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API Releases New Analysis

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The American Petroleum Institute (API) has released new analysis on the benefits of low-carbon hydrogen produced from natural gas.

The study, commissioned by API and conducted by ICF, found that hydrogen produced from natural gas with carbon capture, and from electricity and other energy sources, could eliminate an additional 180 million tpy of greenhouse gas (GHG) emissions on average through 2050 and save over $450 billion cumulatively through 2050, when hydrogen incentives are uniformly provided based on a per ton of GHG emissions reduced.

Aaron Padilla, API vice president of corporate policy, said: “Our industry is committed to advancing innovative technologies like low-carbon hydrogen, which are crucial to reducing GHG emissions economy-wide. 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.”

API analysis of the study’s findings show that uniform incentives for producing hydrogen from natural gas, electricity and other energy sources are critical to meeting the US Department of Energy goal of 50 million tons of clean hydrogen produced by 2050, as laid out in the recently published ‘National Clean Hydrogen Strategy and Roadmap.’

The study found that critical hydrogen infrastructure, like hydrogen storage, pipelines and local distribution systems, will be required to unleash hydrogen’s potential to contribute to significant GHG emissions reductions.

Capital investment in hydrogen infrastructure projects could exceed $400 billion by 2050 and 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.

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