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
What a Trump Win Would Mean for Oil Prices and Stocks
2024-08-23 - A second Trump administration might move the price needle on oil slightly, but OPEC would retain the upper hand in any outcome.
Paisie: Geopolitics, Economic News Rattle Oil Markets
2024-08-21 - Demand is expected to outstrip supply in third-quarter 2024, with prices in the $80s.
DC Appeals Court Shoots Down White House’s Pipeline Safety Rules
2024-08-20 - The Interstate Natural Gas Association of America brought the suit against five new regulations, claiming the new rules did not provide enough benefits to justify the costs associated with implementation.
Belcher: How Overturning the Chevron Deference Will Impact Energy Regs
2024-08-20 - The decision will enable the industry to challenge an array of federal regulatory actions.
Mexico Energy Forum: Election Impacts on US-Mexico Energy Trade
2024-08-15 - Mexico Energy Forum President Roberto Salinas León shared his thoughts with Oil and Gas Investor on a number of themes related to recent elections in Mexico.