By Seth Blumsack, Jeremy Gernand, Michael Helbing, and Hannah Wiseman
Hydrogen fuel—with its potential to lower the climate and air pollution impact of industries that are difficult to power on clean electricity, like steel or refining—can be a valuable component of the nation’s energy transition. If carefully implemented, hydrogen fuel may also generate economic growth in communities that have lost fossil fuel-based jobs.
Given the Department of Energy’s announcement that Pennsylvania, along with four neighboring states, will receive two large grants to develop “regional clean hydrogen hubs,” Pennsylvania is now well-positioned to play an important role in launching the nation’s hydrogen economy.
Pennsylvania’s hydrogen hubs represent an economic and innovation opportunity for the Commonwealth. But building a hydrogen hub—which includes hydrogen production, transportation, and consumption—is a daunting task. We see three important steps that Pennsylvania must take soon if hydrogen is to contribute to a clean energy economy in the Commonwealth and the region.
The first is to ensure that hydrogen is indeed produced and used cleanly. Pennsylvania’s hydrogen hubs will produce some hydrogen from natural gas, which requires the capture of the carbon dioxide (CO2) generated by the production process to be “clean” (essentially carbon neutral). Other hydrogen production will involve electrolysis, which requires significant amounts of energy to split water atoms into hydrogen and oxygen gas.
While the federal dollars for hydrogen hubs require clean production, Pennsylvania should take additional steps to incentivize industry to adopt clean hydrogen fuel. One approach would be for the Commonwealth to establish binding decarbonization targets that set a clear goal for, say, 2050, while progressively ratcheting up the level of decarbonization required.
Hydrogen fuel does not produce carbon emissions when it’s being used but can emit oxides of nitrogen, an air pollutant. These emissions are regulated federally, but Pennsylvania should take steps to monitor air quality near major use sites, especially in poorer urban areas.
We need truly clean electricity on a large scale if we’re going to make hydrogen from water. Pennsylvania is in a good position to use nuclear energy to generate hydrogen—it’s one of the largest producers of nuclear energy in the U.S. But the state has lagged in renewable electricity production (from sources like wind and solar) since the Alternative Energy Portfolio Standard has lapsed. The PJM Interconnection—the regional power grid that serves Pennsylvania and surrounding states—could also face capacity shortfalls as coal plants retire. Pennsylvania will need its own mechanisms to support clean electricity production, and to work with PJM to ensure a robust regional power grid.
To generate low-carbon hydrogen from natural gas, the resulting CO2 must be captured and stored underground. This requires permits both from the Environmental Protection Agency (EPA) and the Pennsylvania Department of Environmental Protection. Pennsylvania should work with the EPA to better coordinate permitting processes as it moves toward getting state authority to issue federal injection permits—a two-year process as least.
The Commonwealth will also need to speed up its development of carbon storage property laws and permitting standards, which have languished in the state legislature.
Second, Pennsylvania and neighboring hydrogen-hub states need policies that will support regional infrastructure development, including pipelines for both hydrogen and CO2. There is no law specifying who has primary authority over the siting and construction of hydrogen pipelines, and states control the siting of CO2 pipelines. This requires developers to navigate multiple permitting processes. Pennsylvania can’t solve this problem alone—it needs to work with the federal government to clarify this authority.
Third, Pennsylvania needs to take hydrogen safety seriously. As with pipeline siting, some of the regulation of hydrogen pipeline safety is the responsibility of the federal government, and Pennsylvania can try to push the standards-setting process forward. Safety regulations on hydrogen uses in Pennsylvania, as well as hydrogen pipelines that don’t cross state borders, would fall under state jurisdiction.
Policies in this area are sparse. For example, unlike states such as Colorado, Pennsylvania has no hydrogen fueling station regulations even as both hydrogen hubs will strive to use hydrogen in fleet vehicles. At minimum, Pennsylvania should produce clarity by selecting and formally adopting private standards applicable to hydrogen fueling as well as a standard for pipelines that it would regulate.
Pennsylvania is well-positioned to lead in the energy transition through its involvement in hydrogen hubs. But key policy changes—along with continued technical advancements to reduce hydrogen costs and achieve true emission reductions—will be essential to launch the Commonwealth forward.
Seth Blumsack is a Professor in the John and Willie Leone Department of Energy and Mineral Engineering at Penn State, and Co-Director of the Penn State Center for Energy Law and Policy.
Jeremy Gernand is an Associate Professor in the John and Willie Leone Department of Energy and Mineral Engineering at Penn State.
Hannah Wiseman is a Professor at Penn State Law and Co-Director of the Penn State Center for Energy Law and Policy.
Michael Helbing is a Staff Attorney with the Penn State Center for Energy Law and Policy.