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Q&A

Trump’s Hydrogen Mystery

A conversation with Frank Wolak of the Fuel Cell and Hydrogen Energy Association.

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Frank Wolak.
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We’re joined today by Frank Wolak, CEO of perhaps the most crucial D.C. trade group for all things hydrogen: the Fuel Cell and Hydrogen Energy Association. The morning after Election Day we chatted about whether Trump 2.0 will be as receptive as members of Congress have been to hydrogen and the IRA’s tax credit for producing the fuel. Let’s look inside his crystal ball, shall we?

Simply put, will president-elect Donald Trump keep the IRA’s 45V tax credit in place?

So a couple things there. First, the production tax credit still has to be finalized and what they do about the tax credits, if anything, is a function of whether the Biden administration issues final guidance.

If they issue final guidance, then what that guidance says will determine what kind of reaction the Trump administration may have, whether to adjust it or tweak it.

The second thing: I think the tax credits fit into a question of the IRA broadly and hydrogen specifically. The Trump administration is going to be looking at the entirety of the IRA. There’s the question of what pushback hydrogen has in this administration and if it’s viewed as valuable or important or secondary, tertiary to other things. And I think we’ve yet to see that in the form of any platform.

So Trump’s view on hydrogen is a mystery then – how will that uncertainty impact hydrogen projects in development today?

The uncertainty that has been experienced by this industry predates the election outcome. The long wait for guidance has definitely slowed down the amount of investment. They’ve put many things on hold. This is not a secret.

What I’ll say is, the ability to regroup and fulfill the expectations that this industry had two or three years ago is hugely dependent on the outcome of the tax credit.

What do you think we’ll see companies do in this information vacuum? Will we see them double down on supporting the credit or potentially get out of hydrogen since it’s an emerging, nascent technology?

The doubling down on the tax credit depends on what the guidance looks like.

If the guidance looks flexible, the question is: how do you take that flexibility and make sure the Trump administration continues it and sees it as valuable or vital?

If the tax credit becomes rigid and stays rigid in the Biden administration, you’ll have a two step process – to unwind the rigidity and then also encourage the Trump administration to see the merits. If the guidance stays as stated, the work is harder.

The degree to which industry continues to make investments and says, “hey, we’re all in,” is a function of how these tax credits emerged. Are they going to really keep fighting and to keep the momentum going, or are the [credits] so limited that companies go, “look this is going to be very very hard to overcome in the U.S. so we’re going to take our investment elsewhere.”

You think we might see companies dip out of the hydrogen space over the credit’s outcome?

Mature long term players who are multinationals … are remaining extremely positive. They may adjust the sequence of their investments but they’re in this because they’re in hydrogen and want to be in this market as much as possible.

But those who saw this as an opportunity to come in and take advantage of tax credits are having those reactions of, “Should I invest? Do I look [at it] positively?” And that’s probably natural.

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Spotlight

Offshore Wind’s Existential Crisis at Climate Week

Can the industry ever recover?

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A wind turbine and Chris Wright.
Heatmap Illustration/Getty Images, Luke Liu

American offshore wind’s existential crisis was laid bare at this year’s Climate Week.

California and New York officials gathered on Tuesday at the New York Bar Association in Manhattan to tell attendees of the annual climate action mega-event about their efforts to hold the Trump administration to account. After Trump regulators upended wind projects off the East Coast and struck buyout trades with energy developers to ditch ocean wind leases, both states filed fresh legal action against the administration, targeting what they said were egregious abuses of taxpayer dollars that canceled once-promising projects that would’ve given gigawatts of power to grids expecting energy demand to spike.

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Another Solar Company Trying Gas-Powered Data Center on Federal Lands

And more of the week’s top news around project development.

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The United States.
Heatmap Illustration/Getty Images

1. Ada County, Idaho – Trump’s push for more data centers on federal lands is causing a lot more ruckus and catching another solar company in the cross-fire.

  • Last week, D.C. news outlet The Washington Sun first reported that a subsidiary of solar developer Arevia Power submitted a right-of-way application for a data center project on federal lands in Idaho, a fact the Bureau of Land Management confirmed in a statement to me Thursday. The project is currently in a preliminary phase of permitting and a public notice can be expected this year, a Bureau of Land Management representative told me.
  • Until the initiation of any National Environmental Policy Act review, information on the data center is scarcely available on public websites. So here’s what BLM told me about it in a statement: the data center project will be 4 million square feet and include a 3,226-acre parcel of federal land. An additional 514 acres will be needed for a 10.6-mile “electrical load line corridor.” The data center complex will include a substation, stepdown electrical yards, a water connection, and a 450-megawatt on-site natural gas-fired power facility. The project is expected to use upwards of 600 megawatts though, which explains the potential load lines.
  • The Sun story also claimed the Arevia project will connect to a “sprawling utility-scale” solar project. BLM has previously said the data center is in some way “linked” to an Arevia solar farm proposed on federal lands north of Twin Falls, Idaho.
  • Arevia Power did not respond to a request for comment on the project nor the reported inclusion of gas generation along with solar, which I could not find discussed on their website. This is not the first time I’ve seen reports of this kind of activity from a solar developer. On August 3, I reported that solar developer Clearway canceled a proposal submitted to the Bureau of Land Management to transform a solar application into a data center and gas project – after we made the existence of the proposal public.
  • On Thursday I spoke with Heather Tied-Nelson, acting communications lead for the Bureau of Land Management Idaho field office, briefly over the phone about the project. “It’s all so very early in the process. We’re working with the company to try to finalize their plan of development and probably publish a notice of intent to begin the planning process later this fall or winter,” Tied-Nelson told me. Then I asked whether the data center was tied to Arevia’s solar efforts and if this was another solar farm-for-data center application swap kind of situation. She replied: “I can’t speak to that.”

2. Carbon County, Wyoming – Tell me if you’ve heard this one before: The Trump administration just delayed a large fossil-free power project after criticism from a powerful Republican senator. But this time, it’s hydropower.

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Q&A

Pro-Renewables Super PAC Paying ‘Close Attention’ to Tom Tiffany

A conversation with Tom Matzzie of the Invest in Tomorrow Coalition

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The Q&A subject.
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This week’s Q&A is with Tom Matzzie, chair of the Invest in Tomorrow Coalition – a pro-renewables Super PAC fighting lawmakers of both sides of the aisle who spurn the sector. The Super PAC won quite a few victories during the primary season, successfully boosting challengers to hardline conservatives in the U.S. that fought for cuts to the Inflation Reduction Act and are no longer going to serve in the Lower Chamber. Matzzie, also CEO of solar firm CleanChoice Energy, is intent the sector must go on offense to win more public bipartisan support and survive the Trump 2.0 era.

I chatted with Matzzie to hear how he’s looking at the general election season. The conversation revealed to me they want the renewables industry to be seen as politically lethal. And they’re paying close attention to the Wisconsin gubernatorial race.

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