Yesterday marked the start of CERAWeek 2024 by S&P Global, and for the rest of this week Morgan Lewis partners Kirstin Gibbs and Felipe Alice will be reporting back on the key themes and ideas they are uncovering as the conference unfolds.
Power & Pipes
FERC, CFTC, and State Energy Law Developments
As anticipated, the US Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) issued a funding opportunity announcement (FOA) that focuses on advancing the fueling infrastructure for medium- and heavy-duty (MD/HD) vehicles and other heavy transportation applications.
The US Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) announced on November 16, 2023 its intention to issue, on behalf of the Hydrogen and Fuel Cell Technologies Office, a funding opportunity announcement (FOA) that is expected to focus on advancing fueling infrastructure for heavy-duty (HD) vehicles and other HD transportation applications and addressing key challenges to siting, permitting, and installation.
The US Department of Energy (DOE) has announced the much-anticipated selection of seven hydrogen hub projects across the country that are eligible for $7 billion in federal investment. The selectees will now undergo an award negotiation process to obtain a commitment from DOE. This funding aims to accelerate the commercial-scale deployment of low-cost, clean hydrogen as an alternative source of energy and the creation of networks of clean hydrogen producers, consumers, and infrastructure.
The development of hydrogen fueling infrastructure across the United States will need to keep pace with the projected production and deployment of hydrogen fuel cell vehicles. The Biden administration has made significant investments through tax incentives and grants to support the continued development of hydrogen fuel cell technologies, and the market for hydrogen fuel cell vehicles is expected to expand to more than $40 billion by 2030.
The transportation sector has been identified as the single largest US source of greenhouse gas (GHG) emissions, and continues to be an area of focus in the nation’s decarbonization efforts. Due to heavy-duty vehicles contributing the second largest amount of GHG emissions in the transportation sector, there has been a continued focus on increasing the use and integration of zero-emission heavy-duty vehicles. Three recent government agency actions seek to promote and accelerate the use of heavy-duty zero-emission vehicles, including those powered by hydrogen fuel cell technologies.
Hydrogen fuel cell vehicles will be a key component in the nationwide effort to achieve net-zero emissions by 2050. The Biden administration’s US National Blueprint for Transportation Decarbonization, which highlighted specific decarbonization opportunities and challenges for various modes of transportation, identified hydrogen as the option with the greatest long-term opportunity for decarbonizing long-haul heavy trucks. However, adoption of hydrogen fuel cell technologies for long-haul heavy trucks is highly dependent on advancing hydrogen fuel cell technologies and expanding the hydrogen refueling infrastructure, as well as the availability of hydrogen supply, the cost of alternative types of transportation, and regulatory drivers.
The US Department of Energy’s (DOE’s) Office of Energy Efficiency and Renewable Energy (EERE) issued a funding opportunity announcement (FOA) on January 27, 2023, on behalf of the Hydrogen and Fuel Cell Technologies Office that makes available $47 million to support the research, development, and demonstration of affordable hydrogen and fuel cell technologies. The FOA further advances the Biden administration’s goals to achieve carbon pollution-free electricity by 2035 and to achieve net-zero emissions by 2050. It also supports the goals of the H2@Scale Initiative, which aims to advance affordable hydrogen production, transport, storage, and utilization, and aligns with DOE’s Hydrogen Shot, which targets affordable clean hydrogen production at $1/kg within the decade.
While no one has a crystal ball for what 2023 will hold for the energy industry, the seemingly widespread support for green technology and clean energy is expected to carry through this year. In our industry outlook, “The Trends—and Traps—That Will Shape 2023,” we highlight some of the major green energy tax credit trends.
The Biden administration released the US National Blueprint for Transportation Decarbonization (Blueprint) on January 10, 2023, setting forth a strategy for decarbonizing the transportation sector in order to achieve the economy-wide 2030 and 2050 emissions reduction goals.