The advancements in production and evolution of our energy demand and supply since the Industrial Revolution have posed ever larger challenges to the future of our environment and communities. Despite innovative industry leaders pioneering many promising alternative energy options, policymakers and political leaders have yet to align on these initiatives for a more promising future.
Coal continues to be the most maligned option for energy production due to its emission levels, despite remaining king globally. Historically, it was our golden ticket for energy production, and it is still used worldwide today. Coal emits sulfur dioxide, nitrogen oxide, carbon dioxide, and other metals that impact air quality and cause long-term negative health effects. Despite these known impacts, coal production contributes significantly to the global energy supply. Policy-driven factors have driven coal down in the U.S. considerably over the last decades, even with so called coal cleaning technology.
Natural gas, a cleaner and more accessible energy source, has become the key alternative to coal, alongside oil. However, the production of natural gas and oil does release methane, a chemical that is 80 times more potent in contributing to global warming over 20 years than carbon dioxide. Methane has also contributed to approximately 30 percent of global warming since the pre-industrial era.
To reduce our carbon footprint and other greenhouse gas emissions, underground carbon storage projects, such as Carbfix in Iceland, have started receiving public investment. There are two sides to the coin to make a timely impact: removing carbon from the air and simultaneously limiting carbon emissions. Renewable energy must be seriously considered to slow carbon and carbon byproduct emissions.
Enter hydrogen fuel. Hydrogen comes in many colors based on its production method, each with different emission byproducts and consequences. Blue hydrogen is produced from natural gas through steam reforming, reacting hot steam and pressure with methane to form hydrogen and carbon monoxide. Another process, autothermal reforming, produces hydrogen alone by using oxygen and carbon dioxide or steam that reacts with methane to form the hydrogen gas. This hydrogen gas can be used to fuel cars or to heat homes. Currently, natural gas accounts for 40 percent of fuels used for heating homes in the U.S. Relatedly, the energy produced to heat our homes and office buildings makes up 38 percent of total greenhouse gas emissions.
Green hydrogen provides a seemingly optimal resolution to the impossible issue of excess emissions. Green hydrogen is made by taking the surplus of renewable energy sources like solar and wind power to electrolyze water that undergoes an electrochemical reaction that separates the hydrogen from oxygen and completely avoids carbon dioxide emissions in the process. However, this process isn’t well promoted because of both the costs faced and the required “surplus” of clean electricity that has not been satisfied yet. It also takes considerable investment in new infrastructure, which has its own emissions profile and energy demand, such as building new pipelines, new wind and solar farms, new high-voltage transmission lines, and more. These each require heavy machinery, mining, rare elements or significant natural resources, and can take up to a decade each to receive federal permitting and complete construction.
However, experts have faith that greater investments and refinements that will eventually decrease the price of electricity production, unlocking green hydrogen’s viability. While blue hydrogen does not call for more electricity – using existing methane to produce hydrogen – it fails to eliminate carbon emissions (though it does utilize carbon capture processes). Green hydrogen eliminates carbon emissions but requires more advanced technology and developed clean electricity systems. This poses the question of how we can combine these processes for maximum efficiency.
Introducing turquoise hydrogen, the rainbow connection that has the potential to successfully commit to reducing emissions while utilizing present assets. Turquoise hydrogen is perfectly named; it bridges the gap between the goals of blue and green hydrogen. It is produced by methane as well, decomposing its molecule (CH4) at high temperatures to form hydrogen and carbon. While still producing carbon, the difference is the carbon byproduct produced is graphite – a solid – or sometimes carbon black. The powder carbon byproduct shifts the plan for what can be done post-production. That is, there is no need to discuss underground storage; instead, this turns the conversation to profitability.
Economically, turquoise hydrogen stands strong. Producing one kilogram of green hydrogen costs as much as $11 in some regions, blue hydrogen can cost $7 per kilogram, whereas turquoise hydrogen costs around $1 and may even generate a net profit in some cases. The Inflation Reduction Act of 2022 provides tax credits of $3 for each kilogram of carbon-neutral hydrogen produced.
Turquoise hydrogen is not carbon neutral, but it can be. Low-carbon turquoise hydrogen can follow green hydrogen’s recipe and takes clean electricity to drive the pyrolysis of methane for a similar outcome or use natural gas itself for the heat reaction then sustain the heat by burning its own clean hydrogen. Although this increases the cost, the tax credit puts turquoise hydrogen as a competitor to green hydrogen production. Graphite is valuable for products like printer ink, tires, steel, and solar panels, collecting $1,000 per ton, alone. Remarkably, this clean energy byproduct can further support renewable energy projects. Other applications of a turquoise hydrogen byproduct include carbon black sequestered into roadways in innovative asphalt applications.
So, what about the use of hydrogen itself? Besides using fuel cells for HVAC systems, hydrogen can be used in areas like transportation – for cars, buses, or possibly airplanes- agriculture, and power plants. The one requirement for these industries to comfortably adapt hydrogen fuel is that they first must be directly connected to the natural gas distribution system. This is due to the concern regarding the delivery of hydrogen beyond the production site, which has led to the consideration of transitioning the natural gas distribution system into hydrogen pipelines.
The overall transition from traditional fossil fuels to cleaner, more sustainable energy is imperative for mitigating the adverse effects of climate change from the greenhouse effect. While coal and natural gas have historically powered our industries and homes, the environmental impact has led to policymaker calls to pivot and focus on renewable energy alternatives.
Turquoise hydrogen, among other options, offers a promising solution. However, for hydrogen to truly make its mark and revolutionize our energy landscape, efforts from policymakers, investments in clean electricity advancements, and the development of hydrogen distribution infrastructure are crucial. By integrating these solutions, a sustainable future is sure to be on the horizon.
Written by Tabetha Bowes, Public Policy Intern
The Alliance for Innovation and Infrastructure (Aii) is an independent, national research and educational organization. An innovative think tank, Aii explores the intersection of economics, law, and public policy in the areas of climate, damage prevention, energy, infrastructure, innovation, technology, and transportation.