PENN VALLEY, PA, US, October 28, 2022 /EINPresswire.com/ -- With the passage of the Inflation Reduction Act of 2022, policymakers have shown support for the development of a low-carbon hydrogen economy through tax incentives and research and development support. However, that support isn’t being applied in the most effective way possible, according to a recent study commissioned by API.
The American Petroleum Institute, the oldest, largest and most vocal organization representing the natural gas and oil industry has been out in front of the hydrogen and carbon capture, use, and storage (CCUS) movement. The oil and natural gas industry is committed to seeing both technologies thrive.

“Our industry is committed to advancing innovative technologies like low-carbon hydrogen, which are crucial to reducing GHG emissions economy wide,” said API Vice President of Corporate Policy Aaron Padilla. “Working together with policymakers to incentivize all forms of low-carbon hydrogen and accelerate hydrogen production through programs under the Bipartisan Infrastructure Law, we can drive down emissions while ensuring American consumers have access to the reliable energy they need.”

Padilla will be speaking at the Appalachian Hydrogen & Carbon Capture Conference IV, held at the Hilton Garden Inn Pittsburgh/Southpointe on November 10th, 2022. Organized by Shale Directories Founder and President Joe Barone and Tom Gellrich, CEO and Founder the Hydrogen and Carbon Capture Network.
“Having Aaron Padilla of API as a speaker to articulate how the playing field works will be invaluable to conference attendees,” said Tom Gellrich CEO and Founder H2-CCS Network. “The challenging goal of Net Zero requires the right incentives. API unravels the complexity with their new study.”

API recently released a new analysis on the benefits of low-carbon hydrogen produced from natural gas. The study, commissioned by API and conducted by ICF, found that hydrogen produced from natural gas with carbon capture 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 by lowering costs to reduce emissions across the economy 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, electricity and other energy sources are critical to meeting the U.S. Department of Energy goal of 50 MMT of clean hydrogen produced by 2050, as laid out in the recently published National Clean Hydrogen Strategy and Roadmap.

“If every ton of emissions reductions were incentivized the same, the emissions reductions from all hydrogen production would be equivalent to eliminating the emissions from more than 38 million cars annually,” Padilla said.

The study also found that critical hydrogen infrastructure, like hydrogen storage, pipelines and local distribution systems, will be required to unleash hydrogen’s potential to contribute to significant GHG emissions reductions. Capital investment in hydrogen infrastructure projects alone could exceed $400 billion by 2050 and include the construction of 67,000 miles of hydrogen transmission pipeline, 500,000 miles of customer laterals and local distribution company pipeline/service lines, and 560 trillion Btu of hydrogen underground storage capacity.

Joe Barone
Shale Directories
+1 610-764-1232
jbarone@shaledirectories.com

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