The Hydrogen Hub Act has been introduced in the New Mexico legislature.
A slew of subsidies will be included in the bill, which will be introduced during the next legislative session in order to encourage the growth of a new industry. One of four hydrogen hubs planned under the $1 trillion infrastructure bill signed into law in November, New Mexico is expected to be a contender.
Environmentalists, on the other hand, have raised concerns about hydrogen as a solution to some of the state’s most pressing economic and clean-energy issues. Because of the state’s plans, they say, the fossil-fuel industry is getting a secret subsidy from the state, which they deny.
New Mexico has big plans for hydrogen. Hydrogen can be used to heat homes, convert coal plants, and power all modes of transportation, from buses to cars, by new entrepreneurs and established fossil-fuel companies alike. Their argument is that it will aid in economic growth while also allowing the state to make use of deteriorating infrastructure.
Many proponents of renewable energy are worried that the emergence of a complicated hydrogen market will take attention away from more straightforward and less expensive options. The state’s plan to subsidize hydrogen is also being criticized by environmentalists.
In order to protect the environment, many environmentalists advocate for only using “green” hydrogen, which is produced by electrolyzing water and separating the oxygen from it. Gray hydrogen is now produced by removing the hydrogen from natural gas methane and then releasing the remaining carbon into the atmosphere. When it comes to blue hydrogen, which combines carbon capture technology with gray hydrogen to reduce emissions, most of the proposed projects in New Mexico are gray hydrogen.
Many citizens and environmental groups have criticized the bill’s speed of consideration. A hydrogen hub is Lujan Grisham’s top legislative priority, so there won’t be much time for debate about whether communities want one. It is also argued that quick action is needed in order for New Mexico to compete with other states for federal hubs while also meeting the state’s environmental goals.
