Hydrogen is Too Expensive, Says Environmental Protection Agency

U.S. regulators have decided not to recommend hydrogen co-firing as a method to reduce emissions in power plants. This decision comes after the Environmental Protection Agency (EPA) found that hydrogen would be more expensive in 2030 than they originally thought and raised doubts about its availability as a fuel.

Initial Plans

In May 2023, the EPA proposed two ways for power plants to meet new emissions standards: carbon capture and storage (CCS) with a 90% capture rate or co-firing with green hydrogen. The draft rule suggested that hydrogen co-firing could help 30% of power plants by 2032 and 96% by 2038.

Final Decision

However, the final rule, published today, focuses solely on using CCS technology for coal and high-capacity gas plants by 2032. Hydrogen co-firing was also considered for plants operating at 20-50% capacity, but this has now been dropped as well. Instead, these plants are advised to use “high-efficiency” open-cycle gas turbines, despite these being less efficient than the combined cycle turbines some campaigners preferred due to cost concerns.

Reasons for Dropping Hydrogen

The EPA’s decision to drop hydrogen as a “best” solution is based on several factors:

  1. Cost: New analysis showed that green hydrogen would be more expensive in 2030 than initially thought.
  2. Availability: Concerns were raised about the nationwide availability of green hydrogen.
  3. Public Feedback: The EPA’s additional cost analysis and public comments influenced the decision.

Flexibility for Power Plants

Although hydrogen co-firing is no longer recommended, the EPA’s rule does not prevent power plants from using hydrogen to meet emissions standards. The EPA has also removed the requirement that only “low-GHG hydrogen” (made with renewable energy) can be used. However, the EPA emphasizes that the greenhouse gas (GHG) profile of hydrogen production should be a primary consideration if plants choose to co-fire hydrogen.

Conclusion

In summary, while hydrogen co-firing is not the preferred method for decarbonizing power plants according to the latest EPA rule, the option remains open for power plant owners. The EPA stresses that if hydrogen is used, its production method must significantly reduce GHG emissions to ensure climate benefits. For now, the focus will be on CCS technology to meet new emissions standards.

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