Pennsylvania recently secured two of seven nationwide Clean Regional Hydrogen Hubs (H2Hubs). The commonwealth is the only state with two projects funded by the Department of Energy-administered program authorized by the Bipartisan Infrastructure Law. The developments are positive for further innovative uses of our abundant natural gas resources.
What is a hydrogen hub?
Hydrogen is widely recognized as a clean and viable energy source because it’s a gas that burns with zero emissions. It’s unique because it can be produced from a variety of energy sources; the most widely utilized source is natural gas. Combined with carbon capture technology, natural gas-derived hydrogen can be the most efficient way to decarbonize sectors that require a lot of energy.
“Unlocking the full potential of hydrogen—a versatile fuel that can be made from almost any energy resource in virtually every part of the country—is crucial to achieving President Biden’s goal of American industry powered by American clean energy,” U.S. Energy Secretary Jennifer Granholm said of the announcement.
With natural gas currently the primary feedstock for hydrogen, Pennsylvania’s energy abundance, diverse economy and access to skilled labor makes the Commonwealth a prime location for development.
The purpose of hydrogen hubs is to assist in accelerating the development and deployment and utilization of hydrogen. By launching these hubs, the nation is creating networks of energy production and utilization.
The two successful Pennsylvania hub applications are the Appalachia Regional Clean Hydrogen Hub (ARCH2) and the Mid Atlantic Clean Hydrogen Hub (MACH2). ARCH2, covering areas of Pennsylvania, Ohio and West Virginia, is projected to support more than 20,000 direct jobs and 3,000 permanent jobs after construction. This hub seeks to reduce carbon emissions by 9 million metric tons a year. MACH2 covers areas of Southeastern Pennsylvania, New Jersey and Delaware. The Hub intends to repurpose existing infrastructure and implementing new technologies across operations to optimize production. The Hub plans to negotiate a $14 million labor contract with local workforce.
How is Pennsylvania poised to benefit from these announcements?
We have more than a 100-year supply of natural gas, much of which is located in our basin. With continued innovation, this creates significant, long-term economic development opportunities for our region on its own, but coupled with hydrogen and CCS, and those opportunities will last generations. Pennsylvania’s natural gas resources are recognized as the cleanest in the nation, highlighting an effective decarbonization tool for key sectors of the Pennsylvania economy.
With hydrogen’s potential application in various economic sectors including power generation, transportation, and manufacturing, countless opportunities for continued economic growth are on the horizon.
“We’re going to be producing blue hydrogen, which could be used for multiple purposes including transportation and local power,” said Rob Wingo, EVP of corporate ventures at EQT.
Consider that Peoples Gas, alongside the University of Pittsburgh, launched a hydrogen blending project to examine the impact it will have on natural gas using existing infrastructure and distribution systems.
What benefits are associated with using natural gas for hydrogen development?
Currently there are multiple ways to produce, transport and store hydrogen. Producing hydrogen from natural gas, utilizing carbon capture, and moving the product through pipelines brings both practicality and sustainability into the energy equation.
From 2005-2020, CO2 emissions from power generation in Pennsylvania dropped 44% from the increased use of natural gas, according to the U.S. Environmental Protection Agency. Further, Appalachia natural gas has the lowest methane intensity of all U.S. production. Widely recognized for our stringent operational practices, Pennsylvania has been setting the industry standard for decades – recognized by the Clean Air Task Force for producing natural gas with the lowest methane intensity of any major basin in the entire United States – and hydrogen development is no different.
By continuing to invest in natural gas, alongside hydrogen, we will further drive Pennsylvania’s economic and environmental prosperity and our nation’s energy security.
The industry already supports over 120,000 jobs and contributes ~$41 billion to the state economy each year, all while delivering significant environmental progress in our state and nation. Think of how that’ll increase even more once the hydrogen is derived from natural gas is introduced into the economy.
“The development of one or more approved hydrogen hubs in the Commonwealth presents another generational opportunity to build upon this strong foundation and secure a prosperous and sustainable energy future,” said MSC’s Dave Callahan upon the announcement of Pennsylvania for consideration for a hydrogen hub.
