11 September 2023
By Tom Johnson, Energy/Environment writer

Hydrogen fuel cells can speed NJ’s transition from fossil fuels, new report claims
But environmental groups have reservations about green hydrogen projects

March 16, 2021: A hydrogen fuel-cell bus being refueled in Canton, Ohio

As the state moves to electrify big segments of New Jersey’s economy, a new report recommends investing more effort and money exploring how hydrogen and fuel cells can help achieve its clean-energy goals.

The analysis, completed by a gubernatorial-appointed task force, concluded fuel cells, using clean hydrogen, can play a critical role transitioning to clean energy and reducing climate pollution identified in New Jersey’s Energy Master Plan.

In the 92-page report released by the state Board of Public Utilities, fuel cells are viewed as potential options to provide clean power to critical facilities, such as hospitals, grocery stores and data centers, when power from the grid is interrupted by extreme storms or other events.

Fuel cells vs. fossil fuels
Fuels cells also can help the state reduce its reliance on fossil fuels in the transportation sector, according to the report. Instead, they would provide a carbon-neutral fuel to power cars, trucks, buses, forklifts and other transportation. A fuel cell uses the chemical energy of hydrogen to produce electricity with low- and zero emissions.

The release of the report coincides with an expected announcement from the Biden administration this fall naming what parts of the country will be identified as regional clean-hydrogen hubs (R2Hubs). It plans on investing up to $1 billion in each hub.

‘There are a lot of unanswered questions about hydrogen and whether these hubs
 will be a positive in dealing with climate change.’ — Doug O’Malley, Environment New Jersey

The administration expects to announce between six and 10 regional hubs.

New Jersey has joined with Connecticut, Maine, Massachusetts, Rhode Island and Vermont in setting up a Northeast Regional Hydrogen Hub led by New York state. It hopes to be designated and receive federal money from the Bipartisan Infrastructure Law passed two years ago by Congress.

National network for clean hydrogen
The $8 billion nationwide investment is viewed by supporters as helping lay the foundation of a national clean-hydrogen network that will reduce carbon emissions from some of the most energy-intensive sectors of the economy, including industrial and chemical processes and heavy-duty transportation.

The hydrogen and fuel-cell task force found New Jersey could generate $54 million in revenue and create 200 jobs. The state has the potential to install up to 214 megawatts of generation, which could complement intermittent sources of electricity, such as offshore wind and solar.

New Jersey is well positioned to serve as a regional hydrogen hub, the report argued.

“In terms of workforce and research development capacity, New Jersey hosts the highest concentrations of engineers and scientists in the U.S., has a well-established manufacturing base and workforce, and has numerous industrial and chemical plants that could be used to generate hydrogen,’’ the report detailed.

Only two automakers, Toyota and Hyundai, currently offer fuel-cell electric vehicles for sale in the United States.

Once created, the hubs can create networks of hydrogen producers to deliver and store large amounts of energy to be used in homes, vehicles and for portable power and industrial applications.

To some extent, fuel cells already are in use in the state. New Jersey Resources, the owner of New Jersey Natural Gas, launched the state’s first green pilot project, which went operational in 2021. It uses electricity from a nearby solar project to generate power from a fuel cell, which is blended into the utility’s pipeline to heat customer homes and businesses.

South Jersey Industries is developing a green hydrogen project to run a compressor station for the offshore wind farm being built by Atlantic Shores Offshore Wind project in southern Jersey.

Questions about hydrogen
But environmental groups have reservations about green hydrogen projects, a strategy they view as a way for fossil fuel companies to retain the viability of their pipeline infrastructure, according to Doug O’Malley, director of Environment New Jersey.

“There are a lot of unanswered questions about hydrogen and whether these hubs will be a positive in dealing with climate change,’’ he said.

As for the transportation sector, hydrogen is unlikely to be embraced as fervently as electric vehicles have been, at least for the immediate future. There are no hydrogen fueling stations in New Jersey. Even California, the leader in fuel-cell electric vehicles, has only 15,000 vehicles on the road.

The big advantage in fuel-cell electric vehicles is they do not need a battery, reducing the weight of the vehicle and letting it rack up more miles between recharging. What’s more, while electric vehicles take at least 20 minutes to “refuel,” fuel cells need just five minutes. Only two automakers, Toyota and Hyundai, currently offer fuel-cell electric vehicles for sale in the United States.

The report identifies more than 20 recommendations to expand the use of hydrogen in New Jersey, including extending tax credits for production of low-carbon hydrogen, adopting incentives for fuel-cell technology to improve air quality and applying for federal funds to support fuel-cell systems and fuel-cell electric vehicles.