The Biden administration is expected to drop green hydrogen from its landmark plan to slash greenhouse gas emissions from the power sector, to reduce the risk of lawsuits if the nascent technology doesn’t reach commercial scale, according to three sources familiar with the matter.
The move reflects skepticism within the U.S. government that the technology – in which hydrogen fuel is extracted from water using zero-emissions energy sources like wind and solar - will develop quickly enough to become a significant tool to decarbonize the electricity industry.
The Environmental Protection Agency (EPA) will unveil its final rule as soon as Thursday, the sources said, marking a huge milestone in President Joe Biden’s strategy to fight climate change.
The EPA did not respond to a request for comment.
E&E News was first to report that the EPA was considering the change.
The EPA’s initial power plant proposal had set standards that would push fossil fuel power plant operators to either also use super-low-emissions hydrogen to fuel their plants, or install carbon capture and sequestration (CCS) technology to siphon the CO2 from a plant’s smokestack.
Dropping the use of hydrogen could strengthen the rule legally, the sources said. Opponents of the plan had warned that the technology may not be commercially viable when rules kick in in 2030 for gas plants and 2032 for coal plants.
The power plant rule is among a raft of regulations the administration is seeking to finalize in the coming weeks to safeguard them from potential reversal under the Congressional Review Act should former President Donald Trump win the November election.
The CRA allows a newly elected Congress to review and repeal laws that were recently created.
The EPA last month narrowed the scope of the power plant regulation by removing existing gas plants from the standards, after pushback from utilities that called the initial proposal unworkable.
Recommended Reading
Report: Crescent Midstream Exploring $1.3B Sale
2024-04-23 - Sources say another company is considering $1.3B acquisition for Crescent Midstream’s facilities and pipelines focused on Louisiana and the Gulf of Mexico.
‘Oversupplied’ NatGas Market Aiding Williams’ Storage Business
2024-05-08 - Midstream company Williams saw overall demand growth as heavy gas volumes passed through its network.
Energy Transfer Eyes Draft Environmental Statement for Blue Marlin Project This Quarter
2024-05-09 - Energy Transfer is among several firms vying to build deepwater ports along the Texas Gulf Coast.
Energy Transfer Remains Hungry for M&A, Sees 1Q Oil Volumes Surge
2024-05-09 - Energy Transfer reported record first-quarter crude volumes and expects demand for petrochemicals to continue rising.
Enbridge Plans to Increase Permian Oil Pipeline’s Capacity
2024-05-10 - Midstream company Enbridge announced an open season on the Gray Oak Pipeline for a proposed 120,000 bbl/d expansion and updated its M&A efforts.