New Mexico is collaborating with three other western states – Colorado, Utah, and Wyoming – on a regional proposal for a hydrogen energy hub that might vie for a share of $8 billion in federal infrastructure funding.
The regional collaboration is the result of many failed attempts to establish a state-level hydrogen framework during New Mexico’s 30-day legislative session.
The bills, which were backed by Gov. Michelle Lujan Grisham’s administration, would have established a framework for public-private partnerships to develop hydrogen projects in designated hubs, where producers who adhered to carbon emission limits would have been eligible for government grants, loans, and tax breaks.
However, environmental organizations and other advocacy groups opposed the proposals, claiming that boosting hydrogen development will perpetuate natural gas production in New Mexico at a time when the state needed to transition to renewable energy sources such as solar and wind.
That is because current hydrogen production relies on extracting hydrogen molecules from methane contained in natural gas, which results in significant carbon dioxide emissions.
Producers anticipate capturing such emissions through carbon capture and sequestration — a technology that environmentalists argue has not yet been demonstrated to be effective in large-scale projects.
However, Lujan Grisham stated that the multistate collaboration might generate jobs and stimulate innovation in order to significantly clean up hydrogen production, thereby assisting the state in meeting its climate change targets.
The four governors’ agreement of understanding commits the states to collaborating this year to submit a formal request for funds from the US Department of Energy.
The four states agreed not to submit more proposals – including standalone state plans – and to collaborate on matters such as workforce development, pipeline safety, and potential water and air quality consequences.
The $8 billion in federal money is part of President Joe Biden’s $1.2 trillion infrastructure investment plan, which was authorized last autumn. It is planned to be distributed between at least four distinct “hydrogen hub” demonstration projects located throughout the country.
Because no legislation relating to hydrogen was enacted during this year’s legislative session, New Mexico and the other regional states would instead adhere to new federal emissions guidelines.
However, a spokeswoman for Lujan Grisham stated that the failure of this year’s Roundhouse proposals does not preclude New Mexico from going forward with hydrogen energy infrastructure.
Additionally, she stated that New Mexico possesses numerous resources that make hydrogen a viable option, including abundant natural gas supplies, favorable geology for carbon storage, existing pipelines and trains, and a well-established energy-related workforce.
Meanwhile, Noah Long of the Natural Resources Defense Council expressed hope Thursday that this year’s legislative debates on hydrogen will help shape the state’s future approach to the industry.
He stated specifically that there are still concerns about using natural gas to extract hydrogen molecules from methane.
He said, however, that advancements in hydrogen generation technology may someday prove valuable as a tool for decarbonizing difficult-to-decarbonize segments of the economy.
