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  • Writer's pictureStaff @ LPR

Senator Cassidy Challenges Department of Energy's Hydrogen Funding Decision

In a recent turn of events, U.S. Senator Bill Cassidy has taken a firm stance against the U.S. Department of Energy (DOE) for its decision to exclude the HALO Hydrogen Hub, a Louisiana-led coalition, from receiving millions in funding for regional "clean" hydrogen development. The senator alleges that the funding allocation was politically motivated, favoring states with Democratic legislators over those with a stronger hydrogen infrastructure, like Louisiana. This article delves into the controversy surrounding this decision, the potential implications, and the broader context of hydrogen development in the United States.


The HALO Hydrogen Hub, standing for Hydrogen, Arkansas, Louisiana, and Oklahoma, is a research-and-development partnership that submitted an application earlier this year to secure a portion of the $7 billion allocated for regional "clean" hydrogen hubs under the bipartisan infrastructure law passed in 2021. However, to the surprise of many, the DOE opted to select seven other groups, including the HyVelocity H2Hub in Houston, for negotiations on the substantial funding.


Senator Cassidy, at a Senate Committee on Energy and Natural Resources hearing, raised concerns about the fairness of the selection process, alleging that political biases played a role in steering funds toward states with Democratic senators. He questioned the legitimacy of the selection process and claimed that the "fix was in" from the beginning. Cassidy asserted that the HALO Hub was never invited for a review, as other applicants were, and this exclusion raised suspicions.

DOE's Defense and Senator Cassidy's Response


David Crane, the DOE's undersecretary for infrastructure, defended the selections, stating that all 28 applications were meticulously reviewed by federal staff. He emphasized that the competition for hub funding was fierce, as it was essentially an intra-regional competition with strong contenders from the Gulf Coast. Crane also suggested arranging a formal briefing with Senator Cassidy to review the selection process.


When Cassidy inquired about obtaining documents related to the selection process or the HALO Hub application, Crane expressed reservations, citing concerns about the disclosure of "commercially sensitive information." Following the hearing, Cassidy's office announced the senator's intention to file a Freedom of Information Act request to access these documents if the DOE did not willingly provide them.


Louisiana's interest in cleaner forms of hydrogen has grown substantially in recent years. As the state's climate change action plan takes hold, hydrogen has emerged as a critical component of its efforts to reduce greenhouse gas emissions. Hydrogen serves as a common feedstock for Louisiana's refineries and ammonia producers, but the conventional process of hydrogen production releases significant greenhouse gas emissions. The state consumes nearly a third of all industrial hydrogen produced in the United States.


Louisiana's hopes were high that DOE funding would boost research and development in "blue" and "green" hydrogen production, distribution, and consumption. "Blue" hydrogen is produced by coupling hydrogen generation with carbon capture techniques to eliminate greenhouse gas emissions, while "green" hydrogen is generated through electrolysis powered by renewable energy sources like solar and wind.


Despite the optimism surrounding hydrogen development, challenges and controversies persist. Environmental advocates have raised concerns about the effectiveness of emerging hydrogen technologies. "Blue" hydrogen, in particular, has been criticized for not meeting its promises of reducing greenhouse gas emissions. Critics argue that "green" hydrogen, while promising, could potentially divert renewable power from other essential uses.


The U.S. Department of Energy's decision to exclude the HALO Hydrogen Hub from funding has raised questions about the fairness of the selection process and the potential influence of party politics. Senator Bill Cassidy's strong stance against the DOE's decision underscores the importance of transparent and equitable allocation of funds for critical clean energy initiatives. As Louisiana strives to become a leader in hydrogen development, the controversy serves as a reminder of the challenges and controversies surrounding the shift toward cleaner forms of energy in the United States.

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