California Utility Plans Largest U.S. Green Hydrogen Network for LA

(Bloomberg) -- Sempra Energy’s Southern California Gas Co. utility is proposing to develop what it says would be the largest U.S. green hydrogen pipeline system, part of an effort to reduce greenhouse gas emissions and help California meet its ambitious climate targets. 

The new pipeline network would deliver so-called green hydrogen produced from renewable energy in the eastern part of California to the Los Angeles region, where the clean-burning fuel could be used for power generation, heavy-duty trucks and manufacturing, Maryam Brown, president of SoCalGas, said in an interview. 

The project has the potential to displace by almost 25% the natural gas now delivered by SoCalGas, Brown said. Combined with other future clean energy projects, the green hydrogen delivery system could help facilitate the eventual retirement of the massive Aliso Canyon natural gas storage facility, site of the largest methane leak in U.S. history. 

“This is a major jump-off point for something transformative for our region and the state,” Brown said. 

The announcement comes as SoCalGas -- the nation’s largest natural gas utility -- has found itself confronting local and state efforts to phase out the use of natural gas because of its contribution to climate change. SoCalGas has said its committed to meeting the state’s greenhouse-gas reduction targets and plans to become carbon-neutral by 2045.   

SoCalGas will need regulators to sign off on its plans to develop green hydrogen pipelines. The utility filed a request with the California Public Utilities Commission on Thursday for permission to track the initial costs for studying and designing the project, which it estimates could be about $118 million for the first two phases. 

The ultimate cost of the project is unknown and will depend on details of the proposed pipelines that have yet to be developed. 

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