Mrvan, Banks lobby for hydrogen hub that would be one of Region's biggest construction projects

U.S. Rep. Frank Mrvan, D-Highland, and U.S. Sen Jim Banks, R-Indiana, are lobbying for a massive hydrogen hub that is expected to be one of the largest construction projects in Region history if it goes forward, bringing billions of dollars in investment and employing more than 16,000 construction workers for years.

Last year, the U.S. Department of Energy awarded $1 billion to the Midwest Regional MachH2 hydrogen, a collaboration between Indiana, Illinois, Michigan and other Midwestern partners aimed at decarbonizing heavy industry by supplanting fossil fuels with hydrogen. The hydrogen hub would include a hydrogen production plant BP would build at or somewhere near its refinery in Whiting, with the intent of replacing coking coal in Region blast furnaces with cleaner-burning hydrogen that would reduce greenhouse gas emissions.

The project has been in limbo since President Donald Trump returned to office and the new administration called off, postponed or deprioritized a variety of announced federal projects, especially those perceived to have an environmental component.

Mrvan and Banks sent a letter to Energy Secretary Chris Wright asking him to prioritize Northwest Indiana for a regional hydrogen hub.

“Prioritizing a hydrogen hub in Northwest Indiana is a bold, pro-America decision that plays to our state’s strengths. Indiana offers the Hoosier workforce, infrastructure and industrial knowledge to deliver results fast," they wrote in the bipartisan letter. "This project is a key step in strengthening America’s energy dominance, ensuring we remain the world leader in energy production while creating jobs and boosting economic growth. We respectfully ask that the administration make the hydrogen hub project in Indiana a top priority.”

Trade unions in Northwest Indiana were ramping up the number of apprentices they trained by 25% in anticipation of the massive project along the Lake Michigan shoreline. It was expected to be even bigger than the $4.2 billion BP Whiting Refinery modernization project that employed more than 14,000 skilled tradesmen for years. Union leaders have expressed uncertainty about how much work will now be available for the new tradesmen being trained.

With its industrial heritage and workforce, Mrvan and Banks contended that Northwest Indiana is a perfect place for such a project.

"This region is home to a dense manufacturing hub, containing the largest inland oil refinery and two of the largest integrated steel production facilities in our nation. For over a century, major industry titans have made decisions to invest and locate along Northwest Indiana’s Lake Michigan shoreline," they wrote. "As a result, Hoosiers in the Northwest region and across the state have been world leaders in manufacturing."

Officials have estimated the hydrogen hub project could bring $5 billion to $8 billion in private-sector investment to Northwest Indiana. The hope is that it would help decarbonize integrated steelmaking, an industry that's been notoriously hard to decarbonize as it has historically required burning coking coal in blast furnaces to make new iron that's turned into steel for cars, appliances and other end uses.

Mrvan and Banks contended a new hydrogen plant in Whiting would help make America more energy independent.

"Keeping in line with President Trump's efforts to bolster American energy, this hydrogen hub presents a significant opportunity to expand energy production. In particular, the Whiting refinery in Northwest Indiana is an ideal location for blue hydrogen production, which is produced from clean and reliable natural gas using carbon capture technology," they wrote. "Blue hydrogen offers a quick, cost-effective solution by utilizing existing infrastructure, and will provide a scalable energy source capable of meeting immediate energy demands. Investing in blue hydrogen production at this facility will bolster existing supply chains and will best position the United States for energy dominance."

Blue hydrogen is produced with natural gas, which burns cleaner than other fossil fuels but which is still a fossil fuel. Environmental groups have called for the use of green hydrogen, which uses renewable energy sources to make the hydrogen, to ensure that tax dollars only be used to minimize carbon emissions as much as possible. They've also criticized giving federal funding for green initiatives to companies like BP with spotty environmental track records.

Mrvan and Banks contended the BP Whiting Refinery, which already supplies gas, jet fuel and asphalt to much of the Midwest, would be well-positioned to supply cleaner-burning hydrogen to Midwestern industries.

"Notably, the Whiting refinery in Northwest Indiana can process up to 440,000 barrels of crude oil daily and would be an ideal site to locate a regional hydrogen hub," they wrote. "Continuing this project means investing in Hoosiers and a state that delivers. Indiana is ready to lead the way in blue hydrogen innovation, strengthening American manufacturing, boosting our domestic energy supply and lowering costs by maximizing the potential of our abundant and reliable fossil fuel resources."

Given growing pressure worldwide to decarbonize, the fate of Northwest Indiana's steel mills and heavy industry may depend on it, they contended.

"We believe the success of the hydrogen energy project will support the administration’s stated goal to reshore our critical industries and strengthen our manufacturing base," they wrote. "With our region’s established downstream infrastructure, midstream pipeline capacity and manufacturing prowess, the continued support for this project will ensure that our energy and steel industries remain well positioned for success into the next century."