Louisiana Clean Hydrogen Plan Wins $50M Federal Grant

NEW ORLEANS — City and state economic development officials are celebrating a big win today that will have implications for the future of the state’s energy industry. The U.S. Economic Development Administration has awarded a $50 million federal grant to H2theFuture, a 25-organization partnership that plans to develop a new offshore wind-powered hydrogen energy industry cluster in south Louisiana.

The proposal – led by nonprofit business booster Greater New Orleans Inc. – is one of only 21 winners out of more than 500 entries in the EDA’s Build Back Better Challenge. GNO Inc. said the plan “creates a roadmap for decarbonizing Louisiana’s manufacturing sector while creating new energy jobs.”

In simplified scientific terminology, the group’s goal is to produce “green hydrogen” by splitting water with electrolyzers powered by renewable electricity, such as wind. This would create a “carbon-free” energy feedstock and, according to a H2theFuture study, cut the state’s hydrogen emissions in half.

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“We are grateful for the vision of the U.S. Department of Commerce and Economic Development Administration that made H2theFuture possible,” said Michael Hecht, GNO Inc. president and CEO, in a press release. “Moreover, we want to recognize that this exciting project has come together due to the work and trust of two dozen organizations across south Louisiana, and we extend our gratitude to these outstanding partners, as well.”

The 25-organization coalition that developed the H2theFuture plan includes regional economic development organizations and planning commissions, the Port of South Louisiana, public research universities, HBCUs, the Louisiana Community and Technical College System, the Urban League of Louisiana, and the Louisiana Parole Project.

The grant will be supplemented by $24.5 million in matching funds provided by the State of Louisiana, boosting the total project budget to $74.5 million. 

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H2theFuture aims to create a new clean energy business model in Louisiana. A document from GNO Inc. describes five areas of focus:

  • Workforce training to “upskill” displaced oil and gas workers, rural residents and minorities, led by the Louisiana Community & Technical College System.
  • Business development to attract new and existing local and regional energy companies into the hydrogen value chain, led by the Baton Rouge Area Chamber, in partnership with One Acadiana, South Louisiana Economic Council, Southwest Louisiana Economic Alliance and GNO, Inc.
  • Higher ed-based “testbeds” to conduct research of low-carbon hydrogen technologies at Nicholls State University, Louisiana State University, University of Louisiana at Lafayette and University of New Orleans.
  • Public-private partnerships to “de-risk” green hydrogen investments at commercial scale, starting with development of a first-ever hydrogen fueling barge at the Port of South Louisiana.
  • Organizational and governance “nexus” to create a green hydrogen planning hub focused on industry growth and sustainability, to be located within The Beach at UNO.

A GNO Inc. spokesperson said the proposal includes safeguards “ensuring that business, procurement and training opportunities are made available to all stakeholders and communities — and the plan prioritizes protecting legacy energy industry workers through the creation of retraining programs that will convert traditional skill sets to low-carbon processes.”

“Today’s announcement by President Biden and Secretary of Commerce Raimondo is a significant milestone in Louisiana’s transition to a cleaner, more sustainable and more diversified energy future,” Gov. John Bel Edwards said. “As the first state in the Gulf South to implement a Climate Action Plan, Louisiana has demonstrated the vision and leadership required to meet the historic challenge that climate change represents. This infusion of federal and state dollars, on top of the nearly $20 billion of private capital investment in Louisiana emissions reduction projects announced in the last two years alone, moves us closer to the ultimate goal: net zero carbon emissions by 2050.”

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