Mrvan urges Energy Secretary to give green light for Hydrogen Hub
Mrvan asked Energy Secretary Chris Wright Wednesday in a House Appropriations Subcommittee on Energy and Water Development hearing about the criteria for review and status of the Northwest hydrogen hub project.
Under the Infrastructure Bill, Mrvan said seven hydrogen hubs were awarded federal funding. One of the hubs, the MachH2, is located in Northwest Indiana, Mrvan said, and it is currently under review.
Energy Department officials are considering cutting funding for the development of four hydrogen production hubs in mostly Democratic-leaning states and maintaining funding for three hubs in mostly Republican states, according to a March Politico article.
Congress and the Biden administration allocated the funding for the seven projects, so cutting the funding would politicize federal funds, according to the Politico article.
Mrvan said his office has worked with fellow members of Congress, former Gov. Eric Holcomb, current Gov. Mike Braun, and the state legislature 'to set the table for the hydrogen hub.'
The project creates 12,000 construction jobs, which Northwest Indiana unions can fill, and allows the area steel industries to have a cleaner distribution by capturing carbon, Mrvan said.
'It is a blue hydrogen, and it is something that will be transformational. Transformational in economic development within my community,' Mrvan said. 'This is something that creates work and wealth, has passed the Congress, and is now being reviewed by the Department of Energy.'
Acknowledging 'people's frustrations,' Wright said no decisions have been made for hydrogen hub projects because he wanted to collect 'thorough data' and establish a process for reviewing the projects.
Currently, the department is funding feasibility studies, Wright said, to review the economic viability of the projects. Under review procedures, Wright said, the department will consider legal aspects, the technology, the engineering and the market for the hydrogen hubs.
'We are just looking the same way any business would look at investments,' Wright said.
To Wright's point about the market, Mrvan said both Northwest Indiana steel mills — Cleveland-Cliffs and U.S. Steel — have created a system to use hydrogen through the carbon capture project, which uses a blast furnace 'to be able to make more globally competitive steel and put less carbon out in my district, so we have cleaner air and cleaner water.'
Andrew Fulton, a spokesman for U.S. Steel, said the company has partnered with CarbonFree as part of its effort to look 'for ways to reduce emissions through advanced technology.'
'This carbon capture and utilization project will help us reduce greenhouse gas emissions by converting emissions to calcium carbonate, which is used in a variety of products for consumers and industry,' Fulton said.
If a hydrogen hub project has established cofinancing, the science and engineering work, has viability and had an offtake agreement then 'those are the kind of things that we're going to go forward with,' Wright said.
'We want to improve the energy system,' Wright said.
Mrvan said he wants to work in a bipartisan fashion to ensure the Northwest Indiana hydrogen hub project moves forward. Mrvan asked about the certainty of the project moving forward.
'Because it was awarded, now it's held, and uncertainty is blowing up our economy,' Mrvan said.
The department's goal is to review all nearly 500 large projects by the end of the summer, Wright said.
'I've always said energy should not be political. It's the basic infrastructure of human lives,' Wright said.
Mrvan and U.S. Senator Jim Banks, R-Indiana, recently wrote Wright a letter to urge the Trump administration to prioritize Northwest Indiana as a regional hydrogen hub.
'Prioritizing a hydrogen hub in Northwest Indiana is a bold, pro-American decision that plays to our state's strengths. Indiana offers the Hoosier workforce, infrastructure and industrial knowledge to deliver results fast,' the Congressmen wrote in the letter.
The bp Whiting Refinery could be used for blue hydrogen production, which is created from clean natural gas using carbon capture technology. Blue Hydrogen uses existing infrastructure and could provide 'a scalable energy source capable of meeting immediate energy demands,' according to the letter.
A spokesman for bp declined to comment.
The Whiting Refinery can process up to 440,000 barrels of crude oil per day, according to the letter. Continuing the project 'will ensure that our energy and steel industries remain well positioned for success into the next century,' according to the letter.
'Investing in blue hydrogen production at this facility will bolster existing supply chains and will best position the United States for energy dominance,' the Congressmen wrote. 'We believe the success of the hydrogen energy project will support the administration's stated goal to reshore our critical industries and strengthen our manufacturing base.'
The congressmen asked the Trump Administration to make the Hydrogen Hub a priority.
'Indiana is ready to lead the way in blue hydrogen innovation, strengthening American manufacturing, boosting our domestic energy supply and lowering costs by maximizing the potential of our abundant and reliable fossil fuel resources,' they wrote.
akukulka@chicagotribune.com
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