It’s Official: US Juices Clean (Or Green) Hydrogen Race With New “Energy Earthshots”
It seems like only yesterday that a mysterious new program called Energy Earthshots was in the works for the US Department of Energy, and everybody was wondering what that could possibly be. The curtain has now lifted and the answer is clean hydrogen. If you’re thinking why clean hydrogen and not green hydrogen, that’s a good question. The answer could make fossil energy stakeholders very happy or very, very sad.
Green Hydrogen Vs. Clean Hydrogen
For those of you new to the topic, hydrogen is the cornerstone of the modern industrial economy. The booming market for hydrogen fuel cells is just one slice of a huge chemical pie that includes agriculture, food processing, and refining, among other areas.
The problem is that almost the entire global supply of hydrogen comes from natural gas and coal.
However, not for long. Low-cost renewable energy has fostered a rosier economic outlook for new and more sustainable hydrogen sources, aka green hydrogen. Most of the activity is concentrated in the field of electrolysis, which refers to systems that deploy electricity to tease bubbles of hydrogen gas out of water.
This is what is known as green hydrogen. Other renewable hydrogen sources include biomass, biogas, municipal wastewater, and municipal solid waste.
The idea of producing hydrogen from reclaimed industrial gasses and plastic waste is also catching on. That’s more sustainable than using virgin natural gas or coal to produce hydrogen, though much of the foundational feedstock is still fossil-based and not renewable.
Then there’s a public relations gimmick cooked up by fossil energy stakeholders, in which you still produce hydrogen from natural gas or coal, but you hook it up to a carbon capture system and call it “blue” hydrogen, which supposedly translates into “clean” hydrogen.
I know, right? We think so, too.
So What Is It, Green Hydrogen Or Clean Hydrogen?
All else being equal, the “clean hydrogen” referred to in the new Energy Earthshots initiative could include support for fossil-sourced hydrogen with carbon capture, as well as reclaimed hydrogen from wastes.
However, last week CleanTechnica eyeballed the Biden administration’s FY 2022 budget proposal, and we took a quick look back the Energy Department’s green hydrogen initiatives during the administration of former President and accused insurrectionist Donald Trump, and then we connected the dots to current Energy Secretary Jennifer Granholm’s pronouncements about renewable hydrogen earlier this year, and our conclusion is that when Energy Earthshots says clean hydrogen, they may be leaving a bit of wiggle room for fossil sources, but probably not all that much.
Get Ready For The Hydrogen Shot
The name “Earthshots Initiative” is a play on the successful 20th century Moonshot venture that shot US astronauts into space before anybody else got there, and the Energy Department’s early 21st century Sunshot Initiative, which launched during the Obama administration with the goal of bringing down the cost of solar power.
Energy Earthshots aims to replicate that all-hands-on-deck frenzy of collaborative innovation to tackle the energy challenges of the early mid-century period, which will make or break the ability of humankind to save itself from catastrophic climate change.
The Energy Earthshots Initiative aims to “accelerate breakthroughs of more abundant, affordable, and reliable clean energy solutions within the decade,” the Energy Department explained in a press release on Monday.
Skeptics were and still are laughing off the idea of the hydrogen economy of the future, but the Energy Department is a big fan and they just clapped back bigly when they picked hydrogen as the very first focus of the new Energy Earthshots initiative.
“The first Energy Earthshot — Hydrogen Shot — seeks to reduce the cost of clean hydrogen by 80% to $1 per kilogram in one decade,” the Energy Department said. “Achieving these targets will help America tackle the climate crisis, and more quickly reach the Biden-Harris Administration’s goal of net-zero carbon emissions by 2050 while creating good-paying, union jobs and growing the economy.”
“Clean hydrogen is a game changer. It will help decarbonize high-polluting heavy-duty and industrial sectors, while delivering good-paying clean energy jobs and realizing a net-zero economy by 2050,” Secretary Granholm added.
Here’s the money quote from the press release:
“By achieving Hydrogen Shot’s 80% cost reduction goal, we can unlock a five-fold increase in demand by increasing clean hydrogen production from pathways such as renewables, nuclear, and thermal conversion. This would create more clean energy jobs, reduce greenhouse gas emissions, and position America to compete in the clean energy market on a global scale.”
Fossil-Sourced Hydrogen With Carbon Capture, Or Maybe Not
If you caught that thing about renewables and nuclear, that’s a reference to electrolysis, meaning green hydrogen. There is also something called thermochemical conversion, which deploys high heat from nuclear or concentrating solar plants to split hydrogen from water, but that seems a bit too early-stagey to fit into the Hydrogen Shot timeline. The other option is thermal conversion, which generally refers to steam reformation and other processes that apply to natural gas and coal, meaning not green hydrogen.
The Hydrogen Shot Request for Information emphasizes diverse energy sources in the US, and it specifically mentions fossil energy plus carbon capture for ramping up hydrogen production, so it looks like fossil energy stakeholders have something to cheer about after all.
Or, maybe not. Climate action has become a mainstream business model. It’s a good bet that the market for fossil-sourced hydrogen will shrink as the supply of sustainable hydrogen grows, carbon capture or not.
The Energy Department’s RFI appears to recognize that the private sector is already leaning towards green hydrogen. Despite the nod to fossil-sourced hydrogen, the agency highlights green hydrogen in a shortlist of major projects currently under way:
“… hydrogen production, storage, and end use in turbines through the $1 billion Advanced Clean Energy Storage project in Utah; a 5 MW electrolyzer project planned in Washington State; first-of-a -kind nuclear-to-hydrogen projects in multiple states; a 20 MW electrolyzer plant to produce hydrogen from solar power in Florida; and the first GW-scale factory for electrolyzers announced in New York, with a 120 MW electrolyzer soon to be installed.”
If you can spot the thermal conversion project in that list, drop us a note in the comment thread (hint: there is none).
But What About Hydrogen Fuel Cell Vehicles?
Yes, what about them? Hydrogen Shot is not taking aim at the hydrogen fuel cell passenger car and SUV markets, though Toyota and a small but growing list of automakers have been pitching the idea (for the record, the growing list includes Hyundai, Jaguar Land Rover, and most recently, BMW).
Instead, Hydrogen Shot is focusing on long haul trucks and other heavy applications. That could include locomotives as well as hydrogen aircraft and hydrogen watercraft.
Green hydrogen has already been incorporated into much of the planning for transportation applications, so it’s no surprise that green hydrogen producers are already jockeying to compete for business.
In the latest development on that score, the firm SGH2 Energy is pitching a “greener than green” hydrogen product that draws from biomass and other bio-based waste. The company claims that its green H2 displaces more carbon than both electrolysis-based process as well as thermal conversion, so hold on to your hats.
Follow me on Twitter @TinaMCasey.
Image: Hydrogen production from various sources courtesy of US Department of Energy.
![BYD's new EV plant in Brazil suddenly halted over 'slavery' worker conditions [Update]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2024/04/BYD-cheapest-electric-car.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Construction at BYD’s new EV plant in Brazil was suddenly halted Monday after authorities found Chinese workers in “slavery-like” conditions. The workers were hired in China by another firm, and BYD has since cut ties. BYD and the firm are now saying the term “slavery” was unjustly used, and some translations may have been misunderstood.
Why construction at BYD’s EV plant in Brazil is halted
Updated 12/26/24: This article has been updated with the latest information, including a statement from Jinjiang Group and comments from BYD’s general manager of public relations, Li Yunfei. Read more below.
According to a statement from the Public Ministry of Labor (MPT), 163 workers at the construction site of BYD’s new EV plant in Salvador, Brazil, were “being held in conditions analogous to slavery.”
Construction on the site was halted on Monday after the findings. According to the authorities, Jinjiang Group, one of the contractors BYD hired to build the new EV plant, hired the workers in China.
BYD released a statement saying it has cut ties with Jinjiang and is assisting the victims as it works with Brazilian authorities. All workers will be transferred to hotels. They will not be able to work and will have their contracts terminated.
Alexandre Baldy, senior vice president of BYD Brazil, said the company remains “committed to full compliance with Brazilian legislation, especially with regard to the protection of workers’ rights and human dignity.”
The MPT statement detailed the extreme “slavery-like” worker conditions. For example, they had one bathroom for every 31 workers, forcing them to wake up at 4 am to get in line to be ready for work at 5:30 am. They slept without mattresses on the bed, and the kitchens operated in “alarming conditions.”
If a worker quit after six months, they would leave the country without any pay after factoring in the cost of a round-trip airplane ticket.
BYD said it has held a “detailed review” over the past few weeks. The Chinese EV giant asked Jinjiang several times to improve the conditions.
A joint virtual hearing of the MPT and MTE is scheduled for December 26. The MPT said the need for new “on-site inspections” has not been ruled out. BYD’s new EV plant is set to begin production next year. Check back soon for more updates on the situation.
Update 12/26/24: Jinjian Group said the portrayal of its employees working in “slavery-like” conditions was inconsistent, and some of the translations may have been misunderstood.
“Being unjustly labeled as ‘enslaved’ has made our employees feel that their dignity has been insulted and their human rights violated, seriously hurting the dignity of the Chinese people,” Jinjiang said in a social media post (via Reuters). The company issued a joint letter to issue an apology.
BYD’s general manager of public relations, Li Yunfei, reposted the statement. Li added that “foreign forces” and some other members of the media were “deliberately smearing Chinese brands.
Mao Ning, a spokesperson for China’s foreign ministry, said the Chinese embassy in Brazil was in talks with leaders in the region to verify the accusations.
BYD is already a top-selling EV brand in Brazil. In October, it launched its first pickup, the Shark PHEV. The pickup is BYD’s sixth vehicle in Brazil, joining other popular models like the Dolphin Mini (Seagull), Yuan Plus, and Dolphin.
Once up and running, which was expected later this year or early 2025, BYD’s Brazil plant will have an annual production capacity of 150,000 vehicles.
Source: Bloomberg, Brazil Public Ministry of Labor
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Tesla is rumored to have signed a battery cell supply agreement with EVE Energy, a Chinese battery cell manufacturer.
For years, Tesla has been increasing the percentage of its electric vehicles powered by LFP battery cells.
Lithium iron phosphate (LFP) is cheaper than the nickel-rich alternative, but they have lower energy density – resulting in a shorter range.
Over the last few years, LFP energy density has increased enough to make sense in cheaper electric vehicles.
Tesla has been buying LFP battery cells from China’s CATL and BYD.
In 2021, there were rumors that Tesla was in discussions with EVE Energy, another Chinese battery cell manufacturer, to source LFP battery cells.
Now, three years later, it sounds like a deal has been made.
Chinese media are reporting that Eve and Tesla have signed an agreement for Tesla to get cells from a Malaysian factory starting in 2026 (via CNEV Post):
Eve Energy has reached a supply agreement with Tesla for energy storage batteries, and its Malaysian factory is expected to start supplying energy storage batteries to Tesla US in 2026, according to a report in Chinese media outlet LatePost today.
Eve confirmed that it recently signed a deal with “a customer in the Americas” without confirming the customer, but LatePost reached out to them when reporting that Tesla was the customer, and they didn’t confirm nor deny it.
For the longest time, Tesla only had Panasonic as its battery cell supplier. The automaker pioneered using cylindrical li-ion cells in electric vehicles. Prior to Tesla, they were primarily used in personal electronics, like laptops.
At the time, Panasonic was the only cell manufacturer willing to put its cells in Tesla vehicles.
Over the last few years, Tesla has greatly increased its battery cell suppliers, adding contracts with CATL, LG, BYD, Samsung, and now apparently Eve Energy.
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Environment
‘Like your Tesla rental? Want to keep it?’ Hertz is trying to unload its Tesla cars on renters
Hertz is trying to sell its Tesla cars to renters as it desperately tries to unload its electric vehicle inventory after a massive drop in value.
In 2021, Hertz made a major move to electrify its fleet, ordering 100,000 Tesla Model 3s and later adding Model Ys. This Tesla fleet boosted Hertz’s customer satisfaction, but issues soon arose when Tesla cut prices on the Model 3 and Model Y in 2022 and 2023, sharply reducing resale values.
This hit Hertz hard, as it relies on fleet value for its financial health. While the Model 3 held up to 90% of its value within three years as of 2020, more recent declines saw nearly 50% of that value erased, with Model Y values dropping even more.
To mitigate losses, Hertz announced plans to sell about 20,000 Teslas early this year and ramped that up recently.
You can get some exceptionally cheap Tesla vehicles on Hertz’s website. Of course, they have high mileages over short periods of time and they have been farted in by god knows how many people, but for as low as $17,000 and still under powertrain warranty, it’s not necessarily a bad deal.
But it looks like Hertz is having some issues selling those used Tesla vehicles.
The car rental company has started a new program to reach out to people who are renting its Tesla vehicles to try to get them to keep them.
A recent Hertz renter shared on Reddit an offer that the rental company sent him about keeping his Tesla Model 3 after his rental.
Hertz offered him to buy the 2023 Model 3 with 30,000 miles for just short of $18,000:
More people have received similar offers as per social media posts. It looks like a new program from Hertz to try to unload their Tesla inventory.
Electrek’s Take
These are not necessarily bad deals, but you shouldn’t expect “like new” cars. People tend not to take good care of rental cars.
But it might be a good solution for used car buyers looking to go electric.
At the cost and with fuel savings, this is basically a $12,000 vehicle over a few years.
When buying a cheap used EV, there’s no better way to charge it than with cheap solar power. If you want to make sure you’re finding a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage. EnergySage is a free service that makes it easy for you to go solar – whether you’re a homeowner or renter. They have hundreds of pre-vetted solar installers competing for your business, including some who install Tesla products like Powerwalls. They ensure you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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