California Policy Update
Connor Dolan
California Hydrogen Developments Update
California has long set the standard for not only American adoption of renewable and clean energy, but as a world leader and model to emulate. A growing component of California’s clean energy portfolio is the deployment of fuel cell and hydrogen technologies for both stationary power and transportation applications.
Today, three automakers and FCHEA members Toyota, Hyundai, and Honda, have fuel cell passenger vehicles on the road in the Golden State. As of November 2020, more than 8,700 light-duty fuel cell cars have been sold or leased in California, supported by 42 public hydrogen stations operating across the state. To support public transportation options and more, 48 fuel cell buses have been deployed. The Ports of Long Beach and Los Angeles have early deployments of fuel cell drayage trucks and handling equipment from FCHEA members Toyota, Nuvera, and Cummins subsidiary Hydrogenics. Industrial gas companies such as FCHEA members Air Products and Air Liquide are investing millions into the hydrogen future in California.
Beyond the transportation sector, FCHEA members Bloom Energy and Altergy Systems, both based in California, are providing crucial backup power during blackouts. Other fuel cell manufacturers (and FCHEA members) FuelCell Energy, Doosan Fuel Cell America, and Plug Power have numerous deployments in California as well, ensuring critical infrastructure operates continuously.
These market developments are encouraged by strong state support and commitment to seeing this transformational clean energy technology succeed. Recent events have further solidified California’s leadership in hydrogen and fuel cells as a path toward a clean energy future.
Governmental Program Updates
In September 2020, the California Energy Commission (CEC) announced a Notice of Proposed Award (NOPA) funding dozens of new hydrogen station projects to be developed by FirstElement Fuel, Shell, and Iwatani. In fact, the interest in building hydrogen stations was so popular that five additional companies submitted projects that were approved, but the program had funds for only three. The NOPA, subject to final approval, awards a total of $115 million between for 36 initial hydrogen refueling stations, with a potential increase to an additional 87 more.
In October, the CEC approved a $384 million plan focused on clean transportation investments to boost the adoption of zero-emission cars and trucks. Among other funding areas, $70 million was specifically set aside for hydrogen refueling infrastructure. The funding is a significant step and can be expected to bolster clean transportation in California with the encouragement of the fuel cells and hydrogen.
Earlier in June, The California Air Resources Board (CARB) adopted a rule requiring truck manufacturers to transition from diesel engine to zero-emission options beginning in 2024, and requiring all new trucks sold in California to be zero-emission by 2045. CARB’s action on medium- and heavy- duty vehicles offers an opportunity for the power of fuel cells to demonstrate their value, particularly in scalability, long-range, and short-refueling time needed for these markets. This is especial timely given the recent launch of Hyundai’s fuel cell truck and Toyota’s development of a fuel cell Class 8 heavy-duty truck, not to mention the slew of other companies developing fuel cell trucks such as Cummins, Nikola, Kenworth (in partnership with Toyota, and Hyundai’s NEPTUNE concept.
Local Hydrogen Interest
In Northern Los Angeles County, the City of Lancaster, California, is committing to a hydrogen future. In August 2020, Lancaster’s mayor, R. Rex Parris, announced during a City Council meeting a plan to transition to hydrogen fuel as part of the city’s green energy portfolio. According to the City, Lancaster has already achieved its 2010 goal of becoming the first Net Zero City in the world last year and looks to further bolster its commitment to a sustainable future. It is crucial that local establishments take actions such as Lancaster’s, as it demonstrates that all levels of government have a role to play in the future of renewable energy, and the fuel cell and hydrogen industry.
“Hydrogen is becoming the go-to green fuel for power generation, energy storage, fuel cell cars, and anything natural gas has been used for. It is similar to natural gas—without the CO2. Fortunately for us, Lancaster has a plethora of renewable energy. I encourage the world to join me as Lancaster embarks on a brave new path.”
Los Angeles is also focusing on hydrogen by planning to source its electricity from a new project in the nearby state of Utah. The Intermountain Power Agency, a multi-state utility, plans to retire a coal plant providing power to Utah, Nevada, and California, and replace it with an 840 MW natural gas combined cycle plant specially designed to accept 30% renewable hydrogen-blended fuel at its projected startup in 2025, with an increase to 100% renewable hydrogen utilization by 2045. Supported by FCHEA member Black and Veatch, the project, known as the Intermountain Power Project Renewal Project, has the opportunity to curb emissions while also providing a way to mitigate the infamous duck curve experienced by grids with a high amount of renewable energy such as California.
California will continue to be a powerhouse in the fight against greenhouse gas emissions. As long as the state continues to support of hydrogen and fuel cells, the technology has the opportunity to grow and flourish, spreading to other states and establishing itself as a critical component to the renewable energy economy.