State, partners apply for over $1B for hydrogen economy

CASPER — Wyoming and three other states applied formally last week for more than $1 billion in federal funds for the creation of a regional clean hydrogen hub. 

The Western Interstate Hydrogen Hub partnership, which began a little more than a year ago, also includes Colorado, New Mexico and Utah, along with eight private companies. It’s projected to create more than 26,000 jobs — and considerable economic opportunity — if the U.S. Department of Energy signs off on the $1.25 billion proposal, according to a press release. 

“As an all-of-the-above energy state, Wyoming is poised to make the most of exciting new opportunities like hydrogen, which will be a cornerstone of our energy future,” Gov. Mark Gordon said in a statement. 

Together, he added, the states developed “a bipartisan vision for a hydrogen hub.” 

Clean hydrogen appeals to both sides of the political aisle — but sometimes for different reasons. 

The carbon-free fuel is usually made in one of two ways: from natural gas plus carbon capture, or from renewable electricity and water. Some groups prefer one method over the other. 

The Wyoming Energy Authority, the state agency that oversees its many energy initiatives, has pushed hard to advance both. 

Wyoming and its partners were one of 79 groups to submit a concept paper to the Department of Energy last year. The agency encouraged the 33 most thorough — those planning to “develop all elements critical to a H2Hub” — to submit a full application for a share of the $7 billion allocated by the 2021 Infrastructure Law. 

Anja Richmond, Wyoming’s hydrogen hub program director, said in a statement that the states chose projects that highlighted each one’s “unique culture and economy” and came away “confident that hydrogen will benefit these communities and their workforces for many years to come.” 

Bendel was not available for additional comment before this story went to press. 

Hydrogen has gained momentum in recent years as a potential alternative to fossil fuels for manufacturing and other hard-to-decarbonize industries (though concerns remain about its high flammability). 

The companies involved in the states’ hydrogen hub proposal have set their sights on a variety of different hydrogen sources and customers. 

Tallgrass Energy, an oil and gas transporter, plans to put some of the funds toward hydrogen projects in Wyoming, Colorado and New Mexico aimed at the electricity and transportation sectors and industrial users.

 “We look forward to producing and delivering the flexible, decarbonized energy solutions that will benefit the four-state region and beyond,” Tallgrass Energy President and CEO Matt Sheehy said in a statement.

The Department of Energy is expected to announce awardees toward the end of this year.