Text version of the End Users and Regional Leaders Panel from the opening plenary at the DOE Hydrogen Shot Summit, August 31, 2021.

Dave Turk: All right. We'll switch to our next panel. Our next panel is focused on end users and regional leaders. And I'll introduce each of our panelists with a particular question just like we did for the previous panel. Again, I'll ask all of you in the interest of time to be short, be tight, be concise, and then we'll have certainly ample opportunity for further conversation over the next couple days in this summit and then as we work more broadly together with all of you.

So, let me start with – and please put your screens on. We'll pull you up onto the screen. I'm going to start with Chanell Fletcher, who is the Deputy Executive Director – or Deputy Executive Officer of Environmental Justice at the California Air Resources Board. Chanell, I would love to get your take and experience. You've spent so much time trying to put – and work to put environmental justice into the heart of policy action. We heard from our colleague at DOE, Shalanda, who is such a leader in this space as well, earlier today. What are the lessons learned that you have, the best practices for how we can make sure that we deploy hydrogen – clean, low-cost hydrogen – and do it in a way that prioritizes environmental justice? So, Chanell, over to you to start this panel.

Chanell Fletcher: Well, thank you so much, Secretary. And I'm just so honored to be here. This has been such an amazing conversation and I really do want to echo and support what Shalanda had shared. A couple of points that I would make, I think, just from California and the work that we're doing: We have very ambitious climate targets in front of us, as many of you know, and so we're very, very supportive of a number of different zero-emission technologies. One of the things that we're kind of having conversations with environmental justice stakeholders as we talk about hydrogen, for example, is really making sure that California has a very clear and high standard when we're defining which energy sources and technologies we're going to prioritize, subsidize, and implement as part of our climate strategy. And that's something that came from one of our kind of close kind of environmental justice partners, the Leadership Council for Justice and Accountability.

And part of that, I think, came from kind of what we've heard today. There's a number of different terminologies that are being kind of talked about as we're talking about hydrogen. So, there's green hydrogen, there's turquoise hydrogen, there's a whole rainbow of colors as we talk about it. And I think the concern from environmental justice stakeholders and communities is that wait a second, what do these terms mean? How are we defining which hydrogen pathway we take and what we're going to subsidize and implement? Because there's a big concern that wait, are these different terms going to "muddy the water" or make it a way to open up the door for polluting pathways to get funding ahead of that kind of standard definition of "These are the technologies that we're prioritizing."

So, I think that's one big thing I would say just from what I've already heard. There's a number of different terms that we're using around hydrogen. Which is the one that we know without a doubt, I think, is really going to provide what we want to see?

The other thing I would probably note is that we've heard a lot of concerns around are we talking about hydrogen or are we talking about blending hydrogen with natural gas? I think if it's blending that is also a huge concern for environmental justice stakeholders, and we've heard loud and clear that that is not what, I think, they want to see, and that's not how they're dividing zero-emission technology.

And then, I think the final point that I would mention and just reinforce – again, I think Shalanda did a great job talking about the different pathways of performance of justice. The one thing that I think we're really trying to think about and be cognizant about is that as we're doing our engagement and our outreach to communities in California we use the term "disadvantaged communities." I think what's been really important as we're talking about restorative justice is that for communities to not just feel like "We're reaching out to you, we've checked the box, we've done that work," but then to feel like we actually have the outcomes shifted and changed as a result of the input. So, it's ideas that you're talking to us and what you've presented to us, if we're giving you feedback and if we're sharing concerns that then changes, then it is truly restorative justice.

Dave Turk: Well, thank you very much, Chanell. Incredibly helpful. And as you say, the rainbow of hydrogen colors – and there's a new color every day, it seems like, coming forward in that rainbow – we've got to focus not only on the clean part of it, the clean part being CO2 emissions and methane emissions certainly, air pollutants, other parts of the clean part of the equation, the low cost piece of it, and as you say, really focus on communities and do the hard work required, the hard analysis, the tough questions to make sure it works for those communities. So, thank you, Chanell, for your incredibly well-put remarks.

Let me turn next to Glen Murrell, who is the Executive Director of the Wyoming Energy Authority. And Glen, I'd be eager for – really to hear more about the vision that you have and others in Wyoming as you shift to a clean energy economy, to clean energy opportunism, clean hydrogen energy opportunities in particular in Wyoming. And as you do that, how do we make sure that the coal and power plant communities in Wyoming benefit from this transition? Real people, real communities, how do they benefit from this transition? Glen, over to you.

Glen Murrell: Yeah. Thanks, Dave. Well, a lot of it just swings back to the energy strategy of Wyoming. And the Energy Authority here was established in the middle of last year, which is perfect timing to establish a new state agency, and one of our key responsibilities was to be the curator of the strategy. And if you could summarize the strategy in one brief term, it's to continue empowering the nation with an all-of-the-above net-zero energy mix. And yes, you heard that right. Wyoming has a net-zero aspiration for our energy economy.

But it's a massive challenge of course because Wyoming has abundant – a ridiculously abundant hydrocarbon resource base but we have to find a way to continue to supply energy to a nation in a decarbonized world. And for good reason. And clean hydrogen, with that problem statement, which for Wyoming includes both hydrocarbon and renewable forms and associated technology like CC West and advanced nuclear, are critical technologies for the future of Wyoming, not only for preserving our status as an energy provider to millions of Americans but also for preserving those communities in Wyoming which are most impacted by this transition.

And the key piece with respect to how does it benefit the communities that are so impacted currently essentially is that it continues to utilize the existing resource base, It continues to utilize – or repurposes existing infrastructure. So, we have a lot of electricity generation in Wyoming, which is tremendous, but it could also be repurposed to either coal-fired with hydrogen or maybe to ammonia. We have existing – extensive existing export facilities as well through pipelines and rail to reach multiple markets, whether to the West, to the South, to the Midwest, and maybe further afield as well.

And also even there's aspects of the ancillary technologies. The CC West industry could be quite a game changer internally to Wyoming with respect to those communities, and even prospective technologies like the TerraPower Natrium advanced reactor as well, another infrastructure repurposing potential.

So, there are multiple avenues where this transition can be used in a way that benefits those impacted communities, but there are also tons of challenges. There's timing. Can we do it fast enough? Capital. Wyoming is not a big state. We do not have deep pockets so it has to be a partnership approach. Something like a public-public-private partnership is perhaps the best way to move forward. Can we still access the markets with the infrastructure that we have, both in terms of technical and regulatory aspects of that question, and other things like ancillary CO2 infrastructure. Establishing Wyoming as a hydrogen headquarters state would require immense buildout of sequestration technology.

So, there are multiple challenges but the benefits are also very, very clear for those communities. Thanks, Dave.

Dave Turk: Thanks very much, Glen. And I think it's an important point – you started off with this. We've got some incredible leadership in net-zero commitments, not just from California and New York and some other states along those lines, and it's not just Wyoming. North Dakota has incredibly ambitious 2030 net-zero targets. And so, there's a lot of leadership around there. And I think the key challenge that you highlighted – and huge opportunities here too, Glen, if we're able to get it right – is how do we actually implement in the real world in a way that works for our communities just as you mentioned? It's not easy. It's going to require a lot of work and collaboration. But thanks for all that you do, Glen, and much appreciated on your remarks.

Let me turn now, if I could, to Michael Ducker, who is the Vice President for Renewable Fuels at Mitsubishi Power. Mike, it was already mentioned once, the Intermountain Power Plant project, currently planned as the largest hydrogen project in the US. And what roles are Mitsubishi, the Advanced Clean Energy Storage Project playing in this project? And if it's successful what other regions do you think this could also be replicated, this model could be replicated in? And again, I'll ask you to be – just like our other panelists – as tight and concise. We've still got one more panel of my fellow – my lab directors who are incredibly important partners for us and I don't want to keep them waiting more than need be. But Michael, please, over to you.

Michael Ducker: Certainly. So, first of all, thanks, Deputy Secretary Turk. As you mentioned, the Intermountain Power project is a world class project and we're incredibly excited to be part of that. So, let's just start there.

Last year we announced that the Intermountain Power Agency selected Mitsubishi Power for our hydrogen-capable gas turbines. And what they've committed to is in 2025 to operate on a blend of 30 percent green hydrogen, carbon-free hydrogen, and 70 percent natural gas. And no later than 2045 we'll operate on a blend – operate on 100 percent green hydrogen, thereby supporting California's carbon-free goals. This will be the world's first at-scale utilization of green hydrogen.

Second, as an update we are now in active discussions between the Advanced Clean Energy Storage Project, which is the world's largest renewable energy storage project, both producing and storing green hydrogen at scale along with the Intermountain Power Agency to realize the world's first green hydrogen hub. And so, what this means is we're actually working with our partners for the Advanced Clean Energy Storage Project, Magnum Development, and we'll actually be submitting our part two DOE loan application later this summer, which we announced earlier this year, for up to $595 million to support the buildout of this world's first at-scale hydrogen hub with construction slated to start next year.

So, with that we have all this great momentum with IPA and the Advanced Clean Energy Storage Project. And as you mentioned, we've got other projects throughout the US that we see significant momentum gaining as well. And it really comes down to building scale. And so, if we look at some of the other regions we've partnered in the Gulf Coast with Entergy, the largest utility in that region, and we heard previous speakers talk about the ample hydrogen infrastructure already in place there. We've got salt caverns. We've got hydrogen pipelines. We've got hydrogen producers. So, this represents a great opportunity collaborating with the utility customer to build hydrogen infrastructure within that region.

And then, you also mentioned the very exciting project up in North Dakota where we're involved with Bakken Midstream and this will be the largest project that's looking at taking a synfuel plant that can produce over 300,000 metric tons of hydrogen a year and converting it and transitioning it to be able to produce clean hydrogen.

And lastly, what I'd say is we're also working in the Northeast with partners – in this case Texas Brine – of looking at opportunities for storage and use of hydrogen within the Northeast, particular as we see opportunities for offshore wind and long-duration energy storage starting to materialize in some of those key areas.

So, again, in short I think what I'd say it is a very exciting time right now, not just in all the talk and what people are suggesting the opportunity is but the fact that we're making real investments today in both human capital and financial capital to realize this. And I'm very excited to be part of the conversation today. So, thank you very much.

Dave Turk: Well, Michael, I think you hit the nail on the head. Talk is cheap, as they say. Action is a whole nother thing. And it's incredibly exciting to see some action. So, thank you, Michael, for your comments and your action as well

Michael Ducker: Thank you.  

Dave Turk: Let's round out this panel. Bisi Boyle, who is the Vice President for Product Planning and Mobility strategy at Hyundai Motor in North America. Bisi, in your role as VP of Product Planning what can you tell us about the company's vision for hydrogen, especially in the heavy-duty transport space, the trucking and the shipping space? It was already mentioned a few times, the challenges of the so-called hard-to-abate sectors. I would love to hear your thoughts on how hydrogen can play an important role there. So, Bisi, over to you.

Olabisi Boyle: Thank you so much, Deputy Secretary, for your question. We have a very aspirational vision at Hyundai where we truly want to contribute to and make progress for humanity. And to that end we view hydrogen as a key enabler to this planet-friendly future. It's this highly efficient fuel. It only emits water vapor. It's also an attractive fuel alternative for both light-duty and heavy-duty zero-emission vehicles. And it has the potential to revolutionize how we charge our cars, produce electricity, fuel aircraft and ships. And we feel it's these larger applications that have tremendous potential to promote crucial economies of scale to make hydrogen technology viable.

These economies of scale will contribute to the Hydrogen Shot goals for lower cost hydrogen. And at Hyundai we are committed to this technology. We have a Hyundai fuel cell EV – Nexo – that we launched in 2018. We have Xcient fuel cell EV trucks. We plan to run out 1600 by 2025 and we have 40 to 50 on the road today. We partnered with the Department of Energy and provided fuel cell Nexos and set up a fuel cell station to support that Nexo fleet in D.C. So, we share your enthusiasm for the hydrogen fuel cell heavy-duty vehicles.

And in conjunction with the California Air Resources Board and the California Energy Commission we're going to deploy 30 Class 8 Xcient fuel cell trucks in 2023 to Northern California for various port operations. We feel to achieve the Hydrogen Shot public and private sectors should collaborate to advance the entire hydrogen ecosystem. Hydrogen fuel cells, our next gen R&D, it's going to reduce fuel cell system cost and size while increasing performance and durability. We can partner with other leaders – and we are – on hydrogen fuel cell infrastructure and government policies that incentivize both consumer adoption of fuel cell EVs and the buildout of infrastructure is really going to help.

And to some earlier points that were made, we also can work on environmental justice. Both the public and private sectors need to democratize the technology, make it affordable and accessible to the greatest number of consumers possible. We should prioritize infrastructure development in and with all communities, including economically challenged communities. Communities near port areas that maybe suffer from poor air quality can benefit from initiatives like what we're doing to introduce the 30 Xcient fuel trucks at ports. We just must make sure, as Chanell said earlier, that the outcomes are changed.

So, we truly believe in our spirit of progress for humanity that together, public and private, we can get to that planet-friendly future. And hydrogen is a key enabler.

Dave Turk: Thanks very much, Bisi. And thanks to you and Chanell and Glen and Michael for this incredibly important panel, not just for your words, but as Michael and others have said – and ECU put this well also – the action. The action that you're taking on behalf of all your companies and organizations. So, much appreciated on all fronts.

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