Indiana government and business leaders were wise to join forces with their counterparts in Illinois and Michigan to seek the creation of a federally funded clean-hydrogen energy hub in the Midwest.
Part of the proof came last week when the Biden administration announced that the coalition, known as the Midwest Alliance for Clean Energy (or MachH2 for short), was one of seven initiatives across the country chosen to share $7 billion in federal funding for hydrogen energy endeavors.
The Midwest coalition, which includes 70 public and private organizations, will receive up to $1 billion in grant funding.
Further evidence of the coalition’s wisdom and Gov. Eric Holcomb’s leadership in the effort will come as the initiative keeps several Indiana partners at the forefront of hydrogen development.
As Alex Brown of Inside INdiana Business reports, the proposed regional hydrogen hub would include the production of so-called blue hydrogen by London-based BP at or near its refinery in the northwest Indiana city of Whiting.
Blue hydrogen is produced by converting natural gas into carbon dioxide and hydrogen, with the CO2 being stored underground. The low-carbon hydrogen fuel can be used in a variety of areas, including steelmaking, power generation and agriculture.
Other Indiana partners in the coalition include the Indiana Economic Development Corp., Energy Systems Network, Purdue University and Columbus-based Cummins Inc.
Environmental groups have criticized the focus on hydrogen power, arguing that when it’s made from electricity generated via coal or natural gas, it has a bigger carbon footprint than simply burning the source fuel.
We remain hopeful that such concerns can be allayed with advancements in technology and believe that it makes sense to keep Indiana companies in the lead on such developments.
Cummins started investing in hydrogen power four years ago. While those investments were more speculative in the beginning, the company is now confident that hydrogen is a huge growth market, IBJ’s Susan Orr reported last week. That in itself shows how quickly things can advance in a short time.
Cummins focuses on both hydrogen-powered and battery-electric products through its zero-emissions business unit, which does business as Accelera by Cummins. But it’s hydrogen that is emerging as the breakout star for the company.
Accelera first saw its greatest successes in Europe, due to the continent’s clean-energy policies. But now momentum is growing in North America.
Just this month, Accelera held a media event in Quebec to show off the first hydrogen-powered train in North America.
It is also projecting huge revenue growth over the next decade. Accelera represented just $198 million, or less than 1%, of Cummins’ $28.1 billion in revenue in 2022. By 2030, Accelera is expected to generate $6 billion to $13 billion annually.
Such projected growth gives us optimism about the future of clean-hydrogen power and Indiana’s role in it.
