Two California utilities say they are developing a hydrogen-blending demonstration project in a move to help reduce carbon emissions and to show the energy potential of hydrogen, Kallanish reports.

Joining in the project are Southern California Gas and San Diego Gas and Electric, both subsidiaries of Sempra Energy. The program will be the first of its kind in California and among the first in the US, the two companies say in a statement.

Blending hydrogen with natural gas is being undertaken to decarbonize the natural gas grid in California. The plan is to leverage surplus renewable electricity generated in the middle of the day to produce green hydrogen which can then be injected into the natural gas grid for storage and use. It is a power-to-gas approach.

Both utilities are planning multiple hydrogen-blending projects throughout their territories. The first project will blend hydrogen into an isolated section of primarily polyethylene plastic distribution system in SoCalGas’ service area. The location of that project will be chosen in early 2021

The initial hydrogen blend level is planned at 1% and may increase to as much as 20%, the companies say.

The project still needs approval from California regulators. Also involved is Southwest Gas.

“Our California-based utility businesses are helping build California’s 21st century energy system through deliberate investments in hydrogen, renewable natural gas, fuel cells and carbon capture and storage,” says Kevin Sagara, group president for Sempra Energy and chairman of SoCalGas and San Diego Gas and Electric, in a statement. “This hydrogen-blending program is a key milestone in our efforts to decarbonize our energy system while delivering affordable and reliable energy to 22 million California customers.”

Bill Zobel of the California Hydrogen Business Council hails the announcement as “an exciting development.” The program “will help the public understand that renewable hydrogen is important and a valuable tool for our carbon-neutral future.”

Both companies are also advancing other hydrogen projects.