Health, climate groups aim to sink gas utilities' hydrogen ambitions

As gas utilities seek to generate support for blending hydrogen into the gas grid, some health and sustainability groups are trying to convince policymakers that the strategy is a "false solution" for mitigating planet-warming emissions.

A new report from Physicians for Social Responsibility said hydrogen blending will prolong the nation's dependence on natural gas for heating when buildings should be going all-electric. In helping to lock in future gas use, hydrogen blending will continue to expose people to negative health outcomes linked to burning gas in homes, the group said in "Hydrogen Pipe Dreams," a report released June 22.

"Hydrogen blending will increase, not decrease, our reliance on fossil fuels, and that will perpetuate existing health inequities," Barbara Gottlieb, director of environment and health at Physicians for Social Responsibility, said in a statement.

Some claims contradict gas utilities' plans

The report repeatedly said that nearly all U.S. hydrogen production is carbon-intensive and uses natural gas as a feedstock. However, U.S. gas utilities have not proposed distributing this so-called gray hydrogen. A review of 26 hydrogen pilot projects by S&P Global Commodity Insights found that most specifically focused on using green hydrogen, produced by splitting water while using zero-carbon power.

Limited green hydrogen supplies should be reserved only for use in hard-to-electrify sectors, the group said. Environmental groups have also taken a similar stance on renewable natural gas.

Hydrogen blending in the distribution system could increase demand for methane to make gray and blue hydrogen, a form of the fuel that uses carbon capture to mitigate process emissions, the group noted. Some industrial companies have begun developing blue hydrogen projects, partly due to the challenges of scaling green hydrogen in the near term. But energy system researchers largely see blue hydrogen as a transition fuel, and few gas utilities have signaled that they will seek to blend it into their systems.

The report also said hydrogen blending could increase methane emissions because hydrogen can compromise pipeline integrity. However, many gas utility pilot projects are focused on determining a safe blending limit, typically below 20% hydrogen by volume. The health group also warned that hydrogen blending will force consumers to buy new hydrogen-compatible appliances, even though gas utilities are seeking to avoid that outcome by studying hydrogen's effect on flame quality and appliance performance at various blending levels.

There are other cost concerns for ratepayers, according to Physicians for Social Responsibility and sustainability group RMI. If the U.S. Energy Department succeeds in its bid to drive down the cost of low-carbon hydrogen to about $1 to $2 per kilogram by 2030, the price still equates to about $7.40-$15 per MMBtu, well above natural gas prices over most of the past decade, RMI said in a May 25 analysis of hydrogen use in New York.

The electric power needed to produce hydrogen makes it a less efficient solution for New York than simply electrifying building heating, RMI said. Additionally, given hydrogen's relatively low energy density and the limited availability of renewable natural gas, the fuels cannot together scale up enough to meet New York's energy needs, the group said. RMI, along with Physicians for Social Responsibility, also warned that burning hydrogen can release nitrogen oxides, presenting respiratory health risks.

Gas utilities focus on backing up building electrification

Road maps released by utilities in states with aggressive climate goals increasingly acknowledge that many buildings will electrify.

Still, utilities envision a continued role for the distribution system, including supplying gas for backup in hybrid electric-gas heating systems, particularly in cold climates, and distributing low-carbon fuels to industrial customers. They sometimes propose a role for gas utilities in building and maintaining geothermal heating districts.

National Grid PLC's commitment in April to operate a fossil fuel-free gas grid in New York and Massachusetts by 2050 included some of those proposals. An October 2021 report from Southern California Gas Co., which opposes California gas bans, said a clean fuels network would complement increasing building and vehicle electrification and growing renewable energy penetration. Northwest Natural Holding Co., facing a building electrification movement in Oregon and Washington, put forward a dual-fuel approach in its carbon neutral by 2050 strategy, released in November 2021.

Policymakers in those states have backed or signaled support for some of those policies.

A draft plan for meeting New York's climate goals said gas or wood heating will likely be a necessary backup in the coldest parts of the state and New York City's large, complex commercial buildings. Oregon in 2020 adopted nation-leading rules for passing on renewable natural gas and hydrogen purchases and infrastructure investments to ratepayers. In February, the California Public Utilities Commission unanimously supported the nation's first renewable fuels standard, which requires investor-owned utilities to incorporate renewable natural gas and other biomethane into their supply portfolios.

Physicians for Social Responsibility advised policymakers to promote the use of renewable electric power to heat buildings and discouraged allowing gas utilities to raise rates to cover hydrogen costs. It additionally advised policymakers to adopt strict environment and cost-effectiveness reviews for hydrogen projects, full lifecycle greenhouse gas emissions accounting for hydrogen and a green hydrogen certification process.

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