‘Clean’ hydrogen bill loses steam in NM Legislature

WINDOW ROCK

New Mexico Gov. Michelle Lujan Grisham’s controversial Hydrogen Hub Development Act initiative (House Bill 4) fizzled and died in the New Mexico Legislature’s 30-day session after being tabled by the House Energy, Environment and Natural Resources Committee.

On Jan. 25, Lujan Grisham announced the bill as one of her administration’s legislative priorities. She said it would expand the “clean energy economy” while lowering greenhouse gas emissions.

“By incentivizing clean hydrogen development through this legislation, we are steering this emerging industry toward a lower-carbon future,” said Lujan Grisham. “This is New Mexico’s chance to reap the vast economic and environmental benefits of clean hydrogen …”

The governor’s ambitious bill would have offered tax incentives to develop infrastructure to produce hydrogen.

But environmentalists and legislators opposing the bill said it could lead to more toxic emissions, fracking and subsidize new oil and gas fossil fuel production. More time was needed to evaluate the pros and cons, they said.

Clean energy advocates also expressed concern that a “greenwashed” hydrogen hub plan could take away resources from developing renewables like solar and wind and further delay the transition away from fossil fuels.

Navajo leaders pro-hydrogen

However, that didn’t stop leaders of the Navajo Nation from supporting the governor’s proposal that could have positioned New Mexico as a top candidate for being one of four national “hydrogen hubs” backed by $8 billion dollars through the Biden administration’s $1.2 trillion Infrastructure Investment and Jobs Act.

Letters of support for the Hydrogen Hub Development Act were sent to New Mexico lawmakers from President Jonathan Nez, Speaker Seth Damon and Delegate Rickie Nez.

“As the governing body of the Navajo Nation, it is important we plan for a new energy future that can bring long term prosperity to our communities,” said Damon. “We fully support the (act) that will serve as a catalyst for the development of an emerging hydrogen economy for the Four Corners region.”

Damon envisioned that in partnership with New Mexico, the Navajo Nation itself could become a hydrogen hub for Indian Country and lead the way for tribes.

Rickie Nez, chairman of the Navajo Nation Council’s Resources and Development Committee, said, “We are in agreement with Governor Michelle Lujan Grisham to position New Mexico as a hub for clean hydrogen to create good-paying jobs while steering this emerging industry toward a lower-carbon future.”

He did concede that Navajo communities need to be involved in the decision-making process and recommended hosting public hearings, which have not happened yet.

“The Navajo people are concerned about climate change, but that should not come at the expense of developing helium and hydrogen,” said Delegate Kee Allen Begay. “Carbon emissions are an ongoing concern for all of us and we need to work together on a smart energy plan that protects the future of our children.”

Part of the pitch for pushing the hydrogen hub in New Mexico is that it would bring new jobs to underserved Indigenous communities.

“These hubs would benefit economically disadvantaged and distressed communities including those impacted by the closure of coal-fueled industries such as coal-fired power plants,” said President Jonathan Nez.

“These projects will use clean hydrogen electric generation facilities and provide the permanent sequestration of carbon dioxide created in the production of hydrogen,” he said.

It’s complicated

Like electricity, hydrogen as a compressed gas or liquid is an energy carrier that must be produced from other sources like natural gas reforming, electrolysis of water, and wind and solar power.

When pure hydrogen is consumed in a fuel cell, it produces only water and is considered a “clean” source of energy that does not emit carbon dioxide when combusted. This makes it an attractive option for electricity generation in several industries, including transportation, heating and manufacturing.

However, some opponents say that logic is deceptive because it does not tell the whole story, because while hydrogen fuel is clean, the primary process to produce it is not.

Today, an estimated 95% of hydrogen in the U.S. is produced from natural gas through a thermal heat process that extracts hydrogen from methane and in the process emits carbon monoxide and carbon dioxide, which is far from “clean.”

Others say because production of hydrogen is natural gas-intensive, it could actually lead to more fossil fuel production and pollution.

Also when carbon is removed from the gas stream leaving pure hydrogen, it has to be captured and sequestered underground, which is labor intensive and expensive.

So how “clean” hydrogen production with natural gas is depends on how well oil-and-gas producers would capture and dispose of the carbon and methane emissions.

‘Destructive legacy’

In a joint letter to Lujan Grisham and lawmakers in October from a coalition of over 30 environmental groups, including Tó Nizhóní Aní and Diné Citizens Against Ruining the Environment, they said it was imperative that the state transition from fossil fuel to renewable energy to protect land and people and achieve the state’s climate goals.

“We write to express our unified concern that a ‘hydrogen hub,’ in particular one based on fossil hydrogen (i.e., from natural gas), will prove a counterproductive distraction from urgently needed climate action,” said the letter.

“In New Mexico, we need statutory carbon emissions limits, methane emissions standards, transportation emissions standards, state investment to power a transition to 100% electric vehicles…”

“We do not need a distraction that serves to further entrench fossil fuel interests and perpetuate volatile boom-bust oil and gas cycles,” the letter said.

While the groups expressed that it is important to distinguish between hydrogen derived from natural gas and “green” hydrogen that can be derived from water and powered by 100% renewable energy (i.e., wind and solar), they said New Mexico must provide a realistic assessment of water availability and consider hydrogen transport and storage safety challenges and risks.

They recommended New Mexico first put together a comprehensive climate policy before assessing whether hydrogen should part of the state’s energy transition as well as to assess potential adverse climate, environmental, public health and community impacts.

“These principles are grounded in our view that New Mexico’s political leadership must not go down a narrow, risky and harmful hydrogen path encouraged by the intensive lobbying and public relations efforts of fossil fuel interests,” the letter states.

“Instead, we strongly encourage you to inspire a shared effort to diversify our economy, address the climate crisis, deliver on equity and justice, and protect land, water, people, and communities impacted by the destructive legacy of decades of oil and gas production in New Mexico,” the letter said.

A ‘non-starter’

Lujan Grisham’s office and lawmakers defended the bill, saying it does address climate change at every step in the production and use of hydrogen by guiding the industry towards low-carbon methods.

“This bill creates and protects good, family-supporting jobs for New Mexicans, while reducing emissions and addressing climate change, positioning our state as a leader in the just transition to a clean economy,” said Rep. Patricia Lundstrom, D-McKinley-San Juan, the bill’s sponsor in the Jan. 25 press announcement.

Lundstrom tried to revive the hydrogen act in a new bill, which was also tabled by the House Appropriations and Finance Committee amidst questions and concerns.

U.S. Sen. Martin Heinrich, D-N.M., said with science-based, rigorous standards in place, clean hydrogen production can become a quickly growing economic driver in New Mexico.

“By taking this step, New Mexico can become the nation’s leader in clean hydrogen production, research, and workforce development,” he said.

U.S. Sen. Ben Ray Lujan, D-N.M., also said investing in the growing clean hydrogen economy will help New Mexico achieve a net-zero future and meet its climate goals.

“I look forward to working with Governor Lujan Grisham, our federal delegation, and state legislators to position New Mexico as a hub for clean hydrogen to create good-paying jobs and cut emissions to build healthier communities,” said Lujan.

On Tuesday, Diné CARE Board member Mario Atencio told the Navajo Times that while many leaders might think a New Mexico hydrogen hub would be good for the economy, many don’t realize that a lot of the natural gas needed to produce hydrogen would come from the northwest part of the state, including sacred Diné lands.

“I think it showcased just how much the technology is not a good fit for New Mexico,” said Atencio. “To throw away state taxpayer money on a boondoggle is not a good way to spend the people’s money.”

He said all of the Navajo communities within the Farmington Bureau of Land Management field office are all already considered “environmental justice” communities and formal tribal consultation has to occur not just at the state level but at the federal level.

“There needs to be environmental justice impact analysis,” he said. “You want to throw a whole new untested technology that is converting natural gas into a value added good and then greenwash it? – It’s a complete non-starter.”

Atencio said lawmakers shouldn’t just “throw caution to the wind” when supporting hydrogen production.

“Why are we going after something that’s unproven?” said Atencio. “It’s processed fracked gas. It’s a dirty technology when current energy demands are easily satisfied by solar and wind and northwest New Mexico has some of the best solar resources in the world.”

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