Unlocking Potential\nfor Low-Carbon Hydrogen Production\nfrom U.S. Natural Gas Resources

Hydrogen will potentially play a key role while transitioning\nto\na net-zero economy. This study addresses resource, environmental,\neconomic, policy, and societal issues related to low-carbon hydrogen\nproduction by steam methane reforming with carbon capture and storage\nin Wyoming and other natural-gas-rich states. For low-carbon hydrogen\nproduced from natural gas and electricity supplies and which stores\nCO<sub>2</sub> in saline reservoirs in Wyoming, the levelized cost\nof hydrogen (LCOH) ranges from $1.62–2.00/kg H<sub>2</sub>,\nand the life cycle emissions range from 3.85–5.74 kg CO<sub>2</sub>-eq/kg H<sub>2</sub>. If claimed, the 45Q tax credit decreases\nthe LCOH by 19%. Although the supplies of renewable natural gas feedstock\nand zero- or low-carbon electricity can lower the carbon footprint\nto make hydrogen projects qualified for the 45V tax credit, the 45Q\ntax credit is still a stronger economic incentive. To reduce the supply\ncost, a hydrogen cluster can be developed in the state by leveraging\nthe colocation and coavailability of multiple natural resources and\ntransport infrastructure. Developing a hydrogen cluster can directly\ncreate several thousand construction jobs and several hundred permanent\njobs in Wyoming. Low-carbon hydrogen production can also be scaled\nup in other states across the nation.