The Maine Public Utilities Commission plans to ask developers to submit proposals to build a "green hydrogen" plant in the state.
Commissioners last week filed a draft request for proposals and want all potential bidders to indicate their interest in developing a facility by early December.
Developers would pay for a project, but commissioners could direct one of the state's power companies to negotiate a special discounted electric rate for the facility.
Brad Bradshaw, president of the Portland-based Hydrogen Energy Center, said traditional "gray" hydrogen is made in a chemical reaction between methane and steam. It also produces significant amounts of climate-warming carbon dioxide.
"Green" hydrogen on the other hand is produced by splitting hydrogen out of water through electrolysis, a process that produces far less greenhouse gas pollution but needs a lot of electricity.
"The charges associated with moving that power over the gird can sometimes make the project economics difficult," Bradshaw said.
"This initiative by the state of Maine is to provide some benefit to reduce those transmission and distribution charges associated with clean hydrogen production," he added.
While hydrogen is regarded as a potential replacement for polluting fossil fuels, Jack Shapiro the clean energy director at Natural Resources Council of Maine said it is not well suited to every situation.
While it may work to displace polluting fuels in long-range trucking and some heavy industry, there are cheaper and easier ways to achieve emissions reductions at the household level, such as heat pumps and electric vehicles, Shapiro said.
"We don’t want to see hydrogen used to greenwash existing fossil fuel infrastructure by blending into home heating oil gas supply or things like that," Shapiro said.
Prospective developers have until Dec. 10 to file indications of interest with the Public Utilities Commission. The project was authorized by lawmakers in 2024.
Prospective projects must show their production will generate 0.45 kilograms of greenhouse gasses or less per kilogram of hydrogen, qualify for federal tax incentives, use 20 megawatts of power or less and other standards.
Commissioners intend to put the project out to bid by the end of the year.
