Washington State’s Investment in Hydrogen Is a Model for the Country

April 22, 2022

President Biden is visiting Seattle for Earth Day this year, and for good reason. During this year’s legislative session, the state legislature passed three bills that unlock hydrogen’s potential to further decarbonize Washington’s economy and help the state reach its climate goals.

From the outset, Biden’s administration has touted hydrogen as key to bringing down emissions and decarbonizing hard-to-electrify sectors, like steelmaking and manufacturing. That’s why the Infrastructure Investment and Jobs Act included $9.5 billion for hydrogen to “reduce costs, make new breakthroughs, and create jobs for American engineers, factory workers, construction workers, and others.”

Likewise, policymakers and industry in Washington have long recognized hydrogen’s potential locally. The state legislature’s actions to advance the renewable hydrogen industry to create jobs and clean economic development opportunities are commendable.

Renewable hydrogen offers a unique opportunity to address the challenges of climate change while creating good-paying jobs. That’s exactly what the president campaigned on, and it’s already happening right here in the Evergreen State.

Of course, renewable hydrogen projects are not new to Washington. Back in 2020, Cummins partnered with the Douglas County Public Utility District (PUD) to build the largest electrolyzer of its kind in the United States. The electrolyzer allows the Douglas County PUD to use excess hydroelectricity from its Wells Dam facility to split molecules of water into oxygen and hydrogen. The hydrogen will be used to supply proposed hydrogen fueling stations both at the utility and at a public station to be constructed on I-5. In this way, otherwise wasted power will instead be turned into zero emission fuel to reduce emissions from the transportation sector, the highest source of carbon emissions in the state.

This impactful project was only possible because of the 2019 passage of Senate Bill 5588, authorizing public utility districts to make and sell renewable hydrogen. Companies like Cummins were eager to partner with local governments to demonstrate the effectiveness of this technology. Today, thanks to the legislature’s leadership, even more advancements are possible. And as we learn to combine our state’s abundant renewable energy with hydrogen’s ability to decarbonize hard-to-electrify sectors, including heavy industry and transportation, as well as provide much needed grid reliability, we accelerate progress toward achieving our climate goals.

Some of the bills that will unlock hydrogen’s potential in Washington and ultimately help us achieve our climate goals include:

SB 5910 effectively establishes the first statewide strategy for a renewable hydrogen economy in the U.S. and authorizes state financial support for a public-private partnership applying for the Bipartisan Infrastructure Law’s clean hydrogen hub funding. The Pacific Northwest’s abundant renewable energy, coupled with the strong industrial base in the state, makes it an ideal location for a hydrogen hub. State and federal funding will go a long way in establishing a strong public-private partnership to advance the production and use of hydrogen in the region.

HB 1988 allows for the deferral of taxes on investments in clean technology, fuels, and renewable energy storage, including renewable hydrogen production and zero-emission vehicle refueling infrastructure, such as stations that can supply hydrogen for fuel cell electric vehicles (FCEVs), which run on hydrogen and produce zero emissions. Additional investments in these areas will both increase accessibility to clean hydrogen and incentivize expanded deployment and use.

SB 5974 requires that by 2030 all passenger vehicles sold in Washington have to be electric, including battery electric and FCEVs. The bill also requires the state Department of Transportation to examine using hydrogen in the state ferry system. Hydrogen ferries, which run on fuel cells just like FCEVS, are zero emission and would revolutionize passenger transportation in Puget Sound. Leveraging hydrogen fuel cells will reduce transportation emissions, offer options for consumers, and increase economic opportunity in the region as vehicle manufacturers invest in Washington.

The state legislature’s work this session created incredible opportunities to advance renewable hydrogen across Washington. The private sector’s investments and partnerships with state and local governments demonstrate the economic benefits that come from advancing these important policies. But the true beneficiaries are all Washingtonians, who will enjoy cleaner air and a healthier environment. President Biden should view the progress made here as a model for the rest of the nation as we strive to reach the ambitious climate goals set by this administration.

Michelle Detwiler is the executive director of the Renewable Hydrogen Alliance, a non-profit established to promote and advocate using renewable electricity to produce hydrogen and climate neutral derivative fuels.

 

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