Blue Hydrogen: The Future Of Certified Gas?

S & P Global

January 11, 2023

With new funding in play for clean hydrogen production in the US after the passage of the Inflation Reduction Act in August 2022, blue hydrogen producers are eying third-party certified natural gas as a possible pathway to proving lifecycle emissions low enough to qualify for certain tax credits.

Hydrogen has long been touted as a potential game changer for decarbonizing heavy transport and industrial processes, with proponents lauding the absence of greenhouse gas emissions at the point of combustion. However, different methods of hydrogen production result in a wide range of GHG emissions profiles, especially when considering the full lifecycle of inputs.

Blue hydrogen is produced from natural gas most commonly through steam methane reforming, similar to conventional "grey" hydrogen production, but it is also paired with carbon capture, utilization, and storage, or CCUS, technology. Other production pathways for blue hydrogen include auto-thermal reforming and methane pyrolysis.

While CCUS can reduce emissions at the hydrogen production stage, the upstream emissions associated with natural gas feedstock could factor heavily in the overall lifecycle emissions profile. With these upstream emissions in mind, some potential blue hydrogen producers have started exploring certified gas as a solution.