- The costs of producing hydrogen are far greater than electrifying homes.
- Utility watchdogs claim the costs of creating hydrogen to blend into natural gas don’t justify the benefits.
An Oregon proposal to cut greenhouse gas emissions by producing green hydrogen gas and blending it into natural gas for consumers in Eugene could come with very high costs.
If approved, about 2,500 customers of the state’s largest natural gas utility, NW Natural, would begin receiving natural gas with 5% hydrogen gas by early 2024.
NW Natural says the goal is to experiment with creating its emissions-free hydrogen to make its fuel cleaner in the future. Some experts say greener natural gas could play a more significant role in future energy supplies. But the costs of producing the hydrogen are far greater than electrifying homes and powering them with emissions-free solar and wind energy. According to the International Renewable Energy Agency, each ton of emissions cut would cost three times the next most expensive method that exists, which is to suck carbon from the atmosphere using large machines.
Environmentalists are skeptical and concerned about the plan as natural gas is almost entirely methane, one of the most potent greenhouse gases. It can trap up to 25 times the heat of carbon dioxide in the atmosphere. Utility watchdogs say the high costs of creating hydrogen to blend into natural gas don’t justify the benefits, and they are concerned that the company will transfer those costs to customers.