- US EPA Shifts Focus from Hydrogen to CCS in Power Plant Decarbonization Plans
The US Environmental Protection Agency (EPA) has finalized its decision to prioritize carbon capture and storage (CCS) technology over hydrogen in its latest strategy to decarbonize the nation’s power sector. This decision comes after reassessment of hydrogen’s commercial readiness and cost-effectiveness by 2030, alongside the unveiling of new technical and financial analyses favoring CCS.
Initially, the EPA considered hydrogen, specifically through co-firing in power plants, as a potential pathway to reduce emissions. However, uncertainties regarding the availability and cost of low-greenhouse gas (GHG) hydrogen prompted a reevaluation. In its final rule, the EPA outlined that fossil-fuel-powered baseload plants will rely exclusively on CCS technology by 2032 when the new performance standards are implemented.
The shift was influenced by the President Biden’s Inflation Reduction Act, which enhanced tax incentives for CCS, making it a more financially viable emissions control technology. This adjustment is expected to ensure compliance with emissions standards without significantly impacting electricity prices or grid reliability, even considering projected load growth.
Hydrogen co-firing was once recommended for up to 96% of power plants by 2038, with interim goals for 2032. However, the EPA’s further analysis, prompted by public comments and additional cost assessments, revealed that green hydrogen might be more expensive than previously anticipated and potentially scarce.
While hydrogen co-firing is no longer considered the “best system of emission reduction” (BSER) for intermediary plants, the EPA does not prohibit power stations from using hydrogen if it aligns with their emissions reduction strategies. The agency emphasizes that the GHG profile of hydrogen production should be a primary consideration to ensure that co-firing achieves genuine climate benefits.
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