Historic grid investments, offshore wind's rough seas, and how clean are hydrogen hubs?

Transmission lines near Los Angeles, California (Courtesy: Robert Thiemann/Unsplash)

This Week in Cleantech is a new, weekly podcast covering the most impactful stories in cleantech and climate in 15 minutes or less. Produced by Renewable Energy World and Tigercomm, This Week in Cleantech will air every Friday in the Factor This! podcast feed wherever you get your podcasts.

This week’s episode features Semafor climate and energy editor Tim McDonnell.

Congratulations to Lauren Glickman, and the Encore Renewable Energy team, for being named the first “Cleantecher of the Week!” Earlier this week, Encore energized the new Solar Research and Training Facility at the University of Vermont alongside Sen. Bernie Sanders. The facility will provide students with hands-on learning opportunities and help build the pipeline of talent the clean energy industry so desperately needs to continue growing. Congrats to Lauren and Encore!

1. Why some of the ‘clean’ hydrogen hubs in the U.S. plan to use natural gas, a fossil fuel — CNBC

President Joe Biden has given the green light for $7 billion in federal funding to support seven hydrogen hubs across the U.S. However, some of these hubs will use a method called “blue hydrogen,” made from natural gas.

To make this process environmentally friendly, it will require close monitoring, high carbon capture, and pollution reduction. It’s also important to ensure these hydrogen hubs are not a greenwashing exercise. Additionally, the hubs won’t get all the money upfront; they have to prove themselves by meeting certain technical, economic, and community benefits requirements at every step to get the full tax credit.

2. US commits $1.3 billion for power lines in West, Northeast — Reuters

The Biden administration plans to invest around $1.3 billion in three new power lines across six states in the U.S. West and Northeast. This initiative aims to upgrade the aging power grid and make renewable energy more accessible to customers.

This money isn’t going directly to construction. The DOE is offering “capacity contracts” which allow the agency to purchase the power line’s capacity for ~40 years, then sell it later for their money back.

The move is crucial as the U.S. needs to modernize its grid for it to run on 100% clean electricity and serve the extra demand from electrification of transit and heating. These power lines will boost grid reliability, ramp up renewable energy out West, and give the New England grid a clean energy boost from Canada.

3. Ørsted cancels N.J. project in major blow to offshore wind — E&E News

Ørsted has canceled its massive Ocean Wind project in New Jersey, impacting the state’s renewable energy goals and President Biden’s climate agenda. Ørsted was locked into a PPA contract mandating that they sell power from the wind farm at a certain price, then rising interest rates and inflation increased their costs.

The project aimed to provide power to around one million people and was a significant component of New Jersey’s plan to build 7,500 MW of offshore wind by 2035.

Despite this setback, developers are still moving forward with several offshore wind projects on the East Coast.

4. Toyota more than doubles investment and job creation at North Carolina battery plant — AP News

Toyota is set to invest an additional $8 billion in its North Carolina hybrid and electric vehicle battery factory, doubling previous investments and creating over 5,000 jobs when the plant starts operations in 2025.

This fourth and largest investment in the North Carolina plant brings Toyota’s total investment to approximately $13.9 billion, supporting its goal of selling 1.5 to 1.8 million electric or hybrid vehicles in the U.S. by 2030 and adding new production lines for electric and plug-in hybrid batteries.

Because the U.S. still relies on other nations for EV parts, this is one step closer to bringing EV manufacturing home.

5. A referendum on Biden’s climate agenda is coming — Semafor

There are some high-stakes climate and energy state-level decisions on the ballot – especially with swing states such as Virginia and New Jersey. And these elections are just a taste of what is coming next year.

The results may influence the flow of Inflation Reduction Act funding, which has mainly gone to Republican-majority states. If Republicans gain control in states with clean energy potential, the allocation of these funds may slow. However, Democratic candidates could play a crucial role in informing voters about the benefits of the IRA, laying the groundwork for broader support in the 2024 elections.

Additionally, in Virginia, the 2020 law requires electric utilities to buy 100% renewable power by midcentury, which is in jeopardy if the state government shifts to Republican control.

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This Week in Cleantech is hosted by Renewable Energy World senior content director John Engel and Tigercomm president Mike Casey. The show is produced by Brian Mendes with research support from Alex Petersen and Clare Quirin.