A Clean Energy Future— Why Delaware? Why Now?

First State Hydrogen, Inc. is working to provide energy independence

BY DORA CHEATHAM

THERE HAS BEEN MUCH TALK about hydrogen over the last few years and with good reason. As the world seeks to address climate change, the adoption of technologies and energy sources that reduce our dependence on fossil fuels becomes increasingly important. Clean hydrogen is one piece of a multi-faceted approach: as an energy source with three times the energy by mass of carbon-based fuels and multiple applications, it is a key driver of energy independence.

By 2021, more than 25 major global economies adopted hydrogen as a pillar of their energy sector strategies, including the Middle East which is expected to invest $100 billion in clean hydrogen projects by 2030. Closer to home, the U.S. National Clean Hydrogen Strategy includes provisions and support for improved efficiency and cost-effectiveness of clean hydrogen technologies, equipment and domestic supply chain of key components, support for Regional Clean Hydrogen Hubs (H2Hubs Program), and the development of a Clean Hydrogen Support Standard and a Clean Hydrogen Strategy and Roadmap.

The H2Hubs Program

One of the provisions of the Inflation Reduction Act—which was signed into law in 2022—included $7 billion in funding for the creation of Regional Clean Hydrogen Hubs. A regional hub is a network of hydrogen producers, consumers, and connective infrastructure. In November 2022, the U.S. Department of Energy received 79 concept papers for regional hubs. In October 2023, seven hubs were selected to enter into negotiations. Among them was the Mid-Atlantic Hydrogen Hub (MACH2), comprising Delaware, southeastern Pennsylvania, and southern New Jersey. MACH2 comprises a coalition of partners and projects whose goals include:

• The generation of predominantly zero emission hydrogen that will be used primarily in transportation, industry, and power generation sectors

• The reuse and revitalization of existing pipeline infrastructure

• The creation and retention of several thousand well-paying jobs, including union jobs, and the generation of a talent pipeline in the clean energy sector

• Economic opportunity and health improvements that will directly benefit disadvantaged communities

Delaware’s role in the clean energy ecosystem

Today in Delaware, we produce very little of our own energy; in 2021 we consumed almost 80 times more energy than we produced. Most of that came from natural gas, which we import from Pennsylvania through pipelines.

In addition, we have some aggressive goals to address climate change. Delaware’s Renewable Portfolio Standard (RPS) requires that electricity retail suppliers in the state obtain 40% of power sales from renewables by 2035 with at least 10% from solar energy, while Delaware’s House Bill 99—passed in 2023—further requires that we reduce greenhouse gases by 50% by 2030 and 100% by 2050.

Producing and consuming green hydrogen in Delaware is a key pathway to helping achieve those goals.

First State Hydrogen, Inc.

First State Hydrogen, Inc. founder Andrew Cottone is no stranger to fulfilling a market need and building a safe and sustainable company around that need. Prior to founding First State Hydrogen, Andrew co-founded Adesis, which sold to Universal Display Corporation in 2016 (Nasdaq: OLED) and continued to lead Adesis’ growth for the next decade.

For First State Hydrogen, he has a very clear vision: to provide affordable clean hydrogen for American energy independence, and the decision to locate in the Mid-Atlantic was an easy one. According to Andrew, Delaware has all the assets that a company like First State Hydrogen needs to drive clean energy independence for Delaware and the Mid-Atlantic and help the region meet its sustainability goals.

First State Hydrogen is currently laying the foundations to build a 60MW electrolysis plant that will be producing approximately 25 metric tons per day of green hydrogen. For the users of that hydrogen, that’s the equivalent of removing the carbon dioxide emitted from approximately 12,600 cars every day. And that’s just the beginning.

Delaware is the lowest lying state in the nation with access to all the resources needed to drive a profitable electrolysis plant. Coupled with its location between Washington, D.C. and New York City (which means proximity to potential end users) and a political climate that is primed to capitalize on this opportunity, the time is ripe to make the quantum leap from a state that imports 80 times more energy than we produce to one that is a producer, not just of energy, but clean energy.

For Andrew, “The next Pete du Pont moment is upon us.” He is referring to the 1981 Financial Center Development Act—a transformational initiative that led to credit card and banking growth in Delaware, resulting in high paying jobs and economic strength. “Green hydrogen presents a transformative opportunity for Delaware and First State Hydrogen, Inc. By embracing this clean energy source, the state can combat climate change, revitalize its economy, and solidify its position as a leader in clean technology, paving the way for a cleaner future for our neighbors and the environment.”

Dora Cheatham is vice president of sales and commercialization at First State Hydrogen, Inc.