HYDROGEN STRATEGY

Enabling A Low-Carbon
Economy
Office of Fossil Energy
United States Department of Energy
Washington, DC 20585
 HYDROGEN STRATEGY
Enabling A Low-Carbon Economy

Office of Fossil Energy

United States Department of Energy
Washington, DC 20585
 HYDROGEN STRATEGY
Enabling A Low-Carbon Economy

Contents
Introduction.............................................................................................................................. 1

Background.............................................................................................................................. 2

Hydrogen Production and Cost............................................................................................. 5

Hydrogen Uses and Equivalent Costs.................................................................................. 7

Hydrogen Demand................................................................................................................... 8

Emerging Markets and International Initiatives............................................................. 10

Hydrogen Transportation ..................................................................................................... 11

Hydrogen Storage.................................................................................................................. 13

Office of Fossil Energy.......................................................................................................... 13

Office of Clean Coal and Carbon Management Hydrogen R&D Program............................ 13

Office of Oil and Natural Gas Hydrogen R&D Program........................................................... 14
Accelerating the Hydrogen Economy with Future R&D.......................................................... 15

Safety and Regulatory Requirements and Challenges................................................... 17

References.............................................................................................................................. 19

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Introduction
This document summarizes current hydrogen technologies and communicates the U.S. Department of Energy (DOE),
Office of Fossil Energy's (FE’s) strategic plan to accelerate research, development, and deployment of hydrogen
technologies in the United States. It also describes ongoing FE hydrogen-related research and development (R&D).
Hydrogen produced from fossil fuels is a versatile energy carrier and can play an important role in a transition to a low-
carbon economy.

Hydrogen (H2) is the simplest and most abundant element in the universe, and it only occurs naturally on Earth when
combined with other elements. Hydrogen, like electricity, is an energy carrier (fuel) that can be used to store, move, and
deliver energy produced from other sources. It can be produced without a carbon footprint from a variety of sources,
including natural gas, coal, biomass, waste materials (i.e., plastics), or splitting water molecules. Gasification of fossil
fuels with biomass and plastics is expected to be the lowest-cost route to providing carbon negative hydrogen when
using carbon capture, utilization, and storage (CCUS) technologies.

Scientists have been interested in hydrogen as a source of energy since the 1800s,1 and it is currently an essential
feedstock and fuel in many industries. Primary uses of hydrogen include the following applications: (1) as a chemical
in ammonia (NH3) production (mainly for fertilizers), (2) as a chemical feedstock and catalyst, (3) as a hydrogenating
agent for food and drug production, and (4) in petrochemical and refinery processing. Hydrogen consumed by large
volume users is typically generated onsite (captive hydrogen), and for industries such as glass manufacture, food, and
electronics, it is supplied by trailers (merchant hydrogen).

In addition, hydrogen is emerging as a low-carbon fuel option for transportation, electricity generation, and
manufacturing applications, because it could decarbonize these three large sectors of the economy. Hydrogen has the
highest energy content of any common fuel per unit of weight, but it is less dense than other fuels, which hinders its
wide-scale deployment. While hydrogen fuel consumption is not widespread, there has been growing interest in its use
as a potential fuel source across the economy. In fact, its use is projected to significantly increase in many countries
through 2050 as these countries transition toward a low-carbon economy.2

According to the International Energy Agency (IEA) report, Energy Technology Perspectives 2017,3 by 2050, fossil fuels
will remain the primary source of hydrogen for the United States (~75%), Europe (~65%), and Japan (~85%). This
forecast is based on the regional abundance of fossil fuels, the low cost of hydrogen production, and other benefits (e.g.,
reduced emissions) of sourcing hydrogen from fossil fuels with CCUS, rather than using it for power generation directly.

As the lead Federal agency for energy R&D, DOE develops technologies to diversify and increase domestic energy
supplies and make energy more affordable, improve domestic energy production and use, and enhance the security,
reliability, and resilience of energy infrastructure. FE has a broad portfolio of R&D activities and is focused on
technological advancements that could enable a transition toward a low-carbon economy with hydrogen. DOE is well

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 HYDROGEN STRATEGY
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positioned to accelerate this transition by developing technology solutions that enable the production of hydrogen from
fossil fuels with neutral, or even negative, carbon emissions. FE’s depth of experience and R&D conducted over the past
30 years have been focused on fossil fuels. Future efforts can be summarized in four major R&D focus areas:
1. Carbon-Neutral Hydrogen Production Using Gasification and Reforming Technologies
2. Large-Scale Hydrogen Transport Infrastructure
3. Large-Scale Onsite and Geological Hydrogen Storage
4. Hydrogen Use for Electricity Generation, Fuels, and Manufacturing.

Beyond R&D, FE can also leverage past experience in hydrogen handling and licensing reviews for liquefied natural
gas (LNG) export to support U.S. hydrogen export. For example, FE is well positioned to help develop safety and other
requirements for hydrogen export facilities, which will be essential to materializing U.S. exports to global markets that
are shifting to greater hydrogen use in electricity, manufacturing, transportation, or residential sectors.

Background
While DOE has an overarching Hydrogen Program Plan, this document focuses on the Office of Fossil Energy R&D
efforts. DOE's Office of Energy Efficiency and Renewable Energy (EERE) and Office of Nuclear Energy (NE) are also
actively pursuing R&D in different areas and technologies for hydrogen production, transport, delivery, and storage.

The H2@Scale program has developed an illustration to represent the hydrogen activities of the Department and it has
been modified in the shaded areas for the purpose of better illustrating how the FE R&D will support the low-carbon
hydrogen economy (see Figure 1).

For the past 20 years, FE—in partnership with industry—has pioneered the direct use of hydrogen for power generation.
The office’s sponsored research has resulted in the development of hydrogen combustion turbines for power generation
and combustors that can replace the natural gas combustors in commercially available combustion turbines. Research is
currently underway on technologies that can produce hydrogen from coal-derived synthesis gas and build and operate
a zero-emissions, high-efficiency energy plant that coproduces hydrogen and electricity from coal, biomass, and waste.
Efforts to enable 100% hydrogen firing in utility-scale combustion turbines are also in progress.

FE and industry have the potential to leverage ongoing work and existing infrastructure to improve the economics of
hydrogen production from natural gas via steam methane reforming (SMR) processa and coal/biomass/waste plastic
gasification with CCUS to realize negative carbon dioxide (CO2) emissions. In addition, there is growing interest in
conversion of natural gas to hydrogen and solid carbon, thereby providing an additional byproduct revenue stream.
Such innovations in the use of our abundant natural gas resources have the potential to strengthen existing and future
markets.

a
SMR involves the reaction of natural gas and steam over a nickel-based catalyst. This breaks the methane component of the natural gas into carbon
monoxide (CO) and H2 gas, similar to synthesis gas (syngas) produced via gasification. Then water-gas shift (WGS) reaction is performed to increase the
amount of H2 in the product gas as much as possible.

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HYDROGEN STRATEGY
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Figure 1. Integration of Fossil Energy into the Hydrogen Economy4

Additions to original EERE

illustration to represent FE
role in Hydrogen Economy

U.S. energy security, resiliency, and economic prosperity are enhanced through:
• Producing hydrogen from diverse domestic resources, including coal, biomass, natural gas, petroleum, petroleum
products (e.g., waste plastics), and other recyclable materials with CCUS
• Gasifying blends of coal, biomass, waste plastics, and other recyclable materials with CCUS results in hydrogen
produced with net-negative carbon emissions and other environmental benefits when CCUS is integrated with
the gasifier
• Having hydrogen widely available for the chemicals and liquid fuels industries
• Using carbon-neutral hydrogen in transportation, stationary or remote power, and portable power applications
using hydrogen turbines and fuel cell technologies
• Utilizing gas turbine assets for on-demand centralized and distributed power generation with near-zero emissions
• Supporting reliability and resiliency on the grid using simple-cycle or combined-cycle hydrogen turbines to
enable grid stability and large-scale (e.g., gigawatt-hour) energy storage

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• Increasing hydrogen storage and power generation supports intermittent renewable power generators where bulk
electricity storage is not adequate to cover demand
• Providing large-scale energy storage capacity using hydrogen for both transportation and generation needs
without the need to process and consume vast quantities of critical minerals required by electricity storage
technologies (e.g., batteries)
• Allowing technologies like coal with CCUS and nuclear power to run in a steady-state mode and producing
hydrogen for storage and use when the demand for electricity is low
• Supporting hydrogen-enabled innovations in domestic industries, thereby promoting manufacturing of advanced
products.

Figure 2 provides an overview of hydrogen uses and national benefits and shows the relationship of FE’s R&D program
elements to support a hydrogen economy in the United States.

Figure 2. Relationship of FE Program Elements to Comprehensive Hydrogen Strategy

Hydrogen production from diverse domestic

resources including natural gas and coal

Hydrogen turbines and H H Establish hydrogen’s

fuel cells enable zero to presence as a critical
negative emission power feedstock for chemicals
applications and liquid fuels

Contribute “responsive
Utilize existing and future gas
Widespread load” on grid using simple
turbine assets in centralized
availability of cycle hydrogen turbines to
and distributed power
zero or negative enable grid stability and
generation systems
greenhouse gas gigawatt-hour energy storage
emissions
hydrogen
Allow coal with CCUS
Support hydrogen-enabled
to run as base load with
innovations in domestic
hydrogen production
industries
for storage and use

Energy Security Economic Prosperity Resiliency

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HYDROGEN STRATEGY
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Hydrogen Production and Cost

Currently, 99% of U.S. hydrogen production is sourced from fossil fuels, with 95% from natural gas by SMR and 4% by
partial oxidation of natural gas via coal gasification. Only 1% of U.S. hydrogen is produced from electrolysis.b Annually,
the United States produces more than 10 million metric tons (MMT) of hydrogen, and approximately 60% of it is
produced in “dedicated” hydrogen production facilities as their primary product.

Global hydrogen production is approximately 70 MMT, with 76% produced from natural gas via SMR, 22% through
coal gasification (primarily in China), and 2% using electrolysis (see Figure 3).

Figure 3. U.S. and Global Production of Hydrogen

U.S. H2 Production 10 MMT- Global H2 Production 70 MMT-

Percent by Source Percent by Source

Natural Gas SMR Coal Gasification Electrolysis

SMR is a mature production process that builds upon the existing natural gas pipeline delivery infrastructure. Another
well-developed, but more expensive approach for hydrogen production is splitting water. Methods used include
electrolysis, photo-electrochemical cells, or solar thermochemical systems. Globally, supplying hydrogen to industrial
users is a major business, and the demand has grown more than threefold since 1975, and it continues to rise.5
Industrial technologies for hydrogen production include catalytic steam reforming (800–1000°C) and partial oxidation
(600–900°C) of hydrocarbons (e.g., natural gas) or renewable fuels (e.g., bioethanol); coal or coal blends with biomass
and waste plastics gasification; water electrolysis; thermochemical water splitting at around 900°C; and biological
production.

b
Water electrolysis is the electrochemical splitting of water into hydrogen and oxygen.

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Given the substantial economic advantage of gasification and methane reforming with CCUS, in all likelihood, they will
be the lowest cost source of large-scale hydrogen for the foreseeable future. As shown in Figure 4, hydrogen production
from fossil fuels is the least expensive source of hydrogen. Steam reforming of natural gas for hydrogen production
costs vary from $1.43/kg to $2.27/kg with CO2 capture and storage (CCS) and are highly dependent on the delivered
natural gas price. Numerous studies report the cost of hydrogen from gasification to vary between $1.16/kg and $1.63/
kg for coal and between $1.31/kg and $2.06/kg for coal/biomass/waste plastic with CO2 capture and storage. These
processes are also highly dependent on the delivered feedstock price. Hydrogen production cost through electrolysis
at a centralized station is estimated at $5/kg to $6/kg with electricity from nuclear or wind resources. Hydrogen from
zero-carbon electricity, such as nuclear or wind, is 2.5–4 times more costly than hydrogen from carbon-neutral or net-
negative carbon fossil resources.

The cost of hydrogen production varies between regions, with Europe and Japan having relatively high costs and strong
policy support for hydrogen. Hydrogen importers stand to benefit from cheaper, low-carbon energy—especially if
their domestic renewable energy, nuclear, or CCUS resources are challenging or expensive to develop. According to
the IEA, in the future, it may be cheaper in some instances for some countries to import hydrogen than to produce it
domestically.

Figure 4. Current Cost of Hydrogen Production and CO2 Intensity

$7.00 70

$6.00 60

$5.00 50

Grams CO2/MJ H2
$4.00 40

$3.00 30

$2.00 20

$1.00 10

$0.00 0
SMR Coal Gasification Coal/Biomass Gasification Electrolysis w/ $/kg H2
w/90% CCS w/90% CCS w/90% CCS Nuclear or Wind
g CO2/MJ H2

(Source: IEA Roadmap for Hydrogen and Fuel Cell and DOE Baseline Studies)

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HYDROGEN STRATEGY
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Hydrogen Uses and Equivalent Costs

Primary uses of hydrogen today are as a chemical feedstock in ammonia, food, and drug production, as well as
petrochemical and refinery processing. It is also used in crystal growth, glass manufacturing, chemical tracing, metal
fabrication, polysilicon and semiconductor manufacturing, metal production, and thermal processing. Hydrogen from fossil
energy could be an economically competitive, carbon-neutral alternative to traditional fuels used in the electricity, industrial,
and transportation sectors. Figure 5 below provides a compilation of current hydrogen production costs and supports the
Office of Fossil Energy plans to continue investments in Hydrogen related R&D. Costs for hydrogen production from other
sources, such as the DOE applied program offices, DOE Office of Science sponsored research group, IEA, many universities,
and industry have published figures similar, and in some instance lower than the ones represented below.6, 7, 8, 9, 10

Figure 5. Current Hydrogen Production Cost Ranges and Averages by Technology and Equivalent Prices for
Fossil Sources with CO2 Capture and Storage

Other Reference Cost Equivalents

$14.00
$5.00/kg H2 $10.00/kg H2
Hydrogen Production Cost ($/kg)

$12.00 $38.81/MMbtu NG $77.62/MMbtu NG

$236.50/Bbl Oile $473.00/Bbl Oile
$10.00 $5.05/gal. gasoline $10.01/gal. gasoline

$8.00
$8.19
$2.27/kg H2
$1.63/kg H2
$6.00 $17.62/MMbtu NG
$12.65/MMbtu NG $5.96
$107.37/Bbl Oile
$77.10/Bbl Oile
$4.00 $2.29/gal. gasoline
$5.58
$1.65/gal. gasoline
$2.00 $4.30
$1.91 $2.08 $2.27 $2.40
$1.34 $1.48 $1.63
$0.00
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Oil refinery hydrogen demand is a major component of the overall hydrogen production. Hydrogen is used to remove
sulfur and to hydrotreat and hydrocrack heavier crude oil constituents into more valuable, lighter products.11 In turn,
growth in refinery hydrogen demand is affected by an increase in demand for liquid fuels, changes in sulfur content of
the raw crude oil, and regulations that limit the amount of sulfur in the liquid fuel. Fertilizer and chemical production

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 HYDROGEN STRATEGY
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also consume large quantities of hydrogen. The U.S. ammonia supply is dependent on the price of natural gas and
the supply has increased because of the low price of natural gas. Both brownfield capacity expansions and greenfield
ammonia plants are coming online, leading to increased demand for hydrogen.12

Other potential hydrogen utilization areas include the following:13

• Industrial Uses: Hydrogen can replace coke and natural gas as a reducing agent in iron and steel production.
Similarly, hydrogen can enable decarbonization of industries, such as cement, fertilizer, and petrochemicals.
However, in some cases, considerable R&D may be required to assess the effects of switching from natural gas or
coal-derived fuel gases to pure hydrogen.
• Transportation: Hydrogen-powered fuel cell vehicles offer both high efficiency and low emissions. They can play
an increasingly important role in reducing emissions from long-haul trucks, heavy-duty trucks, buses, medium
and large cars, vans, minibuses, trains, ships, and planes.
• Power Generation: Hydrogen use for power generation is negligible today, though there is potential for its role in
power production. Hydrogen can be injected into existing natural gas pipeline networks or directly sent into the
end-distribution network. Hydrogen-fired gas turbines and combined-cycle gas turbines could also be a source
of flexibility in electricity systems. In addition, Solid Oxide Fuel Cells (SOFCs) can offer the highest conversion
efficiency of chemical-energy-to-electrical-energy of any energy conversion technology, compared to any heat
engine.
• Energy Storage/Grid Balancing: Hydrogen could become a long-term storage option to balance seasonal
variations in electricity demand. Industry has been working on technologies to store hydrogen in cryogenic
vessels or in high-capacity sorbents to increase the energy density and duration available. Geologic storage of
hydrogen is feasible in salt caverns and other formations. A limited number of geologic storage projects exist in
the United States, which could expand as the demand for hydrogen increases.

Hydrogen Demand
According to the IEA report, Future of Hydrogen, demand for hydrogen in its pure form will be around 73 million
tonnes per year (Mt/year), as shown in Figure 6.14 One-third of global supply is “by-product” hydrogen, meaning that
it comes from facilities and processes designed to manufacture other products. Today’s hydrogen industry is large, with
many sources and uses. In energy terms, total annual hydrogen demand worldwide is around 330 million tonnes of oil
equivalent (Mtoe), which is larger than the primary energy supply of Germany.15

Figure 7 shows an overview of the demand for hydrogen from selected U.S. industries. The quantity of onsite (captive)
and merchant hydrogen supplied varies by industry. For example, hydrogen used in oil refining is split almost evenly
between captive production and merchant hydrogen suppliers. On the other hand, hydrogen for glass manufacture
is almost entirely supplied by merchant suppliers. Merchant producers can supply hydrogen as a liquid or gaseous
product, or via a pipeline. Smaller quantities of gaseous, high-pressure hydrogen (to be transported over relatively small
distances) are sold in tube trailers.16

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 HYDROGEN STRATEGY
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Figure 6. Worldwide Hydrogen Value Chains

69 Mt H2 38 Mt H2 Refining
Natural 196 Mtoe of which <0.4 Mt H2 produced with CCUS
gas of which <0.1 Mt H2 produced
with renewables Demand
31 Mt H2 Ammonia for pure
Dedicated
production hydrogen
Coal 75 Mtoe Losses <0.01 Mt H2
Transport
4 Mt H2
2 Mtoe Other
Oil
12 Mt H2
Electricity / 2 Mtoe
other Methanol
Demand for
4 Mt H2
DRI hydrogen
48 Mt H2
By-product of which <0.3 Mt mixed with
hydrogen H2 produced with Other other gases
26 Mt H2
renewables e.g. heat

DRI: Direct Reduced Iron

Figure 7. U.S. Hydrogen Demand by Industry Sectors in 201517

Oil Refining
Ammonia
Methanol

Other Chemicals
Metals
Food
Electronics
Glass

10-2 10-1 100 101

Million Metric Tons/Year

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Emerging Markets and International

Initiatives
Hydrogen holds long-term promise in many sectors beyond existing industrial applications. The transportation,
construction, and power sectors all have the potential to use hydrogen if the costs of production and utilization prove
this fuel to be competitive compared to other options. Figure 8 shows the global potential for future use of hydrogen and
the market share by 2050.18, 19

Figure 8. Global Potential for Future Use of Hydrogen

Hydrogen potential by market in 2050, %, exajoules

Bubble size indicates hydrogen
potential in 2050, exajoules 1
Power Power generation
Buffer1
Generation
Trucks Passenger
Small cars Medium ships Vans and Forklifts
Transport Synfuel2 and large minibuses
Trains and cars
Buses
tramways
Industrial Medium/low
Energy industry heat High-grade
industry heat
Building Heat Countries with
and Power Countries without
gas networks
gas networks
Industry Steel (direct- CCU for methanol, Refining Ammonia,
Feedstock reduced iron) olefins, BTX3 methanol

0 20 40 60 80 100
Market-share potential in 2050, %

1
% of total annual growth in hydrogen and variable renewable-power demand.
2
For aviation and freight ships.
3
Carbon capture and utilization; % of total methanol, olefin, and benzene, toluene, and xylene (BTX) production using olefins and
captured carbon.

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IEA’s Future of Hydrogen report also found that globally, clean hydrogen is experiencing unprecedented political and
business momentum, with the number of policy initiatives and projects expanding rapidly.20 The report concludes that
there is a window of opportunity to scale up technologies and reduce costs to allow broad usage of hydrogen. To take full
advantage of this momentum, IEA made recommendations to governments and industry focused on two key areas:
1. Hydrogen can help tackle critical energy challenges. It offers ways to decarbonize a range of sectors, including
long-haul transport, chemicals, iron, and steel industries, and to utilize existing gas turbine assets, where it is proving
difficult to meaningfully reduce emissions. It can also help improve air quality and strengthen energy security.
2. Hydrogen is versatile. Technologies already available today enable hydrogen to produce, store, move, and use
energy in different ways. Hydrogen can be produced from renewables, nuclear, natural gas, coal, and oil. It can be
transported as a gas by pipelines or in liquid form by ships, much like LNG. Additionally, it can be transformed
into electricity and methane to power homes and industry, as well as into fuels for cars, trucks, ships, and planes.21

A low-carbon hydrogen economy, beyond petrochemical and transportation sectors, will require fossil fuels to support
emerging carbon- neutral market opportunities like utility-scale, hydrogen-based power generation coupled with energy
storage; steel and advanced alloys manufacturing; cement, fertilizer and chemicals production; fuel use for marine, rail,
and heavy-duty vehicle applications (i.e., transportation); and renewable power generation for a variety of electrical
applications.

While the United States does not currently export hydrogen in significant amounts, global initiatives to reduce CO2
emissions could expand global trade of the resource. Japan, South Korea, and China have made significant progress in
hydrogen development, setting ambitious targets for 2030 by viewing hydrogen as a means of managing environmental
concerns without weakening energy security. Countries that have released a national hydrogen strategy include the
Netherlands, Norway, Portugal, Japan, South Korea, Australia, New Zealand, and Germany. Most recently, a Canadian
government agency, Natural Resources Canada, confirmed that it is developing a national hydrogen strategy.22 In
addition, the European Commission released its hydrogen strategy in July 2020.23

Hydrogen Transportation
Hydrogen transportation, distribution, and storage are the primary challenges for integrating hydrogen into the overall
energy economy system. On a mass basis, hydrogen has nearly three times the energy content of gasoline. While
hydrogen has high energy density per unit mass, it has low-volumetric energy density at room conditions (around 30%
of methane at 15 °C, 1 bar) and an ability to permeate metal-based materials, which can present operational and safety
constraints. This makes transporting hydrogen a challenge because it requires high pressures, low temperatures, or
chemical processes to be stored compactly.24

Gaseous hydrogen is usually transported by either tube trailers or pipelines, while liquid hydrogen is moved by road
tankers. Liquid hydrogen shipping is also being considered as a means for transporting large volumes between countries.

Depending on transportation distance and volumes, trucking may be preferred for short distances and small volumes,
while liquid tankers or pipelines are more economical for long distance, larger volume transport. Figure 9 illustrates the
primary means of hydrogen transportation.25

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Pipelines: Existing domestic natural gas pipeline Figure 9. Primary Means of Hydrogen Transportation
infrastructure has the potential to expand the
transportation of hydrogen.c Blending hydrogen into Production and
natural gas pipeline networks may be an option for Gas Compression

delivering pure hydrogen to markets, using separation and Compressed Gas Truck

purification technologies downstream to extract hydrogen

from the natural gas blend near the point of end use.

It is necessary to assess multiple factors to safely integrate Production and

Liquefaction
hydrogen blending into the existing natural gas pipeline
systems (e.g., gaseous hydrogen embrittlement).d Liquid Hydrogen Truck

Notionally, pipelines can handle from 15%–30% hydrogen

blends without modifications or significant detrimental
effects.e While hydrogen compression can be utilized for
Production and
transport and storage, this compression comes with energy Gas Compression Recompression
if Necessary
penalties up to 20% of the energy content required for
Pipeline Pipeline
compression.26

Trucking: Hydrogen that is transported via truck is

Production and
typically hauled in either liquid tanker trailers or tube Liquefaction
trailers. High-pressure cylinders and tube trailers at
~2,600 pound-force per square inch (psi) are commonly Liquid Hydrogen Ship

used to distribute gaseous hydrogen within 200 miles

of the source. Hydrogen transport by truck typically
involves high-pressure tube trailers that operate at
pressures twice the amount of normal transporting pressures. Liquid tanker trailers are used for transport distances up
to 600 miles. Cryogenic liquid hydrogen trailers operate at near atmospheric pressure.27

Other: Compared to trucks, it could be more economical to transport hydrogen by railcars, barges, or ships for larger
quantities of hydrogen. By utilizing the same style of tube or liquid tanks used by trucks, these modes of transport are
not restricted by weight requirements encountered on roadways. The first liquid hydrogen transport ship was launched
as a pilot in Japan at the end of 2019, with an anticipated storage capacity of 1,250 m3 (less than 1% of typical LNG
carriers). It is expected that the next version will have greater capacity.

c
The natural gas pipeline network within the United States is a highly integrated network that moves natural gas across about 3 million miles of mainline
to end-user markets and other pipelines between natural gas producing areas and storage facilities with consumers. Within this network, over 1,600
miles of pipeline are dedicated to the transmission of hydrogen, representing the largest total of dedicated hydrogen pipeline system worldwide (57% as
of 2016).
d
Gaseous hydrogen embrittlement refers to the degradation of fatigue and fracture resistance of structural materials due to exposure to gaseous
hydrogen.
e
Minor detrimental effects can include increased transmission costs and a slight reduction in the overall quantity of energy delivered due to lower
volumetric energy density of hydrogen as compared to natural gas.

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Hydrogen Storage
Today, hydrogen is most commonly stored as a gas or liquid in tanks for small-scale mobile and stationary applications.
Hydrogen storage options include compression or cryogenic systems (or their combination), chemical production
systems (such as ammonia), nanomaterial-based storage, and geologic storage. Compression and cooling systems
are required for transportation and storage of hydrogen. A variety of metal tanks are typically found at production
facilities, transport terminals, and end-use locations. While cryogenic systems are the most common way to store large
amounts of hydrogen, advancements in porous nanomaterials may provide another storage mechanism. Within these
structures, hydrogen can be stored in non-reactive media, at low-temperature, and with quickly reversible adsorption/
desorption of hydrogen without requiring thermal energy. Storing hydrogen as ammonia, conversely, requires thermal
energy to decompose the molecules when the hydrogen is needed. Hydrogen storage is a key technological barrier to the
development and widespread use of fuel cell technologies in transportation, stationary, and portable applications.

Large-scale hydrogen value chains in the future will require a much broader variety of storage options. In general,
geological storage in many regions of the country is the best option for large-scale and long-term storage, while tanks
are more suitable for short-term and small-scale storage. Geologic storage within salt caverns, saline aquifers, depleted
natural gas or oil reservoirs, and engineered hard rock reservoirs can also be used as long-term storage mechanisms.
Further work is required to characterize this opportunity and validate these formations through R&D, geologic
characterization, and validation of reservoirs. Storage efforts will be coordinated with EERE which has led the National
Storage Project and has substantial ongoing activities.28, 29

Office of Fossil Energy

While the overall DOE Hydrogen and Fuel Cells Program30 describes activities of various offices including EERE, NE,
and Science, this document focuses on FE activities. FE’s Office of Clean Coal and Carbon Management (CC&CM) and
Office of Oil and Natural Gas (ONG) are the two programs currently leading fossil energy-based hydrogen related R&D.
Their past, current, and planned areas of research are described below.

Office of Clean Coal and Carbon Management Hydrogen R&D Program

CC&CM is focused on advancing the technologies needed to produce hydrogen from coal-derived synthesis gas to build
and operate carbon-neutral, high-efficiency, poly-generation facilities, such as those being considered under the Coal
FIRST program.31 Many of the past and current CC&CM R&D programs directly align with producing and utilizing
hydrogen. For example, oxygen separation, gasification, catalysis, separations and materials science, and process
engineering are key CC&CM strengths that will have a fundamental role in the production of hydrogen. Turbines, fuel
cells, materials science, combustion science, catalysis, chemistry, and fuel science all enable the transport, storage, and
utilization of hydrogen. FE is also the global leader on key technologies such as emissions controls and CCUS. These
technologies will be critical to producing carbon-neutral hydrogen from carbon-containing feedstocks, as well as to

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developing highly integrated gas turbine hydrogen producing systems with CCUS. Many of these technologies are being
integrated into the Coal FIRST program and power generation systems for the 21st Century. Coal FIRST has several
gasification systems, which could produce hydrogen for power or poly-generation of chemicals.

FE has previously supported the development of hydrogen turbines for coal gasification systems with pre-combustion
carbon capture. This approach, with a water gas shift, produces a pure hydrogen fuel for the gas turbine and was also
considered for fuel cell applications. More recently, the focus has been on high hydrogen, content-fueled (70%–100%
hydrogen) turbines. In this application, combustion characteristics pose a challenge. Hydrogen is a fast-burning fuel
with high flame speeds, causing issues with most modern dry low-nitrogen oxides (NOx) combustors on industrial
gas turbines. Previous DOE-funded research investigated issues related to hydrogen use in turbines and its effects on
combustion, materials, and aerothermal heat transfer. Significant progress was made in resolving the understanding of
auto-ignition, flashback, thermo-acoustics, mixing requirements and other combustion-related phenomena.

A significant amount of work remains before a full commercial offering of 100% hydrogen-fueled turbines. After
the hydrogen concentration exceeds 75%, there is a significant change in combustion behavior that will require new
combustor designs, sensor locations, and control schemes to detect the flame and monitor for flashback and thermo-
acoustic instabilities. NOx emissions will become an issue at higher hydrogen concentrations due to increased flame
temperatures and limitations of current pre-mixed dilution technologies. Standard catalytic NOx reduction technologies
with some modifications could still be a viable approach. The higher flame temperatures and increased water content
could also affect the lifetime of metal hot gas path parts and ceramic recession, thereby increasing the need for new
materials and coatings and improved cooling schemes.

The remaining issue for high hydrogen operations is fuel flexibility. If hydrogen is blended into natural gas pipelines,
then it is unlikely that the mix will be steady and predictable. This would have to be mitigated through regulation by
network operators, or it would require faster fuel composition analysis built into turbine control.

Office of Oil and Natural Gas Hydrogen R&D Program

The proximity and use of hydrogen for industrial processes related to oil and natural gas provides an opportunity
for ONG to leverage existing R&D toward enabling the future hydrogen economy, its markets, supply infrastructure,
transportation, storage, and use for industrial purposes and power generation. Natural gas networks are well developed
in the United States and represent infrastructure that could be adopted for conveyance of hydrogen. While converting
natural gas infrastructure to hydrogen infrastructure is a long-term proposition, transition strategies call for the
introduction of hydrogen into the existing natural gas infrastructure. This strategy is being pursued by other countries,
although significant questions remain regarding safety associated with hydrogen transport. There are many unknowns
about the suitability of materials for hydrogen service in natural gas distribution systems; however, ONG and its
partners have an existing and expanding transportation and storage infrastructure R&D portfolio that is relevant to a
comprehensive hydrogen economy strategy.

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ONG is currently centered on developing processes to convert flared or vented gas to hydrogen products to include
modular hydrogen production from natural gas streams and utilizing hydrogen for upcycling methane into other
higher-value products. ONG’s efforts in this area are being pursued via hydrogen-related R&D under a Funding
Opportunity Announcement (FOA), “FE FOA2006 – Advanced natural gas infrastructure technology development
process-intensified technologies for the upcycling of flare gas into transportable, value-added products.” Through the
selections made under the FOA in January 2020, FE is currently expanding its research program focused on mitigating
emissions from midstream natural gas infrastructure.

Accelerating the Hydrogen Economy with Future R&D

Since 2005, FE invested in the development of hydrogen turbines for coal gasification systems with pre-combustion
carbon capture. Using coal gasification with a water gas shift approach produces a pure hydrogen fuel for the gas
turbines in fuel cells and other applications. Industry embraced technology development for hydrogen-fueled turbines,
which resulted in upgraded components for commercially available turbines and potential retrofits for the existing
fleet. All major turbine manufacturers have committed to capabilities of at least 20% hydrogen combustion by 2020
and 100% hydrogen combustion by 2030. However, a significant amount of work remains (e.g., additional combustor
development) before the full commercial offering of 100% hydrogen-fueled turbines, which could have technology
applications to multiple sectors, such as the aviation industry.

Reversible SOFCs can be a source of efficient, low-cost electricity from natural gas or hydrogen for baseload and
distributed power generation. The high operating temperatures of SOFCs offer the possibility of internal reforming
of methane, providing additional sources of hydrogen production. Thus, SOFCs with internal reforming can enable
the hydrogen economy by producing hydrogen at scale within a carbon-capture-ready paradigm through simple
condensation of the SOFC exhaust.

FE has been advancing technologies to produce hydrogen from coal and natural gas, but more work is needed in this
area. Hydrogen from natural gas is commercially viable today and it could be a bridge technology with CCUS to enable
future energy scenarios where hydrogen is sustainably produced using all of the diverse domestic resources, but need to
reduce the capital costs and improve the efficiency of these technologies to be competitive. Major investments in R&D
over the next 5 years can help accelerate and address several key areas that could enable the transition to a hydrogen
economy. In addition, more work is required on natural gas-to-solid carbon plus hydrogen, which offers a valuable
byproduct and additional revenue streams for new markets. FE’s depth of experience, previous R&D, and future efforts
can be summarized in four major focus areas:

1. Carbon-Neutral Hydrogen Production using Gasification and Reforming Technologies

• Develop advanced gasification materials, components (gasifier, cleanup systems, membranes, catalysts), and
systems (small- and large-scale plasma, thermal, and microwave) with CCUS that can accept multiple fuels (coal,
biomass, and waste plastics) to produce low-cost, carbon-neutral hydrogen.
• Support advanced steam methane and auto-thermal reforming technologies with CCUS to provide near-
zero hydrogen to the economy, and convert waste gaseous hydrocarbons to hydrogen using similar modular
technologies. FE will lead methane-related hydrogen production activities and/or R&D.

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Enabling A Low-Carbon Economy

• Develop pre-combustion CO2 capture technologies (advanced solvents, solid sorbents, and membrane systems)
for hydrogen production processes to demonstrate zero-carbon or negative-carbon emissions from fossil fuel,
biomass, and waste plastics hydrogen production.
• Develop CCUS technologies, including pre- and post-technologies for power and the industrial sector, as well direct
air capture technologies, that can remove CO2 from the atmosphere (FE is leading DOE’s efforts in this area).

2. Large-Scale Hydrogen Transport Infrastructure

FE has been involved in decades of research on the materials, design, and infrastructure to support 3 million miles of
existing natural gas pipeline network, including mainline and other pipes transport linking production and storage
facilities with customers. More recently, FE has been working with industry and partnering agencies on monitoring and
mitigation technologies to quantify and eliminate fugitive emissions from the oil and natural gas pipeline networks.
Additionally, FE continues to invest in projects to address design and materials requirements for blending hydrogen into
the existing natural gas infrastructure and ultimately replacing natural gas with hydrogen, in coordination with EERE.
Specific R&D activities coordinated with EERE and other offices include the following:
• Assess pipeline performance for fatigue and fracture resistance of metallic materials in natural gas networks as
related to the embrittlement issue and ensure their compliance with appropriate standards and codes.
• Develop new components, configurations, and sensor technologies combined with artificial intelligence for real-
time operational monitoring and early fault detection for the safe transport of hydrogen in commerce.
• Develop design requirements and typical operating conditions in natural gas supply infrastructure, as well as
identify and prioritize materials performance gaps to avoid leakage within pipeline elements, such as joints, valve
and flange connections, gas meters, and compressors to safeguard operations.
• Conduct hydrogen transportation and storage infrastructure assessments and R&D (e.g., materials, geology),
conduct resource assessments, and establish field laboratories for hydrogen storage.
• Evaluate and regulate hydrogen export policies and procedures.

3. Large-Scale Onsite and Geological Hydrogen Storage

FE is the leading organization on storage of natural gas in geologic formations and characterization for geologic storage
of CO2, as well as the operator of the Strategic Petroleum Reserve. The experience and personnel in these areas can be
leveraged to accelerate the development and deployment of large-scale hydrogen storage in the United States. FE has
also led the work on other geologic resources such as coal bed/mine methane, enhanced oil and gas recovery, and the
characterization of rare earth elements and critical materials. In addition, over the past several decades, FE has been
managing the gasification and pre-combustion capture programs, which have included efforts to produce pure hydrogen
and synthesize chemicals, such as ammonia and other fuels. Leveraging this experience, FE will focus on the following
activities:
• Characterize regional geology, infrastructure requirements, and materials of construction for the storage of
hydrogen in geologic formations, including salt domes, depleted oil and gas reservoirs, and natural gas storage
sites.
• Develop advanced storage materials and systems for large-scale hydrogen storage to support the electricity
industry and poly-generation.

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• Develop pipeline technologies and components for blended natural gas hydrogen mixtures to ensure reliable
delivery within existing natural gas infrastructure.
• Develop conversion technologies (catalysts, materials, and processes) to utilize hydrogen for added value products
and/or chemical production, specifically ammonia, to store days’ worth of energy for future electricity production.

4. Hydrogen Use for Electricity Generation, Fuels, and Manufacturing

For over 20 years, FE has been developing advanced power systems (e.g., turbines) and SOFCs to utilize blended
hydrogen and natural gas or pure hydrogen to generate carbon-neutral electricity. Decades of experience on these
systems and future research can enable wide-scale deployment of hydrogen generation technologies such as hydrogen
turbines and reversible SOFCs. Additionally, the materials and some of the processes from these technologies can be
adapted and used for other industrial uses (e.g., aircraft engines, trains). The following research activities are planned:
• Develop technology for hydrogen-fueled turbines for potential retrofits or enhancements to internal combustion
engines, industrial gas turbines and combustion systems for power generation, and transportation (ground, air,
and marine).
• Develop Solid Oxide Cells to operate as an electrolyzer (SOEC) for production of hydrogen for storage and
reversible systems to operate as an SOFC when electricity production is in high demand, leveraging 20 years of
FE- sponsored R&D on SOFC systems.
• Ensure specification and safety standards developed for utilization of hydrogen or derivative chemicals in the
refining, metallurgical, food processing, cement, transportation, and other sectors.
• In addition, FE has previous experience in hydrogen handling and can leverage efforts on LNG export licensing reviews
to identify safety and export terminal requirements. This will support efforts to export to hydrogen economies where
hydrogen can be used for electricity generation, manufacturing, transportation, and residential purposes.

Safety and Regulatory Requirements and

Challenges
Increasing the use of hydrogen and exploring new processes for the production and use of hydrogen using the existing
gas distribution and storage infrastructure will require identification of and responses to several safety issues. Recent
studies on market penetration of hydrogen anticipate many applications, which will require considerable additions to
the transportation and storage infrastructure. Some of these will result in new safety concerns that need to be addressed.

According to a 2013 report published by the National Renewable Energy Laboratory,32 blending hydrogen into
natural gas pipeline networks has been proposed as a means of delivering pure hydrogen to markets using separation.
Separation and purification technologies will be used downstream to extract hydrogen from the natural gas blend close
to the point of end use. As a hydrogen delivery method, blending can defray the cost of building dedicated hydrogen
pipelines or other costly delivery infrastructure during the early market development phase. However, blending
hydrogen can materially degrade pipelines designed for natural gas (via hydrogen embrittlement).33 The risk involved
depends on the specific types of materials used throughout the transportation and distribution systems.

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The impact of adding hydrogen into the pipeline systems would also depend on the hydrogen concentration in the gas
mixtures.34 If less than 20% hydrogen is introduced into the distribution system, the overall risk is not significant. If the
hydrogen level in natural gas increases beyond 20%, the overall risk in service lines can significantly increase, absent
additional risk management measures.35 Construction of new pipelines, either natural gas pipelines that will be used
for a blended gas or hydrogen dedicated lines, will require consideration of the challenges that hydrogen poses during
transportation by pipeline. Adequate safety provisions can be made if there is a thorough understanding of these risks.

If the amount of hydrogen being produced and utilized is to increase substantially, storage near the site of production
and storage near end uses are likely to be required. Analogies to this situation already exist for natural gas, but steps
to address novel safety considerations, revised regulations, and tightened design standards may be needed. Solution-
mined salt caverns, depleted natural gas or oil reservoirs, and saline aquifers are considered possible options for large-
scale and long-term hydrogen storage. These storage options are currently used for natural gas storage.

Currently, several existing U.S. and international standards allow the safe use, distribution, and storage of hydrogen.
These standards are focused on the current hydrogen infrastructure, including building codes, fire codes, and items
pertaining to technologies used to transport and store hydrogen.36 Within the United States, interest in hydrogen
in the first decade of this century led to the passage of several laws that created financial incentives and regulatory
requirements. Several states have passed laws to encourage development of stationary hydrogen applications.37 These
acts establish provisions for tax incentives aimed at promoting infrastructure development that supports hydrogen
stationary power technologies. In addition, there are production tax credits based on the amount of electricity produced
from stationary hydrogen power sources.38

Looking toward an expanded hydrogen infrastructure, it is important to note that globally, the state of existing
regulations and standards currently limits hydrogen uptake. Certain regulations are unclear or not written with new
uses of hydrogen in mind. Therefore, they do not allow exploitation of the full benefits hydrogen can provide. These
regulations need to be updated if hydrogen is to have the opportunity to fulfill its potential.

For the United States, it is important to identify the options being pursued and to ensure that essential standards and
regulations exist to cover these nascent applications (processes, infrastructure, and end use). The current framework
provides a sound basis, but gaps have been recognized, and critical needs should be addressed during the developmental
phase of new technologies in coordination with EERE.

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HYDROGEN STRATEGY
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 July 2020

For additional information, please contact the following FE personnel:

Regis Conrad Timothy Reinhardt

U.S. Department of Energy U.S. Department of Energy
Office of Fossil Energy Office of Fossil Energy
Office of Clean Coal & Carbon Management Office of Oil and Natural Gas
Division Director, Advanced Energy Systems Director, Division of Supply & Delivery
[email protected] [email protected]