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As discussed in Part I, increasing the utilization of hydrogen produced from nuclear energy presents a promising avenue for curbing carbon emissions. The role of nuclear and hydrogen in the energy transition is contingent upon policy developments, project successes, and widespread adoption. As regulatory conditions become more favorable and government support increases, the intersection of nuclear and hydrogen is experiencing increased activity. The Department of Energy (DOE) and various international institutions are actively endorsing initiatives focused on nuclear hydrogen production.
Developed and released by the International Atomic Energy Agency (IAEA), HEEP is a free tool designed to assess the economics of large-scale hydrogen production using nuclear energy.
Launched in 1999 and refocused in 2004 to include the Nuclear Hydrogen Initiative, NERI aligns with the Next Generation Nuclear Plant program established in 2005. Under an international NERI agreement, Sandia National Laboratories in the USA and the French CEA, along with General Atomics in the USA, are actively developing the I-S process, aiming to use high-temperature reactors for thermochemical water-splitting. They have successfully built and operated a laboratory-scale loop dedicated to advancing this innovative approach.
The U.S. Treasury Department has proposed rules for accessing tax credits for low-carbon hydrogen production, with credits based on life-cycle greenhouse gas emissions. While aiming to unlock private investment in clean energy, uncertainties persist, especially concerning how nuclear power can benefit. The proposed 45V clean energy hydrogen production tax credit ranges from 60 cents to $3 per kilogram and necessitates hydrogen producers to demonstrate the use of clean electricity within three years of a hydrogen plant's service start. The Biden administration seeks feedback on the role of existing nuclear plants, prompting debates over potential limitations on hydrogen market development and their impact on emissions reduction efforts.
Spanning Illinois, Indiana, and Michigan, the Midwest Hydrogen Hub strives to catalyze decarbonization in key U.S. industrial and transportation sectors. Targeting a substantial reduction of approximately 3.9 million metric tons of carbon emissions annually, the initiative leverages diverse energy sources, including renewable energy, natural gas, and low-cost nuclear energy.
Energy Capital Ventures is proud to be participating in the Midwest Nuclear DAC Hub, a project led by Northwestern University in Evanston, Illinois. This initiative explores the feasibility of deploying large-scale DAC solutions powered by nuclear energy. Funded by the U.S. Department of Energy, the project emphasizes leveraging nuclear power as a reliable low-carbon energy source for DAC technology development. The effort aligns with the Regional DAC Hubs program under the Bipartisan Infrastructure Law and aims to establish a nationwide network of large-scale carbon removal sites.
NuScale Power's discontinuation of its small modular reactor project in Utah has raised questions about the interplay between nuclear energy and hydrogen. Despite setbacks, NuScale continues its global ambitions to deploy American SMR technology, prompting a reevaluation of safety concerns associated with small reactors.
Poland's Ministry of Climate and Environment has granted decisions-in-principle for power plants featuring GE Hitachi Nuclear Energy's BWRX-300 SMR. This significant move aligns with Poland's decarbonization efforts, showcasing Orlen Synthos Green Energy's broader initiative to build a fleet of BWRX-300 reactors, addressing carbon emissions and expanding Poland's nuclear energy portfolio.
TerraPower and ENEC have signed an MOU to explore the global deployment of Natrium1 technology, a Generation IV sodium fast reactor. This collaboration aims to provide 24/7 carbon-free energy and explores non-traditional applications, such as hydrogen production.
X-Energy has released a report outlining how the UK can accelerate its journey to net-zero emissions with advanced nuclear plants. Focused on Northeast England's Teesside, the report emphasizes the potential for nuclear energy to support industrial clusters, reduce emissions, and enhance competitiveness. The Teesside project aims to provide local jobs and decarbonization options, contributing to broader economy-wide decarbonization goals in the UK.
The prospect of producing green molecules through nuclear power presents a significant opportunity for reducing carbon emissions in the energy sector. At ECV, we express enthusiasm for the synergy between green electrons and green molecules, and we eagerly anticipate collaboration with pioneers in this dynamic field.
