Seven US States Enter the Coalition to Create a Hydrogen Hub
- 21-Sep-2022 12:50 PM
- Journalist: Nicholas Seifield
On Monday, a Midwest Hydrogen Coalition (M-H2 Coalition) Memorandum of Understanding was signed by the Governors of seven states of the US. The states included in this participation are Illinois, Kentucky, Indiana, Ohio, Minnesota, and Wisconsin. The primary motive behind this participation is to create a clean Hydrogen hub in the country with a smooth demand-supply chain and decrease the dependency on fossil fuels and petroleum-based fuels. Currently, Hydrogen market prices are following the stagnancy in the US market because of the constant demand from the energy production sector.
According to the agreement signed by the participating countries, the settlement follows the Climate and Equitable Jobs Act. The act target to cut down the pollution caused by carbon emissions. Illinois is the first Midwest State to implement and fulfil the target by 2024. The participating countries want to rely entirely on clean energy sources. According to the official statement released by the Governor of Wisconsin, the domestic demand for Hydrogen from industrial and commercial sectors will be easily fulfilled after this agreement. Moreover, the Hydrogen Coalition will increase the production of Hydrogen and decrease the market prices of Hydrogen in the US market.
The federal Bipartisan Infrastructure Law (BIL) came forward in favour of the agreement and will be providing financial support of 8 billion dollars for the Department of Energy of the US. This government body will be funding the small-scale Hydrogen producers, local Hydrogen consumers and the infrastructure located in the region. Another government sanction providing positive support is the Inflation Reduction act implemented by the US government last month. The execution of the Inflation Reduction Act provides a tax credit for Hydrogen production, indirectly increasing the production quantity of Hydrogen in the domestic market.
As per ChemAnalyst, Hydrogen prices are anticipated to decline in the US market in upcoming quarters with the fulfilment of the agreement signed by the seven states of the US. The need for a clean environment has pressured the government to increase the production rate of Hydrogen in the regional market. Hydrogen will play a huge role in fulfilling the energy requirement of the participating countries.