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While significant emphasis has been placed on electric vehicle battery technology and related charging infrastructure across the state, the California clean transportation future needs to include hydrogen fuel cell vehicle technology where it makes sense.

Several transit agencies across the state are already producing their own hydrogen fuel, and others are actively planning to significantly expand on this model. Mega-regional passenger rail systems, such as Valley Link, are preparing for this opportunity by securing 200 acres of environmentally approved parcels to build a green hydrogen facility to provide clean power to commercial trucks, transit buses and a 42-mile passenger rail system that will alleviate the congestion and poor air quality caused by the 100,000 commuters who traverse the Altamont Pass daily. As the state looks to invest new funding to support the development of hydrogen fuel production, it’s imperative that this investment support California’s clean transportation future through transit agency hydrogen producers. This model of sustainability and self-sufficiency is important, as it inherently connects the hydrogen fuel producer and user with the goal of reducing the cost of transit operations to the public and offsets state and federal subsidies.

The demonstration will test STARS' technology, which was developed at the Pacific Northwest National Lab. The technology uses a combustion free process, so that it produces fewer greenhouse gas emissions compared to a conventional steam methane reforming process. Since the compact system is based on low-cost 12x1-inch, 3D-printed reactor disks and heat exchangers, it can be easily installed at fueling stations to help meet the demand while advancing climate and clean air goals. After its installation, the first STARS system will produce up to 80 kilograms of clean hydrogen a day, that's enough to fuel three of SunLine's zero-emission buses per day.

The IRA also includes other incentives to support the scale-up of hydrogen, including:

Extension of the Section 48 Investment Tax Credit for fuel cells and adding hydrogen storage to the credit.
Reinstatement of the Alternative Fuel Refueling Property Credit for ten years and raising the cap for hydrogen fueling stations to $100,000.
Creation of a new Clean Vehicle Credit that provides $7,500 in credits for new purchases and up to $4,000 for used clean vehicles (hydrogen fuel cell electric vehicles qualify).
Creation of a new Commercial Clean Vehicle Credit that provides up to $40,000 for fleet operators to apply to fuel cell electric trucks and buses.

The Myth
Recent reports have suggested that large-scale production of hydrogen could do more harm than good in the effort to reduce global warming.

The Reality
The climate benefit from a well-regulated clean hydrogen economy outweighs the impact of any emissions that hydrogen would add to our energy system, especially if we prioritize hydrogen produced from renewables-powered electricity.

As hydrogen continues scaling up, all stakeholders must examine the potential benefits and concerns to ensure we deliver on the climate promise hydrogen offers. Achieving net zero will be a long process that will present numerous challenges. What will be important is taking a solutions-focused approach that accurately captures those challenges and brings together academics, industry, government, and stakeholder groups to effectively address them by leveraging the best technology and regulatory framework.

Williams today announced a direct investment in Aurora Hydrogen, a company developing technology that converts natural gas to hydrogen with zero carbon dioxide (CO2) emissions. Aurora Hydrogen’s technology uses microwave energy to convert methane to hydrogen and solid carbon without generating CO2. Williams’ investment will support scaling production to 200 kg of hydrogen per day, with the development of a demonstration plant by 2023. Williams was joined by Energy Innovation Capital (EIC), Chevron Technology Ventures, Shell Ventures and the George Kaiser Family Foundation in the investment in Aurora Hydrogen.

Following Thursday’s (July 28) surprise $369bn climate and tax package from the US Senate, hydrogen industry players have offered their reaction to the Bill which offers a $3 per kg tax credit for clean produced hydrogen, and further credits for hydrogen fuel cell-electric vehicles.

Jason Few, CEO of FuelCell Energy, based in Connecticut, US, said in part of a statement, “Strong policy direction from the federal government provides the private sector important market certainty to confidently invest our shareholders capital and expand operations.