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Geospatial variation in carbon accounting of hydrogen production and implications for the US Inflation Reduction Act

Author

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  • Valeria Vallejo

    (The University of Texas at Austin)

  • Quoc Nguyen

    (The University of Texas at Austin)

  • Arvind P. Ravikumar

    (The University of Texas at Austin
    The University of Texas at Austin
    The University of Texas at Austin)

Abstract

Low-carbon hydrogen is considered a key component of global energy system decarbonization strategy. The US Inflation Reduction Act incentivizes low-carbon hydrogen production through tax credits that vary based on life-cycle greenhouse gas emissions intensity of hydrogen. Blue hydrogen or hydrogen produced from natural gas coupled with carbon capture and sequestration is one such pathway. Here we develop a geospatial, measurement-informed model to estimate supply-chain specific life-cycle greenhouse gas emissions intensity of blue hydrogen produced with natural gas sourced from the Marcellus and Permian shale basins. We find that blue hydrogen production using Permian gas has a life-cycle emissions intensity of 7.4 kg carbon dioxide equivalent per kg hydrogen (kgCO2e kg−1 H2), more than twice that of hydrogen produced using Marcellus gas of 3.3 kgCO2e kg−1 H2. Eligibility for tax credits should therefore be based on life-cycle assessments that are supply-chain specific and measurement informed to ensure blue hydrogen projects are truly low carbon.

Suggested Citation

  • Valeria Vallejo & Quoc Nguyen & Arvind P. Ravikumar, 2024. "Geospatial variation in carbon accounting of hydrogen production and implications for the US Inflation Reduction Act," Nature Energy, Nature, vol. 9(12), pages 1571-1582, December.
    • Handle: RePEc:nat:natene:v:9:y:2024:i:12:d:10.1038_s41560-024-01653-0
    DOI: 10.1038/s41560-024-01653-0
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