The American Petroleum Institute last month released new analysis on the benefits of low-carbon hydrogen produced from natural gas. The study, commissioned by API and conducted by ICF, found that hydrogen produced from natural gas with carbon capture and produced from electricity and other energy sources could eliminate an additional 180 million metric tons of greenhouse gas emissions on average per year through 2050 and save over USD 450 billion cumulatively through 2050 when hydrogen incentives are uniformly provided based on a per ton of GHG emissions reduced. API analysis of the study’s finding show that uniform incentives for producing hydrogen from natural gas, electricity and other energy sources are critical to meeting the US Department of Energy goal of 50 MMT of clean hydrogen produced by 2050, as laid out in the recently published National Clean Hydrogen Strategy and Roadmap.Highlights from the report include: Larger Hydrogen Market: When every ton of emission reductions are incentivized the same, the U.S. hydrogen market could be three times larger by 2050 than when emission reductions are treated unequally (i.e., hydrogen market could be 15% of total end use energy consumption in 2050 versus 4% of total end use energy consumption in 2050). Larger GHG Emission Reductions: The larger hydrogen economy resulting from uniform incentives could avoid an additional 183 million metric tons of US GHG emissions on average per year through 2050 than if incentives were unevenly implemented by taking advantage of low-cost options, like hydrogen produced from natural gas with carbon capture. Enabling incentives for all hydrogen production is equivalent to eliminating the emissions from more than 38 million cars annually, according to API analysis.Less Costly Emission Reductions: Uniform incentives could reduce the cost of mitigating a metric ton of carbon by an average of 12% annually over the study period, saving over $450 billion cumulatively through 2050.The study found that critical hydrogen infrastructure, like hydrogen storage, pipelines and local distribution systems, will be required to unleash hydrogen’s potential to contribute to significant GHG emissions reductions. Capital investment in hydrogen infrastructure projects could exceed USD 400 billion by 2050 and include the construction of 67,000 miles of hydrogen transmission pipeline, 500,000 miles of customer laterals and local distribution company pipeline/service lines, and 560 trillion Btu of hydrogen underground storage capacity.