$254 Million U.S. Investment in Industrial Decarbonization: A Hydrogen-Analysis
Modern Hydrogen
Clean hydrogen on-site. No new pipelines. No new storage. No delivery trucks. Near zero and negative CO2.
The U.S. Department of Energy’s recent announcement of a $254 million investment to combat industrial greenhouse gas emissions is a groundbreaking move, particularly focusing on sectors that have been historically difficult to decarbonize. This initiative, critical in the global shift towards sustainability, has garnered substantial attention in the clean energy sector, with a keen focus on hydrogen-based technologies.
The Urgent Need for Decarbonization in Steel Manufacturing
Tony Pan , CEO of Modern Hydrogen , lays out the stark reality of current industrial practices. “Iron and steel manufacturing is one of the biggest contributors to global greenhouse gas emissions,” he states, highlighting the sector’s significant environmental impact. “It emits twice more CO2 than the shipping + aviation industries combined!” This alarming comparison underscores the urgent need for new technologies, processes, and programs.
Pan further explains the pivotal role of hydrogen in this transformation. “Hydrogen is critical to decarbonize steel,” he asserts. According to Pan, the traditional reliance on coal in steel production is not just for energy required to refine ore, but also for its chemical properties during the alloying phase. “Since the latter step requires a chemical, solar and wind power can never do it directly since all they provide is a clean electron. Hydrogen can be a clean substitute for that carbon.”
Hydrogen’s Role in Reindustrializing America
Mack H. , Commercialization Manager at Modern Hydrogen, speaks about the broader implications of these hydrogen-centric projects. “These projects are the early signs of the coming reindustrialization of America, and they could not come at a better time.". Hopen emphasizes the vital role of industrial heat, which is fundamental to the manufacture of nearly every product we use today.
He adds, “Utilizing clean resources to generate high temperatures opens up not only a world of new and improved products, but also of more places and areas where these processes can be located.” Hopen points out the diverse sectors that need decarbonization, including iron and steel, cement, concrete, forest products, and food and beverage production are all highlighted by these funding announcements.
Innovations in Hydrogen Technology
Hopen also highlights Modern Hydrogen’s cutting-edge solutions. “Modern's distributed methane pyrolysis systems have the potential to drastically reduce the emissions associated with these industrial processes by upwards of 75% in many situations. In some cases for example, when paired with biogas, they can even remove carbon from the carbon cycle, helping heavy industry get a net zero.” he says. Because hydrogen can be burned without producing carbon dioxide, high temperatures no longer require high emissions. The real value of this technological advancement, according to Hopen, is that it can be accomplished without requiring massive infrastructure build-out or new renewable energy supplies, making it a practical solution for operators today.
Global Perspectives on Hydrogen in Steel Production
François Le Scornet , President at Carbonexit Consulting , brings an international viewpoint, comparing the U.S. initiatives to global efforts. “I find the US initiative at the Toledo steel plant particularly interesting,” Le Scornet comments. He elaborates on the use of SOEC technology to produce hydrogen, which is then employed in the HDR process, significantly reducing CO2 emissions.
Le Scornet draws parallels with European projects. “This project actually ‘echoes’ the steps taken by Sweden's HYBRIT initiative using similar technologies.” He mentions several other significant projects across Europe, such as Germany's Salzgitter SALCOS program and Sweden's H2 Green Steel, highlighting a shared goal of significant emission reductions.
The Crucial Role of Policy and Investment
Lucy Fitzgerald of coolplanet.io emphasizes the transformative potential and the necessity of supportive policies for these projects. “The SOEC Hydrogen Direct Reduction (HDR) project at the Toledo, OH steel plant is a significant step forward,” she notes. Fitzgerald points out the notorious carbon intensity of the iron and steel industry, labeling the project a game-changer.
Recommended by LinkedIn
She also stresses the importance of government backing. “The $10M funding assignment at Toledo is an incredibly strong signal of commitment to more sustainable steel production in the region.” However, Fitzgerald warns that investment alone is not enough. “It's crucial that such investment is coupled with robust policy support and a framework that encourages wider adoption of these technologies.”
Fitzgerald highlights the need for collaborative efforts. “The success of these projects could and should catalyze a broader shift towards hydrogen and other low-carbon technologies.” She calls for sustained effort and collaboration between various stakeholders for a lasting impact.
As these developments unfold, the clean energy community eagerly watches. The integration of hydrogen technology in industrial processes not only offers a cleaner alternative but also signals a shift in global industrial practices towards sustainability.
About the DOE-Funded Projects
Here's a description from the US DOE of the IEDO awarding $171M (FY23) for hard-to-decarbonize sectors and details on applications for $83M upcoming (FY24):
On Jan. 25, 2024, the U.S. Department of Energy (DOE) Industrial Efficiency and Decarbonization Office (IEDO) announced $171 million for 49 projects that will reduce industrial greenhouse gas (GHG) emissions and move the nation closer to a net-zero economy.
The 49 selectees represent high-impact, applied research, development, and pilot-scale technology validation and demonstration (RD&D) projects that will reduce energy usage and GHG emissions from high GHG-emitting industrial subsectors along with cross-sector industrial decarbonization approaches.
Here are 4 of the Hydrogen related projects announced:
Topic Area 2: Low-Carbon Fuels Utilization R&D
Topic Area 5: Decarbonizing Iron and Steel
Read about each of the projects that have been awarded funding as well as details for applying for the remaining funding for crucial decarbonization efforts here in a post from the US Department of Energy: https://www.energy.gov/eere/iedo/funding-selections-fy23-industrial-efficiency-and-decarbonization-multi-topic-foa?utm_medium=email&utm_source=govdelivery
Former Navy fighter pilot and airline pilot Nuclear/biological/chemical warfare officer Patent on aircraft that is the best designed aircraft in history
9mo#FoxNewsAtNight The solution is to eliminate all regulations of energy and environment while investing in Heliogen which uses sun, sand and water to make hydrogen for all of the world’s energy and air pollution requirements. Hydrogen burns to make pure water to save or sell
Climate Tech Deep Dives for Smart Investments and Business Strategies
9moModern Hydrogen, Thank you very much for including my comments regarding the pilot and demonstration projects linked to the decarbonization of the steel industry in both the United States and Europe. I greatly appreciate it. Low-carbon hydrogen will undoubtedly have a substantial role to fulfill not only in the United States and Europe but also on a global scale. 🙏
Decarbonization of industrial furnaces using existing low-cost delivery infrastructure can cut emissions faster than solar and wind offsets combined and save on using carbon offset credits because companies can physically reduce their own carbon footprint exponentially more than the credits that they could buy, making an easy case for the capital expenditure to implement this technology.