Hydrogen by wire: Reducing the pipeline conundrum

OPINION:

Hydrogen has been discussed for decades as a possible fuel source to produce cleaner, American-made energy. The Infrastructure Investment and Jobs Act (IIJA) designated approximately $8 billion for the development of at least four regional clean hydrogen hubs, positioning the U.S. Department of Energy (DOE) to notify hub applicants of awards by fall 2023. This funding and recent emphasis on hydrogen presents an exciting opportunity for electricity production, but we must go about this the right way.

For much of our modern history, electric power in the United States has mostly been generated by the combustion of coal to produce steam that drives a turbine generator. In more recent years, natural gas replaced coal due largely to the shale gas revolution, which brought more abundant, cheaper natural gas to the marketplace. Carbon dioxide emissions significantly fell as a result, and the United States has reduced emissions more than any other country in the world—more than the following five countries combined since 2000. With the electric power sector taking action to reduce emissions—and do so affordably—looking to hydrogen as a potential next step makes sense.

Since the passage of IIJA, American businesses are competing to develop these hydrogen hubs, produce hydrogen in bulk, and meet a future potential demand from clean hydrogen consumers. To be eligible for DOE funding, the hydrogen must come from low-emission sources such as nuclear or renewables using electrolyzers, or from fossil fuels utilizing carbon capture. Today, about 20 hydrogen hubs are reported to be in the final phase of consideration.

Once the hydrogen is produced, transporting it does not come without challenges. Given its smaller molecular size, hydrogen gas is more difficult to contain, and concerns have been raised that existing pipelines, such as those used for natural gas, are not well suited for its transportation, because hydrogen can interact with pipeline steel, causing embrittlement and cracking.

So, is an entirely new U.S. hydrogen pipeline transportation system needed? While that may not always be the case, conversion of natural gas pipelines could come with a high price tag. A recent study in Germany testing the use of hydrogen in pipelines estimated the cost to convert its existing 342,000-mile natural gas grid would cost approximately 30 billion euros. While there are differences with the design, ages, and tolerances of the U.S.’ natural gas transportation system, there are approximately three million miles of U.S. pipelines that, if all were converted for transporting hydrogen, could translate to an equivalent upgrade cost of $290 billion.

But a possible, less costly alternative to deliver electricity generated by hydrogen may exist. If new, hydrogen-powered electric power plants can be built centrally (or conversions of existing plants made) either at or within the hydrogen hub systems, then it may be possible to produce “hydrogenby wire” to transport this electricity to the end consumer, as opposed to delivering it in pipelines over a long distance. An overlay of the proposed locations of hubs and major transmission lines shows a favorable correlation, which could minimize any need for building new transmission infrastructure.

In March 2023, the future of hydrogen was made even more interesting as the U.S. Environmental Protection Agency (EPA) released its latest proposal to regulate greenhouse gas emissions from the electric power sector. The proposal would require coal and natural gas-fired facilities to employ carbon capture and sequestration or shut down, with natural gas facilities being given the option to switch to hydrogen as a fuel within a specified time frame albeit unrealistic and politically-driven.

Unfortunately, among the many flaws that warrant further scrutiny, the EPA’s proposal does not appear to address the potential infrastructure needed to bring hydrogen to power plants to comply with the new regulations. This problem is exacerbated by opposition on the left to meaningful permitting reform necessary to build energy infrastructure to advance clean energy. Alternatively, the potential cost of “hydrogen by wire” could be significantly cheaper than modifying or building new pipelines for transporting hydrogen.

While such an approach may not work in all situations and research is necessary to ensure such action is consistent with existing power market structures, “hydrogen by wire” is an option worth considering given the potential costs, energy permitting headaches, and disruption from alternatives. New technologies present new challenges, but they also provide new opportunities. We should explore all options to consider how we can leverage our nation’s resources to deliver more affordable, reliable, and cleaner energy.

• Richard Campbell is Vice President of Policy and Research for Citizens for Responsible Energy Solutions (CRES) Forum. Richard has over three decades of experience in energy policy, technology innovation, and advocacy. Prior to joining CRES Forum, he spent over a decade at the Congressional Research Service, advising Congress on energy policy and technology issues and authoring reports on clean energy, hydrogen production, and energy storage.