The U.S. Department of Energy will give a Midwest hydrogen hub up to $1 billion to start planning projects — including at BP’s Whiting Refinery in northwest Indiana. This first step in the process is expected to take more than a year. But northwest Indiana activists feel the DOE is moving the BP project along without considering residents nearby.
BP plans to make what’s called “blue” hydrogen — using fossil fuels to make hydrogen and then storing its carbon emissions underground. That hydrogen could be used to reduce emissions in Indiana industries that are hard to decarbonize — like oil refining and steelmaking.
Neil Banwart is the chief integration officer for the Midwest Alliance for Clean Hydrogen — also known as Mach H2. The hydrogen hub covers projects in Indiana, Illinois, Michigan and Iowa. He said this first phase of the process is all about planning and concept development — looking into how companies will produce and transport the hydrogen as well as looking at potential environmental impacts through the National Environmental Policy Act.
Mach H2 Chief Equity Justice Officer Elizabeth Kocs said the hub will also further engage communities that host these projects and work to develop guidelines for community benefits plans.
"We have to provide consistency and make sure that the federal requirements are flowing down to each of the projects. But we're not going to be the ones that then dictate everything that happens at the community level. It's important that companies and communities build strong, trusting relationships in this first phase in order to move forward with future phases," she said.
Some projects through the Mach H2 hub have yet to be announced.
Northwest Indiana residents feel DOE isn't hearing their safety concerns
Just Transition Northwest Indiana opposes BP's plans to store carbon emissions underground. It worries pipelines carrying the CO2 could explode or leak — threatening public safety and drinking water.
Last year, the federal government slapped BP with the largest civil penalty ever imposed for industrial air pollution at its Whiting refinery.
In January, Whiting resident Lisa Vallee had to seek emergency care when toxic fumes from the refinery made it hard for her to breathe.
“The thought of mixing this dangerous carbon dioxide underground with the huge refinery that has been known to have issues and this hydrogen hub right in our backyards is literally horrifying," she said.
Banwart said carbon capture and storage technology has been around for a long time and he's confident the hub can do it safely.
Recent issues at the only company that currently stores CO2 at this scale has thrown the safety of carbon storage into question, however. ADM in Illinois notified the federal government of a leak earlier this year.
Several environmental groups have come out against carbon capture and storage because it allows companies to continue to pollute rather than forcing them to reduce their emissions.
Vallee said she would be more in favor of the BP project if the company made "green" hydrogen — which is produced using renewable energy.
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Will the Trump administration keep funding hydrogen hubs?
The hydrogen hub program has four phases and Mach H2 is only in phase one. Banwart said it could be several years before companies like BP start making hydrogen. That makes these projects vulnerable to funding cuts when President-elect Donald Trump takes office in January.
Banwart said the hydrogen hubs have received bipartisan support at the federal and state level. He said hydrogen can also be used in a lot of different ways.
“Clean hydrogen is — kind of been referred to as a Swiss Army knife, right? And so regardless of who's occupying certain seats in certain administrations — we think it is an important part of the energy transformation, you know, the energy of the future," Banwart said.
The U.S. Department of the Treasury is also still working on final guidance regarding which projects can take advantage of a federal clean hydrogen tax credit. Right now, it’s not clear whether the BP project would qualify. For some projects that are part of the Mach H2 hub, the stakes are high.
“Constellation Energy is a member of our hydrogen hub and Constellation intends to use their nuclear facility in Illinois to produce clean hydrogen. And this would essentially be a new line of business for Constellation. Constellation has said publicly that, if they cannot realize this hydrogen production tax credit, that they will not proceed with their project,” Banwart said.
We couldn’t reach the DOE in time for comment.
Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or follow her on Twitter at @beckythiele.