Mitchell: Hydrogen hub selection ‘validation’ for Midwest group
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The president and CEO of Indianapolis-based Energy Systems Network says he was excited but not surprised to hear that the Midwest Alliance for Clean Hydrogen, or MachH2, was one of seven groups chosen to establish clean hydrogen hubs across the U.S.
The Biden Administration made the announcement Friday, and MachH2, which includes Indiana, Illinois and Michigan, is set to receive up to $1 billion in grant funding from the U.S. Department of Energy.
“I think that we knew throughout this process that the Midwest was a really critical location for the future of this hydrogen economy because of the concentration of heavy industry and manufacturing, transportation and logistics,” Paul Mitchell said.
In an interview with Inside INdiana Business, Mitchell called the Midwest group’s selection “validation.”
“In general, there are some unique assets, whether it’s the BP Whiting Refinery or some of the nuclear facilities in Illinois that are relatively close to one another,” he said. “And so, as soon as we saw the opportunity come from the DOE, I think the folks in Indiana and our neighboring states kind of always knew along the way that we had a really good, strong chance here.”
MachH2 consists of more than 70 public and private organizations, including ESN in Indiana.
For Indiana’s part, production of so-called blue hydrogen will take place at or near the BP refinery in Whiting, and Mitchell said having such a facility ready to go was a critical piece of the region’s pitch.
“These hubs are really about building out a network of high volume, clean hydrogen production. This is not about building some demonstration projects or pilot projects; it’s about trying to achieve commercial-scale hydrogen production that can drive the price of clean hydrogen down. To do that, you need scale, and to achieve scale, you need really large production assets.”
Blue hydrogen is produced by converting natural gas into carbon dioxide and hydrogen, with the CO2 being stored underground. The low-carbon hydrogen fuel can be used in a variety of areas, including steelmaking, power generation and agriculture.
Mitchell said the federal funding will leverage additional investment to further implement the hydrogen strategy.
“While it’s a billion dollars from the federal government, that is unlocking several times that in commercial Investments, which are necessary to achieve the kind of scale that we would need to have hydrogen as a robust, clean fuel for the country,” he said.
The White House estimated the seven hubs combined will spur more than $40 billion in private investment. In a March interview on Inside INdiana Business with Gerry Dick, Mitchell said clean hydrogen could create a $10 billion opportunity for Indiana over the next decade.
Mitchell applauded Gov. Eric Holcomb, the Indiana Economic Development Corp. and state legislators for laying the ground work in Indiana, particularly with the signing of House Enrolled Act 1209, which created a regulatory framework for companies to store captured carbon dioxide underground in Indiana.
“Also, helping explain to policymakers, to local government officials, to university leaders why carbon sequestration and clean hydrogen is important, the state has done a great job at that,” he said. “Without these new tools, without these new investments, it will become increasingly difficult for our heavy industry and our manufacturing base, which is the lifeblood of Indiana’s economy, to thrive.”
Now that the announcement has been made, Mitchell said MachH2 representatives will begin working with the Department of Energy to finalize the grant agreement, which could take “a little bit of time.”
But the group wants to begin discussions with residents in the communities in which much of the investments will be made.
“It was difficult to give clarity to communities in northwest Indiana or other parts of the Midwest that will be impacted by these strategic investments, we think, in a great, positive way from an economic development standpoint [and] from an environmental sustainability standpoint. But we need to start talking to folks, community leaders, business leaders, elected officials, to help them understand why these investments are important, not only for their communities, but for the state, the region and the country.”
You can learn more about the other areas selected for hydrogen hubs from the DOE by clicking here.