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The Hydrogen Hustle

By staff - FracTracker Alliance, June 5, 2024

Key Findings

  • The DOE’s lack of transparency about ARCH2 prevents meaningful public feedback, leaving communities uninformed and unable to engage in decision-making.
  • Hydrogen blending raises safety concerns due to hydrogen embrittlement, potentially affecting pipelines, valves, and household appliances.
  • Reliance on carbon capture and storage (CCS) technology introduces risks like subsurface carbon dioxide migration, posing threats to nearby communities.
  • Fracking for methane can lead to groundwater contamination, air pollution, and health effects for nearby communities.
  • While promising temporary jobs, ARCH2 is unlikely to generate significant long-term employment, potentially extending reliance on coal and gas industries and contributing to job and population loss.

Overview

The Appalachian Regional Clean Hydrogen Hub (ARCH2) project is a major initiative of the U.S. Department of Energy aimed at developing a hydrogen economy in the Appalachian region. However, despite promises of significant advancement in clean energy and economic growth, the project presents substantial risks to the environment and human health and safety.

This article is based on comments submitted to the Department of Energy (DOE) by FracTracker Alliance regarding the hub’s potential environmental, health, and economic impacts on local communities, including the lack of transparency from the DOE, the dangers associated with hydrogen blending, underground gas migration risks, and the impacts of continued reliance on fossil fuel extraction.

Press Release: Unions call for accountability in HyVelocity negotiations with Department of Energy

By Veronica Serrano - Texas Climate Jobs, January 24, 2024

Austin, Texas – Today the Texas AFL-CIO, a state federation of labor unions representing more than 240,000 members in Texas, passed a resolution on the HyVelocity Hub at the 2024 COPE Convention. The resolution urges HyVelocity “to immediately resolve its differences with Texas labor organizations by committing to binding community workforce agreements and labor peace agreements to ensure a just transition for unionized fossil fuel workers impacted by the transition to clean hydrogen” and “urges the Department of Energy, and all Texas policymakers to hold HyVelocity accountable to union concerns.”

Additional information: Texas Unions, Community, and Climate Groups Release Statement on HyVelocity Hydrogen Hub

Additional Information: Texas Climate Jobs Project statement on DOE’s HyVelocity’s decision 

Additional information: Texas Climate Jobs Project files HyVelocity public information requests

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

Labor unions are still giving Democrats climate headaches

By Alex Nieves - Politico, December 4, 2023

One of California’s most powerful unions is not loosening its grip on oil jobs.

Despite the Biden administration and California lawmakers pouring billions of dollars into new climate-friendly industries like electric vehicles, hydrogen and building electrification, a key player in state politics is still defending fossil fuel interests that provide thousands of well-paying jobs.

President Joe Biden’s investment in clean energy sectors through a pair of massive spending bills — which promise lucrative tax credits for projects that pay union wages — was supposed to speed up the labor transition away from oil and gas. That hasn’t happened in deep-blue California, home to the country’s most ambitious climate policies — and most influential labor unions.

“We believe we’re still going to be working in the oil and gas space for the foreseeable future,” said Chris Hannan, president of the State Building and Construction Trades Council of California, which represents nearly 500,000 members across dozens of local unions, from pipefitting to electrical work.

Unions’ longstanding — and well-founded — distrust of the renewable energy industry as a reliable source of labor-friendly jobs is slowing the “just transition” that Biden, Gov. Gavin Newsom and Democratic leaders around the country have pushed.

With federal officials trying to get clean energy funding out as fast as possible ahead of the 2024 election, and California politicians cracking down on the fossil fuel industry, unions’ reluctance to relinquish fossil fuel jobs undermines Democrats’ aggressive climate targets, according to a lawmaker who serves both a union- and oil-rich area of the state.

While the union embrace of fossil fuels is unique to California — one of the few blue states with significant oil production — the struggle highlights a larger question over how states can quickly build massive amounts of clean energy infrastructure without undercutting labor.

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.

Hydrogen: Hype, hope, or hard work?

By Tony Wood, Alison Reeve, and Richard Yan - Grattan Institute, December 2023

Will Federal Infrastructure Programs Promote or Undermine Climate Justice?

By staff - Labor Network for Sustainability, November 30, 2023

At a November Department of Energy panel on “Community Voices from the Ground” grassroots environmental justice advocates asked the Department to stop promoting large-scale polluting project in marginalized communities of color. John Beard, founder and director of the Port Arthur Community Action Network, said,

“DOE says it is committed to promoting environmental justice in all its activities. And yet, the agency continues to grant export authorizations to methane gas export terminals and explosive carbon bombs in low-income communities and communities of color.” 

 The environmental justice advocates asked DOE to stop investing in hydrogen hubs, carbon capture and sequestration technologies at refineries and utilities, and direct air carbon capture technology aimed at sucking CO2 out of the atmosphere, calling them all “dangerous distractions.” Beard said producing hydrogen requires large amounts of energy that will “worsen the effects of climate change while allowing big oil and gas to reap more profits while our children get sick, our air is polluted, and our safety is compromised.” 

 Simultaneously, at the White House Brenda Mallory, chair of the White House Council on Environmental Quality, said on a conference call with community groups and reporters that nearly 470 federal programs with billions of dollars in annual investment were being “reimagined and transformed to meet the Justice40 goal and maximize benefits to disadvantaged communities.”

Another Exciting Victory! California Selected for Regional Clean Hydrogen (H2) Hub

By Eli Lipmen - Move LA, November 30, 2023

As Californians, ARCHES will enable us to meet two major environmental priorities regarding the ARCHES proposal: abating climate change and potentially ending diesel air pollution. 

Renewable hydrogen, when used with fuel cell technologies, may be the only alternative that can do both.

Renewable green Hydrogen (H2), when used in fuel cells is a zero-emission source of power that creates the opportunity to reduce, perhaps even eliminate, the use of diesel fuel--a dangerous source of pollution that causes lung disease, heart disease, asthma, and cancer, devastating low-income communities along goods movement corridors.

Hydrogen has many applications in heavy-duty transportation--heavy-duty long-haul trucks, locomotives, airplanes, ocean-going vessels, off-road construction equipment--applications that can not easily be electrified.

Click here to learn more about OCED’s H2Hubs program and click here to read the White House’s H2Hubs press release. It is important to understand that this is the first in a multi-step process by which ARCHES can be awarded as much as $1.2 billion for the creation of a green Hydrogen Hub in California.

Move LA played a pivotal role in developing the application for this award, bringing together key allies in the Labor movement with government and nonprofit partners. The results are made clear in the White House announcement on the award to California, which is “committed to requiring Project Labor Agreements for all projects connected to the hub, which will expand opportunities for disadvantaged communities and create an expected 220,000 direct jobs—130,000 in construction jobs and 90,000 permanent jobs.”

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:

Texas Unions, Community, and Climate Groups Release Statement on HyVelocity Hydrogen Hub

By staff - Texas Climate Jobs Project, October 25, 2023

HyVelocity is poised to receive $1.2 billion to build Texas Gulf hydrogen hub

Houston, Texas – Today the Texas Climate Jobs Project, Commission Shift, Air Alliance Houston, West Street Recovery, the Coalition for Environment, Equity, and Resilience, Sierra Club Lone Star Chapter, Sunrise Movement ATX, Texas AFL-CIO, and the Texas Gulf Coast Area Labor Federation released the following statement in response to the Department of Energy’s decision to move forward and negotiate with HyVelocity to award $1.2 billion to build a hydrogen hub in the Texas Gulf:

“We are deeply distressed by the Department of Energy’s decision to advance the HyVelocity hydrogen application in Texas. Through the Department of Energy Regional Clean Hydrogen Hub program, the Biden administration is poised to transfer $1.2 billion in taxpayer dollars to HyVelocity, whose application sponsors include ExxonMobil and Chevron, and whose supporting partners include Amazon, Governor Greg Abbott, and the Texas Railroad Commission.” 

“Our organizations are on the front lines of environmental justice, labor organizing, and community work to reduce carbon emissions and improve living conditions across the Texas Gulf, and HyVelocity’s lack of transparency and refusal to make adequate concrete commitments leave us concerned. We urge the Department of Energy to compel HyVelocity to resolve its differences with our organizations before choosing to move the applicant further in the process.” 

“This includes, at a minimum: prioritizing projects that use renewable energy like wind and solar to help reduce overall carbon emissions; binding community workforce agreements for construction workers with strong Justice40 commitments; and binding labor peace agreements to ensure a just transition for fossil fuel workers.”

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