CCUS & Hydrogen

Within the overall goal of decarbonization, the Pennsylvania Energy Horizons Cross-Sector Collaborative’s work is currently focused on two strategies: carbon capture, utilization and storage (CCUS), and hydrogen. As the United States and the world aggressively pursue decarbonization strategies and work to cut greenhouse gas emissions, competition in the CCUS and hydrogen sectors is increasing rapidly. Together, investing in these technologies and necessary infrastructure will be critical for achieving a lower-carbon future and meeting reduced greenhouse gas emissions targets. Meeting Pennsylvania’s pledge to reduce greenhouse gas emissions 26 percent by 2025 and 80 percent by 2050 requires significant investment in industrial facilities – the source of nearly one-third of all emissions, according to the most recent PA Greenhouse Gas Inventory.

Carbon Capture, Utilization, and Storage (CCUS) 

CCUS represents a suite of technologies that catch and isolate CO2 at industrial facilities before it is emitted into the atmosphere and either use it for industrial applications or permanently store it underground. CCUS technology captures carbon dioxide (CO2) emissions from industrial facilities and power plants that rely on fossil fuels. Once captured, the CO2 can be used on-site in certain industrial processes, transported to other facilities for use, or safely trapped deep underground. Critically, CCUS may reduce as much as 90 percent of CO2 emissions from segments of the industrial sector that are otherwise extremely difficult to decarbonize. CCUS is already in use at over 30 facilities around the world, including in the United States. 

Hydrogen (H2)

Hydrogen (H2) can play a critical role as an energy carrier in reducing carbon dioxide (CO2) emissions from difficult-to-decarbonize industries like manufacturing and transportation. Derived either by splitting water molecules or by burning fossil fuels, hydrogen gas is an extremely useful feedstock and a potent energy carrier. With widespread applications in industrial processes, fuel cells, and in electricity generation, hydrogen can help decarbonize industry and transportation when it is produced with zero- or low-carbon technology. Infrastructure for hydrogen production, transportation, and end-use in Pennsylvania would drive significant job creation and community capital investment across the commonwealth.

CCUS and hydrogen technologies have received significant attention in the recently passed Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). The IRA creates enormous tax incentives for the production of clean hydrogen and increases tax credits on the capture and permanent storage of CO2. The IIJA appropriated billions of dollars to establish regional hydrogen and carbon capture “hubs” throughout the country, and hundreds of millions of dollars to assist states to plan for them.

Due to its abundant energy resources, unique geology, skilled labor force, and strong cross-sector partnerships, Pennsylvania is well-positioned for investment in an emerging hydrogen and carbon capture economy. However, the commonwealth must overcome significant policy hurdles in order to realize a new era in low-carbon energy. In September 2022, the Collaborative released a road map that outlines the path for Pennsylvania for the deployment of hydrogen and carbon capture infrastructure in the commonwealth to meet its climate goals and capitalize on a competitive edge in energy production and industrial manufacturing.