The recent kickoff of a webinar series by Appalachian Energy Future to enable and accelerate development of a hydrogen carbon capture, utilization and storage (CCUS) hub ecosystem in the tri-state region puts Pennsylvania on the right path to create a clean-energy future and revitalize our communities. But with stiff competition across the country for billions in federal funding to create regional hydrogen hubs, stakeholder and community collaboration and cooperation — coupled with policy action – need to hit fast forward or the Keystone State could be left with a very slim part of this once-in-a-lifetime opportunity.
The U.S. Department of Energy’s deadline for submitting applications for funding is looming in April. The alliance’s webinar highlighted the urgency for accelerated collaboration by all stakeholders and the need to address a policy and regulatory framework if Pennsylvania-Ohio-West Virginia is to be a successful regional participant in the drive for hydrogen and CCUS to help grow the labor force and reduce carbon emissions.
Hydrogen and CCUS can use traditional fuels or renewable energy to create an energy source to reduce carbon emissions from power generation and hard-to-abate industries such as steel and petrochemicals, allowing the country to move toward a cleaner energy and manufacturing future.
The tri-state region is fortunate to hold the recipe for success from an abundance of natural gas to point sources for carbon capture, and the geology to store it safely, to a pipeline network to transport it to end users.
Several project teams involving Pittsburgh-regional companies are vying for the federal funding to scale up hydrogen production and transportation capabilities. One involving Shell, Equinor and U.S. Steel Corp. has the support of Pennsylvania officials and another, which involves EQT Corp., CNX Resources Corp. and others, is the lead applicant from West Virginia.
Webinar participants stressed there’s at least a two- to four-year lead time between application review and approval. Additionally, both hydrogen and carbon capture will require significant infrastructure buildout and face challenges similar to those faced by other energy infrastructure projects: community support, permitting and regulations.
West Virginia is leading the way in advancing policy and legislation that would usher in development; Pennsylvania has just begun moving toward developing a similar common-sense regulatory policy and framework. The Pennsylvania Department of Environmental Protection just announced that it intends to submit a letter of intent as early as this week to the U.S. Environmental Protection Agency to apply for primacy to regulate Class VI underground injection wells for carbon storage. Currently, the use of deep wells for carbon storage is regulated by the EPA’s Underground Injection Control program. West Virginia is also in the process of seeking primacy to regulate its Class VI injection well program.
Several lawmakers have indicated their intent to introduce legislation addressing the creation of a regulatory framework for hydrogen and carbon capture in Pennsylvania. This includes Senator Gene Yaw’s proposal to direct the Commonwealth to apply for primacy, and Representative Rob Matzie’s proposal that will address a variety of issues, including pore space ownership, clarification of storage rights as they relate to mineral rights, certainty in permitting, and the establishment of a stewardship fund to administer hydrogen and carbon capture projects. These proposals are important steps in the right direction for Pennsylvania.
Given that each state brings unique benefits and challenges to the table, regional cooperation and collaboration between them and all stakeholders and communities involved is paramount for success. A new beginning for the region hinges upon that but with three states moving at different speeds, the region runs the risk of squandering its potential to be a clean-energy model for the nation.
