[USA] Biden’s proposed budget for FY 2023 includes $44.9 billion for clean energy

On March 28, 2022, President Joe Biden unveiled his proposed $5.8 trillion budget for fiscal year (FY) 2023, which includes $3.3 billion for clean energy growth.[1] Biden’s proposed budget includes increasing the Department of Energy’s (DOE) budget by 7.1% to $48.2 billion, up from $45 billion in FY 2022. The increase partly reflects spending required by the 2021 Infrastructure Investment and Jobs Act (IIJA) and includes $200 million for a new Solar Manufacturing Accelerator program to help spur domestic solar equipment production. The proposal also proposes $502 million to weatherize and retrofit low-income homes. This includes $100 million for a new Low Income Home Energy Assistance Program (LIHEAP) Advantage pilot to electrify low-income homes and $260 million to support energy efficiency improvements to Department of Agriculture (USDA)-assisted multifamily homes. In addition, Biden’s proposed budget would provide $150 million to electrify Tribal homes and transition colleges and universities to renewable energy. It also includes $80 million for a new Grid Deployment Office to retrofit the grid.

[1] https://www.whitehouse.gov/wp-content/uploads/2022/03/budget_fy2023.pdf

[USA] DTE and Lyft partner to incentivize EV adoption

On March 29, 2022, Detroit-based DTE Energy announced a partnership with Lyft, a rideshare provider, to incentivize Lyft’s drivers in its footprint to purchase or lease an electric vehicle (EV).[1] Through DTE’s Charging Forward program, Lyft’s drivers who adopt EVs will receive up to $5,000.  The utility is providing $2,000 as a rebate for Lyft drivers that purchase or lease an EV. The remainder of the incentive will be split into four quarterly payments of $750 if the driver completes 200 rides per quarter.

The partnership with Lyft is the latest piece of the Charging Forward program, which began by offering charger rebates to customers and is now expanding into ride-hailing. DTE invests more than $1 billion annually to improve electric reliability on the grid and increase capacity for growing EV adoption. According to the press release, DTE’s partnership with Lyft aims to close the gap of equitable access to EVs. The program is currently open, and eligible drivers must apply by September 30, 2022.  

[1] https://www.newlook.dteenergy.com/wps/wcm/connect/dte-web/home/service-request/residential/electric/pev/pev-res-charge-frwd

[USA] AEP announces completion of the 998 MW Traverse Wind Energy Center, the largest single wind farm in North America

On March 21, 2022, American Electric Power (AEP) announced that its 998 MW Traverse Wind Energy Center in north central Oklahoma went online, becoming North America’s largest wind farm built at one time.[1] The project is now providing clean energy to customers in Arkansas, Louisiana, and Oklahoma. The Traverse Wind Energy Center consists of 356 turbines and is expected to generate 3.8 million MWh annually for AEP subsidiaries Public Service Company of Oklahoma (PSO) and Southwestern Electric Power Company (SWEPCO). The project is the final addition to the three-part North Central Energy Facilities, which will generate a total of 1,484 MW of clean energy and could result in $3 billion in electricity cost savings over the next 30 years. Sundance and Maverick, the other two facilities, began commercial operation in 2021. The projects represent a $2 billion investment and are a major part of the $8.2 billion in regulated renewables AEP plans to deploy by 2026. The projects are also part of the approximately 16,000 MW of wind and solar that AEP plans to roll out by 2030 as it strives to achieve net-zero carbon emissions by 2050. AEP also plans to invest nearly $25 billion pumped into its transmission and distribution systems for modernization.

[1] https://www.prnewswire.com/news-releases/traverse-wind-energy-center-begins-delivering-savings-to-customers-301506631.html

[Japan] METI and utilities issue warnings about tight energy supply in Tokyo, Tohoku

On March 21, 2022, Japan’s Ministry of Economy, Trade and Industry (METI) issued a warning over tight energy supply and asked people in Tokyo and Tohoku to save electricity.[1] The warning followed Tokyo Electric Power Company’s (TEPCO) announcement earlier in the day that a power shortage was possible due to cold weather and the suspension of some thermal power plants due to a powerful earthquake that hit northeastern Japan the week before on March 16, 2022. The earthquake stopped operations at six thermal plants, and the damage could leave some of them idle for weeks or months. The company requested customers to turn off unnecessary lights and set their heating at 20 C (68 F) to save electricity. Tohoku Electric Power also called on customers to limit their electricity usage. Late on March 22, 2022, METI said the country appeared likely to avoid blackouts but said they were keeping the power supply warning in place for the following day.[2]

[1] https://english.kyodonews.net/news/2022/03/b5e753617d95-japan-issues-warning-over-tight-energy-supply-in-tokyo-other-areas.html

[2] https://www.reuters.com/world/asia-pacific/japan-sees-partial-blackout-after-first-ever-power-supply-warning-2022-03-22/

[USA] Virginia Regulators approve Dominion’s 1 GW renewable energy expansion

On March 16, 2022, the Virginia State Corporation Commission approved Dominion Energy’s plans for a nearly 1,000 MW renewable energy expansion.[1] The expansion includes 15 Dominion Energy Virginia projects and power purchase agreements (PPAs) with 24 other third-party developer projects. Among these projects is Dominion Energy Virginia’s largest solar-plus-storage project to date. The Dulles Solar and Storage project, located at Dulles International Airport near Washington, D.C., will pair 100 MW of solar generation with 50 MW of storage. According to the press release, Dominion’s new projects will generate more than $880 million in economic benefits across Virginia and will support nearly 4,200 jobs. The projects are expected to come online in 2022 and 2023 and will add about $1.13 to the average residential customer’s monthly bill.

The approval is Dominion’s second requested expansion following the passage of the 2020 Virginia Clean Economy Act, which mandated the full decarbonization of Dominion’s generation fleet by 2045.[2] The law requires Dominion to build out 16,100 MW of wind and solar capacity by 2035. Dominion is now nearly halfway to the targets with about 7 GW of solar in operation or under development.

[1] https://news.dominionenergy.com/2022-03-16-Significant-Expansion-of-Solar-and-Energy-Storage-Approved-for-Dominion-Energy-Virginia-Customers

[2] https://www.utilitydive.com/news/virginia-approves-1-gw-renewable-energy-expansion-by-dominion-energy/620540/

[USA] ACPA and RENEW complaint claims ISO-NE’s market rules are biased toward natural gas generators

In a complaint filed with the Federal Energy Regulatory Commission (FERC) on March 15, 2022, the American Clean Power Association (ACPA) and RENEW Northeast argue that ISO New England (ISO-NE) gives some natural gas-fired power plants an unfair advantage in the grid operator’s capacity and operating reserves markets by assuming that these resources will always have fuel supplies and be able to operate.[1] By comparison, ISO-NE considers how much capacity other resource types can consistently deliver, resulting in renewable resources having accredited capacity below their nameplate capacity. The complaint says that about 9.2 GW of pipeline-supplied gas-fired capacity in New England lacks a backup fuel source. This equals about 28% of the capacity that cleared the grid operator’s most recent capacity auction. The renewable energy trade groups claimed that the grid operator’s preferences for natural gas-fired generators lowers capacity, real-time reserve, and real-time energy prices, thereby creating barriers to renewable energy and energy storage facilities.

ISO-NE is starting a stakeholder process to consider how Effective Load Carrying Capability (ELCC) techniques could be used in quantifying resource capacity contributions to regional resource adequacy, which could address some of the complaint’s concerns. However, the new methodology would be in place until June 2028, so the complaint requests that FERC require ISO-NE to change its capacity accreditation rules by mid-2027.

[1] https://cleanpower.org/wp-content/uploads/2022/03/2022-03-15-Full-complaint-FINAL.pdf

[USA] Report: Reconductoring could lower costs and accelerate decarbonization

According to a new report released on March 15, 2022, by Grid Strategies, reconductoring and rebuilding existing transmission pathways using Advanced Conductors could lower costs and accelerate the decarbonization of the power grid.[1] The report, titled Advanced Conductors on Existing Transmission Corridors to Accelerate Low Cost Decarbonization, was prepared for the American Council on Renewable Energy (ACORE), CTC Global Corporation, Lamifil Inc North America, Natural Resources Defense Council, Taihan Electric USA Ltd., and TS Conductor Corporation.

Roughly 70% of transmission and distribution lines are well into the second half of their 50-year life expectancy, and some lower voltage components are over 100 years old. New transmission construction is needed to interconnect large amounts of renewable energy, but these projects can take more than a decade to bring online. Outfitting existing transmission infrastructure with advanced conductors can quickly create more capacity, reduce emissions, save consumers money, and boost resiliency. The report makes several recommendations, such as requiring transmission service providers to consider advanced conductors in generator interconnection planning rules, that the Federal Energy Regulatory Commission (FERC) could adopt in its upcoming Notice of Proposed Rulemaking (NOPR) on transmission planning, cost allocation, and interconnection queue reform. The report also includes recommendations for transmission planners and owners, public utility commissioners and legislators, and the Department of Energy (DOE).

[1] https://acore.org/wp-content/uploads/2022/03/Advanced_Conductors_to_Accelerate_Grid_Decarbonization.pdf

[USA] Report: solar prices increased in 2021 due to supply chain challenges, other issues

According to a new report released on March 10, 2022, by the Solar Energy Industries Association (SEIA) and Wood Mackenzie, U.S. solar prices increased in 2021 due to supply chain challenges, trade actions, and legislative uncertainty.[1] In 2021, the U.S. installed 23.4 GW of solar PV, reaching 121.4 GW of total installed capacity. Solar accounted for 46% of all new electricity-generating capacity added in the US, and 2021 marked the third year in a row that solar accounted for the largest share of new capacity. However, the report found that prices increased 18% year over year in 2021 for fixed-tilt utility-scale solar projects and 14.2% for single axis tracking projects in Q4 2021. Additionally, roughly one-third of all utility-scale solar capacity scheduled for Q4 2021 was delayed by at least a quarter. About 13% of capacity scheduled for completion in 2022 has been delayed by a year or more or canceled.

Over the last six months, Wood Mackenzie has decreased near-term solar forecasts by 11 GW, or 19%, due to ongoing challenges. If Congress passes a long-term extension of the solar investment tax credit (ITC), new manufacturing tax credits, and other clean energy incentives, solar installations will increase by 66% over the next decade compared to baseline projections. Without action from Congress, Wood Mackenzie forecasts that solar capacity would only reach 39% of what’s needed to reach President Biden’s 2035 decarbonization goal.

[1] https://www.seia.org/news/solar-growth-trajectory-remains-uncertain-federal-legislation-stalls

[USA] Biden announces ban on oil, natural gas, and coal imports from Russia

On March 8, 2022, President Biden announced that his administration is banning all Russian oil, natural gas, and coal imports to the U.S. in response to Russia’s invasion of Ukraine.[1] During the announcement, President Biden warned that the ban could lead to a spike in gas prices within the U.S. and said that he would work to mitigate the ban’s impact. Biden called on domestic oil producers to pump more oil to keep prices from rising. In the long run, he stated that the way to avoid high gas prices is to speed up the transition to clean energy.

Russia is the third-biggest oil producer in the world and is the third-largest source of oil to the U.S. Russia accounts for about 8% of imported oil and petroleum products. According to the Energy Information Administration (EIA), about 1% of Russia’s annual oil production is sent to the U.S.[2] In 2021, the U.S. imported an average of 209,000 barrels per day of crude oil and almost 500,000 barrels per day of other petroleum products from Russia, according to the American Fuel and Petrochemical Manufacturers.[3] Most of the other petroleum products are unfinished oils that are processed into gasoline, diesel, and jet fuel, among other products.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/08/fact-sheet-united-states-bans-imports-of-russian-oil-liquefied-natural-gas-and-coal/

[2] https://www.eia.gov/international/analysis/country/RUS

[3] https://www.afpm.org/newsroom/blog/oil-and-petroleum-imports-russia-explained

[USA] Florida legislature approves changes to net metering policies

On March 7, 2022, the Florida Senate voted 24-15 to approve House Bill (HB) 741, which would revise existing laws for net metering.[1] Net metering is a tool that gives rooftop solar owners a credit for excess energy that they produce and send back to the grid. The state House of Representatives passed the bill 83-31 earlier in March, so the bill now heads to the governor to be signed into law. HB 741 directs the Public Service Commission (PSC) to adopt a new program for rooftop solar owners by 2029 that would change net metering requirements and have solar owners pay the full cost of electric service instead of being "subsidized" by non-net metering customers. Under the bill, solar panel owners who sell energy back to the grid would be paid a flat retail rate. In addition, utilities will be allowed to recoup fees by petitioning the PSC to ensure “that the public utility covers the fixed costs of serving customers who engage in net metering.” If enacted, new net metering customers connected in 2024 and 2025 will receive credits worth 75% of the current rate. The rate will then decrease to 60% in 2026 and 50% in 2027. Public utility customers who get an application approved before 2029 will be able to lock in their rates for 20 years.

[1] https://www.flsenate.gov/Session/Bill/2022/741

[USA] DOE launches public-private challenge to cut carbon emissions 50% within ten years

On February 28, 2022, the Department of Energy (DOE) launched the Better Climate Challenge, a voluntary, market-based carbon reduction initiative, during an Executive Roundtable with Housing and Urban Development (HUD) Secretary Fudge, White House National Climate Advisor Gina McCarthy, and committed partner organizations.[1] Over 90 companies and organizations have joined the challenge, including Avangrid, Exelon Corp., the Cleveland Clinic Foundation, Siemens, Xerox, and IKEA. Participants will commit to reducing carbon emissions from their operations by at least 50% within ten years without the use of offsets and set an energy efficiency target of around 20%. Specifically, the challenge focuses on Scope 1 and Scope 2 greenhouse gas emissions, which are emissions created directly by the participating organization and emissions associated with the purchase of electricity, heating, or cooling.  The DOE will provide technical assistance as well as opportunities to share best practices for carbon reduction.

[1] https://www.energy.gov/articles/doe-announces-pledges-90-organizations-slash-emissions-50-within-decade

[USA] Survey: Majority of Americans don’t support the complete phaseout of fossil fuels

According to a new survey from the Pew Research Center, 69% of Americans support taking steps towards being carbon neutral by 2050, but only 31% want a complete phaseout of fossil fuels.[1] The survey, which was released on March 1, 2022, included 10,237 adults and was conducted from January 24 to 30, 2022. The report notes that the survey was conducted before Russia invaded Ukraine, which may affect public opinion on energy issues. Pew found that 69% of adults prioritize developing alternative energy sources, such as wind and solar, over expanding the production of oil, coal, and natural gas. In addition, 72% support the federal government’s support of wind and solar power. 67% say that the country should use a mix of fossil fuel and renewable energy sources.

Pew said that party affiliation remains dominant in views of climate and energy issues. Generally, Republicans and Republican-leaning independents prioritize expanding fossil fuels over developing alternative energy sources and believe that fossil fuels should remain a part of the energy picture in the U.S. Democrats and Democratic-leaning independents favor prioritizing the development of alternative energy sources and support the U.S. taking steps to become carbon neutral by 2050. The analysis also found that partisan divisions have widened on climate policy in the past few years. Democrats increasingly believe that climate policies do more good than harm for the environment and help the U.S. economy, whereas 62% of Republicans say they generally hurt the U.S. economy, up from 52% in 2019.

[1] https://www.pewresearch.org/science/2022/03/01/americans-largely-favor-u-s-taking-steps-to-become-carbon-neutral-by-2050/

[World] Exxon to exit Russian oil and gas operations

Exxon Mobil Corp. announced on March 1, 2022, that it will cease operations at Sakhalin-1, a major oil and gas project in Russia.[1] According to the press release, Exxon will not invest in new developments in Russia, given the current situation. Reuters reported that Exxon is also removing employees from the country who are U.S. citizens.[2] “ExxonMobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation. We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” the company said.

Exxon Neftegas, a subsidiary of Exxon, operates the Sakhalin-1 project on behalf of a consortium of Japanese, Indian and Russian companies. The consortium includes Russia's Rosneft, which holds a 20% stake in the project. The project is comprised of three oil and gas fields near Sakhalin Island. According to Exxon’s website, the Sakhalin-1 project represents “one of the largest single international direct investments in Russia.” It pumps about 220,000 barrels of oil per day and is the company’s last project in Russia. In a statement, Exxon said the process to discontinue operations will be closely coordinated with other members of the project to ensure safety. The company did not provide a timeline for ceasing operations.

[1] https://corporate.exxonmobil.com/News/Newsroom/News-releases/2022/0301_ExxonMobil-to-discontinue-operations-at-Sakhalin-1_make-no-new-investments-in-Russia

[2] https://www.reuters.com/business/energy/exxon-mobil-begins-removing-us-employees-its-russian-oil-gas-operations-2022-03-01/

[USA] SoCalGas announces development of 100% clean hydrogen pipeline system

Southern California Gas (SoCalGas) announced on February 17, 2022, that it has begun the planning and development process for the Angeles Link, a pipeline system that would deliver hydrogen to the Los Angeles area.[1] The utility also filed a request with the California Public Utilities Commission (CPUC) for the creation of a memorandum account to record project costs and provide customers and stakeholders with a way to track developments associated with the project. SoCalGas aims to decarbonize its operations by 2045 and says that the Angeles Link will accelerate progress toward this goal. According to SoCalGas, the project would be capable of delivering green hydrogen equivalent to 25% of its current natural gas capacity and displace up to 3 million gallons of diesel fuel per day. Based on potential hydrogen demand within the Los Angeles Basin, the utility expects that the new system will use 25-35 GW of renewable energy from wind, solar, or batteries. The electricity will be used to produce hydrogen from electrolyzers. The Angeles Link could reduce greenhouse gas emissions from electric generation, industrial processes, heavy-duty trucks, and other hard-to-electrify sectors.

[1] https://www.socalgas.com/sustainability/hydrogen/angeles-link

[USA] White House announces investments to tackle rare mineral supply chain vulnerabilities

On February 22, 2022, the White House announced that it has awarded MP Materials $35 million for its magnet processing plant to separate and process heavy rare earth elements at its facility in Mountain Pass, California, as part of a strategy to boost domestic production of rare earth metals.[1] The announcement follows an executive review of the vulnerabilities of the U.S.’s critical mineral and material supply chains, per Executive Order 14017. MP Materials, which operates the only rare earth mining and processing site of scale in North America, will also invest another $700 million of its own money into the effort. According to the press release, China currently controls 87% of the global permanent magnet market, which are used in electric vehicles and wind turbines.

In addition, Berkshire Hathaway Energy Renewables (BHE Renewables) announced that in spring 2022, they will break ground on a new demonstration facility in Imperial County, California, to test the commercial viability of their sustainable lithium extraction process from geothermal brine. If successful, the company could reach commercial-scale production of battery-grade lithium hydroxide and lithium carbonate by 2026. Other announcements in the White House fact sheet included a pilot from Redwood Materials for collection and recycling of end-of-life lithium-ion batteries at its Nevada based facilities and the Department of Energy’s (DOE) $140 million demonstration project funded by the Bipartisan Infrastructure Law to recover rare earth elements and critical minerals from coal ash and other mine waste.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/22/fact-sheet-securing-a-made-in-america-supply-chain-for-critical-minerals/

[USA] FERC adopts new criteria for reviewing natural gas infrastructure proposals

On February 17, 2022, the Federal Energy Regulatory Commission (FERC) adopted a new framework for reviewing natural gas infrastructure proposals, updating the previous framework set in 1999.[1] The new framework includes expanded criteria for deciding whether facilities are needed and potential economic and environmental impacts. Previously, FERC judged whether a pipeline was needed only by whether it had contracts for its supply. The Commission will now consider factors like demand projections and potential cost savings to customers. FERC also issued an interim policy statement outlining how it will consider greenhouse gas (GHG) emissions when reviewing natural gas projects. Under the interim policy, projects that will release at least 100,000 metric tons per year of GHG emissions will require an environmental impact statement instead of a less rigorous environmental assessment. The interim GHG policy framework takes effect immediately, including on pending projects. Comments on the policy are due on April 4, 2022.

The policies were approved along party lines, with the commission’s three Democratic members approving the policies and the two Republican members opposing them. The policy statements are partly in response to a series of court decisions that overturned some of FERC’s approvals of gas projects, such as Sabal Trail, Birckhead, Vecinos, and Spire Pipeline. Those court decisions cited the commission’s failure to consider several factors, including GHG emissions, whether the project was needed, and potential effects on environmental justice communities. The new policies are intended to improve the legal durability of the Commission’s decisions moving forward.

[1] https://www.ferc.gov/news-events/news/ferc-updates-policies-guide-natural-gas-project-certifications

[USA] Dominion Energy agrees to sell Hope Gas to Ullico

On February 11, 2022, Dominion Energy announced that it will sell its West Virginia-based natural gas company Hope Gas, also known as Dominion Energy West Virginia (DEWV), to Ullico’s infrastructure fund for $690 million.[1] The sale is expected to close in late 2022, subject to closing conditions, including approval from the Public Service Commission of West Virginia and clearance under the Hart-Scott-Rodino Act. Ullico’s infrastructure business plans to integrate DEWV with Ullico’s subsidiary Hearthstone Utilities, which owns and operates gas utilities in five states.[2] As part of the sale, Hearthstone will move its headquarters to West Virginia after the merger. DEWV employs about 300 and serves 111,000 West Virginia customers. It oversees 3,200 miles of gas distribution pipelines and more than 2,000 miles of gathering pipelines. Dominion Energy will continue to own and operate Mt. Storm Power Station in Mt. Storm, West Virginia. The transaction is not expected to impact customer rates. In addition, Hearthstone will uphold the current collective bargaining agreement with Utility Workers Union of America (UGWU Local 69) workers.

[1] https://news.dominionenergy.com/2022-02-11-Dominion-Energy-Agrees-to-Sell-West-Virginia-Natural-Gas-Distribution-Company-to-Ullico

[2] Indiana, Maine, Montana, North Carolina, and Ohio

[USA] Report finds U.S. clean power surpassed 200 GW in 2021 despite slowing deployment

According to the American Clean Power Association’s (ACP) Clean Power Quarterly 2021 Q4 Market Report, the U.S. surpassed 200 GW of utility-scale clean power capacity in 2021 despite the installations falling 3% compared to 2020.[1] The report, released on February 15, 2022, stated that 27.7 GW was installed in 2021, representing $39 billion in investments across the sector. More than 11.4 GW of projects that were expected to come online in 2021 were pushed back until 2022 or 2023. For solar, this was due to trade policies and lack of regulatory certainty, while the solar sector faced policy uncertainty, including the expiration of tax credits for wind projects. The ACP warned that the pace of installations fell short of what is needed to achieve a net zero emissions goal of 2035. Although 2021 was the second largest year on record for clean energy, it is only 45% of what is needed each year to achieve the 2035 goal.

Overall, wind grew by 12,747 MW, solar grew by 12,364 MW, and battery storage grew by 2,599 MW. Texas deployed the most clean energy, with 7,352 MW of new capacity, while the next nearest was California, with 2,697 MW. The ACP report found that Texas accounts for 17% of clean power under construction or in advanced development, and California with 11%. Over 1,000 clean energy projects are under development, totaling 120,171 MW of new capacity. Power purchase agreements included 28 GW last year.

[1] https://cleanpower.org/news/u-s-surpasses-200-gigawatts-of-total-clean-power-capacity-but-the-pace-of-deployment-has-slowed-according-to-acp-4q-report/

[USA] Biden administration launches initiatives aimed at reducing emissions from industry

On February 15, 2022, the Biden administration launched new initiatives aimed at reducing greenhouse gas (GHG) emissions from the industrial sector, which accounts for nearly a third of domestic GHG emissions.[1] The initiatives use funds from the 2021 Infrastructure Investment and Jobs Act. As part of this effort, the Department of Energy (DOE) is launching three clean hydrogen initiatives: $8 billion for Regional Clean Hydrogen Hubs; $1 billion for a Clean Hydrogen Electrolysis Program; and $500 million for Clean Hydrogen Manufacturing and Recycling Initiatives. In addition, the Council on Environmental Quality (CEQ) and White House Office of Domestic Climate Policy is establishing a Buy Clean Task Force to direct part of the federal government’s annual spending towards low-carbon materials manufactured domestically. The task force will include the departments of Defense, Energy and Transportation, the Environmental Protection Agency (EPA), the General Services Administration (GSA), and the White House Office of Management and Budget.

The CEQ also issued guidance to federal agencies on the responsible deployment of Carbon Capture, Utilization, and Sequestration (CCUS) technologies. According to the press release, the administration is in talks with the European Union to reach an agreement to reduce trade in high-emissions steel and aluminum products.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/15/fact-sheet-biden-harris-administration-advances-cleaner-industrial-sector-to-reduce-emissions-and-reinvigorate-american-manufacturing/

[USA] Companies announce plans to support CCUS and hydrogen hub in northern Appalachia

On February 3, 2022, EQT Corporation, Equinor, GE Gas Power, Marathon Petroleum (including its affiliate MPLX), Mitsubishi Power, Shell Polymers (a petrochemicals division of Royal Dutch Shell), and U.S. Steel announced that they have formed a new alliance to develop a hydrogen and carbon capture hub in Ohio, Pennsylvania, and West Virginia.[1] Historically, the northern Appalachian region has been the center of oil and natural gas production. Both EQT and Equinor have existing natural gas operations in Pennsylvania, and Marathon Power operates an oil refinery in Ohio.

The alliance plans to build out infrastructure for blue hydrogen, which pairs hydrogen produced from natural gas with carbon carputer, utilization, and storage (CCUS) technologies. According to the press release, the hub and associated infrastructure could generate thousands of new jobs, protect existing jobs, and help achieve significant reductions in carbon dioxide emissions. The group is working to establish a collaborative network to directly engage industry, labor, universities, communities, government, research institutions, non-profit organizations, and other groups in these efforts. The alliance participants intend to define the vision and plans for a regional CCUS/hydrogen hub in the coming weeks. IN-2-Market, a regional non-profit organization, will manage alliance activities and engagement with regional stakeholders.

[1] https://www.equinor.com/en/where-we-are/united-states/20220203-initiative-support-low-carbon-hydrogen-hub.html