NiSource (NI) Launches Multi-phase Hydrogen Blending Project
NiSource Inc. NI announced the start of a multi-phase hydrogen blending project, one of the first projects in the United States to use a blending skid in a controlled environment to mix hydrogen and natural gas at precise levels. The idea is to determine the best blend percentages and their benefits for consumers and the environment.
The hydrogen blending skid was built by Columbia Gas of Pennsylvania, a NiSource subsidiary, in collaboration with EN Engineering. It enables the regulated blending of hydrogen into Safety Town's natural gas system at varying percentages in the range of 2-20%.
Highlights of the Project
NiSource intends to have a wide portfolio of energy sources to fulfil its present and future clean energy demands. The company is exploring hydrogen blending to increase sustainability and provide a safe and reliable energy supply to its customers.
NI constructed a specifically designed on-site model home, outfitted with natural gas appliances to imitate daily use in a residential environment in order to show the effectiveness of the mixed fuel. The ongoing field confirmations have determined that hydrogen has a positive impact on natural gas, machinery, pipelines and the overall reduction in carbon emissions caused by blending.
The company will continue to assess the potential of hydrogen-natural gas blends for various uses, such as industries and power plants, throughout the multi-phase hydrogen blending project. Future phases of the program may involve introducing a hydrogen-blend into a live-gas environment, utilizing the company's current gas distribution infrastructure that already provides services to consumers, depending on the outcome and data.
Focus on Hydrogen Blending
Hydrogen is the most abundant element on the planet. It can be generated from a wide range of sources, stored for use in the future, pumped to where it’s needed, and transformed into a clean source of heat and electricity.
The addition of hydrogen to energy mix complements renewable energy sources and could contribute to the ongoing global energy transition. Per a report from energynetworks association, blending up to 20% of hydrogen into the gas grid with existing natural gas could save around 6 million tons of carbon dioxide emissions every year.
According to an International Energy Agency report, the number of countries with polices that directly support investment in hydrogen technologies is increasing, along with the number of sectors they target.
Along with NI, some other utilities like Dominion Energy, Inc. D, NewJersey Resources NJR and Sempra Energy SRE are also adopting hydrogen projects to meet clean-energy targets.
In April 2023, Dominion Energy Utah took the next step in its hydrogen blending journey by bringing a 5% blend of hydrogen and gas to a Utah community. The tests found that a 5% hydrogen blend was safe and effective in reducing emissions from natural gas appliances.
D’s long-term (three- to five-year) earnings growth rate is 4%. It delivered an average earnings surprise of 4.3% in the last four quarters.
In 2023, NJR completed the first year of operation of New Jersey Natural Gas’ milestone green hydrogen blending facility that showcases the real-world value of its pipeline infrastructure to integrate, store, transport and deliver blended green hydrogen.
NJR’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 120.8% in the last four quarters.
With a focus on innovation and sustainability, Sempra is advancing more than 20 hydrogen research and development projects to enhance grid resilience and help decarbonize the economy. It is collaborating with strategic research partners, jointly funding nearly $140 million in the last two years for research, development and demonstration initiatives in the areas of cleaner fuels, hydrogen technology and infrastructure.
SRE’s long-term earnings growth rate is 4.95%. It delivered an average earnings surprise of 9.8% in the last four quarters.
Price Performance
In the past six months, shares of NiSource have lost 17.3% compared with the industry’s 19.2% decline.
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Zacks Rank
NiSource currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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