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NW Natural and Modern Hydrogen Unveil Clean Hydrogen Production, Carbon Capture Project in Portland

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NW Natural and Modern Hydrogen have unveiled a new project at NW Natural’s Central Resource Center in Portland, utilizing methane pyrolysis technology to produce clean hydrogen and capture solid carbon.

This project marks several firsts, including the first utility-distributed pyrolysis system, pipeline injection of pyrolytic hydrogen, and solid carbon capture for both companies.

The hydrogen generated is blended with natural gas and delivered via existing infrastructure, while the captured carbon is used in Modern Hydrogen’s asphalt products.

This three-year pilot is part of NW Natural’s broader efforts to explore hydrogen applications and reduce greenhouse gas emissions.

Positive
  • First utility-distributed pyrolysis system, leading in energy production innovation.
  • First pipeline injection of pyrolytic hydrogen, expanding clean energy infrastructure.
  • First solid carbon capture project, enhancing environmental stewardship.
  • Utilizes existing infrastructure, reducing costs and facilitating immediate implementation.
  • Captured carbon repurposed in asphalt, showcasing sustainable recycling.
  • Three-year pilot project demonstrates long-term commitment to hydrogen applications.
  • Efforts align with broader goals to reduce greenhouse gas emissions.
Negative
  • High initial investment and operational costs for methane pyrolysis technology.
  • Uncertainty surrounding the scalability of the technology for broader implementation.
  • Potential technical challenges in blending hydrogen with natural gas.
  • Dependence on existing infrastructure may limit the geographical scope of application.

Insights

The unveiling of the methane pyrolysis technology by NW Natural and Modern Hydrogen marks a significant stride towards cleaner energy production. The process generates clean hydrogen while capturing solid carbon, which is repurposed for asphalt products, showcasing a cyclical use of byproducts.

From a short-term perspective, the project aligns with growing regulatory pressure for utilities to reduce carbon emissions. Investors should note that the blending of hydrogen with natural gas and using existing infrastructure minimizes initial capital expenditure, making the transition cost-effective.

In the long-term, if this pilot project proves successful, it could set a precedent for other utilities, reinforcing NW Natural’s position as a leader in the energy transition. However, it’s essential to consider the operational risks and effectiveness of the technology at scale, as well as the economic feasibility of methane pyrolysis versus other clean energy technologies.

The successful deployment of this technology could potentially lead to new revenue streams and enhance NW Natural's reputation as an environmentally responsible company, increasing its appeal to ESG-focused investors. Investors should monitor upcoming reports and performance metrics to gauge the project’s viability and scalability.

This project signifies a step toward reducing reliance on conventional natural gas, a key trend driven by both environmental and regulatory pressures. The innovative use of solid carbon in asphalt products demonstrates an effective value-add from waste materials, potentially lowering production costs and contributing to sustainability claims.

From the market's perspective, this project could position NW Natural and Modern Hydrogen as pioneers in renewable energy solutions, capturing market share from competitors who are slower to adopt clean technologies. The initiative underscores the companies' commitment to innovation, which might appeal to environmentally conscious consumers and businesses.

However, the project's success will depend on its ability to scale and integrate seamlessly with existing infrastructure. If the technology proves to be efficient and cost-effective, it could attract further investments and partnerships, enhancing the company’s market position. Retail investors should keep an eye on pilot results and any subsequent rollout plans that indicate market receptiveness and scalability of the technology.

Innovative methane pyrolysis technology, which is online at NW Natural’s Central Portland facility, produces clean hydrogen and captures solid carbon

PORTLAND, Ore.--(BUSINESS WIRE)-- NW Natural and Modern Hydrogen welcomed more than 100 guests and employees to an official unveiling of a new project that is producing clean hydrogen while capturing solid carbon.

NW Natural CEO David Anderson, Modern Hydrogen CEO and Co-Founder Tony Pan, NW Natural President Justin Palfreyman, NW Natural COO Kim Rush, Modern Hydrogen CTO and Co-Founder Max Mankin. Credit: Dale Headrick

NW Natural CEO David Anderson, Modern Hydrogen CEO and Co-Founder Tony Pan, NW Natural President Justin Palfreyman, NW Natural COO Kim Rush, Modern Hydrogen CTO and Co-Founder Max Mankin. Credit: Dale Headrick

Equipment designed by Modern Hydrogen and installed at NW Natural’s Central Resource Center in southeast Portland uses a process called methane pyrolysis.

Solid carbon being captured from this process is collected and incorporated into Modern Hydrogen’s proprietary, performance-enhancing asphalt products. These are used in applications such as paving and road repair projects—including a section of asphalt surrounding the equipment installation at NW Natural’s facility.

Hydrogen generated on site is blended with natural gas and delivered via existing energy infrastructure.

“Over the years we have held to our core values of safety and service, while embracing new technologies and better ways of doing things,” said NW Natural CEO David Anderson. “Today we’re looking to renewable natural gas, clean hydrogen, carbon capture and other ways to decarbonize our system. People are eager for solutions that can be put into action today, and we’re proud to play our part.”

“We are proud to stand at the forefront of this transformative journey, pushing the boundaries of what's possible in energy production and environmental stewardship,” said Modern Hydrogen Co-Founder and CEO Tony Pan. “Together, we are not just witnessing, but actively participating in history with the launch of innovative systems that revolutionize hydrogen production, leverage existing infrastructure for a cleaner future, capture and repurpose carbon, and significantly reduce the carbon footprint of gas utilities.”

Modern Hydrogen’s Tony Pan cited several landmark firsts being achieved through this utility partnership, including the first utility distributed pyrolysis system, the first pipeline injection of pyrolytic hydrogen, and the first solid carbon capture project for both companies.

NW Natural’s David Anderson credited the Modern Hydrogen and NW Natural project teams as well as workers represented by local unions and contractors in getting the project up-and-running.

This three-year pilot project is the latest effort by NW Natural to explore potential hydrogen applications. This includes extensive testing at our Sherwood Operations and Training facility, demonstrating the safety and performance of hydrogen blends ranging from 5 to 20 percent in natural gas systems and equipment.

NW Natural is working to reduce greenhouse gas emissions on multiple fronts, reimagining the role of the natural gas system and the fuel that we deliver. This includes pursuing a combination of decarbonization measures that include energy efficiency, renewable energy, carbon offsets, and carbon capture. Replacing conventional natural gas over time with alternatives like renewable natural gas and clean hydrogen is central to achieving that vision.

About NW Natural

NW Natural is a local distribution company that currently provides natural gas service to approximately two million people in more than 140 communities through more than 800,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural owns and operates 21 Bcf of underground gas storage capacity in Oregon. NW Natural, a part of Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), is headquartered in Portland, Oregon, and has been doing business for 165 years. NW Holdings owns NW Natural, NW Natural Renewables Holdings (NW Natural Renewables), NW Natural Water Company (NW Natural Water), and other business interests. We have a longstanding commitment to safety, environmental stewardship, and taking care of our employees and communities. Learn more in our latest ESG Report.

About Modern Hydrogen

Modern Hydrogen is a global leader in distributed hydrogen technologies, specializing in methane pyrolysis and advanced carbon management solutions. Established in 2015 and headquartered in Seattle, Modern Hydrogen leverages existing natural gas infrastructure to deliver practical, clean energy solutions tailored for sectors that are traditionally difficult to decarbonize. With the backing of prominent investors and customers including Bill Gates, NextEra Energy, National Grid, and Northwest Natural, Modern Hydrogen is committed to transforming energy systems to be both cleaner and more cost-effective. Access imagery and videos in our press kit and discover more about our mission and innovations at www.ModernHydrogen.com.

Stefanie Week

stefanie.week@nwnatural.com

Source: NW Natural

FAQ

What is the new project unveiled by NW Natural and Modern Hydrogen?

NW Natural and Modern Hydrogen have unveiled a project that uses methane pyrolysis technology to produce clean hydrogen and capture solid carbon at NW Natural’s Central Resource Center in Portland.

What significant firsts are achieved by NW Natural and Modern Hydrogen's project?

The project marks the first utility-distributed pyrolysis system, the first pipeline injection of pyrolytic hydrogen, and the first solid carbon capture project for both companies.

How is the captured solid carbon used in NW Natural and Modern Hydrogen's project?

The captured solid carbon is incorporated into Modern Hydrogen’s proprietary asphalt products, used in paving and road repair projects.

What infrastructure is used to deliver the clean hydrogen produced by NW Natural's project?

The hydrogen generated is blended with natural gas and delivered via existing energy infrastructure.

What is the duration of the pilot project by NW Natural and Modern Hydrogen?

The duration of the pilot project is three years.

How does the new project align with NW Natural's environmental goals?

The project is part of NW Natural’s broader efforts to explore hydrogen applications and reduce greenhouse gas emissions through decarbonization measures.

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