Friday, May 27 2022 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Gas News
Today's News
Yesterday's News
Week of May 23
Week of May 16
Week of May 09
Week of May 02
Week of Apr 25
By Topic
By News Partner
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Gas News > News Article

    Share by Email E-mail Printer Friendly Print

    Support for hydrogen incentives falters in New Mexico


    January 28, 2022 - By MORGAN LEE, Associated Press

     

      SANTA FE, N.M. (AP) — State legislators gave a cold reception Thursday to a package of financial incentives aimed at scaling up hydrogen production using New Mexico's vast natural gas reserves.

      A state House panel voted 6-4 to indefinitely postpone consideration of a bill that would offer grants, loans and tax breaks to a nascent hydrogen industry. Time is running short for the bill to advance during a 30-day legislative session that ends on Feb. 17.

      Gov. Michelle Lujan Grisham has backed the initiative with enthusiasm, deploying top environmental and economic development officials to lobby legislators.

      The proposal coincides with an $8 billion federal government set-aside for as many as four “hydrogen hub” production and distribution centers somewhere in the United States. Public investments in hydrogen are aimed at developing cleaner sources of fuel for industrial sectors and the deployment of fuel-cell vehicles in heavy, long-haul trucking.

      Environmentalists are wary of the impacts of hydrogen production that uses natural gas as an energy source and feedstock, arguing that it can prolong dependence on fossil fuels and relies on relatively unproven technologies to capture and dispose of carbon pollution that otherwise contributes to global warming.

      Democratic state Rep. Patricia Lundstrom of Gallup urged colleagues to quickly set up a framework for incentives in public-private partnerships to help New Mexico gain a foothold in the industry.

      “If you're not the lead dog, the scenery never changes," said Lundstrom, chairwoman of the lead House budget committee. A draft of state's annual spending plan would devote $125 million for hydrogen-related grants, loans and administrative expenses at state agencies.

      Nearly 300 people logged into an online waiting room to comment on the proposal in one-minute intervals. An informal survey showed about three-fourths of the audience opposed the bill.

      Supportive comments poured in from business associations, rural electric cooperatives, hydrogen entrepreneurs and multinational energy giants Chevron and ExxonMobile. Local government and public school administrators said the bill held out the promise of restoring jobs to regions where coal-fired power plants have closed down in recent years.

      But the plan came under withering criticism from environmentalists and an array of advocates for indigenous communities and social justice causes. They highlighted unresolved technological concerns, including the challenges of capturing and storing carbon dioxide as a byproduct of hydrogen production on a large scale.

      Democratic state Rep. Matthew McQueen of Galisteo expressed reservations about providing incentives for “enhanced oil recovery," referring to underground carbon storage techniques that help produce more oil.

      Republican legislators voted in unison against advancing the legislation, joined by two Democrats, at the close of a seven-hour public hearing.

    TOP

    Other Articles - Generation


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.