Legislature(2023 - 2024)BARNES 124
03/21/2023 01:00 PM House TRANSPORTATION
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Green Hydrogen by Launch Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 21, 2023
1:03 p.m.
MEMBERS PRESENT
Representative Kevin McCabe, Chair
Representative Sarah Vance, Vice Chair
Representative Tom McKay
Representative Jesse Sumner
Representative Louise Stutes
Representative Genevieve Mina
MEMBERS ABSENT
Representative Craig Johnson
COMMITTEE CALENDAR
PRESENTATION(S): GREEN HYDROGEN BY LAUNCH ALASKA
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ISAAC VANDERBURG, CEO
Launch Alaska
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation, titled,
"Launch Alaska Clean Hydrogen Hub in Upper Cook Inlet, Alaska."
ERIN WHITNEY, PhD, Director
Artic Energy Office
U.S. Department of Energy
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation, titled
"Hydrogen in the Arctic" and answered questions.
ACTION NARRATIVE
1:03:29 PM
CHAIR KEVIN MCCABE called the House Transportation Standing
Committee meeting to order at 1:03 p.m. Representatives McKay,
Vance, Mina, Sumner, and McCabe were present at the call to
order. Representative Stutes arrived as the meeting was in
progress.
^PRESENTATION(S): Green Hydrogen by Launch Alaska
PRESENTATION(S): Green Hydrogen by Launch Alaska
1:04:07 PM
CHAIR MCCABE announced that the only order of business would be
the presentations on green hydrogen.
1:05:04 PM
ISAAC VANDERBURG, CEO, Launch Alaska, provided a PowerPoint
presentation, titled "Launch Alaska Clean Hydrogen Hub in Upper
Cook Inlet, Alaska," [hard copy included in the committee
packet]. On slide 2, he stated that Launch Alaska is a
nonprofit organization founded in 2016. Its mission is to
accelerate the energy transition and decarbonize the globe,
starting in Alaska. He noted that the transportation, energy,
and industry sectors are all connected. He stated that Launch
Alaska is a "deployment accelerator," helping new climate
technology companies connect to asset owners in the state. He
moved to slide 3 through slide 5, which showed launch Alaska's
board of directors, team, and partners. He noted that many of
the team members have a background in the oil and gas sector.
He discussed the funding partners, which includes the U.S.
Office of Navel Research and the U.S. Office of Technology
Transitions.
MR. VANDERBURG moved to slide 6 and stated that Launch Alaska's
objective is to facilitate $1 billion of projects in Alaska by
2030. He expressed confidence that the goal is attainable. He
continued to slide 7 and addressed Launch Alaska's current
portfolio of companies, which is broken down into the energy,
transportation, and industry sectors. He stated that the
companies listed are all high-growth startups. He expressed the
belief in small businesses, as they are the "pillars of our
local economies."
1:14:15 PM
MR. VANDERBURG, in response to a committee question, stated that
several of these companies listed are engaging with the oil and
gas sector. He noted that Kartorium works with microgrids for
rural utilities, with its key sector being the oil and gas
industry. He discussed Water Pigeon in relation to the Alyeska
pipeline. In response to a follow-up question, he stated that
out of the 24 portfolio companies, 3 are from Alaska. He
explained that all the companies are involved in cutting-edge
technologies funded by the federal government. He gave a brief
explanation of his understanding for why there are not more
local startups in Alaska. He noted that these other companies
are high growth and come to Alaska to engage Alaska's economy.
MR. VANDERBURG, in response to a committee question, stated that
he will follow-up with an explanation of the companies
highlighted on slide 7. He briefly when through some of the
companies. He further discussed why startups have chosen Alaska
as a place to deploy new technology, and how Launch Alaska has
helped these entities make progress in the state.
1:24:48 PM
MR. VANDERBURG continued onto slide 8, titled "Economic
Headwinds for Alaska." The slide featured three bullet points:
the long-term declines in oil and gas production, increases in
the price for natural gas, and the once-in-a-generation
opportunity with the federal Infrastructure Investment and Jobs
Act (IIJA) funding. He moved to the next slide and discussed
the downturn in the oil and gas industry.
1:27:21 PM
MR. VANDERBURG, in response to a committee comment that disputed
the decline of the oil and gas sector in the state, expressed
the understanding that a transition away from the oil and gas
sector is underway. He used global numbers to support this
perspective. He stated that "this is not an antagonistic
thing," rather he advised that Alaska should take a leadership
role. He argued that this is not a government policy issue,
rather the economics are driving this. In response to a
committee comment, he expressed agreement that in Alaska solar
energy cannot be relied upon for the entire year. He continued
that developing long-term seasonal storge for solar energy would
be a worthy challenge.
MR. VANDERBURG moved to slide 10, titled "Global EV fleet sizes
by segment and market." He noted the increase of electric
vehicles in use. In response to a committee comment, he
expressed agreement that hydrogen would be a better option for
larger transportation involved with ports and airports. He
added that lighter duty transportation is not a good candidate
for hydrogen, and this would likely stay electric. He discussed
the possibility for different battery chemistry, as this would
address resource issues.
1:38:09 PM
MR. VANDERBURG, in response to a committee question, stated that
he does not have the rate of adoption of electric vehicles in
the state, but he would report this back to the committee.
MR. VANDERBURG moved to slide 12 and pointed out a report
addressing the decline in Alaska's economy. He suggested that
the current approach is not working, and a new approach needs to
be developed. He moved to slide 13 and discussed the renewable
resources available in Alaska. He pointed out that there is not
a market for the renewable energy in the state, and this has
hindered the development of these available resources. He
described the extent of the renewable energy in the state, as
seen on the slide. He moved to slide 14, stating that Alaska's
renewable energy assets have been stranded because of the costs
and the markets. He expressed the opinion that this is
changing, as the cost barrier is being solved by natural gas in
the state. However, he pointed out the rising cost of natural
gas.
MR. VANDERBURG showed slide 15, titled "Enter Clean Hydrogen,"
and he summarized the country's clean hydrogen market. He
suggested that hydrogen could create a market for the huge
amount of renewable energy in the state, as there is a global
demand. He stated that clean hydrogen is taking renewables and
converting this to electricity through electrolysis. He noted
the tax credits and incentives that IIJA gives for clean
hydrogen. He pointed out the potential customers for this, such
as the airlines and shipping sectors, as these sectors have set
stringent emission reduction targets. He reiterated that
hydrogen has the potential to help these two sectors. He noted
that this hydrogen is now referred to as "clean hydrogen," as
opposed to "green hydrogen." He moved to slide 16 and pointed
out that the transportation sector has the largest percentage of
use in the clean hydrogen market.
1:45:30 PM
MR. VANDERBURG, in response to a committee question on slide 16,
stated that the "other" category on the chart includes
industrial heat and chemical manufacturing.
1:46:37 PM
MR. VANDERBURG moved to slide 17 and explained the graph of the
expected use of renewable hydrogen from 2020 to 2030. He moved
to slide 18 and reiterated that international shipping and
aviation are two of the best uses for hydrogen. He continued to
the next slide and discussed the untapped renewable energy
resources centered in Anchorage and Upper Cook Inlet.
1:49:08 PM
MR. VANDERBURG, in response to a committee question, stated that
clean hydrogen is created by the direct conversion of renewable
energy into electricity, by electrolysis, and then into
hydrogen. He expressed the understanding that for hydrogen
storage and distribution, issues need to be worked out. He
continued that this is not an unknown technology, as it is known
how to store and distribute hydrogen. He added that a hydrogen
hub would need individuals who know how to move and store
volatile fuel.
1:53:08 PM
ERIN WHITNEY, PhD, Director, Artic Energy Office, U.S.
Department of Energy, responding to a committee question, stated
that in a large grid using electricity directly would make
sense; however, if there are not grid connections, hydrogen
would be a way to store and transport the electricity as a
commodity to be used somewhere else. She added that this is in
opposed to using transmission lines, which are very expensive to
build. She continued to explain that if there is a wind
resource not connected to a grid, this energy could be converted
to hydrogen and a hydrogen carrier, such as ammonia or methanol.
In response to a follow-up question, she stated that hydrogen,
as a compressed gas, would be much more difficult to transport
than a liquid, and this is why there is a discussion on carriers
of hydrogen.
MR. VANDERBURG, in response to a committee question on the cost
benefit, explained that the Willow solar project was built with
private debt and tax-equity dollars, for example. He expressed
the opinion that the private sector would invest in these types
of projects. He explained that private investors would do the
research on the viability of a project and whether local grids
could accept the electricity. He expressed the opinion that
there is almost an unlimited amount of money in the private
sector for this. He discussed the government initiative
supporting this development, as well.
MS. WHITNEY, in response to a committee question, stated that
the BTU [British thermal unit] yield of a kilogram of hydrogen
is 33-kilowatt hours per kilogram. She stated that she would
report back to the committee with a complete answer.
2:01:36 PM
MR. VANDERBURG, on slide 20, listed the economic benefits of
clean hydrogen, which include job creation, reduced energy
costs, and increased revenue for the region. He noted that
there are major incentives and investments available from IIJA.
He explained the topic of "additionality." He continued that
renewable projects would "lock in" the cost of energy over a
long period of time, providing a stable price, and he expressed
the understanding that investors like this. He stated that the
state is not being asked for investments, just an alignment of
vision. He listed other benefits, which include establishing a
presence in emerging industries, attracting startups and
innovators, and supporting local companies and jobs through the
energy transition. He added that these benefits would enhance
the work environment in the state, as young people are often
motivated to work in these fields. He further discussed the
benefits of clean energy.
2:07:52 PM
MR. VANDERBURG, in response to a committee question on the cost
benefit of clean hydrogen projects, discussed that there was a
2022 conference held on how to precede with projects and create
a roadmap. He listed some of the people and entities present.
He expressed the opinion that currently it is very early in the
process, adding that the opportunity is unique. He suggested
that now some of the producers, storage and distribution
centers, in-use customers, and policy makers should come
together, look at the roadmap, and create an actual project. He
noted that Ravn Alaska recently purchased 30 hydrogen aircrafts,
and this hydrogen needs to be developed. He stated that the
Port of Alaska is looking at developing a hydrogen system. He
pointed out that these are small projects that are starting to
happen. In response to a follow-up question on whether these
projects are being developed to replace the oil and gas sector,
he expressed the opinion that this should not be an antagonistic
situation. He explained that this position is based on the
decline in the production and demand for oil and gas.
2:13:13 PM
MR. VANDERBURG discussed the Port of Alaska's power plan with a
microgrid. He expressed the opinion that this would be an
economic opportunity, with little downside. He urged that the
infrastructure for renewable energy in Alaska should be built,
as this would put the state on a path to abundant electricity.
In conclusion, he stated that this would produce gigawatt scale
renewables, but the renewables need to be built. He suggested
that entities could come together in the state to create an
energy transition plan. He expressed support for passing a
renewable portfolio standard in the state.
2:16:41 PM
The committee took an at-ease from 2:16 p.m. to 2:18 p.m.
2:18:45 PM
MS. WHITNEY continued with the next presentation titled
"Hydrogen in the Arctic," [hard copy included in the committee
packet]. She pointed out that the Arctic Energy Office (AEO) is
the U.S. Department of Energy's (DoE's) only regional office.
She shared her professional history. She moved to slide 2 and
stated that the mission of the Arctic Energy Office is to bring
DoE to the Arctic and Alaska, and vice versa. She emphasized
that the AEO is a portal between the state and DoE, as any
questions on DoE can be directed through AEO.
MS. WHITNEY moved to slide 3, titled "AEO's Role in Advancing
Green Hydrogen." She stated that DoE has a national green
hydrogen strategy under review and an overall Arctic strategy.
To implement these strategies, AEO participates in the
activities and with groups, such as the Alaska State Hydrogen
Energy Working Group. She discussed this further. She
continued to slide 4 to explain the chemistry of hydrogen versus
other molecular structures. She explained the chemical
structures of common fuels, as seen on the slide. She pointed
out methanol, as it can be a hydrogen carrier.
MS. WHITNEY moved to slide 5 which explained how hydrogen
relates to other energy carriers. She pointed out that this
addresses some of the challenges of working with gaseous and
liquified hydrogen. She discussed the volumetric energy density
of different fuel options, as seen on the graph on slide 5. She
pointed out that carbon-based fuels are dense with energy, as
opposed to gaseous hydrogen. However, when hydrogen is
converted to carriers, she said, there is a higher energy
density.
2:27:19 PM
MS. WHITNEY, in response to a committee question on the
advantages of using methanol, she pointed out that methanol does
have carbon in it. She stated that the method being
investigated would pull carbon dioxide from the air or fossil
fuel feed stocks and turn this into a carrier. She stated that
the methanol would be burned, emitting carbon, but it would not
be making any new carbon emissions.
2:28:25 PM
MS. WHITNEY continued to discuss slide 5, stating that "where
hydrogen becomes exciting" is when the specific energy per unit
mass is investigated. She pointed to the small graph on the
slide and discussed the advantages of hydrogen energy density.
She suggested that if hydrogen can be put into an efficient
carrier form, the result would be a very energy-dense fuel.
MS. WHITNEY moved to slide 6, which shows a breakdown of green
hydrogen relative to other types of hydrogen. She reiterated
that the use of color to describe hydrogen is not being used as
much, but she stated that the term "green hydrogen" is still
used somewhat. She defined "green hydrogen" as hydrogen made
from renewable resources, and she further described the other
types of hydrogen in relation to color.
2:32:41 PM
MS. WHITNEY, in response to a committee question on when too
much oxygen is not good for the environment, expressed the
understanding that this is not a concern. She discussed the
theoretical idea of there being too much oxygen in the
atmosphere.
MS. WHITNEY continued to slide 7, which addressed current
hydrogen production. She stated that this is mostly made from
natural gas fuel stock.
MS. WHITNEY, in response to a committee question, confirmed that
hydrogen made from natural gas is "blue hydrogen." She
expressed uncertainty what hydrogen made from coal would be
called. She added that hydrogen made without carbon capture
would be brown hydrogen. She reiterated that coding hydrogen
with colors is "going out of vogue" because the complexity of
the colors now. She pointed out that the vocabulary is moving
toward "clean" and "nonclean."
MS. WHITNEY moved to slide 8 and addressed the "big picture" for
the advancement of hydrogen technologies. She stated that one
of the drivers is the amount of carbon dioxide in the
atmosphere, which is leading to global warming. She expressed
the opinion that using hydrogen would be away to decarbonize the
atmosphere. She continued to slide 9, titled "The Drivers,"
which featured a pie chart of global greenhouse gas emissions by
economic sector. She argued that other than environmental
concerns, another driver for having hydrogen would be energy
security.
MS. WHITNEY moved to slide 10, which showed a bar chart on
existing and emerging demands for hydrogen. She pointed out how
versatile hydrogen can be, as it can be used for transportation,
chemical and industrial applications, power generation, and
hybrid energy systems.
2:43:19 PM
MS. WHITNEY, in response to a committee question on examples of
the use of hydrogen in the state, pointed out that the Ravn
Alaska is an example of a committed project. Another potential
use, she said, would be seeding the natural gas supply with
hydrogen for power and heat, as this would not require any
retrofitting and it would extend the natural gas supplies. She
stated that there has been a discussion of making ships that run
on methanol.
MR. VANDERBURG stated that currently there are two different
companies in the world that are testing hydrogen ferries. He
also pointed out that there is the possibility of long-duration
energy storage.
MS. WHITNEY added that there is not just an in-state demand, but
there are also demands outside of the state driving the
conversation. She gave the example of Asian countries that have
mandates for hydrogen fuels. She suggested that these external
demands are driving the conversations on Alaska's potential
development to be a supplier. This is not just because of the
state's location, she explained, but it is also because of the
resources available in Alaska, such as stranded renewables. She
suggested that the external demand would create the economy of
scale that would make this economical in the state.
2:48:36 PM
MS. WHITNEY moved to slide 11 and discussed the hydrogen
possibilities in Alaska. She pointed out that from delivery or
storage, hydrogen could be converted to fuel cells, combusted,
or mixed with other fuels. She further discussed the
applications and opportunities for hydrogen. The opportunities
include powering remote communities with microgrids, powering
the Railbelt, and exportation.
MS. WHITNEY moved to slide 12, titled "Points of Reference,"
which featured energy consumption estimates. She stated that
this shows the scale of usage of energy. She discussed the
reliance on natural gas, pointing out that the use of jet fuel
almost equals the Railbelt's heat and power consumption.
Concerning the use of jet fuel, she stated that these numbers
are growing. She stated that the slide highlights the intensity
of consumption of the different sectors. She gave some examples
of hydrogen usage and compared this with global estimates, as
seen on slide 13. She reiterated that hydrogen production would
create an "incredible" opportunity globally.
MS. WHITNEY moved to slide 14, showing hydrogen programs and
tools. She stated that DoE is working on all of these, and AEO
is "keeping its finger on the pulse," making sure Alaska and the
Arctic can benefit. She moved to slide 15 which showed contact
information and resources.
2:55:45 PM
MS. WHITNEY, in response to a committee question, stated that
the Alaska Gas Line Development Corporation led the Alaska
application discussion, but this application was not encouraged.
She stated that this had allowed stakeholders to talk about how
fossil and non-fossil fuel energy suppliers could create a
hydrogen economy in the state.
MS. WHITNEY, in response to a committee comment that China is
currently the largest producer of hydrogen, expressed the
opinion that one of the advantages for Alaska would be to export
hydrogen.
2:57:47 PM
CHAIR MCCABE thanked the presenters, and he made closing
comments.
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:57
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Clean Hydrogen Hub in Upper Cook Inlet - Launch Alaska - Mar 21, 2023.pdf |
HTRA 3/21/2023 1:00:00 PM |
Launch Alaska |
| Hydrogen in the Arctic - US Dept of Energy - Mar 21 2023.pdf |
HTRA 3/21/2023 1:00:00 PM |
US Dept. of Energy - Clean Hydrogen in the Arctic |