Washington state multi-utility Puget Sound Energy Inc. announced a strategic partnership to help its commercial and industrial gas customers deploy Modern Hydrogen Inc.'s on-site hydrogen production and carbon capture and utilization technology.
The partnership will identify customers interested in installing Modern Hydrogen's methane pyrolysis equipment in order to meet their decarbonization goals. Puget Sound Energy and Modern Hydrogen will support technology deployments, conduct market analysis and evaluate customer deployments in site-specific applications, the companies said in a Jan. 29 press release.
Modern Hydrogen's technology separates natural gas into its constituent parts, hydrogen and carbon, at a utility connection point. Customers can blend the hydrogen into their gas supply to lower its carbon intensity and sell the solidified carbon for use in construction materials such as asphalt.
The technology has the potential to help Puget Sound Energy's largest gas customers comply with Washington's clean energy laws, which are among the nation's most ambitious, said Josh Jacobs, vice president of energy strategy and planning at Puget Sound Energy.
Pathway to climate compliance
By law, Washington must reduce greenhouse gas emissions 70% below 1990 levels by 2040 and achieve statewide net-zero emissions by 2050. Under the state's cap-and-invest program, certain companies must comply with greenhouse gas emissions limits, which become more stringent over time.
Modern Hydrogen said its distributed, scalable technology could help companies decarbonize while mitigating strain on the electric grid as end users electrify. State policymakers sought to facilitate increased electrification in Puget Sound Energy's territory through a 2024 law. Voters clawed back parts of that law through a ballot initiative, which was subsequently challenged in court.
Methane pyrolysis is particularly useful in hard-to-electrify sectors like industrial manufacturing and heavy transport, according to Modern Hydrogen.
"We're proud to provide the technologies that enable Washington state's clean energy goals, without the immense cost and wait for new grid infrastructure buildout," Modern Hydrogen CEO Tony Pan said in the press release.
Utility uptake expands
Puget Sound Energy was among the first gas utility operators to launch a hydrogen blending pilot project. The company is also a partner in the Pacific Northwest Hydrogen Hub, one of seven regional hydrogen hubs selected by the US Department of Energy in 2023.
Fellow regional gas distributor Northwest Natural Gas Co. has piloted Modern Hydrogen's technology. Modern Hydrogen also partnered with National Grid USA on a carbon-sequestering asphalt project on Long Island, NY, in fall 2024.
Another utility is using Modern Hydrogen's technology to pilot power generation with a focus on peak shaving. The utility has not disclosed the project yet, Modern Hydrogen told S&P Global Commodity Insights.
Modern Hydrogen's top investors are Gates Frontier, an investment fund backed by Bill Gates, as well as National Grid's venture arm and NextEra Energy Inc. A major energy infrastructure company participated in the company's recent $25 million funding round, the company told Commodity Insights.
