Peoples Natural Gas, H Quest, and University of Pittsburgh Team to Produce and Test Hydrogen Energy from Natural Gas

Rhea-AI Summary

Peoples Natural Gas, H Quest, and the University of Pittsburgh have launched a pilot project in Western Pennsylvania to produce zero-emission hydrogen energy. This initiative, using H Quest’s microwave pyrolysis units, converts natural gas into pure hydrogen and solid carbon byproducts without CO2 emissions. The clean hydrogen, referred to as 'turquoise hydrogen,' is tested in various blends with natural gas to evaluate its impact on pipelines and appliances. The project aims to make hydrogen an affordable and zero-emission energy source, potentially transforming the energy landscape by reducing greenhouse gas emissions and creating valuable byproducts like carbon black.

Positive

• Innovative zero-emission hydrogen production technology.
• Potential to transform energy sector with affordable, clean hydrogen.
• Collaboration with University of Pittsburgh for comprehensive testing.
• Utilizes local natural gas resources, reducing transportation costs.
• Creates valuable byproducts like carbon black, offsetting hydrogen production costs.
• Supports decarbonization while leveraging existing natural gas infrastructure.
• Regulatory commitment to low-cost gas for customers.

Negative

• No immediate integration of hydrogen into distribution lines.
• Hydrogen blending with natural gas still in testing phase, not yet commercial.
• Uncertainty regarding the long-term effects on pipeline materials.
• Potential cost and logistical challenges in scaling up the technology.

Insights

Energy Market Analyst

The partnership between Peoples Natural Gas, H Quest and the University of Pittsburgh introduces a pioneering approach to hydrogen production that could significantly impact the energy market. This hydrogen production process leverages microwave pyrolysis to transform natural gas into hydrogen without CO2 emissions, potentially offering a sustainable and economically viable alternative to traditional fossil fuels. The technology produces turquoise hydrogen and carbon black, a useful industrial byproduct.

From an investor's perspective, this innovation could position these companies at the forefront of the renewable energy sector. Current global efforts towards decarbonization amplify the relevance of such projects. A successful demonstration might attract significant investment, government support and create new revenue streams from hydrogen and byproducts like carbon black.

However, the key challenge lies in the scalability of this technology and the economic feasibility of hydrogen production at a competitive cost. Investors should watch for updates on the practical application and the economic metrics of this pilot project.

Environmental Scientist

This hydrogen production initiative is a notable stride towards achieving environmental sustainability. The use of microwave pyrolysis to split natural gas into hydrogen and solid carbon eliminates direct carbon emissions, making it a potentially zero-emission solution. The production of carbon black, a valuable industrial material, further adds to the environmental benefits by utilizing byproducts efficiently.

However, it's critical to ensure the entire lifecycle of this process remains environmentally friendly. While the production phase is zero-emission, the upstream extraction of natural gas and downstream application of hydrogen blends need to be carefully monitored for any indirect environmental impacts.

Overall, this project positions itself as a promising environmentally friendly innovation, aligning with global emission reduction targets.

Material Science Expert

The involvement of the University of Pittsburgh’s material scientists is essential, as it addresses the material integrity concerns associated with hydrogen blending in existing gas pipelines. Hydrogen can cause embrittlement in certain metals, which may compromise the safety and reliability of the infrastructure. By empirically testing various hydrogen blends under controlled conditions, this research aims to identify suitable materials and ensure the long-term durability of the pipeline systems.

The ability to seamlessly integrate hydrogen into existing natural gas networks without significant infrastructure upgrades could be a major cost-saving factor. Investors should note the importance of these tests, as positive results could significantly enhance the commercial viability and scalability of hydrogen energy solutions.

This research adds a layer of confidence in the safe deployment of this innovative technology.

Hydrogen production process converts natural gas into pure hydrogen and a solid carbon byproduct; could provide breakthrough for hydrogen as economic, zero-emission energy source

PITTSBURGH--(BUSINESS WIRE)-- An innovative demonstration project that will attempt to create zero-emission hydrogen energy at the scale needed for widespread adoption is now underway in Western Pennsylvania. Peoples, an Essential Utilities company, leads the pilot with support from Pittsburgh-based energy technology start-up company H Quest and the University of Pittsburgh’s Swanson School of Engineering. The testing is one of multiple ways Essential and Peoples are working to be leaders in hydrogen.

First, Peoples installed one of H Quest’s proprietary microwave pyrolysis units at its training center in McKeesport to transform natural gas into pure hydrogen (H2) without CO₂ emissions. The process creates what is often referred to as turquoise hydrogen. Roughly the size of a shipping container, technology within the unit heats the natural gas as it flows through the system in an oxygen-free setting. This almost instantaneously “cracks” the gas into two distinct byproducts: clean H2, and a solid carbon material called carbon black: an industrial product used as a crucial component in batteries, paints, pigments, rubber products, tires, and more. H Quest’s system will produce hydrogen directly from natural gas without CO₂ emissions.

Peoples then blends the hydrogen with natural gas at various ratios to assess impacts on physical pipeline operations and various home appliances. The ongoing blending and testing at the Peoples Training Center in McKeesport occurs within a closed-loop system; H2 is not inserted into distribution lines that serve customers at this point.

“Our mission to provide safe, reliable, and affordable natural gas is based on a commitment to make lives better,” said Peoples President Michael Huwar. “That commitment means pursuing innovations that leverage our local abundance of natural gas while placing a focus on decarbonization. At the same time, we have a regulatory commitment to purchase gas at the lowest cost for our customers. Supporting technological advancements that allow hydrogen to be produced at a scale that makes H2 affordable is critically important.”

Peoples co-hosted two conferences bringing together regional and national leaders in hydrogen technology and policy, and began a research project with Pitt in 2022 to study the impacts of hydrogen on existing natural gas delivery systems. That work provides valuable benchmarks for this multi-phase pilot.

Turquoise hydrogen may solve multiple challenges that have kept hydrogen from large-scale adoption. By extracting the carbon from natural gas as a solid material, greenhouse gas emissions that are typically associated with conventional hydrogen production can be entirely prevented. These solid carbon products, such as carbon black and graphene, would be sold to offset the cost of hydrogen fuel. H Quest’s distributed modular package reduces the need for and costs of transportation and infrastructure upgrades required to deliver the fuel to the customer, and may in some cases even eliminate them altogether. This changes the financial model to make hydrogen energy competitive with standard natural gas and other alternatives.

“We appreciate the support and contributions from Peoples that allows us to pilot our system at a prospective customer’s facility,” said H Quest CEO and Founder George Skoptsov. “This pilot is instrumental in demonstrating that our microwave pyrolysis technology can help the natural gas industry to significantly reduce overall carbon dioxide emissions while creating valuable, in-demand products that change the calculus for hydrogen energy.”

In conjunction with the operational testing in McKeesport, Pitt’s material scientists will evaluate the influence of hydrogen blends on the integrity of Peoples’ commonly used pipeline material in a controlled environment. Pitt will test H2–natural gas blends ranging from 5 – 20% hydrogen to see how each interacts with different pipeline materials. The ultimate goal: providing low-cost energy that is just as safe and reliable as natural gas, but with reduced emissions.

“This is a special opportunity to conduct materials testing under the practical conditions provided by this H2 demonstration facility,” said Dr. Brian Gleeson, Professor and Chair of the Mechanical Engineering and Materials Science Department at Pitt. “The results will guide materials selection for the safe and long-term delivery of H2–natural gas blends to Peoples’ customers in the future.”

For more about Peoples’ efforts in hydrogen and an in-depth video explanation of the collaboration between Peoples, Pitt and H Quest, visit www.Peoples-Gas.com/hydrogen.

About Peoples Natural Gas

Peoples, an Essential Utilities (NYSE:WTRG) company, provides clean, safe, affordable and reliable natural gas service to approximately 740,000 homes and businesses in Western Pennsylvania and Kentucky. Peoples is committed to its customers, its employees, the environment, and to the regions it serves.

About Essential Utilities

Essential Utilities, Inc. (NYSE:WTRG) delivers safe, clean, reliable services that improve quality of life for individuals, families, and entire communities. With a focus on water, wastewater and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience, and premier employer status. We are advocates for the communities we serve and are dedicated stewards of natural lands, protecting more than 7,600 acres of forests and other habitats throughout our footprint.

Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across 9 states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S.

About H Quest

H Quest provides decarbonization solutions and produces zero carbon emissions products by economically converting natural gas into hydrogen and valuable carbon solids. The Company is based in Pittsburgh and targets commercial deployment of its systems in early 2025.

About the University of Pittsburgh Swanson School of Engineering

The University of Pittsburgh’s Swanson School of Engineering is one of the oldest engineering programs in the U.S. and excels in basic and applied research with focus areas in sustainability, energy systems, advanced manufacturing, bioengineering, micro- and nano-systems, computational modeling, and advanced materials development. More than 210 faculty members serve nearly 3,600 undergraduate, graduate and PhD students across six departments: bioengineering, chemical and petroleum, civil and environmental, electrical and computer, industrial, and mechanical and materials science.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others: the potential for the project to provide a breakthrough for hydrogen as economic, zero-emission energy source and that “turquoise hydrogen” may solve multiple challenges that have prevented hydrogen from large scale adoption. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including; the success of the project and other factors discussed in our Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with Essential Utilities business, please refer to Essential Utilities annual, quarterly and other SEC filings. Essential Utilities is not under any obligation — and expressly disclaims any such obligation — to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

WTRGG

View source version on businesswire.com: https://www.businesswire.com/news/home/20240610258169/en/

Peoples/Essential Media Contact:

Nick Paradise

External Communications Manager

Media Hotline: 1.877.325.3477

Nick.Paradise@Peoples-Gas.com

Essential Investor Contact:

Brian Dingerdissen

Vice President, IR and Treasurer

O: 610.645.1191

BJDingerdissen@Essential.co

H Quest Media Contact:

Haley Norton

Manager, Operations and People

330.703.4319

haley.norton@h-quest.com

Pitt Swanson School of Engineering Contact:

Paul Kovach

University of Pittsburgh

412-624-0265

paulkovach@pitt.edu

Source: Essential Utilities, Inc.

FAQ

What is the purpose of the project involving Peoples Natural Gas and H Quest?

The project aims to produce zero-emission hydrogen energy from natural gas using H Quest’s microwave pyrolysis technology, creating a clean and affordable energy source.

How does H Quest's technology produce hydrogen?

H Quest's microwave pyrolysis technology converts natural gas into pure hydrogen and a solid carbon byproduct without emitting CO2, creating what is known as turquoise hydrogen.

What are the benefits of turquoise hydrogen?

Turquoise hydrogen is an affordable, zero-emission energy source that can reduce greenhouse gas emissions and produce valuable byproducts like carbon black.

What is the role of the University of Pittsburgh in this project?

The University of Pittsburgh is evaluating the impact of hydrogen-natural gas blends on pipeline materials to ensure safe and long-term delivery to customers.

Where is the hydrogen production and testing taking place?

The production and testing are being conducted at Peoples Natural Gas' training center in McKeesport, Pennsylvania.

Is the hydrogen being used in customer distribution lines?

No, the hydrogen is not yet being integrated into distribution lines serving customers, as it is still in the testing phase.

What are the main byproducts of H Quest's hydrogen production process?

The main byproducts are pure hydrogen and solid carbon materials like carbon black, used in various industrial applications.

How will this project impact Peoples Natural Gas' customers?

The project aims to provide low-cost, zero-emission hydrogen energy that is safe and reliable, potentially reducing energy costs and emissions in the long term.