By PAUL HAMMEL
Nebraska Examiner
LINCOLN — Could Nebraska lure $2 billion in federal funds and become one of four national hubs to expand development of clean hydrogen?
State lawmakers think so, after giving 43-0 first-round approval to a bill that would set up a working group to seek Nebraska’s designation as one of four “regional clean hydrogen hubs” in the U.S. working to expand use of the green fuel.
The federal Infrastructure Investment and Jobs Act set aside $8 billion to create four national hydrogen hubs to link up producers of hydrogen with industrial users and expand the use of hydrogen to generate power or fuel planes and vehicles.
‘A prime candidate’
State Sen. Bruce Bostelman of Brainard, who sponsored Legislative Bill 1099, called Nebraska a “prime candidate” to become one of the hubs, in large part due to the large-scale production of clean hydrogen by Monolith Materials and because of the state’s central location.
If LB 1099 passes, as expected, Nebraska would be the first state to show its support of becoming a clean hydrogen hub, according to State Sen. Anna Wishart of Lincoln, who works for Monolith.
That company, which moved from California to Nebraska in 2018, produces clean hydrogen and carbon black using natural gas. Carbon black has a variety of uses, including in tires and other rubber products. But Bostelman said carbon black has traditionally been produced using oil, which is a much dirtier process than using natural gas.
Monolith plans to use most of its hydrogen to produce anhydrous ammonia fertilizer as part of a $1 billion expansion of its Hallam, Nebraska, plant later this year. It would become the state’s largest user of electricity, officials said.
Plymouth Sen. Tom Brandt, who is a farmer, praised the Monolith project, which is in his legislative district. Not only has the company created 90 good-paying, “clean energy” jobs and invested $100 million in its existing plant, he said, but it will create another 200 jobs with its expansion.
“It’s an economic success story for the State of Nebraska,” Brandt said.
Monolith initially wanted to use its hydrogen to create electricity at a nearby NPPD power station in Hallam. But when that proved not to be feasible, the business model was changed to produce anhydrous ammonia.
Farmers could benefit
Brandt said that will benefit farmers, who have seen costs of the fertilizer rise from $400 a ton to $1,500 a ton. The U.S. is the largest importer of anhydrous ammonia in the world.
Wishart said developing and expanding the production of clean hydrogen is one of the keys if the nation is to be carbon-free by 2050. Hydrogen is being eyed as a fuel to power jet airplanes as well as heavy machinery.
Under an amendment to LB 1099 adopted Tuesday, local industries would pay the cost of hiring a consultant to prepare Nebraska’s bid to become a hydrogen hub. The bill had originally called for expenditures of $250,000 to hire a consultant.
The working group, Bostelman said, will include representatives of the Nebraska Department of Economic Development, the clean hydrogen industry and the manufacturing, transportation and agriculture sectors.
The U.S. Department of Energy is scheduled to name the four hubs by May 2023.