New York opens solicitation for green hydrogen projects
New York Opens Solicitation for Offshore Wind-to-Hydrogen Projects | Offshore Wind
New York Opens Solicitation for Offshore Wind-to-Hydrogen Projects
New York has launched a USD 10 million solicitation for clean hydrogen research, development and demonstration projects, including clean hydrogen production and integration with renewable energy such as offshore wind.
The US state’s aim is to address the challenge of replacing fossil fuel usage in hard-to-electrify sectors, with the solicitation open to fund projects proposed by New York-based entities that are also actively applying for federal clean hydrogen funding opportunities.
The solicitation was announced by New York Governor Kathy Hochul on 24 May and the move is said to support the Climate Leadership and Community Protection Act goals to reduce emissions 85 per cent by 2050 and transition to 100 per cent zero-emission electricity by 2040.
“Investing in clean hydrogen is the latest example of New York’s commitment to exploring all technologies and avenues to transition to clean energy economy-wide”, Governor Hochul said. “In partnership with the state’s leading innovators and problem-solvers, we are taking bold action to transition even the hardest-to-electrify sectors, helping secure a healthy and sustainable future for all New Yorkers”.
Administered by the New York State Energy Research and Development Authority (NYSERDA), the initiative will operate in tandem with New York State’s overall advancement of a clean hydrogen ecosystem, including the Northeast Regional Clean Hydrogen Hub (NE Hub) effort.
While the NE Hub work focuses on clean hydrogen deployment across the broader Northeast region, the initiative announced on 24 May will specifically fund RD&D efforts that are most relevant and critical to advance a clean hydrogen economy in New York and support the achievement of the Climate Act goals, according to NYSERDA.
The projects eligible to apply include hydrogen applications to decarbonise industrial process heat; green hydrogen production and integration with renewable energy such as solar and offshore wind; mitigation of nitrogen oxides (NOx) in hydrogen combustion; and hydrogen storage technologies, including bulk storage and storage in limited footprint areas.
Successful awards will be contingent upon securing federal funding.
Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.