Hydrogen—Future Savior or Dead End for Gas Utilities?
Gas utilities are increasingly looking to hydrogen as an alternative fuel source. Based on the most recent data to the end of May 2022, over 680 large-scale hydrogen project proposals have been announced globally. We expect this number to grow in 2023 as the world races to reduce carbon emissions. At first glance, this lightweight and clean fuel looks like it could be the perfect solution as the world transitions to cleaner energy. It would also allow gas utilities, which could lean into this energy source as a future potential savior, to help with their decarbonization plans and allow them to repurpose their existing infrastructures while minimizing costs and disruptions to customers. However, a number of current challenges with the costs and handling of hydrogen are major stumbling blocks to its widespread adoption as a fuel source for gas utilities.
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