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.
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