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Well, whaddaya know. No sooner does New Jersey let slip that it has a new green hydrogen pilot project in the works, when here comes archrival New York right across the river with a whole truckload of green hydrogen news. And they do mean green hydrogen from renewable resources, not that other stuff the natural gas lobby is trying to pass off as “clean.”

Big Apple Goes Gaga Over Green Hydrogen

New York’s big hydrogen announcement is no coincidence. It piles onto the US Department of Energy, which dropped another $52.2 million on hydrogen R&D earlier this week. Most of the Energy Department greenbacks are aimed directly at teasing green hydrogen out of water. The rest apply to projects that extract hydrogen from natural gas, but the technology could also be applied to various forms of sustainable hydrogen, such as biogas.

New York is skipping over the natural gas part, which is no surprise given the state’s prickly relationship with gas, and going straight for the green hydrogen gold.

They have pulled some heavy hitters into the green hydrogen arena. The new announcement enlists the mighty New York Power Authority and the Electric Power Research Institute, which is based in California and has been pivoting from fossil fuels into renewable energy. The last time we checked in, EPRI was hooking into a huge EV and power grid consortium in Texas. Just yesterday they announced a new competitively selected cohort for their latest R&D incubator. The 20 winning startups will work on “demonstration technology projects intended to accelerate decarbonization, electrification, grid modernization, and other electric power industry innovation imperatives.”

NYPA and EPRI have been tapped with General Electric and the specialty gas firm Airgas in a green hydrogen pilot project to be located at a natural gas plant on Long Island, which almost sounds like it could be a natural gas-to-hydrogen project except not, because the project is aimed at measuring different blends of hydrogen in a natural gas turbine.

GE is one of several legacy engineering firms that have become active in the area of blending hydrogen and natural gas in gas turbines. One approach is to design new turbines that are specially made to handle an increasing proportion of hydrogen. The Long Island project is especially interesting because it deploys a 20-year-old GE gas turbine.

If it pans out, then gas power plants all over the country could begin transitioning to green hydrogen without having to invest in new turbines. That’s an important consideration for the US, which became splattered with new gas turbines after the cost of gas dropped in the early 2000s.

The good news is that low-cost gas provided the initial kick for driving coal out of the US power generation market. The bad news is that gas power generation stakeholders are stuck with relatively new gas turbines, but a growing number of leading electricity buyers and other ratepayers are demanding carbon-free electricity. The hydrogen blend idea could help get them off the hook until something better comes around.

Green Hydrogen For Deep Decarbonization

If you’re thinking fuel cell electric vehicles are part of the New York announcement, nope. Once they hit the road, automobiles fall into the category of decarbonization lite. Everybody knows how to decarbonize cars, at least from the tailpipe on out.

The motor vehicle supply chain is a whole ‘nother can of decarbonization worms. Whether you have a fuel cell electric vehicle, a battery electric vehicle, or a plain old gasmobile in your driveway, they all spew invisible bubbles of greenhouse gas from factories all along the supply chain, from tires and body to all the innards.

The solution is deep decarbonization, which refers to detaching heavy industries and other carbon intensive sectors from fossil energy. That’s a tough row to hoe. Hydropower fits some of the bill, including the all-important energy storage angle. Wind and solar can also lend a hand in combination with battery-type energy storage. Green hydrogen comes into the picture as a flexible, transportable energy carrier that can provide storage, generate electricity, or provide the juice for gas turbines and other thermal uses.

To tackle that end of things, The New York State Energy Research and Development Authority will be building up its ongoing deep decarbonization work. Last December the agency co-hosted a “Deep Decarbonization Workshop” with the state’s Department of Environmental Conservation. The new announcement sets up a more intensive look-and-listen session this fall. Here, let’s have NYSERDA explain:

“The session will be used to help NYSERDA understand how to expand stakeholder engagement to ensure that additional assessment of the pathways, opportunities, and challenges of generating and utilizing green hydrogen across all sectors includes consideration of all stakeholder perspectives, including environmental justice organizations and communities.”

The Hydrogen Economy Goes Green

Because hydrogen is an abundant, zero emission fuel, there has been talk of a global “hydrogen economy” or “hydrogen society” for ages. The problem is that hydrogen has to be extracted from something.

Right now, almost all of that something is natural gas, and part of it is coal, so fossil energy stakeholders have been riding high on the idea of the hydrogen economy. However, the cost of non-fossil hydrogen sources is dropping quickly, and fossil energy stakeholders  will have to think fast.

Naturally enough, natural gas stakeholders have an interest in promoting the hydrogen economy as a decarbonization thing to which they can contribute. Their idea is to add carbon capture to the process of steam reformation, which is the primary method for extracting hydrogen from natural gas. Some stakeholders are also experimenting with an emerging technology called autothermal reforming.

That still leaves a steaming pile of local and global impacts related to fugitive methane emissions throughout the natural gas extraction and distribution chain, as well as stress on water resources from drilling operations, including the disposal of drilling wastewater.

In a cold dose of reality for natural gas stakeholders, researchers are already studying how steam and autothermal reforming can be applied to extract hydrogen from biogas. So, have at it, you natural gas stakeholders. See what you can do to improve the technology, and then watch as somebody else applies it to more sustainable, non-fossil resources.

Anyways, much of the green hydrogen R&D activity taking place nowadays is aimed at driving down the cost of electrolysis, which refers to deploying an electrical current to pop hydrogen gas out of water, so it’s possible that New York can build its sparkling green hydrogen economy on water and electricity.

Natural gas stakeholders may be hoping that “electricity” means more room for gas power plants. Dream on, Klingon.

NYSERDA is hooking up with the Energy Department’s National Renewable Energy Laboratory to “compile the foundational, base-line information and data that will enable New York to have robust discussions and dialogue around the role green hydrogen could play in New York’s decarbonization plans,” and that discussion will be aimed at aligning the hydrogen strategy with “existing mandates for 70 percent renewable electricity by 2030 and 100 percent zero-emission electricity by 2040.”

Whither Natural Gas In The Hydrogen Economy Of The Future?

That thing about “zero-emission electricity by 2040” leaves some wiggle room for carbon capture, but not much. Part of New York’s hydrogen announcement involves new funding for long duration energy storage technology, which could eliminate or at least sharply reduce the need for gas power plants altogether.

The idea is that the current state of battery-type energy storage only permits a few hours of peak use. To fill in for gas power plants, a storage facility needs to provide for at least a full day, and preferably more than that.

In any case, New York is not interested in anything on the market today.

“Project submissions should advance, develop, or field-test hydrogen, electric, chemical, mechanical, or thermal-electric storage technologies that will address cost, performance, and renewable integration challenges in New York State,” they specify, adding that “Submissions must only include innovative long duration energy storage technologies which are yet to be commercialized.”

Right back at you, New Jersey. Last week the state’s Board of Public Utilities greenlighted the proposed Atlantic Shores offshore wind farm, which includes a pilot green hydrogen facility in its winning bid, but it appears that New York has vaulted ahead.

Stay tuned for Round 2, whatever that may be.

Follow me on Twitter @TinaMCasey.

Image: Renewable hydrogen is encroaching on natural gas territory (via National Renewable Energy Laboratory).


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White House will ‘make sure gas prices remain affordable’ heading into summer, Biden advisor says

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White House will 'make sure gas prices remain affordable' heading into summer, Biden advisor says

A customer refuels at a Shell gas station in Hercules, California, US, on Tuesday, May 23, 2023. 

David Paul Morris | Bloomberg | Getty Images

President Joe Biden’s top economic advisor said Thursday that the White House will “make sure gas prices remain affordable” when asked whether the administration would consider tapping the Strategic Petroleum Reserve.

“There are of course things that have been done in the past and we’ll continue to very closely monitor, make sure that gas prices remain affordable for so many American families going into the summer driving season,” National Economic Advisor Lael Brainard said at Semafor’s World Economy Summit.

Gasoline futures have risen nearly 29% this year with prices at the pump currently averaging $3.67 a gallon, according to the motorist association AAA. U.S. crude oil has gained 15% for the year on stronger demand, tighter supplies due to OPEC+ production cuts, and mounting geopolitical risks in the Middle East and Eastern Europe.

Oil Prices, Energy News and Analysis

“We’re highly attentive to the international oil markets and domestic gas prices. We’ll continue to monitor closely and want to make sure that those gas prices remain in current ranges,” Brainard said. U.S. crude oil hit a high of $87.67 per barrel this year before pulling back to around $83 a barrel.

Iran’s unprecedented weekend air assault on Israel has raised fears that an Israeli counterattack could trigger a wider war in the region that impacts crude oil supplies. The White House is keeping a close eye on “geostrategic risk” in the Middle East, Brainard said.

And Ukraine’s repeated drone strikes on Russian oil refineries also have the Biden administration worried. Defense Secretary Lloyd Austin told Congress last week that those attacks could have “a knock-on effect in terms of the global energy situation.”

White House climate advisor John Podesta said Tuesday Biden “will do what he can to make sure” gasoline prices are affordable, noting that the administration has tapped the Strategic Petroleum Reserve before.

The White House released 180 million barrels from the SPR in 2022 as oil and gas prices surged in the wake of the Russian invasion of Ukraine. The reserve currently stands at about 365 million barrels, the lowest level in decades, a point of contention with Republicans in Congress.

Russia’s decision to deepen its cuts by 470,000 barrels per day to meet its pledges to OPEC+ could prove particularly problematic, according to March research note from JPMorgan. The price of global benchmark Brent crude oil could approach $100 by September – just before the November presidential election – without countermeasure, according to the investment bank.

The chances of another release from the SPR will rise if gasoline prices move closer to $4 per gallon, which could happen as soon as May, according to the bank. Although the reserve is at historically low levels, the Biden administration has space to release another 60 million barrels of crude oil, according to the bank.

Oil prices have pulled back more than 3% this week as war fears have eased as Israel has not immediately struck back against Iran, but the situation remains highly uncertain. Daniel Yergin, vice chairman of S&P Global, said oil prices above $90 presents a problem for the broader market.

“It’s also a problem for inflation in general, and it’s a real problem if you’re an incumbent running for reelection,” Yergin told CNBC’s “Squawk Box” earlier this month.

Don’t miss these stories from CNBC PRO:

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Volvo and CATL have big plans for old EV batteries

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Volvo and CATL have big plans for old EV batteries

Volvo and battery giant CATL are teaming up to turn old EV batteries into new ones. The partnership aims to further reduce the carbon footprint of EVs by recycling key battery materials.

As one of the first legacy automakers to commit to an all-electric future, Volvo is already making massive strides to reduce its carbon footprint.

In fact, Volvo’s last diesel-powered car rolled off the production line last month as the automaker looks toward a cleaner future.

Last year was a “key milestone” for Volvo, according to CEO Jim Rowan. Volvo sold over 113,000 fully electric vehicles in 2023, up 70% compared to 2022. Electric cars accounted for 16% of Volvo’s total vehicle sales in 2023, but this year is expected to be even bigger.

Rowan told Reuters he expects “tremendous growth” this year as new models like the low-cost EX30 roll out.

Volvo’s EX30 starts at $34,950 in the US and €36,590 in Europe as one of the most affordable EVs.

Volvo-CATL-EV-batteries
Volvo EX30 (Source: Volvo)

The EX30 is already impacting sales. Volvo sold 18,021 EVs in March, up from 12,621 the year before. More importantly, fully electric vehicles accounted for 23% of total sales.

Volvo’s new compact electric SUV “contributed to the sales growth,” according to Volvo Cars’ COO and deputy CEO, Björn Annwall. He added that Volvo would “focus on ramping up sales of our EX30” in the coming months.

Volvo expects EVs to account for 50% of total sales by the end of next year as it works toward an all-electric future by 2030.

Volvo-EX30
Volvo CEO Jim Rowan during the EX30 launch (Source: Volvo Cars)

Volvo and CATL to turn old EV batteries into new ones

Volvo and CATL announced a new partnership this week as they work to reduce the carbon footprint of electric vehicles.

As electric vehicle sales continue climbing, many batteries will eventually be retired, and Volvo believes it has an answer. Volvo and CATL are teaming up to recycle old and scrapped EV batteries.

Volvo suppliers will take apart the batteries to use over 90% of the key materials like nickel, cobalt, lithium, and others.

Volvo-2024-EV-prices
Volvo C40 (right) and XC40 (left) Recharge EVs (Source: Volvo)

According to Volvo, CATL will then use the materials to make new EV batteries that will be used to power its new electric cars.

Volvo and CATL signed a long-term agreement in 2019 to supply batteries for electric Volvo and Polestar models.

Volvo aims to reduce CO2 emissions per average vehicle by 75% by 2030. In its 2023 annual report, the company revealed that it had reduced average CO2 emissions per vehicle by 20% compared to the 2018 baseline.

Source: CnEVPost, Volvo Cars

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You can power your home for 21 days with a Chevy Silverado EV and GM’s new bidirectional charger

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You can power your home for 21 days with a Chevy Silverado EV and GM's new bidirectional charger

GM Energy just debuted vehicle-to-home (V2H) bidirectional EV chargers – here’s how GM’s EVs will keep the lights on.

Once installed, GM Energy’s home EV chargers will enable customers to send power from a compatible GM EV to their home in the face of increasing power outages across the US.

Customers can purchase GM Energy’s V2H bundle through current GM mobile brand apps. It’s initially rolling out in five states – California, Florida, Michigan, New York, and Texas – with plans to expand over time.

At $7,299, the bundle doesn’t come cheap. It consists of the GM Energy Powershift Charger at $1,699, and GM Energy V2H Enablement Kit at $5,600. Installation costs and taxes won’t be included and will vary, depending on a home’s existing setup and other things. GM has partnered with home EV charging installer Qmerit.

But it’s comparable to other battery storage costs – a Powerwall costs $11,500 with a solar installation through Tesla – and GM’s system eliminates the need to install battery storage.

The first of GM’s EVs to be compatible with the GM Energy home product suite is the 2024 Chevrolet Silverado EV First-Edition RST, which is expected to be available to customers this summer.

The Silverado will be equipped with V2H bidirectional charging technology. With an enormous 200 kWh battery pack that can provide up to 10.2kW of power flow, the electric pickup is capable of powering an entire house for 21 days.

GM says it will continue to roll out V2H bidirectional charging technology across its Ultium-based EVs by model year 2026. That will include the 2024 Sierra EV Denali, the 2024 Chevrolet Blazer EV, the 2024 Chevrolet Equinox EV, and the 2024 Cadillac LYRIQ.

Some eligible 2024 GM EVs will require a dealership or over-the-air update to enable bidirectional charging.

Electrek‘s Jameson Dow will demo GM Energy’s new V2H products on May 9 and will report back with insights.

GM Energy is ready to compete with the likes of Tesla and its Powerwalls – it says it will sell stationary battery storage and solar integration later this year.

Read more: Chevy just revealed the Silverado EV First-Edition RST specs and it’s got 440 miles of range


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