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A policy expert explains if and how hydrogen will help decarbonize Pa.

Thanks to a possible windfall of federal dollars for hydrogen production, Pennsylvania lawmakers are trying to figure out how to regulate this potentially massive new emission-reducing industry. But as Spotlight PA recently reported, there are unanswered questions about how green hydrogen will be. 

Pete Budden works on state and regional hydrogen policy for the Natural Resources Defense Council, a national nonprofit that studies ways to fight climate change. Spotlight PA’s Kate Huangpu asked him why there’s so much attention on hydrogen and what it means for Pennsylvania’s energy future. 

The Q&A has been edited for length and clarity. 

Spotlight PA: What role will hydrogen play in decarbonization and, more broadly, in U.S. climate goals? 

PB: The big picture is to reach net zero [emissions by 2050], reducing emissions wherever we can, or eliminating them entirely. It’s hard to do in certain sectors where it’s hard to electrify. That’s where hydrogen will play a role. 

In Pennsylvania, in particular, the industrial sector is the biggest emitter, so obviously it’s a focus for the state to find a solution.

Spotlight PA: Where does hydrogen fit into the U.S. energy economy? Where would it be used and how do its uses differ from other sources, like oil and gas, or wind and solar?

PB: It’s an energy vector rather than a way to generate energy — so things like solar and wind produce electricity. Hydrogen is a way of storing and transporting energy. 

That energy is stored in the molecule until it’s burned. In that way, it’s similar to fossil fuel — but it’s different because when you burn it, it doesn’t produce carbon dioxide. But it can be a storage of dirty energy [if you derive it from methane], so we have to make sure the production process is clean. 

It’s not good to use hydrogen where electricity can be used instead — things like transportation, and heating buildings, where it’s really easily done with heat pumps and electric vehicles. It would be better to focus hydrogen on hard-to-electrify sectors: shipping, aviation, steelmaking, and some chemicals we need to make.

Spotlight PA: What is the state’s role in ensuring these giant federal green energy programs — specifically, subsidizing the building of hydrogen hubs — work as intended?

PB: I think the overarching aim of the hubs program, which is clear from what the Department of Energy has said, is to develop hydrogen where it’s really needed and there aren’t alternatives.

The state’s responsibility is to ensure that we’re using hydrogen where it’s most valuable and using the federal investments wisely: investments in hydrogen that actually lead to a reduction in greenhouse gas emissions while preserving air quality, creating jobs, and developing the workforce. 

Spotlight PA: What is a hydrogen hub? What components are involved? What does this mean for jobs, and how might union labor play a role in production? 

PB: So a hydrogen hub is the whole ecosystem of hydrogen production — all the way from hydrogen production to transportation and storage and then the end uses of hydrogen. And they’re all linked together by the necessary infrastructure. 

The idea of the hub is to build these things close together so you’re more efficient about moving hydrogen around. And that they will produce good jobs that are lasting and a way to develop a workforce. 

For the Infrastructure Investment and Jobs Act — which is where this money is coming from — prevailing wage requirements are in there. Any hub projects have to meet those requirements.

Spotlight PA: Why is so much IIJA money going toward hydrogen hubs? Why has the federal government decided that hydrogen is a good place to focus its efforts?

PB: It’s a huge amount of money for a demonstration program, the biggest DOE has ever administered. The reason why the government decided to allocate [to hydrogen] is because it’s a key tool for harder-to-decarbonize sectors where we don’t have other solutions.

Something like green steelmaking — it’s a highly expensive investment for any company to make, especially to be the very first. To demonstrate that and de-risk that first one, it’s a huge infusion of cash. 

Using hydrogen in some industries is not commercially viable right now. But after demonstrating what hydrogen hubs can do with government support, we’ll be able to build out.

Hydrogen is a really key tool. It’s an opportunity to develop a sustainable workforce for a clean industry for decades to come. So we need to put the right climate guardrails in place to make sure that we’re doing this right from the start.

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