Utility giants like National Grid and NYSEG are planning to power New York’s buildings with “green hydrogen,” but a new report by climate policy think tank Switchbox argues that the energy source’s supposed benefits are mostly overstated and will not help the state reach its climate goals.
Green hydrogen is produced by applying an electrical charge — sourced from renewable energy — to water molecules, isolating the hydrogen, which can then be used as an emission-free fuel. This process, known as electrolysis, is highly energy-intensive.
However, blending hydrogen for heating requires nearly eight times more electricity than using heat pumps, according to the report released on Thursday. The result is a negligible return on climate goals, with only about a 4% reduction in overall greenhouse gas emissions from the building sector, which accounts for two-thirds of New York City’s climate pollution.
The report highlights a potential conflict over how to address the state’s failure to meet the climate benchmarks set by the Climate Leadership and Community Protection Act.
The state conceded in a July report that it was unlikely to meet its goal of sourcing 70% of energy from renewable sources like solar and wind by 2030. The report projects the state will likely hit that target in 2033 instead.
The new report’s authors argue that “green hydrogen” is attractive to utilities because blending hydrogen with natural gas allows them to inject it into existing pipelines, avoiding the need for major infrastructure changes — at least in the short term. However, to handle 100% hydrogen, the pipelines would eventually need to be replaced.
“Because utilities earn return on equity through major infrastructure investments such as installing new gas pipelines, they have a clear incentive to extend reliance on natural gas and justify continued use of the pipeline network,” the report states.
National Grid spokesperson Karen Young said in an email that the utility envisions hydrogen “as a significant opportunity.”
“The data that has come out this summer is clear: we cannot meet the CLCPA’s short-term goals with only renewable electricity,” Young said.
“The energy transition is a marathon that requires that we use all the available tools to reduce emissions, both in the immediate and long-term, while ensuring that energy remains both reliable and affordable.”
New York currently has 7,000 miles of aging and leaking natural gas pipelines. In the New York City metro area, there is at least one leak for every mile of pipe, which contributes to 10% of natural gas’ climate emissions.
Because hydrogen is the smallest molecule in existence, it is even more prone to leaks than natural gas and significantly more flammable. Its small size also makes it difficult to store for year-round use.
“Hitting our green energy goals for New York state is already going to be hard enough as it is without diverting all of that energy production capacity into keeping the gas system going,” said Max Schron, research director at Switchbox.
He added that converting water into hydrogen is “inefficient.”
The report advocates shifting buildings to heat pumps rather than burning green hydrogen for heat.
NYSEG did not respond to an inquiry about the report. However, several Northeast governors, including New York Gov. Kathy Hochul, have signaled strong support for green hydrogen.
Last year, Hochul announced a $3.62 billion pitch to the federal government that would make seven states a “hydrogen hub” through an array of electrolytic hydrogen production, consumption and infrastructure projects. The program is federally funded through President Joe Biden’s Infrastructure Act. National Grid says it’s pursuing a plan for a hydrogen hub on Long Island that would provide energy to the New York City metro area.
“The big challenge is scaling up production and bringing down the price to kick-start a hydrogen economy worldwide,” National Grid writes on its website.