API: All Forms of Hydrogen Production Critical to Clean Hydrogen Economy

WASHINGTON, December 2, 2022 – The American Petroleum Institute (API) submitted comments on the Department of Energy’s (DOE) draft National Clean Hydrogen Strategy and Roadmap, thanking DOE for advancing a clean hydrogen economy while expressing concern that it fails to adequately consider all forms of hydrogen production and the near-term benefits of working with existing hydrogen users, like refineries. 

“The oil and natural gas industry has a significant role to play and interest in the growth of a clean hydrogen economy. Enabling significant greenhouse gas (GHG) emissions reductions in the industrial, transportation and power sectors, the deployment of low-carbon hydrogen will be essential in meeting the nation’s climate goals,” said API Vice President of Corporate Policy Aaron Padilla. “While we appreciate DOE’s commitment to a clean hydrogen economy, the current roadmap does not address the near-term low-cost GHG emissions reductions advantages of hydrogen produced from natural gas with carbon capture and storage. To fully harness the emissions reduction potential of hydrogen, we urge DOE to support all forms of clean hydrogen production.” 

A recent study, commissioned by API and conducted by ICF, found that hydrogen produced from natural gas with carbon capture and storage (CCS) and produced from electricity and other energy sources could eliminate an additional 180 million metric tons of greenhouse gas (GHG) emissions on average per year 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.

API analysis of the study’s finding show that uniform incentives for producing hydrogen from natural gas with CCS, electricity and other energy sources are critical to meeting the DOE goal of 50 MMT of clean hydrogen produced by 2050, as laid out in the National Clean Hydrogen Strategy and Roadmap.

API represents all segments of America’s natural gas and oil industry, which supports more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

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