NATIONAL GRID DIRECTOR TALKS ROLE OF HYDROGEN BLENDING IN DECARBONIZING THE HEATING SECTOR

National Grid is looking at the potential of hydrogen as a renewable source of energy to decarbonize gas networks across New York, Massachusetts and Rhode Island.

The utility is partnering with the U.S. Department of Energy (DOE) and six of their national laboratories, industry leaders and academic institutions to support accelerated research around blending hydrogen into natural gas distribution systems.

The research will directly support National Grid's pathway to net zero, and will focus on hydrogen pipeline compatibility, lifecycle and techno-economic analysis.

“This initiative with the Cooperative Research and Development Agreement (CRADA) brings in all the DOE labs, so it's basically doing the science,” Donald Chahbazpour, National Grid Director of Regulatory Strategy--Future of Heat, told New Project Media. “You are laying the foundation to do the science to think through all of the technical issues that go into hydrogen blending. How do you meter hydrogen? What impact does that have on your infrastructure, pipes, materials? And what impacts will it have on customers’ appliances? People get excited about hydrogen and I always tell them that over the next few years, we are laying the foundation for this. A lot of work has to go into this. Quite frankly, you have to do the science."

U.S. demand for hydrogen could reach 17 million metric tons by 2030 and 63 million metric tons by 2050, roughly equivalent to 14 percent of final energy demand, according to a recent report.

Hydrogen is projected to play a major role across diverse sectors of the economy, including fuel for buildings, transportation, and industrial uses; as a feedstock for industry and long-distance transport; and for power generation and grid balancing.

Blending hydrogen for use in existing applications of natural gas is seen as a viable way to spur hydrogen demand, according to Argonne National Laboratory. Hydrogen blending could also allow the resale of natural gas paired with a renewable component, which could then be used as a combustion fuel.

“People are getting super excited about hydrogen," Chahbazpour said. "One of the things that makes hydrogen compelling is that it cuts across sectors. It doesn't neatly fit in the electric world or the gas world, and actually the first sectors in the economy that might embrace it might be marine transportation, these big ships that cross the oceans. They may run on hydrogen and liquid hydrogen. The reason we’re excited about hydrogen is that to decarbonize heat is extremely difficult. When it comes to heating, there’s not a silver bullet.”

Areas of research around hydrogen for heating include impacts on end use performance and pipeline infrastructure, as well as the differentiation in price and heating value between hydrogen and natural gas.

“All of our analysis in the U.S., the UK, the EU, even a hydrogen study coming out of Australia--all that body of work is basically pointing towards the fact that you need a portfolio approach to decarbonize heat and buildings,” Chahbazpour said. “Think about all the millions of buildings that have been around here in New York and Boston that were built in the 1800s. It's very difficult to electrify them. So, electrification is part of the answer. And when we think about those buildings that remain on gas, to decarbonize that sector when you want to get to net zero becomes very challenging. So that's the role that the utilities see--to utilize hydrogen to decarbonize heat.”

Growth across sectors

Momentum around hydrogen is rapidly growing across multiple sectors. Major oil and gas companies throughout Europe are ramping up investments in hydrogen, while cars powered by hydrogen fuel cells are hitting showroom floors.

“You have people from the electric side, and they're also excited about it because they may run fuel cells and power generators,” Chahbazpour said. "GE is already making combined-cycle turbines that you can order starting now that run on hydrogen. Toyota is coming out with a new hydrogen fuel cell. BMW and Toyota are really jumping into hydrogen. China is building hydrogen fueling stations.”

Hydrogen can also play a critical role in utilizing excess renewable energy.

“You have a lot of renewables online like solar and wind, where power is getting curtailed, meaning there are excess renewables, which is happening in California today,” Chahbazpour said “There are days where solar has nowhere to go. In Colorado, there are days when onshore wind has nowhere to go. You take that excess electricity, you produce green hydrogen, so on the electric side of the system that provides ancillary services support to the grid. It also allows the use of hydrogen for storage, and then whenever they do need it, they'll use it for power generation. One of the other reasons that makes this compelling is that for our customers, it will be seamless. In other words, you continue to use your boiler, your stove, and you wouldn't even know it's running on hydrogen if you're blending it."

Policy barriers

Industry leaders are calling for a regulatory framework for wider implementation of hydrogen, along with strong state and federal policy incentives. These incentives and standards are seen as a way to bridge barriers to initial market entry, and to bring a wider range of mature hydrogen solutions to market.

“People ask me, what is the biggest barrier?” Chahbazpour said. “In other words, if you don't have the right policy framework, will this happen? And the answer is no. If you don't have the right policy framework, it will not happen. The technology is now here. It has this critical mass. You see demonstration projects all around the world, but the policy needs to catch up with technology. Whether it's hydrogen or renewable natural gas, if you use it in the heating sector today, it's not considered renewable. But if you use it to generate power, it is. And the reason that's the case is because those legislations or policies are on the books. The policy framework needs to change, both federal and state.”

Notably, the recent stimulus bill passed by Congress includes a one-year extension of the Production Tax Credit (PTC) for hydropower projects, while fuel cell projects will see an extension of the Investment Tax Credit (ITC).

The Fuel Cell Motor Vehicle Tax Credit for purchases of fuel cell passenger vehicles was also extended through 31 December 2021.

“At the federal level, just like the tax credits for big wind and solar, I could see the exact same thing for hydrogen production,” Chahbazpour said. “I could see a federal ITC for producing green hydrogen or it might be blue hydrogen in other parts of the country where they sequester it. But you really do need a new policy framework to integrate hydrogen as part of your solution, otherwise it won't take off at scale.”