CenterPoint Energy (NYSE: CNP) today (June 3) announced that its green hydrogen project in Minneapolis is operational. The project uses renewable electricity to safely split hydrogen from water, and the zero-carbon hydrogen is then blended at low concentrations with natural gas in the utility's local distribution system.
CenterPoint Energy is one of the first natural gas utilities in the United States to produce and add green hydrogen to its distribution system. Because there are no carbon emissions from either its production or end-use, green hydrogen has the potential to be an important zero-carbon supplement to conventional natural gas.
CenterPoint Energy is Minnesota's largest natural gas utility, serving approximately 900,000 residential and business customers in the state. The green hydrogen project is located on existing company property near downtown Minneapolis. The system was designed and packaged by a Minnesota company and the major equipment for the project was made in the U.S.
"CenterPoint Energy is committed to evaluating innovative solutions that reduce carbon emissions and advance a clean energy future," said Scott Doyle, Executive Vice President, Utility Operations. "With this pilot project, we are exploring the potential of green hydrogen as a safe, zero-carbon energy resource that can be delivered through our local gas distribution systems to benefit both our customers and the environment."
The primary goal of the pilot project is to gain operational experience with the technology for making green hydrogen and how it can be integrated most effectively into the local natural gas distribution system to lower the carbon content of delivered energy.
The project's one-megawatt electrolyzer is powered by renewable electricity and can produce up to 60 Dekatherms (432 kilograms) of hydrogen gas per day, using approximately two gallons of water per minute. The water is sourced from the municipal water supply and highly purified before it enters the hydrogen production system.
The green hydrogen produced by the system is added in low concentrations, up to five percent, to the natural gas in a low-pressure section of CenterPoint Energy's local distribution pipeline system. As a substitute for natural gas that would otherwise be used, the green hydrogen is expected to avoid approximately 1,200 tons of CO2 emissions per year.
In 2021, CenterPoint Energy successfully sought passage of the Natural Gas Innovation Act, a landmark new energy law in Minnesota that will allow the utility to invest further in innovative clean energy resources and technologies to reduce emissions, including green hydrogen and renewable natural gas. Later this year, the utility expects to submit its first "innovation plan" under the new law for review and approval by the Minnesota Public Utilities Commission.
Last year, CenterPoint Energy announced industry-leading enterprise-wide carbon reduction goals. They include achieving Net Zero by 2035 for direct emissions resulting from the company's own operations and energy use. The company has also made a goal to reduce its Scope 3 emissions by 20 to 30 percent by 2035.
More information can be found at CenterPointEnergy.com/CleanEnergyMN.
As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. As of March 31, 2022, the company owned approximately $35 billion in assets. With approximately 8,900 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as the use of the green hydrogen project, the amount, timing and continued reduction in carbon emissions as a result of the green hydrogen project, the timing and/or the submission of the CenterPoint Energy's an innovation plan, and CenterPoint Energy's timing and ability to achieve it Net Zero and carbon emissions reductions goals, and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the impact of COVID-19; (2) financial market conditions; (3) general economic conditions; (4) the timing and impact of future regulatory and legislative decisions; (5) effects of competition; (6) weather variations; (7) changes in business plans; and (8) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
Net Zero Disclaimer: While CenterPoint Energy believes that it has a clear path towards achieving its net zero emissions (Scope 1 and Scope 2) by 2035 goals, its analysis and path forward required it to make a number of assumptions. These goals and underlying assumptions involve risks and uncertainties and are not guarantees. Should one or more of CenterPoint Energy's underlying assumptions prove incorrect, its actual results and ability to achieve net zero emissions by 2035 could differ materially from its expectations. Certain of the assumptions that could impact its ability to meet its net zero emissions goals include, but are not limited to: emission levels, service territory size and capacity needs remaining in line with company expectations (inclusive of changes related to the sale of CenterPoint Energy's Natural Gas businesses in Arkansas and Oklahoma); regulatory approval of Indiana Electric's generation transition plan; impacts of future environmental regulations or legislation; impacts of future carbon pricing regulation or legislation, including a future carbon tax; price, availability and regulation of carbon offsets; price of fuel, such as natural gas; cost of energy generation technologies, such as wind and solar, natural gas and storage solutions; adoption of alternative energy by the public, including adoption of electric vehicles; rate of technology innovation with regards to alternative energy resources; CenterPoint Energy's ability to implement its modernization plans for its pipelines and facilities; the ability to complete and implement generation alternatives to Indiana Electric's coal generation and retirement dates of Indiana Electric's coal facilities by 2035; the ability to construct and/or permit new natural gas pipelines; the ability to procure resources needed to build at a reasonable cost, the lack of or scarcity of resources and labor, the lack of any project cancellations, construction delays or overruns and the ability to appropriately estimate costs of new generation; impact of any supply chain disruptions; changes in applicable standards or methodologies; and enhancement of energy efficiencies. In addition, because Texas is in an unregulated market, CenterPoint Energy's Scope 2 estimates do not take into account Texas electric transmission and distribution assets in the line loss calculation and exclude emissions related to purchased power between 2024E-2026E. CenterPoint Energy's Scope 3 estimates are based on the total natural gas supply delivered to residential and commercial customers as reported in the U.S. Energy Information Administration (EIA) Form EIA-176 reports and do not take into account the emissions of transport customers and emissions related to upstream extraction. Please also review other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
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