Thirty-two oil and gas producers reported lobbying on hydrogen, among other issues, and spent a combined $41.3 million on federal lobbying efforts this year.
The lobbying blitz comes as the Biden administration prepares to direct billions of dollars in federal subsidies to scale up hydrogen production to decarbonize the U.S. economy. Unlike coal, oil and gas, hydrogen does not release planet-warming greenhouse gases when burned.
Climate advocates largely support this move but warn against incentivizing hydrogen projects that could prolong the use of fossil fuels. Fossil fuel interests have aggressively lobbied the White House, Congress, and Energy and Treasury department officials to ensure hydrogen produced from natural gas qualifies for federal subsidies.
In October, the Energy Department announced plans to award $7 billion to seven proposed regional hydrogen hubs, including $1.2 billion to a Texas project that counts fossil fuel giants Chevron, Exxon Mobil, Phillips 66 and Shell as partners. BP and Exxon Mobil are also involved in developing a Midwest hub that will receive $1 billion through the same government program.
Julie McNamara, the deputy policy director for climate and energy at the Union of Concerned Scientists, a think tank, told OpenSecrets that the country risks “aiding and abetting fossil fuel company interests.”
“There are so many ways that hydrogen can go that it just perpetuates the status quo,” she added. “That is an extremely lucrative place for the fossil fuel industry to be, right? If we have weak standards, it can mean more use of natural gas for longer with more profit along the way.”
