While natural gas is currently essential to any discussion of emissions reduction and energy efficiency, PGW is actively exploring new energy solutions. We are embracing new and evolving technologies in order to maintain energy sector jobs in Philadelphia and continue to provide Philadelphia customers with affordable, reliable heat and hot water.
Hydrogen
In October 2023 President Joe Biden and public officials from across Pennsylvania visited Philadelphia to announce the launch of $7 Billion for America’s first clean Hydrogen Hubs – one of the seven selected is the Mid-Atlantic Clean Hydrogen Hub (MACH2). As part of MACH2, PGW has joined with the City of Philadelphia, local unions, industry, educational institutions and organizations to connect hydrogen producers and consumers within Delaware, Southern New Jersey and Southeastern Pennsylvania.
The $750 million federal grant awarded to the MACH2 consortium will unlock total regional spending of approximately $3 billion, creating an entirely new regional economy, virtually overnight, which Will create and retain 13,000 to 20,000 well-paying jobs in the low carbon economy and cleaner energy future.
"Given its potential to help address the climate crisis, enhance energy security and resilience, and create economic value, interest in producing and using clean hydrogen is intensifying both in the United States and abroad. Zero- and low-carbon hydrogen is a key part of a comprehensive portfolio of solutions to achieve a sustainable and equitable clean energy future."- U.S. Department of Energy
Clean Hydrogen can:
- Achieve approximately 10% "economy-wide emissions reductions by 2050".
- Create 100,000 jobs by 2030.
Hydrogen is a lightweight, versatile fuel that can be extracted from natural gas. Furthermore, emissions from hydrogen can be captured and used to power wind or gas turbines, or other forms of energy.
Most hydrogen gas is produced through steam-methane reforming, which uses high-temperature steam as a catalyst to produce hydrogen from natural gas. The technology to develop hydrogen gas involves an extensive process and requires significant investment, but results could have significant impact on reducing emissions.
President Biden has issued executive orders committing to the following carbon reduction targets: (i) a 50 percent reduction from 2005 levels of economy-wide net greenhouse gas pollution by 2030; (ii) a 100 percent carbon pollution-free electricity sector no later than 2035; and (iii) net-zero carbon emissions by no later than 2050.
Network Geothermal
In August 2022, PGW gained budget approval through the Philadelphia Gas Commission to explore the feasibility of network geothermal pilot within PGW's service territory.
What is Network Geothermal?
A geothermal system uses wells, piping, and pumps to pull the Earth's heat out of the ground to warm buildings in winter and pumps heat from buildings back into the ground in the summer to coll them. It is a renewable energy that comes from the sun's rays and temperatures produced in the Earth's core. This energy can be used to heat and cool indoor spaces and produce hot water in conjunction with geothermal heat pumps.
What determines a successful pilot?
Several factors will be evaluated to best determine if it is feasible to add geothermal to our offerings for customers.
- Cost to customers
- Benefits to customers
- Customer & community feedback
- Emissions reductions
- Possible billing structures
- Expandability
