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Scope 1  ·  2.2.1

Hydrogen

Transitioning industrial processes that currently use fossil-fuel-derived hydrogen (grey/brown H₂) or natural gas to low- and zero-carbon hydrogen (green or blue H₂) to reduce direct Scope 1 process emissions. Green hydrogen is produced via electrolysis powered by renewable electricity; blue hydrogen uses natural gas with carbon capture.

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Self-Assessment

Select where your organization currently operates and where you want to get to. There is no obligation to reach "Leading Org." — choose the target that is right for your business context and investment capacity.

📍 Current Level
🎯 Target Level
Select your current and target levels above to map your assessment on this initiative.
Fundamental
Market Standard
Above Average
Leading Org.

Technology

  • Existing grey hydrogen supply (SMR from natural gas) with no carbon capture
  • Basic hydrogen consumption metering and emissions tracking
  • Assessment of current H₂ purity requirements and process compatibility

Process

  • Conducting a hydrogen value chain emissions audit (well-to-gate)
  • Evaluating feasibility of blue hydrogen (SMR + CCS) as a near-term lower-carbon alternative
  • Engaging existing H₂ suppliers on low-carbon product availability and pricing

Financing

  • Hydrogen purchases at market commodity rates with no carbon premium
  • Internal budget for feasibility studies and audits

Technology

  • Fundamental Technologies +
  • Blue hydrogen procurement via long-term supply contracts with CCS-equipped producers
  • Pilot-scale green hydrogen electrolysis system (PEM or alkaline) powered by grid or onsite renewables
  • H₂ blending trials in existing burners or industrial processes (up to 20% blend)

Process

  • Developing a hydrogen transition roadmap with volume and cost milestones
  • Assessing electrolyzer siting, water supply, and power requirements for onsite production
  • Evaluating pipeline vs. tube trailer delivery logistics for procured H₂

Financing

  • IRA Section 45V clean hydrogen production tax credit (up to $3/kg) modeled into project economics
  • DOE hydrogen hub grants and loan programs evaluated for capital support

Technology

  • Market Standard Technologies +
  • Commercial-scale onsite green hydrogen electrolysis powered by dedicated renewable PPAs
  • Full H₂ combustion in industrial burners, kilns, or turbines (100% H₂ or high-blend)
  • Hydrogen storage (compressed or liquid) to buffer production and consumption variability

Process

  • Integrating green H₂ production with renewable energy procurement strategy (Scope 2 alignment)
  • Achieving verified low-carbon hydrogen certification (e.g., CertifHy, HECO₂ standard)
  • Evaluating H₂ as feedstock replacement in chemical or refining processes

Financing

  • Electrolyzer financed via project finance with PPA-backed revenue stream
  • Green hydrogen supply contracts with industrial offtakers to share cost and credit

Technology

  • Above Average Technologies +
  • Fully integrated green hydrogen hub: electrolysis + renewable generation + storage + process delivery
  • Solid oxide electrolyzer (SOEC) or next-gen electrolysis technology for higher efficiency
  • H₂ as both fuel and industrial feedstock across multiple process streams

Process

  • Real-time optimization of H₂ production, storage, and dispatch based on renewable availability and process demand
  • Publishing verified Scope 1 emissions reductions from H₂ transition against SBTi industrial targets
  • Participating in regional H₂ hubs and infrastructure consortia

Financing

  • Bundled financing across electrolysis, renewables, storage, and process retrofit as integrated decarbonization project
  • Monetizing 45V credits and potential carbon credits from certified green H₂ production

Related Pathways

← All Pathways 1.2.2 CCUS 1.2.3 Industrial Electrification 1.2.6 CHP / Cogen