Demand-side initiative brings together multiple stakeholders to explore market and policy innovations with new entity named the Hydrogen Demand Initiative (H2DI)
WASHINGTON, D.C. (Jan. 17, 2024): The Hydrogen Demand Initiative (H2DI), a coalition led by the EFI Foundation (EFIF), has been selected by the U.S. Department of Energy (DOE) to help accelerate commercial adoption of clean hydrogen.
The Hydrogen Demand Initiative (H2DI) will see EFIF work in partnership with commodity markets information firm S&P Global (S&P); financial exchange operator Intercontinental Exchange (ICE); the modeling and analysis group of the MIT Energy Initiative; and Dentons, the world’s largest law firm with experts in energy regulatory issues. The partnership will be charged with designing and implementing demand-side support mechanisms for enhancing the market potential of the Regional Clean Hydrogen Hubs (H2Hubs).
“The EFI Foundation has a deep knowledge of the challenges involved in a robust domestic clean hydrogen industry, as outlined in our 2023 report, The U.S. Hydrogen Demand Action Plan,” said Ernest Moniz, the 13th U.S. Energy Secretary and CEO of EFIF. “EFIF analysis identified hydrogen as a key breakthrough opportunity for transitioning to a net-zero economy in our 2019 report, Advancing the Landscape of Clean Energy Innovation, which was prepared for Breakthrough Energy in partnership with IHS Markit (now part of S&P Global). We’re excited to work with partner organizations with expertise in project finance, regulation, and multisector modeling to lower the risks associated with clean hydrogen investments and facilitate sustainable demand. We have a project team already in place to stand up H2DI over the coming months.”
H2DI is designed to be a high-impact hydrogen demand-side effort to leverage private investment effectively and efficiently to support commercial deployment of clean hydrogen by the seven regional hubs and surrounding areas.
“We see the regional hubs as the engines for clean hydrogen market formation in the United States,” said Alex Kizer, EFIF’s Chief Operating Officer and the Managing Director of H2DI. “EFIF and its terrific team of partners will target these federal resources to support clean hydrogen offtake and lasting cost curve reductions.”
EFIF will draw on its extensive body of analytic work on related issues, including carbon capture and storage, technology innovation, market development, environmental justice, and clean energy finance to inform the analyses performed for the project. The project team will work closely with DOE and the H2Hubs to build a coalition of partners and a broader network of organizations to maximize the impact of the $7 billion federal investment in hydrogen.
“We will be using our long-standing expertise designing and operating trading platforms, building liquidity for nascent products and growing them into benchmarks,” said Gordon Bennett, Managing Director of Utility Markets, ICE. “We are excited to be working with the Department of Energy and the project partners to develop and unlock demand for a hydrogen market in the U.S.”
Saugata Saha, President, S&P Global Commodity Insights, added: “We are excited to be part of this initiative with EFIF, leveraging the depth and breadth of our Energy Transition and Sustainability capabilities to explore the future of clean hydrogen.”
Each partner brings a unique set of expert knowledge to H2DI:
· EFI Foundation: Lead H2DI and manage activities; perform financial and commercial analysis; and develop community engagement strategies.
· S&P Global: Perform market assessments; evaluate financial workflows; engage stakeholder community for input; provide and manage data.
· ICE: Build market and products (incl. mechanism’s governance program); operate demand-side mechanism platform; provide and manage data.
· MIT Energy Initiative: Perform techno-economic analysis of hydrogen demand-side; perform greenhouse gas lifecycle accounting, as well as granular sector “coupling” modeling (gas, electric, CO2, end-uses) using the modeling platform SESAME (Sustainable Energy Systems Modeling Environment).
· Dentons: Advise on National Environmental Policy Act, Federal Energy Regulatory Commission, and other regulatory and due process issues; develop contracts; support monitoring, reporting, and verification; and create operational requirements.
Media Contacts:
U.S. Department of Energy – Office of Clean Energy Demonstrations: DOENews@hq.doe.gov or (+1) 202-586-4940
David Ellis, EFI Foundation: ddellis@efifoundation.org or (+1) 202-770-8804
Alicia Moulton, EFI Foundation: ammoulton@efifoundation.org or (+1) 202-618-2053
Partner Profiles
About the EFI Foundation
The EFI Foundation (EFIF) is a Washington, DC-based 501(c)(3) dedicated to educating the public on ways to harness the power of technology and policy innovation to accelerate the clean energy transition. The EFI Foundation builds on the work of the Energy Futures Initiative, established in 2017 by Ernest J. Moniz, the 13th U.S. Secretary of Energy.
About ICE
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that operates a leading network of global futures, equity, and options exchanges—including the New York Stock Exchange—as well as mortgage technology, and global clearing and data services across financial and commodity markets to help people invest, raise capital, and manage risk. ICE operates some of world’s largest markets to trade and clear energy and environmental products.
About S&P Global
S&P Global (NYSE: SPGI) provides Essential Intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so they can make decisions with conviction.
About Dentons
Dentons is the world’s largest law firm with practitioners in more than 80 countries, and with 45 offices in the United States, including in nine of the 10 largest markets. Our distinguished Energy practice has been named “Energy Law Firm of the Year” for three consecutive years in peer-driven surveys. Our global team of energy lawyers provides sought-after strategic advice to the energy industry’s premier companies, government entities and leading innovators.
About MIT Energy Initiative
The MIT Energy Initiative is MIT’s hub for energy research, education, and outreach. Our mission is to develop low- and no-carbon solutions that will effectively meet global energy needs while minimizing environmental impacts and mitigating climate change.
Partner Commentary
“We see the regional hubs as the engines for clean hydrogen market formation in the United States,” said Alex Kizer, Managing Director of H2DI. “EFIF and its terrific team of partners will target these federal resources to support clean hydrogen offtake and lasting cost curve reductions.”
“Using our long-standing expertise designing and operating trading platforms, building liquidity for nascent products and growing them into benchmarks, we are excited to be working with the Department of Energy and the project partners to develop and unlock demand for a hydrogen market in the U.S.,” said Gordon Bennett, Managing Director of Utility Markets, ICE.
“We are excited to be part of this initiative with EFIF, leveraging the depth and breadth of our Energy Transition and Sustainability capabilities to explore the future of clean hydrogen,” said Saugata Saha, President, S&P Global Commodity Insights.
“Dentons is deeply honored to support former Energy Secretary Dr. Ernest Moniz and the groundbreaking Hydrogen Demand Initiative in one of the most consequential aspects of DOE’s national approach to designing and developing realistic demand-side hydrogen markets across the United States,” said Clinton A. Vince, Chair, Energy Practice, Dentons.
“MITEI’s mission is to advance the technologies and pathways that will be needed in a decarbonized global economy,” said MIT Energy Initiative Director Robert Stoner. “Our modeling and analysis team is delighted to be working with H2DI to develop viable demand-side applications of hydrogen as a fuel and feedstock across the H2Hub network.”
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