What qualifies for the new federal Clean Hydrogen Production Tax Credit? It depends.

What is the carbon intensity of hydrogen? Ask any engineer or climate scientist, and the most likely answer is “Well, it depends.”

Hydrogen can be produced through any of several methods — reforming natural gas, gasifying biomass, or by using electricity to break down water via electrolysis, to name a few.

That versatility is part of the appeal of a hydrogen economy because it means we can harness many different energy sources to produce a useful energy carrier. Those hydrogen molecules can then be used in hard-to-decarbonize sectors of the economy — like long haul transportation, or industrial processes.

Just how much impact does hydrogen have on decarbonizing those sectors of the economy? Well… it depends.

The stakes for answering that question have only gotten higher now that Congress has passed the Inflation Reduction Act (IRA). The IRA offers tax incentives for hydrogen production facilities (or retrofits) that begin construction by 2033. The value of those incentives depends on the carbon footprint associated with each kilogram of hydrogen produced.

All across the country, businesses will be deciding whether they want to pursue those incentives, and how to go about it. At the same time, cities, states, and companies who have made climate commitments will be seeking energy options that will help them reach those goals. Producers and consumers both have an interest in understanding the emissions associated with hydrogen.

One widely accepted methodology for estimating emissions is the GREET model developed by Argonne National Laboratory. GREET stands for Greenhouse gases, Regulated Emissions, and Energy use in Transportation. It is a detailed life-cycle assessment model designed for general-purpose use across the energy sector. GREET is written into the IRA as the method that will be used to determine eligibility for hydrogen production tax credits. However, GREET can be an intimidating tool to operate given its scope and complexity.

To make carbon intensity calculations accessible to a wider audience, GTI Energy has built a new tool, the Hydrogen Production Emissions Calculator (HyPEC) — which is purpose-built for estimating carbon intensity related to hydrogen production. The underlying methodology and calculation framework are grounded in best practices for life-cycle assessment, building upon results from GREET. The result is a calculator that is simple to use, but not oversimplified.

We wanted users at any technical level to be able to see what scientists and engineers mean when they say “it depends.” By turning the dials in the tool, HyPEC users can learn about what factors expand or shrink the carbon footprint associated with hydrogen production. Users can compare the carbon intensity that results from different options for hydrogen production. For businesses considering building facilities or buying low-carbon hydrogen, HyPEC provides a quick way to check which options merit a deeper dive.

Our technical team has developed HyPEC to be approachable to a wide set of users while still providing results that closely approximate GREET. Definitions and explanations help newcomers understand what goes into the calculations. We have included documentation for more sophisticated users, which describes the HyPEC calculation methodology and the way it leverages results from GREET.

Hydrogen offers an array of pathways to decarbonize the broader economy. Will it become a major contributor to a low-cost, low-carbon future? Well, that depends — on the decisions that companies and customers make over the coming decades, and the trust and acceptance that hydrogen earns among consumers and climate advocates as a low-carbon resource.

By making it easier to understand hydrogen’s carbon footprint, we hope to support a robust market for hydrogen — with more businesses deciding to produce low-carbon hydrogen, and more customers demanding hydrogen-based solutions for their energy needs.

We hope this easily accessible information will help build the credibility and consumer confidence hydrogen will need to flourish as one more building block for the low-cost, low-carbon future we all hope to achieve.

Check out our Hydrogen Production Emissions Calculator (HyPEC) here.