The governors of Nebraska, Iowa and Missouri announced this week that they have formally backed an application for federal funds to power what's known as a "hydrogen hub" in the three-state region.
Gov. Jim Pillen said in a statement Thursday that the three states have signed a memorandum of understanding supporting an application by the Mid-Continent Clean Hydrogen Hub with the U.S. Department of Energy.
The group, known as MCH2, already has applied to become one of between six and 10 regional networks of hydrogen producers, users and transporters seeking a share of $8 billion the federal government is offering in an effort to accelerate the development of hydrogen as a clean energy source. The funding pool was created by the 2021 Infrastructure Investment and Jobs Act.Â
"This partnership will help grow Nebraska and the Midwest's economy by opening the pathway for billions of dollars of new investment into our community and hundreds of new, good-paying jobs," Pillen said in the statement. "This hydrogen hub once again shows Nebraska's commitment to renewable energy and our leadership in improving our country's energy security."
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State lawmakers last year adopted a measure creating a work group to draft an initial proposal. Of the 79 initial proposals, Nebraska's was one of 33 given the green light to submit an application, which was made on behalf of the three states, said Courtney Dentlinger, vice president of customer service and external affairs with the Nebraska Public Power District.Â
"It's incredibly exciting for Nebraska and this region," she said.Â
NPPD is among a number of businesses involved in the proposal. One is Monolith Inc., which has plans to expand a facility near Hallam, Nebraska, that converts natural gas into carbon black and hydrogen, which is used to make ammonia-based fertilizer in a process that doesn't create carbon emissions. Werner Enterprises has committed to rolling out new hydrogen-fueled semitrailer trucks, and NuStar, which operates an ammonia pipeline in the three states.
Nebraska lawmakers also gave first-round approval to a bill that would bolster efforts to create a hub. Legislative Bill 565, sponsored by State Sen. Bruce Bostelman of Brainard, would provide $500,000 in state funds over two years to provide grants for additional engineering and modeling work.
Dentlinger noted that federal funding would require a one-to-one dollar match. Matching funds would come from businesses participating in the hub, not state government.Â
"It's truly a way to accelerate the development of the hydrogen economy in this region," she said. "That additional influx of funding could help move things forward more quickly."