The US Department of Energy (DOE) advisory committee has raised concerns over the pace of development in the “clean” hydrogen industry, stating that its growth isn’t sufficient to meet the climate goals laid down by the country. US Energy Secretary Jennifer Granholm referred to the panel’s perspective as “sobering”.
The dismal outlook stems from a recent report by the National Petroleum Council (NPC), which asserts that the hydrogen industry, considering current federal policies, won’t generate enough supply and demand to allow the US to accomplish net-zero emissions by 2050.
The NPC also conducted a study on reducing US natural gas supply chain emissions, revealing that under the present policy trajectory, a 59% cut in methane emissions from US natural gas supply chain is achievable by 2050. However, without changes, carbon dioxide emissions could actually rise by 25%.
In their reports, the NPC urges policymakers to stimulate hydrogen production and sales and increase focus on reducing emissions from natural gas production and delivery.
Industry Perception Not All Negative
Although the industry isn’t on track, according to Deputy Energy Secretary David Turk, progress is being made. The NPC’s studies on hydrogen and reducing emissions from US natural gas serve all stakeholders with crucial recommendations, and the NPC’s membership comprising of over 200 individuals from oil, gas, electric companies, research groups, and academic institutions can leverage these insights to guide their actions.
Both the hydrogen and natural gas industry are receiving significant attention from the Biden administration. The White House has directed $8 billion in 2021 bipartisan infrastructure law funding towards regional “clean” hydrogen hubs to attract more private investment.
Secretary Granholm believes that future energy trends will render the current energy status quo obsolete. She emphasized the role of consumers, communities, countries, and investors in reshaping the markets.
Granholm’s sentiment was echoed by Alan Armstrong, CEO of Williams Cos., who spoke of the constant changes shaping the energy sector.
According to the NPC’s hydrogen report, the hydrogen industry requires improved federal support to reach the scale necessary for achieving net-zero US carbon emissions by 2050. To achieve this, the production of hydrogen, mainly produced from natural gas without capturing emissions, needs to cut emissions significantly.
Policymakers have been called upon to facilitate the production and purchase of hydrogen, increase public acceptance of hydrogen fuel, and promote research and development.
On the natural gas front, while the gas is crucial from an energy security standpoint and can substitute coal in power generation, emissions from its supply chain pose significant challenges. Ryan Lance, CEO of ConocoPhillips and vice-chair of the NPC, has urged for collaborative solutions to cut emissions from natural gas because of the urgency of the situation.
