Bellevue, WA – January 29, 2025 – Puget Sound Energy (PSE) and Modern Hydrogen have formed a strategic partnership to advance decarbonization technology for commercial and industrial customers across Washington state.
Innovative Carbon Removal Technology Addresses Hard-to-Decarbonize Sectors
The collaboration focuses on implementing distributed methane pyrolysis technology that removes carbon from natural gas at the point-of-use. This breakthrough approach specifically targets Washington’s most challenging industrial sectors, offering a practical path to reduce CO2 emissions without requiring extensive grid infrastructure upgrades.
Modern Hydrogen’s technology operates by separating natural gas into hydrogen and solid carbon at the customer’s location. This point-of-use solution eliminates transportation challenges while producing clean hydrogen that can directly replace fossil fuels in various industrial processes, including high-temperature heating, steam production, and manufacturing operations.
“PSE is undergoing the most significant transformation in our history as we strive to meet Washington state’s clean energy laws,” said Josh Jacobs, PSE Vice President of Energy Strategy and Planning. “Our partnership with Modern Hydrogen is a significant step towards achieving this vision, as their technology has the potential to help our largest gas customers accelerate their decarbonization programs.”
Industrial Decarbonization Challenges and Solutions
Industrial sectors account for approximately 23% of Washington’s greenhouse gas emissions, with many processes requiring high-temperature heat that is difficult to electrify. The partnership addresses these challenges by:
- Providing a drop-in solution that works with existing natural gas infrastructure
- Enabling emissions reduction without requiring complete system replacement
- Creating a pathway for gradual transition to fully renewable energy systems
“Many industrial processes require substantial heat that’s challenging to generate with electricity alone,” explains Tony Pan, CEO of Modern Hydrogen. “Our technology bridges this gap by delivering clean hydrogen through existing infrastructure, significantly reducing both carbon emissions and implementation costs.”
Partnership Details and Implementation Strategy
Under the Memorandum of Understanding (MOU), the companies will:
- Support commercial and industrial customer decarbonization goals
- Conduct comprehensive market analysis
- Evaluate the technical and economic viability of Modern Hydrogen’s solutions for specific customer applications
- Develop pilot projects with key industrial customers in Washington state
- Create implementation roadmaps for scaling successful applications
The initial focus will be on energy-intensive industries including food processing, paper manufacturing, and chemical production—sectors that have traditionally faced significant barriers to decarbonization.
Economic and Environmental Benefits
Beyond environmental advantages, the partnership aims to deliver tangible economic benefits:
- Reduced compliance costs for businesses subject to carbon regulations
- Potential carbon credits for early adopters
- Preservation of industrial jobs while meeting climate goals
- Development of a local clean hydrogen supply chain and workforce
Pan emphasized the practical advantages: “We’re providing technologies that enable Washington state’s clean energy goals, without the immense cost and wait for new grid infrastructure buildout.”
Washington State’s Growing Hydrogen Economy
This partnership strengthens Washington’s position in the emerging clean hydrogen economy and complements regional initiatives like the Pacific Northwest Hydrogen Hub. The collaboration aims to develop scalable, localized hydrogen solutions that reduce emissions while supporting economic growth and energy resilience across the region.
Washington state has established ambitious climate targets, including a 45% reduction in greenhouse gas emissions by 2030 and a 95% reduction by 2050. Innovative technologies like distributed methane pyrolysis represent critical tools for achieving these goals, particularly in hard-to-abate industrial sectors.
About Puget Sound Energy
Puget Sound Energy serves approximately 1.2 million electric customers and 900,000 natural gas customers across 10 Washington counties. As Washington’s largest utility, PSE is actively transitioning to meet the state’s ambitious clean energy requirements while maintaining safe and reliable energy delivery.
The utility has committed to being coal-free by 2025 and carbon-neutral by 2030, with a goal of 100% clean electricity by 2045. This partnership with Modern Hydrogen represents one of several strategic initiatives PSE is pursuing to reduce emissions across its entire energy portfolio.
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