How Washington is advancing hydrogen and renewable fuels

Hydrogen is designed to help reduce greenhouse gas emissions and can be used in a variety of existing energy systems with some modifications. Hydrogen can power fuel cell vehicles such as cars, buses, trucks, and forklifts. It can also be used in turbines to generate electricity. In industry, hydrogen can provide high-temperature heat and serve as a key ingredient in products such as fertilizers, renewable fuels and chemicals.

Commerce’s 2023 legislative report identified specific sectors where green electrolytic hydrogen and renewable fuels are likely to be the most efficient decarbonization pathway in Washington though 2050. Producing hydrogen requires a large amount of energy. Because of this, hydrogen is best used in sectors where cleaner alternatives, such as electrification, are not practical or available.

How hydrogen and hydrogen-derived fuels are used in Washington

The graph above shows projected demand for green hydrogen and renewable fuels in Washington under the “Core Case” scenario from the Green Electrolytic Hydrogen and Renewable Fuels: Recommendations for Deployment in Washington report. The Core Case uses a common set of assumptions about future conditions in Washington and across the United States.

Demand is measured in exajoules, a unit used to describe very large amounts of energy. One exajoule equals one quintillion joules, or roughly 174 million barrels of oil.

The graph shows demand growing significantly between 2021 and 2050. In 2021, green hydrogen and renewable fuels were used primarily for petroleum refining, with demand of about 0.025 exajoules. By 2050, demand is projected to increase tenfold to about 0.25 exajoules, driven largely by uses such as aviation fuel, ammonia and hydrogen for marine fuel, gasoline and diesel production, and liquefied petroleum gas.

Alternative jet fuel (AJF), also called sustainable aviation fuel (SAF), is made from nonpetroleum sources. It can be blended with conventional jet fuel and used in existing aircraft and fuel infrastructure without modifications, making it a “drop-in” fuel (WAC 173-424-110).

Sustainable aviation fuel can be blended with conventional jet fuel at levels ranging from 10% to 50%, depending on the raw materials used and the production method. AJF can be made from materials such as used cooking oil, agricultural waste, municipal solid waste, renewable electricity, captured carbon dioxide and other biomass sources. Compared to conventional jet fuel, AJF produces fewer greenhouse gas emissions and air pollutants over its lifecycle.

Washington is supporting the growth of AJF that meets certain sustainability criteria to help reduce emissions from air travel, improve air quality for airport workers and adjacent communities, and create family wage jobs in clean energy and manufacturing. The state offers incentives for AJF production and use, including tax credits and participation in the Clean Fuel Standard program.

For example, to generate credits under the Clean Fuel Standard (CFS), fuel must have a lower carbon intensity that complies with annual carbon intensity standards. In 2023, the Legislature passed a tax credit for the manufacturing (production and blending) and use of AJF that is at least at 50% reduction in CO2e from conventional fossil jet fuel. (RCW 82.04.4361)

AJF is critical for meeting Washington’s transportation sector decarbonization goals outlined in the Washington 2021 State Energy Strategy. AJF is currently the main commercially available option for reducing emissions from long-distance air travel while newer technologies, such as hydrogen and electric aircraft, continue to develop.

Commerce is advancing AJF through participating in the Alternative Jet Fuel Work Group and the Cascadia Sustainable Aviation Accelerator, both described under Current initiatives and partnerships.

To learn more about alternative jet fuel, visit the US Department of Energy’s Alternative Fuels Data Center.

Sustainable maritime fuels (SMFs) are lower-carbon fuels used to power ships and other maritime vessels. These fuels can help reduce greenhouse gas emissions compared to conventional marine fuels. While there is no set state or federal definition of SMF, Washington’s Clean Fuel Standard (CFS) 2025 rulemaking defined alternative marine fuel as “a watercraft fuel made from liquified natural gas or nonpetroleum sources. Such fuel must have a lower carbon intensity than traditional marine fuel, and only the volume of fuel combusted within Washington waters is eligible for credit generation” (WAC 173-424-110).

SMFs include biofuels, hydrogen, ammonia, green methanol and synthetic fuels. Some biofuels are “drop-in” fuels, which means they can be used in existing ship engines and fuel systems with little or no modification. Other fuels, such as hydrogen, methanol, synthetic fuels, and ammonia, require new infrastructure, vessel technology and safety systems.

Depending on the fuel type and how it is made, SMFs can significantly reduce lifecycle greenhouse gas emissions. For example, fuels made from renewable materials such as waste oils and biomass can lower lifecycle greenhouse gas emissions. Green hydrogen and green ammonia contain no carbon and don’t release carbon emissions when used.

Washington is working to expand the use of sustainable maritime fuels to help reduce transportation emissions and support the state’s maritime industry. The state supports this work through partnerships such as the Sustainable Maritime Fuels Collaborative.

Washington state is a national and global leader in the maritime industry and seeks to grow SMF use to reach the transportation sector decarbonization goals set in the 2021 State Energy Strategy. The report recommends developing Washington’s leadership in the sustainable maritime space alongside Washington’s existing leadership in the maritime industry.

Producing hydrogen requires large amounts of electricity and infrastructure.

Electricity needs

On average, it takes about 50 kilowatt hours (kWh) of electricity to produce one kilogram of H2 through electrolysis. One kilogram of hydrogen provides about 39 kWh of energy. Despite this energy-intensive process, it is valuable to produce and use these fuels when they are deployed in activities or sectors that are not easily served directly with electricity, energy efficiency, or other renewable energy resources.

Transmission and grid capacity

Commerce’s 2024 legislative report, Green Electrolytic Hydrogen and Renewable Fuels Recommendations for Deployment in Washington, found that producing enough green electrolytic hydrogen to meet future demand projects will require significant amounts of new clean electricity and transmission capacity.

The current baseline for in-state green electrolytic hydrogen production via electrolysis is near zero. This report anticipates that Washington will install .8 gigawatts (GW) of electrolysis capacity by 2030 and 4.5 GW of electrolysis capacity by 2035.

To meet the needs of a growing green hydrogen economy alongside other existing and emerging electricity demand sectors, Washington will need to rapidly scale its electricity generation, storage, transmission, and distribution systems.