SoCalGas Partners on Project Seeking to Decarbonize Commercial, and Industrial Uses with Hydrogen and Hydrogen Blending

Rhea-AI Summary

Southern California Gas Co. (SoCalGas) announced a collaboration with GTI Energy to investigate hydrogen blending in commercial and industrial processes, targeting emissions reduction and achieving net-zero goals. The project, funded with $752,000 from SoCalGas and a prior $1.77 million grant from the California Energy Commission, aims to assess the feasibility of using up to 100% hydrogen blended with natural gas in hard-to-electrify sectors such as steelmaking and agriculture. Neil Navin, SoCalGas's chief clean fuels officer, emphasized the importance of this initiative in decarbonizing heavy industries. The initiative is part of SoCalGas's broader strategy to foster clean energy solutions, including the proposed Angeles Link hydrogen pipeline, which has received CPUC approval for cost-tracking. This project is expected to contribute significantly to California's energy transition.

Positive

• Collaboration with GTI Energy to study hydrogen blending for decarbonization.
• Funding of $752,000 from SoCalGas and an additional $1.77 million from the California Energy Commission.
• Focus on hard-to-electrify industries like steelmaking and agriculture, which could lead to significant emissions reductions.

Negative

• None.

Project, in partnership with GTI Energy, the University of California, Irvine, and the Electric Power Research Institute, will examine costs, safety and emissions reductions  

LOS ANGELES, April 25, 2023 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) is collaborating with GTI Energy to study the use of hydrogen and hydrogen blending in hard-to-decarbonize commercial and industrial processes, continuing its efforts to help the company and California achieve net-zero aspirations.

The aim of the project is to study the use of hydrogen in heavy equipment, blended with natural gas up to 100 percent hydrogen, with an emphasis on end-uses that cannot easily be electrified. The focus of the study will be on costs, safety, and emissions reductions when introducing hydrogen in commercial and industrial uses. GTI Energy will lead the effort in collaboration with Utilization Technology Development, NFP (UTD), the Electric Power Research Institute (EPRI), the University of California, Irvine (UCI), and the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). SoCalGas has awarded $752,000 to help fund the project, which is in addition to a $1.77 million grant approved by the California Energy Commission in July 2022.

The study will survey large commercial and industrial users to understand which equipment has the highest potential for decarbonization with hydrogen blends, including industries such as steelmaking, glass, cement, aerospace, and agriculture. After identifying those uses, the project team will then test commercial and industrial equipment fuel blending up to 100 percent hydrogen.

"One of California's biggest challenges in achieving net zero is finding ways to decarbonize heavy industries whose functions are difficult or impossible to electrify," said Neil Navin, chief clean fuels officer at SoCalGas. "This collaboration with GTI Energy will help us identify the most promising avenues to decarbonize and take important steps toward reaching net zero through clean fuels."

The project will lean on GTI Energy's significant experience in the field of hydrogen applications across different sectors and aims to provide important outcomes to the industry for hydrogen implementation across multiple end-use sectors.

"We're focused on providing options for SoCalGas's commercial and industrial customers to decarbonize their operations with H2-based fuels, with an eye towards safety, equity, and environmental impacts. Decarbonizing California's businesses and industry is no small task, and we're fortunate in this effort to build on strong partnerships with SoCalGas and other utilities, in addition to an excellent technical team—including EPRI, UC Irvine, and AHRI," said Kristine Wiley, vice president of the Hydrogen Technology Center at GTI Energy.

Hydrogen is set to play a critical part in SoCalGas' – and California's – energy future, particularly in decarbonizing hard-to-electrify sectors such as heavy-duty transportation, power generation, and heavy industries.

Toward that end, SoCalGas is working to develop Angeles Link, a proposed, dedicated clean renewable hydrogen pipeline system that could deliver clean, reliable, renewable energy to the Los Angeles region.

In December, the California Public Utilities Commission (CPUC) approved SoCalGas' request to track costs for advancing the first phase of the project, which could be the nation's largest dedicated clean renewable hydrogen pipeline system and support significantly reducing greenhouse gas emissions from heavy-duty trucks, power generation, industrial processes, and other hard-to-electrify sectors of the Southern California economy. Angeles Link, the [H2] Innovation Experience, and more than a dozen hydrogen demonstration projects SoCalGas is currently pioneering, are all part of its ongoing efforts to help accelerate California's energy transition.

For more information about SoCalGas's hydrogen innovation, visit https://www.socalgas.com/sustainability/hydrogen/.

About SoCalGas
Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, and increasingly renewable gas service to over 21 million consumers across 24,000 square miles of Central and Southern California. Gas delivered through the company's pipelines will continue to play a key role in California's clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment.

SoCalGas's mission is to build the cleanest, safest and most innovative energy infrastructure company in America. In support of that mission, SoCalGas aspires to achieve net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replace 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. SoCalGas is a subsidiary of Sempra (NYSE: SRE), an energy infrastructure company based in San Diego.

For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook.

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise. 

In this press release, forward-looking statements can be identified by words such as "believes," "expects," "intends," "anticipates," "contemplates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," " construct," "develop," "opportunity," "initiative," "target," "outlook," "optimistic," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. 

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include risks and uncertainties relating to: decisions, investigations, inquiries, regulations, issuances or revocations of permits or other authorizations, renewals of franchises, and other actions by (i) the California Public Utilities Commission (CPUC), U.S. Department of Energy, and other governmental and regulatory bodies and (ii) the U.S. and states, counties, cities and other jurisdictions therein in which we do business; the success of business development efforts and construction projects, including risks in (i) completing construction projects or other transactions on schedule and budget, (ii) realizing anticipated benefits from any of these efforts if completed, and (iii) obtaining the consent or approval of partners or other third parties, including governmental and regulatory bodies; litigation, arbitrations and other proceedings, and changes to laws and regulations; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third-parties with which we conduct business, including the energy grid or other energy infrastructure, all of which have become more pronounced due to recent geopolitical events, such as the war in Ukraine; our ability to borrow money on favorable terms and meet our debt service obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook or (ii) rising interest rates and inflation; failure of our counterparties to honor their contracts and commitments; the impact on affordability of our customer rates and our cost of capital and on our ability to pass through higher costs to current and future customers due to (i) volatility in inflation, interest rates and commodity prices, and (ii) the cost of the clean energy transition in California; the impact of climate and sustainability policies, laws, rules, disclosures, and trends, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies and the risk of nonrecovery for stranded assets; our ability to incorporate new technologies into our business, including those designed to support governmental and private party energy and climate goals; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events that disrupt our operations, damage our facilities or systems, cause the release of harmful materials, cause fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms, may be disputed or not covered by insurers, or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas and natural gas storage capacity, including disruptions caused by failures in the pipeline system or limitations on the withdrawal of natural gas from storage facilities; changes in tax and trade policies, laws and regulations, including tariffs, revisions to international trade agreements and sanctions, such as those that have been imposed and that may be imposed in the future in connection with the war in Ukraine, which may increase our costs, reduce our competitiveness, impact our ability to do business with certain counterparties, or impair our ability to resolve trade disputes; and other uncertainties, some of which are difficult to predict and beyond our control. 

These risks and uncertainties are further discussed in the reports that the company has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. 

Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company or Southern California Gas Company, and Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.  

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SOURCE Southern California Gas Company

FAQ

What is the purpose of SoCalGas's hydrogen blending project?

The project aims to examine costs, safety, and emissions reductions of hydrogen blending in commercial and industrial processes.

What funding has SoCalGas allocated for the hydrogen project?

SoCalGas has committed $752,000 for the project, in addition to a $1.77 million grant from the California Energy Commission.

How does SoCalGas plan to reduce emissions in hard-to-electrify sectors?

The company plans to study the use of hydrogen blended with natural gas in sectors like steelmaking, agriculture, and more.

What is the Angeles Link project mentioned in the press release?

The Angeles Link is a proposed hydrogen pipeline system aimed at delivering clean renewable energy to the Los Angeles region.

What are the expected outcomes of the hydrogen blending study?

The study is expected to identify viable options for decarbonizing heavy industries that cannot easily switch to electrification.