MIT researchers have published a paper in Nature Energy outlining a path for scaling the clean hydrogen industry while limiting emissions. The researchers aim to assist regulators in supporting the growth of the clean hydrogen industry, which is crucial for decarbonizing various industries such as steel manufacturing and fertilizer production.
One of the main challenges in scaling hydrogen production is the sourcing of clean electricity. Currently, the US electric grids are primarily powered by fossil fuels, so if hydrogen production increases, it could result in a significant increase in emissions. Additionally, there is a risk that low-carbon hydrogen projects may siphon renewable energy that would have been used for the grid. Therefore, it is essential to ensure that low-carbon hydrogen production procures electricity from additional renewable sources, especially when supported by public subsidies.
To address these challenges, the researchers propose a phased approach to qualify for production tax credits for low-carbon hydrogen. In the initial phase, hydrogen created from grid electricity can receive credits under looser standards. As the industry grows and electricity demand for hydrogen production increases, stricter standards should be implemented to ensure the electricity comes from renewable sources. In the future, when the grid is mainly powered by renewable energy, the standards can loosen again.
The researchers emphasize the importance of balancing the scaling of the industry with the reduction of emissions. They argue that scaling low-carbon hydrogen production can cut significant sources of existing emissions and enable the decarbonization of critical industries. However, there is a risk of implementing the wrong requirements and subsidizing carbon-intensive hydrogen production. The researchers hope their paper provides clarity and foresight for policymakers in implementing the necessary policies to support the growth of clean hydrogen.
Michael Giovanniello, a graduate student in MIT's Technology and Policy Program and co-author of the paper, states, "I hope there's clarity and foresight in how this policy is implemented, and I hope our paper makes the argument clear for policymakers."
The paper also addresses disagreements and definitions within the industry. One of the key disagreements is related to "time matching," which refers to how strictly the timing of electric hydrogen production should align with the generation of clean electricity. The researchers analyzed previous studies and identified different interpretations of "additionality," which refers to how hydrogen producers purchase renewable electricity. These factors significantly impact the cost and emissions of hydrogen production.
The researchers conclude that the implementation of production tax credit qualifying requirements should be adaptive to changes in the energy system. They suggest starting with less strict annual requirements but transitioning to hourly matching as hydrogen demand for renewable electricity grows. This phased approach requires long-term planning from regulators to avoid locking in policies that may lead to significant emissions in the future.
The researchers hope their findings will contribute to upcoming policy decisions surrounding the Inflation Reduction Act's tax credits. They believe their analysis is timely and responsive to the needs of policy and can also help policymakers understand the emissions impacts of companies procuring renewable energy credits and electricity suppliers selling "green" electricity.
Dharik Mallapragada, a principal research scientist at MIT Energy Initiative and co-author of the paper, emphasizes the importance of the research, stating, "It's an evolving story that's tied to what's happening in the rest of the energy system, and in particular the electric grid, both from the technological and policy perspective."
The proposed path for scaling clean hydrogen production outlined by MIT researchers provides valuable insights for policymakers and regulators. By carefully considering the sourcing of clean electricity and implementing phased requirements, the clean hydrogen industry can grow while minimizing emissions. This research contributes to the ongoing efforts to decarbonize industries and transition to a cleaner and more sustainable energy future.
Click this link to access more information: https://news.mit.edu/2024/mit-researchers-scaling-clean-hydrogen-production-0108
