least one local economic development organization estimated it would support nearly 600 direct employees and could generate 11,000 jobs in the Pittsburgh area.

Now, just over one year since production officially began, the plant has been mired in problems. The facility exceeded its allotted pollution limits within months of operating and repeated flaring has deepened air quality and health concerns of Beaver County residents. Furthermore, the plant seems to have fallen short so far in generating the economic benefits promised to residents, as Beaver County continues to trail the state across most economic metrics. This poor economic and environmental performance comes despite Shell receiving billions of dollars in state and local tax exemptions that carry an opportunity cost for taxpayers—namely, that alternative uses of the funds could have been used to grow the regional economy in more direct ways, such as to support small businesses, improve workforce development, or develop projects within industries that already have a strong history, complete with supply chains, in the region.

Download a copy of this publication here (PDF).

Pennsylvania Senate Hydrogen Hub Testimony Illuminates Cost, Viability Concerns; Risk of Wasted Taxpayer Dollars

By staff - Ohio River Valley Institute, December 4, 2023

Financial and regulatory support for the gas-based ARCH2 Appalachian Hydrogen Hub risks reduced economic growth, fewer jobs, and higher utility bills, taxes, and prices for Pennsylvanians, according to testimony delivered today at the Pennsylvania Senate Democratic Policy Committee’s hearing on hydrogen infrastructure by Ohio River Valley Institute Senior Researcher Sean O’Leary.

Hydrogen and companion carbon capture and sequestration (CCS) technology are exorbitantly expensive and relatively ineffective means of decarbonization, research shows, and undue state support for their development may result in stranded assets, wasted public funds, and minimal economic and job growth.

“For these reasons, the greatest risk facing you as Pennsylvania policymakers isn’t that you may provide too little support for the state’s hydrogen hubs but rather that you may provide too much,” O’Leary explained to the Pennsylvania Senate Democratic Policy Committee. “That is why we at the Ohio River Valley Institute hope members of this committee will help temper financial and regulatory support for the hubs to reflect their actual value and costs. We hope that members will work to ensure that state assistance is limited to the small number of projects and specific applications in which hydrogen is either the most cost-effective or only means of decarbonization. And we hope that, when hydrogen is used, it will be hydrogen made from water and not natural gas, which is both polluting and economically counterproductive.”

The Clean Energy Pathway for Southwestern Pennsylvania describes how concerted investment in energy efficiency and distributed renewable generation in the ten counties surrounding Pittsburgh would cut power sector carbon emissions by 92% by 2035, all at a total cost 13% less than decarbonization models reliant on natural gas and carbon capture. The Clean Energy Pathway would additionally support the creation of 12,416 jobs and yield annual environmental and health benefits of more than $2.5 billion by 2035 via efficiency expenditures and residential bill savings.

Download Testimony Here.

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.”

UAW members strike in suburban Philadelphia

By John Leslie - Workers Voice, September 24, 2023

On Sept. 11, members of United Auto Workers (UAW) Local 644 at Dometic in Montgomery County, Pa., went on strike to demand fair wages and benefits. In negotiations, the company offered a 10.1% wage increase over the life of a three-year contract, with workers’ health-care costs increasing by 5% over the same period. This is not enough to keep pace with inflation. At the outset of the strike, Jim Hutchinson, the president of Local 644, said, “We have a decent portion of this workforce that, quite frankly, is below the living wage.”

In a video shared on Twitter, Dave Richards, a 22-year veteran of the Dometic plant, said that with “food, gas, and everything going up … our wages are nowhere near what we need to survive and have a good living.” Dometic, which manufactures appliances and accessories for boats and recreational vehicles, made $4 billion in profits last year while their workers struggle to make ends meet.

On Friday, Sept. 22, a rally called by the UAW gathered more than 100 strikers and supporters to demand a fair contract now. The rally included local politicians, UAW officials, striking UAW members from New Jersey, and representatives of other unions like the regional AFL-CIO and the Teamsters. Members of SAG-AFTRA, the International Brotherhood of Electrical Workers, and the Teamsters were visible in the crowd.

During the rally, one UAW member spoke, saying, “There is no more middle ground. We are no longer asking for our right to the American Dream, we are demanding that dream, and if you don’t give it to us, we’re coming to fucking take it.”

While the strike at Dometic is not part of the larger Big Three auto strike, this is a crucial fight for all workers. As the wealthiest segment of society has reaped billions in profits, the workers who create that wealth have fallen further behind. Many of these workers were deemed “essential” during the pandemic and worked long hours while putting their health and the health of their families at risk. Dometic workers deserve a fair contract, not one that leaves them behind.

Ten-Week Strike Wins “Substantial Improvements” for Locals 506 and 618

By staff - United Electrical Workers, September 2, 2023

On June 22, after nearly two months of negotiations, the 1,400 members of UE Locals 506 and 618 voted down Wabtec’s last, best and final offer. Following the vote, second-shift workers marched out of the plant and UE members set up picket lines around the massive facility.

It was the second strike since Wabtec took over the facility from General Electric in 2019. Following a nine-day strike in 2019, the UE locals negotiated a first contract with the new company which preserved most of the conditions they had won over nearly eight decades of bargaining with GE. However, they reluctantly agreed to modifications in the grievance procedure and to lower wage rates for new hires, who would progress to the full “legacy” wage rates over ten years.

In their second contract, members sought to address both the inequities of the “progression” for new hires and the lack of accountability caused by Wabtec’s abuse of the grievance process over the past four years. The company simply refused to address issues in the plant, pushing everything to arbitration — a study by the University of Illinois Urbana-Champaign found that grievances per worker had almost doubled since Wabtec took over, and the company was less likely to settle disputes than GE. Members were also keen to make up for their loss of purchasing power as inflation soared in the past two years.

As soon as the UE members walked out, support poured in from the community and around the country. Major unions and labor leaders, including the UAW, Teamsters, and Association of Flight Attendants President Sara Nelson, who spoke to UE’s 2021 convention, tweeted support for the strike. Unifor, Canada’s largest private-sector union, sent a solidarity photo, and UE locals around the country sent letters of support. Both of Pennsylvania’s U.S. Senators, Bob Casey and John Fetterman, issued statements backing the UE members. Lieutenant Governor Austin Davis visited the picket line in the first week of the strike and sent a letter to Wabtec CEO Rafael Santana, indicating that both he and Governor Josh Shapiro supported the workers’ demands for a fair contract.

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).

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