API releases study on benefits of low-carbon hydrogen produced from natural gas

The American Petroleum Institute (API) released a study this week examining the economic and environmental benefits of low-carbon hydrogen produced from natural gas.

The analysis, conducted for API by ICF, found that hydrogen produced from natural gas with carbon capture could eliminate an average of 180 million metric tons of greenhouse gas (GHG) emissions annually through 2050. Further, it could save over $450 billion cumulatively through 2050 when hydrogen incentives are provided. It also found that uniform incentives for producing hydrogen from natural gas, electricity, and other energy sources are critical to meeting the U.S. Department of Energy goal of 50 MMT of clean hydrogen produced by 2050.

“Our industry is committed to advancing innovative technologies like low-carbon hydrogen, which are crucial to reducing GHG emissions economy wide,” API Vice President of Corporate Policy Aaron Padilla said. “Working together with policymakers to incentivize all forms of low-carbon hydrogen and accelerate hydrogen production through programs under the Bipartisan Infrastructure Law, we can drive down emissions while ensuring American consumers have access to the reliable energy they need.”

In addition, the study found that hydrogen infrastructure — like hydrogen storage, pipelines, and local distribution systems — will be required to unleash hydrogen’s potential for significant GHG emissions reductions.

Further, capital investment in hydrogen infrastructure projects could exceed $400 billion by 2050. It would include the construction of 67,000 miles of hydrogen transmission pipeline, 500,000 miles of customer laterals and local distribution company pipeline/service lines, and 560 trillion Btu of hydrogen underground storage capacity.