Hydrogen hubs were high on the list of “moonshots” identified by the Biden administration’s Department of Energy in its early days. That department now has $9.5 billion in funds for the moonshot, and it has already thrown open the competition to earn that money.
Bakken Energy of North Dakota is one of the companies that has entered the competition. Last year, the business and Mitsubishi Power Americas launched a joint venture to build one of North America’s largest low-cost hydrogen hubs at the old Dakota Gasification facility in Beulah.
The Department of Energy is now working up the guidelines for how to apply for and obtain a grant, according to Bakken Energy CEO Mike Hopkins, who spoke to the Williston Herald. “They’ve encouraged anyone who is interested in becoming one of these centers to submit their information.” It’s all preliminaries, and we’ve already completed them.”
Hopkins anticipates fierce competition, with hundreds of applicants, but feels North Dakota’s hub offers many significant benefits.
North Dakota’s Great Plains hub, for example, will have a naturally low-cost structure. For one thing, the former Dakota Gasification Plant already has a lot of the equipment needed for the hydrogen hub. However, the MHA Nation will provide an ample supply of low-cost natural gas to the hub.
Hopkins believes that size counts and that the Beulah facility will be one of, if not the largest, of the hydrogen centers mentioned so far for North America.
There’s also the matter of location, location, location
“Some people think living out in North Dakota is kind of distant like you’re not near anything,” Hopkins said. “We take a different approach to it. We consider our geographical position, which is about in the middle of the upper Midwest. Given what we’ll be doing with our hydrogen, that’s an excellent site.”
Hopkins said the business plans to produce low-cost, low-carbon ammonia and fertilizer, as well as long-haul transportation fuel, based on market needs. Depending on demand, the fuel can be transported in cryogenic trucks or through a hydrogen pipeline.
“We have pretty much everyone in the business in negotiations with us right now, including the major truck stop firms, since they want and need hydrogen supply in the Upper Midwest,” Hopkins said. “Which is a significant long-haul truck route.”
The cooperation with MHA Nation, which has committed to supply gas for the hydrogen hub, is another benefit for the Great Plains Hydrogen Hub. This would minimize flaring on the reserve, and delivering benefits to historically disadvantaged populations is a crucial criterion for the Department of Energy when it comes to federal assistance.
“I believe some people undervalue how important it is,” Hopkins added. “When it comes to selecting who receives what cash, it’s critical that every attempt be made to find a means to ensure that these historically disadvantaged populations benefit from your initiative.” And, while this is a crucial criterion, I believe that few, if any, other proponents of hydrogen hubs have been able to give any substantial benefit to historically disadvantaged neighborhoods.”
Regardless of whether the Great Plains regional hub receives funding, Hopkins stated that fixing the flaring issue on Fort Berthold will be a primary goal for Bakken Energy.
“We don’t want to just walk out there and grab petrol,” he explained. “We want to do good, and there’s a possibility to do huge good in this situation.”
Questions have been raised concerning the viability of hydrogen, as well as whether the plant will compete with coal.
First and foremost, Hopkins stated, the Beulah hydrogen hub will save all 500 jobs at the facility. Those used to be coal-fired, but Basin Electric’s Paul Sukut informed the Clean Sustainable Energy Authority during its initial round of grant applications that without the hydrogen hub, those jobs would be doomed.
Hopkins points out that 10 million tons of hydrogen are generated and utilized in the United States each year, indicating that the project is feasible. The technology and know-how for transferring and transporting hydrogen are already in place. At this point, it’s basically a matter of putting in place the infrastructure to do more of the same.
The Beulah facility, on the other hand, is unique in that it can collect 95 percent of the carbon emissions involved with hydrogen production. As a result, North Dakota hydrogen will be equivalent to so-called green hydrogen, which is hydrogen created from surplus renewable energy sources.
Hopkins stated, “Everyone is going toward decarbonization.” “Whether you like it or not, it’s occurring.” Companies, whether they like it or not, must satisfy the needs of their investors and shareholders.”
Hopkins is optimistic about North Dakota’s hydrogen hub’s future, but he is skeptical of claims that hydrogen will be used to power everything in the future. He expects it will continue to concentrate on energy-intensive businesses. At least, that’s what Hopkins is hearing as he tries to plan the future of North Dakota’s first hydrogen center with business leaders.
Hopkins is aware, however, of studies conducted in the United Kingdom that suggest natural gas mixes containing up to 20% hydrogen do not harm natural gas pipelines or generate new difficulties for end customers.
“You figure out what proportion is safe, and whatever you put in is the amount by which the entire natural gas system’s carbon footprint is decreased,” Hopkins explained. “One straightforward option that everyone agrees minimizes the carbon footprint is to simply exchange part of the natural gas with clean hydrogen for a gas utility that is trying to keep its business going and is under pressure to reduce its carbon footprint.”
