A group of four states that includes New Mexico are seeking a contractor who can help the group submit a proposal to qualify for part of the $8 billion in federal money that was set aside for the development of "hydrogen hubs." The hubs are intended to lead to the creation of clean hydrogen production, processing, delivery, storage and use.
The request for proposals from Western-Inter States Hydrogen Hub opened on July 19 and will close on Aug. 16, according to a news release.
In February, New Mexico Gov. Michelle Lujan Grisham joined the governors of Colorado, Utah and Wyoming in signing a memorandum of understanding to compete jointly for a portion of federal money made available through the Infrastructure Investment and Jobs Act for regional hydrogen hubs. That memorandum of understanding created the Western-Inter States Hydrogen Hub coalition.
The RFP issued by the Wyoming Energy Authority on behalf of the coalition seeks a "prime contractor" to assist the states with a proposal for the U.S. Department of Energy for hydrogen hub money. If awarded, the prime contractor will manage the project implementation for the coalition. A prime contractor works directly with governmental agencies, manages any subcontractors and ensures work is completed and meets established requirements.
The U.S. Department of Energy has yet to issue a formal Funding Opportunity Announcement, which is a prerequisite to submitting a proposal.
Lujan Grisham's administration has championed efforts to turn New Mexico into a nationwide leader in the production of hydrogen, which has emerged as a possible component in a strategy to decrease the use of fossil fuels.
Legislation to boost the state's hydrogen economy failed to gain traction in the Roundhouse during the 2022 legislative session. HB 4 — the Hydrogen Hub Development Act — was tabled in late January by the House Energy, Environment and Natural Resources committee. The bill was designed to incentive hydrogen production by allowing companies in the state to create hydrogen facilities through public-private partnerships. It also would allow those companies to develop a greenhouse gas emission limit for hydrogen electric generating facilities seeking incentives. It called for at least $125 million in taxpayer-funded loans and grants, plus at least $25 million in tax credits before Fiscal Year 2026.
Later, two so-called "substitute measures" were essentially killed through legislative maneuvering by House Speaker Brian Egolf, according to NM Political Report.
Some methods for creating hydrogen have concerned some environmentalists. The state legislation would have incentivized the creation of so-called “blue hydrogen,” which is derived from natural gas and coal. Carbon dioxide, a byproduct of the production, would need to be sequestered, according to the measure. "Green hydrogen," however, uses a method called electrolysis, which creates the gas by separating hydrogen and oxygen found in water.
A handful of New Mexico companies — such as Bayotech — have built their business around hydrogen production and storage. Meanwhile, in March a California-based company announced plans to invest hundreds of millions of dollars in New Mexico and hire hundreds over the next seven years as it expands its operations to Albuquerque. With operations in California, Washington and France, Universal Hydrogen makes capsules to safely store hydrogen during transit and serve as modular tanks that are loaded directly onto aircraft. It is also creating a kit to retrofit existing regional turboprop aircraft and allow them to fly using hydrogen power.
