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DOE offers $750M to help drive clean hydrogen production costs … – Utility Dive

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The funding aims to cut the cost of hydrogen produced with emissions-free electricity to $2 per kilogram by 2026 from around $5/kg today.
The U.S. Department of Energy said Wednesday it is offering $750 million for research, development and demonstration efforts to slash the cost of clean hydrogen.
The funding is part of a $1.5 billion effort to advance electrolysis technologies and improve manufacturing and recycling capabilities for hydrogen and fuel cells.The Biden administration aims to cut the cost of hydrogen produced from emissions-free electricity to $1 per kilogram within a decade, down from around $5/kg today.
The just-released funding opportunity specifically aims to improve the efficiency, increase the durability and cut the cost of producing clean hydrogen from water using electrolyzers to less than $2/kg by 2026.
With the first funding round, DOE expects to award over five years up to:
The awards require cost sharing of up to 50%.
Concept papers are due April 19 and full applications are due July 19.
“As demand for clean hydrogen grows, with accelerating global efforts to decarbonize the global economy, so too does the demand for electrolyzers, hydrogen fuel cells, and other hydrogen technologies,” DOE said in the funding announcement.
In a sign of an emerging sector, announced installations of electrolyzers in the United States jumped to about 600 MW last year from about 200 MW as of June 2021, according to DOE.
Clean hydrogen is essential for reaching President Joe Biden’s goal of having an emissions-free electrical grid by 2035 and net-zero carbon emissions by 2050, DOE said.
The funding offered through DOE’s Hydrogen and Fuel Cell Technologies Office is part of two programs enacted in the Infrastructure Investment and Jobs Act, which authorized $1 billion for efforts to cut the cost of clean hydrogen produced via electrolysis and $500 million for developing improved processes and technologies for making and recycling clean hydrogen systems and materials.
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Energy efficiency continues to be the ‘low-hanging fruit’ for reducing emissions. While the Biden administration is working to advance efficiency on multiple fronts, state and utility progress can be uneven.
Conditions following the COVID-19 pandemic have led a swath of utility companies to put their competitive renewable energy assets up for sale. Analysts are unsure how long the trend will last.
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Get the free daily newsletter read by industry experts
Energy efficiency continues to be the ‘low-hanging fruit’ for reducing emissions. While the Biden administration is working to advance efficiency on multiple fronts, state and utility progress can be uneven.
Conditions following the COVID-19 pandemic have led a swath of utility companies to put their competitive renewable energy assets up for sale. Analysts are unsure how long the trend will last.
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