Wyoming
Blue hydrogen could be Wyoming's net-zero solution, study suggests
LARAMIE, Wyo. — As global needs for more environmentally sustainable energy solutions grow, Wyoming’s chief industry, energy extraction, is at danger of being left to dry. However, a new study published by University of Wyoming researchers theorizes that the state might find its solution in hydrogen.
The study, authored here in Wyoming by a range of contributors from UW and state community colleges, suggests that a possible solution for Wyoming becoming a net-zero emissions economy lies in the often environmentally scrutinized natural gas industry.
Blue hydrogen is an energy resource sourced from natural gas production using a process called steam methane reforming that would be paired with carbon capture and storage. Like natural gas itself, blue hydrogen has a large range of electrical and energy uses. Importantly, it is much cleaner than pure natural gas.
The study then suggests that Wyoming could use the resource as its key to staying at the forefront of the country’s energy economy while still prioritizing net-zero emissions goals.
How does steam methane reforming work?
According to the United States Office of Energy Efficiency and Renewable Energy, SMR is an energy production process that attaches itself to already existing natural gas production infrastructure.
Natural gas’ primary composition is methane, which is made of carbon and hydrogen molecules. By heating methane gas through thermal processes like steam power, the gas breaks up into its primary components.
Methane (CH4) contains more hydrogen than carbon, but carbon monoxide and carbon dioxide, which is a greenhouse gas, are still produced nonetheless. According to the study, SMR paired with carbon capture would alleviate greenhouse gas production during this process.
Notably, blue hydrogen is not actually the cleanest form of hydrogen gas production. Another process called renewable-powered electrolysis produces a cleaner form of hydrogen gas referred to as green hydrogen. However, the study authors point out that the production cost of green hydrogen is much higher than its blue counterpart and is less feasible for the state to produce en mass.
Wyoming’s unique position; what to gain
According to the study, Wyoming especially lends itself to being a potential key player in the production of the resource for a number of reasons. For one, blue hydrogen production runs on extant natural gas infrastructure, which Wyoming has. The Petroleum Association of Wyoming reports that in 2022, the state had around 17,800 gas producing wells.
A pro-energy regulatory environment that the state has fostered over the years is also an attractive factor to the industry, the study authors suggest. The study points to legislation such as the state’s Low-Carbon Energy Standards as being favorable for the resource’s growth here in the Cowboy State.
Federal tax incentives laid out by the Inflation Reduction Act would furthermore economically benefit the state if blue hydrogen production was kickstarted here.
Another potential benefit to this extraction method would be how it could stimulate the workforce economy within the state. At a time where the energy industry is often at odds with the federal regulatory environment, a new perspective on energy production could keep students studying here in Wyoming and getting oil and gas jobs in-state.
Researcher and UW Hydrogen Energy Research Center Director Eugene Holubnyak said in a UW Institutional Communications release that the benefits to Wyoming citizens was a factor in the paper.
“This study really allowed us to incorporate the views of the community colleges and explore some of the economic incentives and workforce training opportunities for a natural gas-based, low-carbon hydrogen industry,” Holubnyak said.
Resource and infrastructure requirements
Where it gets complicated is that coupling carbon capture and storage with MSR in hydrogen gas production is costly and sucks up water resources.
Hydrogen gas production isn’t an unheard of process. Currently, according to the study authors, 95% of the country’s hydrogen is produced through SMR. However, all of that is done so without the additional process of storing the carbon byproducts. Hydrogen produced this way, in keeping with the color trend, is called gray hydrogen.
Blue hydrogen production is 55% more expensive overall and increases water withdrawal intensity by 87%. The decision to prioritize blue hydrogen over gray hydrogen or natural gas would therefore be a weighty one.
Using National Energy Technology Laboratory assessments, adjusting them to the Wyoming economy and then factoring in the possible benefits from IRA tax credits, the authors did find that the state could be in a beneficial position if it began implementing plant-scale hydrogen production.
Put to an actual number, the study suggests that the state could up to $2 per kilogram of low-carbon hydrogen if captured carbon byproduct is properly stored in saline reservoirs. With the tax credits that would subsequently follow, the state would also earn $85 per metric ton of carbon dioxide captured.
Not dismissing the economic potential of green hydrogen, which sells for at least $3 per kilogram, the study authors say both could ultimately have a solid future in Wyoming.
“As Wyoming has abundant natural gas and wind resources, blue and green hydrogen can be options in the near and long terms to create new jobs and diversify the state’s energy-driven economy, respectively,” according to the study.
Related
The Wyoming Energy Authority (WEA) released a comprehensive study assessing the Wyoming coal value chain, including supply and demand, offshore exports, and the regulatory barriers and reforms needed to maintain a viable, long-term thermal coal market for Wyoming.
Commissioned by the Wyoming Energy Authority and prepared by Energy Ventures Analysis, Inc., and its subcontractors, the Energy Policy Network and WWC Engineering. The study evaluates current production levels, reserve availability, domestic and international demand outlooks, and the regulatory landscape affecting Wyoming coal. The report also examines offshore export potential and federal leasing and permitting processes that influence future Wyoming production.
Coal remains a cornerstone of Wyoming’s economy and a critical component of national energy security. Wyoming produces roughly forty percent of the nation’s thermal coal demand and continues to supply affordable, reliable fuel to power plants and industrial users across the country. The study provides updated data on production trends in the Powder River Basin and the Green River Basin, as well as long-range demand modeling under multiple policy and market scenarios.
The study highlights the evolving national conversation and the current administration’s support for grid reliability due to increased public power demand, industrial growth through reshoring of manufacturing and data centers, and the role dispatchable energy sources, such as coal and natural gas, play in maintaining power stability and affordability. It also evaluates federal coal leasing trends, mine reserve replacement, and the regulatory framework shaping future production.
In addition to domestic demand, the study reviews global coal markets and export opportunities. It assesses transportation logistics, port capacity, and cost competitiveness in Asian markets, where coal demand continues to influence global supply chains.
The Wyoming Coal Study reflects Wyoming’s continued commitment to responsible resource development, regulatory engagement, and long-term economic resilience.
The full 2026 Wyoming Coal Study is available at wyoenergy.org/reports.
The Bureau of Land Management Buffalo Field Office is notifying the public of the presence of actively burning coal seam fires in Northern Campbell and Eastern Sheridan Counties.
Although these fires may be visible from the surface and/or from a distance (county roads and highways), they do not always constitute a threat or lead to wildland fires.
Coal seam fires are typically smoldering at or below the surface, with little to no open flame.
They spread very slowly, even on windy days. Continuous reporting of these active coal seam fires can overwhelm 911 Dispatch Centers and Casper Interagency Dispatch Center, which can hamper response to actual emergencies.
If coal seam fires are observed, and are not actively spreading to surface wildland fuels, please do not contact 911 or Casper Interagency Dispatch.
If there is an active wildfire observed, it is appropriate to call it in.
Please be able to provide some basic information such as the location, estimated size, fuel it is burning is (grass/sage vs. Juniper or Timber), and if there’s any valuables at risk to include homes, energy infrastructure, livestock, etc.
If you have any questions pertaining to this, please feel free to contact BLM Wyoming State Office Public Affairs at BLM_WY_912@blm.gov or by phone at (307) 775-6328.
If you know of a coal seam fire on BLM administered lands and have not reported it to the BLM, please email the location information, including any collected GIS data, to BLM_WY_Buffalo_WYMail@blm.gov.
Active burning coal seams can create serious hazards for bystanders and responders:
POTENTIAL HAZARDS:
· Unstable ground – sloughing and potential surface collapse.
· Hot surface areas – ground temperatures may be high enough to burn skin or ignite vegetation.
· Hidden openings or fissures- cracks or vents releasing heat or smoke.
· Toxic or irritating gases – carbon monoxide, sulfur dioxide, nitrogen oxides, and other gases may accumulate in low areas.
· Wildfire risk – surface ignition possible during dry conditions.
What should I do? –STAY ON DESIGNATED ROADS AND TRAILS:
· Follow all closures and posted warnings.
· Do not approach steaming ground, vents, or smoke.
· Keep children and pets close.
· Report spreading vegetation fires immediately.
Sheridan hosts the 2026 WAHL ‘B’ State February 27th, 28th and March 1st inside the M&M Center.
The Hawks are the #1 seed and get a first round bye in the 9-team tournament.
Friday, February 27th:
#9 Rock Springs vs. #8 Gillette – 9am
#7 Cheyenne vs. #2 Pinedale – 11am
#6 Casper vs. #3 Fremont County – 1pm
#5 Laramie vs. #4 Cody – 3pm
Rock Springs/Gillette winner vs. #1 Sheridan – 5pm
Rock Springs/Gillette loser vs. Cheyenne/Pinedale loser – 7pm LOSER OUT!
Saturday, February 28th:
Laramie/Cody loser vs. Friday 5pm loser – 8am LOSER OUT!
Friday 7pm winner vs. Casper/Fremont County loser – 10am LOSER OUT!
Cheyenne/Pinedale winner vs. Casper/Fremont County winner – Noon Semi-Finals
Laramie/Cody winner vs. Friday 5pm winner – 2pm Semi-Finals
8am winner vs. Noon loser – 6pm LOSER OUT!
10am winner vs. 2pm loser – 8pm LOSER OUT!
Sunday, March 1st:
Saturday 6pm winner vs. Saturday 8pm winner – 8am 3rd Place
Saturday Noon winner vs. Saturday 2pm winner – 10am Championship
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