Wednesday, September 13, 2023

IEEFA Blue Hydrogen Study Has Some Inaccuracies and Biases

    The Institute for Energy Economics and Financial Analysis (IEEFA) just released a report condemning blue hydrogen. They released a report in 2022 condemning CCS that was biased and strongly criticized, and this report should be regarded similarly. While this organization may seem to be scientific, I contend as I have before that their science, while intriguing, is often biased. The stated goal of the organization is to accelerate the energy transition, apparently by any means necessary, except any that include mitigating fossil fuel emissions.

     According to devex.com:

The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.” 

The Institute for Energy Economics and Financial Analysis receives its funding from philanthropic organizations. They gratefully acknowledge their funders, including the Rockefeller Family Fund, Energy Foundation, Mertz-Gilmore Foundation, Moxie Foundation, William and Flora Hewlett Foundation, Rockefeller Brothers Fund, Growald Family Fund, Flora Family Fund, Wallace Global Fund,  and V. Kann Rasmussen Foundation.”

 

     Most of the above foundations are big funders of environmentalists and basically IEEFA should be considered to be by extension an environmentalist organization, perhaps more equivalent to Sierra Club and the NRDC, more so than say Environmental Defense Fund, which is somewhat less biased against fossil fuels and willing to admit and engage with making them less emissions intense rather than focusing directly on their demise.    

  

     It is suggestive by the rather aggressive title of the paper - Blue Hydrogen: Not Clean, Not Low Carbon, Not a Solution: Making Hydrogen from Natural Gas Makes No Sense - that includes 3 “Nots” and a “No” that the report is leaking bias. Since the group's name suggests it is a group of scientists and social scientists and one would assume that scientists are unbiased, the title itself is a kind of red flag. As I do see IEEFA papers highlighted in power and energy information hubs like Utility Dive and in news stories, I think their conclusions should be scrutinized, especially as they make these bold assertions and condemnations. Below I will examine their conclusions and attempt some rebuttals.   

 

     The paper has four key takeaways:

1)     The U.S. underestimates methane emissions from the upstream through the downstream oil and gas sector. While that may be true for a few areas, it is probably not true on the whole or on average. In addition, oil & gas methane emissions are continuing to drop throughout the U.S. in all sectors of oil & gas. It is certainly not true in two of the main areas of planned H2 projects – Appalachia and the Haynesville Shale region. There the model assumptions are right on.



2)     The U.S emphasizes the global warming potential of 100-year CO2equivalent emissions when it should emphasize 20-year CO2eq emissions. It is often stated that methane has a GWP of 84 times that of CO2 in the near term. While it is true that methane has a higher GWP in the near-term we should consider how long the near-term is. A caveat to that statement should be the fact that methane does not persist in the atmosphere: “According to MIT Climate Portal, methane lasts in the atmosphere for about a decade on average, while CO2 can persist for centuries. Source: MIT Climate Portal. 2: According to NASA’s Vital Signs of the Planet, methane has a relatively short lifespan of 7 to 12 years in the atmosphere, while CO2 can persist for hundreds of years or more. Source: NASA.” 10 years from now or maybe sooner all the methane that leaked into the atmosphere will be gone while much of the CO2 will remain for an additional 100-300 or more years. That means in order to get a GWP equivalency we have to consider that the methane emitted in say 2013 is now no longer present but the CO2 emitted in 1913 is still largely present. The higher near-term GWP of methane has led to more emphasis on these emissions as a way to mitigate climate change but that mitigation too will be in the near term. In explaining why we use 100-year equivalencies, MIT scientists put it this way: methane does its damage quickly but soon fades away, while CO2 traps a smaller amount of heat consistently, decade after decade. Another thing we should consider is that the U.S. is not one of the top 3 global methane emitters. China, India, and Russia each emit more methane than the U.S.



 


3)     They note that hydrogen does have an effect on global warming when it enters the atmosphere. While the EPA notes that the GWP of hydrogen is 0 and this is true, it does indirectly affect increase global warming by combining with other molecules in the atmosphere to make and/or retain greenhouse gases, mainly methane, ozone, and also water by reacting with hydroxide ions in the reaction H2 + OH = H2O + H. It can also react with nitrogen oxides and VOCs.

 

 


 

Thus, hydrogen can be considered to be an indirect greenhouse gas. Studies suggest that its GWP is about 20% that of CO2 over the standard 100-year period. A June 2023 paper in Nature Communications Earth & Environment came up with a GWP for hydrogen (indirect) of 11.6 (+- 2.8). The paper suggests that previous studies did indeed underestimate the indirect effects of fugitive H2 by about half. Since H2 reacts with other greenhouse gases, it is unclear if the changing of those gases was subtracted out or not. I am guessing they were. While not a direct greenhouse gas hydrogen does change the abundances of the greenhouse gases methane, ozone, and stratospheric water vapor, as well as aerosols. The effect on aerosols is much less than the other three. The graph below shows the relative effects on methane, ozone, and stratospheric water vapor.

 


 


      In any case, there is likely some truth to this assertion that could bring down the benefits of blue hydrogen a small amount but these quantifications are still in the early stages and more research is likely needed. One of the biggest uncertainties is how much H2 is taken up by the soil as soil is a known H2 sink. While the benefits of blue hydrogen may have been overestimated a bit, pending a better understanding of leakage rates now and in the future, that overestimation (even with their own conclusions) is not enough to change the fact that producing and burning blue hydrogen reduces emissions significantly over burning methane, even if there are new possible leakages to consider. Hydrogen is a very small molecule so it does have the ability to leak. However, as I have argued before, the best places to develop H2 projects are very near the point of use so that leakage rates and compression costs will be minimized. They can be placed very near power plants where they can be blended in as needed. This makes economic and emissions sense.    

4)     They contend that CO2 capture rates will not be as high as predicted. I think they may be way off the mark here. They make comparisons with projects like the Petra Nova coal plant CCS project where carbon was captured by retrofitting onto an old coal plant flue system. Hydrogen synthesis is done at high pressure, which makes it much easier to get a higher capture rate than from a thermal power plant flue which flows combustion gases at low pressure. As I understand it, carbon capture rates for steam methane reforming (SMR) and autothermal reforming (ATR) are very high, about 90% with SMR and 97-98% with ATR. That is based on a webinar with an Equinor executive in early 2022. I see that the DOE models they are giving have SMR capture rates much higher than 90%. ATR also requires oxygen which must be sourced and delivered. Some could come from nearby green hydrogen production since it is a byproduct of making hydrogen with electrolyzers. It may also be an obtainable byproduct of nearby industries as it is in some H2 projects. It is estimated that 5-10% of the energy in the produced hydrogen will power the CCS system and another 5% would more than cover any upstream methane emissions, especially in areas like Appalachia where natural gas is very inexpensive and upstream methane leakage rates are typically 1% or less. Thus a total of 10-15% (probably closer to 10%) of the energy in the hydrogen would cover emissions and running the CCS system. That would mean for an SMR blue hydrogen system in the Appalachian region, at a 90% capture rate, the result would be about an 80% reduction in emissions before considering the possible effects of any leaked hydrogen.

 

     The IEEFA paper makes model conclusions based on 20-year GWPs and 2.5% methane emissions rates, although they do include 1% emissions rates and 100-year GWPs as well. The list of methane emissions studies by basin that they give includes two studies from the Appalachian Basin Marcellus that do have very low emissions rates as verified but many others from predominantly oil basins, mainly the Permian and the Bakken, that due partly to flaring have much higher emissions rates and the gas from those basins is associated gas, or gas that comes in addition to oil production. No studies come from the Louisiana Salt Basin Haynesville Shale which also has low emissions similar to those of Appalachia. While some hydrogen projects may come from the Permian Basin and the Western Gulf Coast Basin Eagle Ford Shale region, most are likely to come from the Appalachian and Haynesville regions, where gas is abundant and cheap, and there is abundant nearby industry and power plants to utilize the hydrogen. Thus, the baseline given as the default methane emissions rate of 1% is likely to be much closer to most of the reality than the 2.5% that they favor. They base this on the largely discredited calculations of Cornell’s activist scientist Robert Howarth, who calculated a U.S. average of 2.6% and a mean of 3.5%. It should be pointed out that these methane emissions determinations have the most influence over their conclusions, much more than the 20-year CO2eq GWP, the carbon capture rate variances, and the H2 leakage effects. Thus, the biggest debunk here is their use of inaccurate methane emissions rates.

 

     In determining capture rates for H2 projects they only consider older, past H2 projects, some with CO2 sequestration issues that rendered capture rates lower than planned. While that could also happen with some newer projects, it is more likely that modeled capture rates will be achieved, if not immediately, then in time as issues are worked out. Some of those older projects were not designed for maximum capture rates, and new and better technologies are available now.

     IEEFA uses the DOE clean energy standard emissions rate of 4 kgCO2e/kgH2 as a line on their graphs. Below the line meets that standard but it should be noted that this is just an arbitrary line. While it is absolutely true that emissions intensity depends on methane emissions rates, carbon capture rates, hydrogen leakage rates, and at least in the near-term on the higher near-term GWP of methane, even at those somewhat higher emissions intensities that they claim, these projects are still likely to mitigate emissions quite significantly at reasonable costs. Even if one were to assume 85% capture rates and 2.5% methane emissions with the emissions more than tripling the reductions in emissions are still significant. Even so, I tend to favor the direct use of natural gas over hydrogen due mainly to cost issues and logistics. I favor blue hydrogen for cheap gas areas like Appalachia at locations very near point-of-use, as little transport and storage as possible, and so-called turquoise hydrogen through techniques like methane pyrolysis that can be integrated with renewables. Some can even produce usable carbon products like carbon black so those are CCUS but direct CCS projects are fine too. I am not overly bullish on hydrogen, except perhaps geologic hydrogen if it were found in abundance, so I may actually have some agreement that blue hydrogen is not a solution per se. It is just one tool among many. Due to cost blue hydrogen is much more feasible than green hydrogen.

     Overall, my qualms are mainly with the methane emissions rates and a bit with the insistence on near-term GWPs and capture rates. I think they are dead wrong about the methane emissions rates they prefer, are a little off on GWP emphasis although it should be considered, and probably off on the carbon capture rates, or at least will be soon enough. They may be correct about H2 leakage but the jury is still out and I think synthesis near the point of use will keep leaks to a minimum.

 

References:

Blue Hydrogen: Not Clean, Not Low Carbon, Not a Solution: Making Hydrogen from Natural Gas Makes No Sense. David Schlissel and Anika Juhn. Institute for Energy Economics and Financial Analysis. September 2023. Blue Hydrogen Not Clean Not Low Carbon_September 2023.pdf

Institute for Energy Economics and Financial Analysis. Devex.com. Institute for Energy Economics and Financial Analysis (IEEFA) | Devex

Why do we compare methane to carbon dioxide over a 100-year timeframe? Are we underrating the importance of methane emissions? Andrew Moseman and Jessika Trancik. MIT Climate Portal. Why do we compare methane to carbon dioxide over a 100-year timeframe? Are we underrating the importance of methane emissions? | MIT Climate Portal

A multi-model assessment of the Global Warming Potential of hydrogen. Maria Sand, Ragnhild Bieltvedt Skeie, Marit Sandstad, Srinath Krishnan, Gunnar Myhre, Hannah Bryant, Richard Derwent, Didier Hauglustaine, Fabien Paulot, Michael Prather & David Stevenson. Nature Communications Earth & Environment volume 4, Article number: 203 (2023). A multi-model assessment of the Global Warming Potential of hydrogen | Communications Earth & Environment (nature.com)

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