Green hydrogen is produced through electrolysis using renewable electricity to split water molecules into hydrogen and oxygen. This type of production presents a promising pathway to decarbonization, particularly in sectors difficult to electrify like heavy industry and long-haul transportation. Locally, this technology offers a great opportunity for Delaware to diversify our energy portfolio, reduce emissions, and create new economic opportunities while also contributing to a larger future where hydrogen plays a key role in a clean energy landscape.
The core principle of green hydrogen production is electrolysis, where an electric current is passed through water, causing the water molecules to break down into hydrogen and oxygen gas. The hydrogen gas is then captured, transported to end users, or stored for later use. The use, storage, and transportation of hydrogen is not new. In fact, according to the IEA, 95 million metric tons of hydrogen was used in 2022. However, that hydrogen was made through steam methane reforming, which produces greenhouse gases. To be considered “green,” the electricity powering the electrolysis process must come from renewable sources like solar, wind, or hydropower, ensuring no carbon emissions are generated during hydrogen production.
How green hydrogen could impact Delaware: decarbonization, energy security, and economic development
Delaware is not situated on oil or coal reserves, but we are the lowest-lying state in the nation and have access to the energy source of the future: water. We are centrally located between Washington, D.C., and New York City and within 150 miles of a significant industrial footprint with a need for hydrogen. We have a history of innovation and chemical manufacturing in this state. Our new “Pete du Pont moment” will be to pivot to clean, sleek hydrogen manufacturing facilities. In order to keep hydrogen costs low and competitive with current fossil fuels, First State Hydrogen plans to co-locate or near-locate to potential end users to minimize distribution costs.
One of the most significant potential impacts of green hydrogen in Delaware is the decarbonization of the transportation sector, particularly for heavy-duty vehicles like trucks and buses, which are challenging to electrify due to range limitations. In addition, Delaware’s industrial sector, especially chemical manufacturing, could benefit from utilizing green hydrogen as a feedstock to reduce emissions associated with their processes.
By producing its own green hydrogen, Delaware could enhance its energy security by having a locally generated, storable energy source that can be used during peak demand periods or when renewable energy generation is low.
Finally, the development of green hydrogen production facilities, both in Delaware and nationally, could create new jobs in manufacturing, construction, maintenance, and the hydrogen value chain, contributing to the state’s economy.
Challenges and considerations: cost competitiveness, infrastructure and grid development, policy support
Currently, the cost of producing green hydrogen is relatively high compared to fossil fuels, which could hinder its widespread adoption. The First State Hydrogen business model incorporates many aspects to lower the commercial cost, such as an innovative tertiary revenue line, co-location or near-location with end users, and utilization of the inter-refinery pipeline.
Building the necessary infrastructure for hydrogen production, storage, and distribution would require significant investment. Fortunately for our region, the Mid-Atlantic Clean Hydrogen Hub (MACH2) is the federal government’s answer to jump-starting this economy, though at First State Hydrogen, we are focusing on raising our own funds to build here in Delaware and the mid-Atlantic region.
Federal investments notwithstanding, integrating large-scale electrolysis plants into the power grid will require upgrades to manage fluctuations in electricity demand as well as rapid scaling in green energy generation to support green hydrogen production.
As we move into this new era of clean energy generation, government policies promoting green hydrogen production and usage, including speed to market with safety and compliance, require synergistic partnerships between the private and public sectors. House Bill 99 requires 50% reduction of emissions by 2030 and 100% reduction by 2050, yet Delaware imports 80 times more energy than we produce ourselves. First State Hydrogen and the inevitable hydrogen economy represent a significant economic opportunity for Delaware not seen since then-Gov. Pete du Pont signed the Financial Services Act of 1981.
Green hydrogen energy offers a promising path toward a clean-energy future for Delaware, with the potential to decarbonize transportation, industrialize processes, and provide energy security. While challenges related to cost and infrastructure development remain, ongoing technological advancements and policy support are expected to make green hydrogen a significant part of the state’s energy mix, contributing to broader global efforts to combat climate change. First State Hydrogen is part of the energy solution for Delaware.
Andrew Cottone III, Ph.D., is the founder of First State Hydrogen.
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