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Southern California to test 1% mix on gas network
Air Liquide Nevada plant could supply 42,000 FCEV
California’s zero-emission vehicle standards are looming
Biden’s $ 1.7 trillion climate plan could support H2
NY –
California will continue to lead the US in hydrogen market development in 2021, increasing supply, distribution and consumption of carbon neutral fuel status as it seeks to meet aggressive climate and environmental targets by mid-century. .
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The most disruptive potential for the US natural gas market is the imminent start of hydrogen blending.
In late November, the utilities of Sempra Energy San Diego Gas & Electric Co. and Southern California Gas Co. said they would go ahead with plans to begin blending hydrogen in California’s retail gas network.
The pilot program will begin sometime in 2021 with a 1% hydrogen mixture introduced into the gas stream in isolated areas served primarily by corrosion resistant plastic pipes. Future pilot projects will test the effect of hydrogen mixtures on steel pipelines, which comprise the majority of the US natural gas network.
In California and elsewhere, the specific design and age of the network will ultimately determine the amount of fuel that can be mixed. According to pipeline safety studies, 5-20% hydrogen mixture can be safely injected directly into the gas stream. Higher fuel blends would require extensive modification of the end user and environment infrastructure.
Still, the growing demand and availability of hydrogen, particularly in California, is making the carbon-free alternative a potentially revolutionary threat to natural gas, one that is also rapidly becoming more real.
Production, distribution
For its own pilot project, Sempra intends to use surplus renewable energy to produce carbon-free green hydrogen through electrolysis. Across the border in Nevada, Air Liquide plans to complete construction of its own $ 200 million liquid hydrogen production plant in 2021, dramatically expanding Southern California’s fuel supply.
According to the company, the plant should produce 30 tons of fuel per day, enough to power 42,000 fuel cell electric vehicles. While California currently has a fleet of light duty FCEVs estimated at just 7,000 to 8,000, the state is also home to a growing number of hydrogen-powered buses and medium to heavy duty vehicles.
Following state legislation passed in 2020, that number is poised to grow. By 2035, California now requires that all new light passenger vehicle sales meet the zero-emission requirement. Similar legislation requires manufacturers of medium and heavy-duty vehicles to begin the transition to zero-emissions technology by 2024. By 2045, all vehicles sold in California must meet the standard.
Fuel distributors are increasing to meet the anticipated rush of demand. In 2021, a partnership between Toyota and Iwatani Corp. is expected to spearhead the development and construction of seven new hydrogen fueling stations in Southern California. Following a separate move by the California Energy Commission to help fund the development of hydrogen fueling stations, another 100 retail outlets could be built across the state in annual installments over the next five years.
Market development
The next two to three years, and 2021 in particular, could be critically important to the broader development of the hydrogen market in the U.S. Following President-elect Joe Biden’s commitment to invest $ 1.7 trillion over 10 Years to fund clean energy, hydrogen technology and development could find federal dollars to fuel growth starting in 2021.
According to a recent report released by McKinsey & Co., federal policy and regulation supporting decarbonization of neutral technology is critical to opening markets and consumers to hydrogen.
In California, where hydrogen growth has been driven almost entirely by policy, market, government and environmental experts largely agree that leveraging California’s existing natural gas infrastructure will be key to rapidly accelerate the transport and distribution of hydrogen.
With big oil companies like Shell and BP now embracing hydrogen as an opportunity, federal and state governments looking to support the growth of hydrogen technology could find a wealthy partner in the US oil and gas industry. The US, one that now seems more ready to embrace the growing momentum of the clean energy transition.