MINNEAPOLIS – December 1, 2022 – CenterPoint Energy (NYSE: CNP), Minnesota's largest natural gas utility, has registered its Minneapolis green hydrogen facility on the M-RETS® Renewable Thermal Tracking System to track renewable thermal certificates (RTCs). CenterPoint Energy's facility, which began operations earlier this year, is the first-ever green hydrogen facility to register with a tracking system in North America and the company is receiving the nation's first RTCs issued for green hydrogen.
RTCs are a tool that represents the environmental attributes associated with renewable natural gas and other renewable thermal commodities, including green hydrogen. CenterPoint Energy plans to retire the RTCs generated from its green hydrogen facility on behalf of its customers.
"We are proud to collaborate with CenterPoint Energy on making green hydrogen RTCs available in the M-RETS Renewable Thermal tracking system," said Ben Gerber, M-RETS President, and CEO. "With new incentives in the Inflation Reduction Act, green hydrogen-producing facilities will grow. This is an important step to establishing the market."
M-RETS manages the RTC platform that validates the environmental attributes of renewable fuels and issues a traceable digital certificate for every dekatherm produced by a renewable thermal generator. RTCs empower buyers to trace and claim renewable fuel consumption from specific facilities across the United States and Canada, allowing them to address the emissions attributable to their natural gas usage.
M-RETS created its Renewable Thermal tracking system in 2020 to increase transparency, spur market development for industries that cannot be electrified, and provide the value and liquidity necessary to support renewable thermal projects. Zero- or low-carbon fuels such as green hydrogen and renewable natural gas offer an alternative to fossil fuels, providing an essential resource for companies to lower their emissions from energy use.
"CenterPoint Energy is committed to evaluating innovative solutions that help reduce emissions to support a cleaner energy future," said Scott Doyle, Executive Vice President, Utility Operations. "With our green hydrogen pilot facility, we are exploring the potential of this zero-carbon energy resource to supplement the conventional natural gas delivered through our local distribution systems to benefit both our customers and the environment."
CenterPoint Energy's green hydrogen system in Minneapolis uses renewable electricity and purified water to produce 60 dekatherms of hydrogen within a 24-hour period. The green hydrogen is added to natural gas in a portion of the utility's local distribution pipeline system, reducing the carbon impact of the gas when burned.
Last year, CenterPoint Energy announced carbon reduction goals to achieve net-zero emissions for certain scope 1 and 2 emissions by 2035 and to reduce its residential and commercial customers' scope 3 emissions by 20-30% by 2035. The company also expects to use a new state law in Minnesota, the Natural Gas Innovation Act, as an opportunity to evaluate investments in zero- or low-carbon energy resources and technologies.
M-RETS® envisions a future powered by clean, sustainable energy practices that prioritize our environment, stimulate our economy, and help our world thrive. As an innovative not-for-profit organization made up of environmental experts, we help generators and suppliers across North America track generated renewable energy outputs and other sustainable resources to place a dollar value on environmental benefits. Through our online platform and trusted quality data, M-RETS is building the transformational digital infrastructure critical for a thriving, decarbonized economy. To learn more, visit MRETS.org.
About CenterPoint Energy, Inc.
As the only investor owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. As of September 30, 2022, the company owned approximately $35 billion in assets. With approximately 8,900 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
Forward Looking Statement:
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as the growth of green hydrogen, the benefits to the company of green hydrogen, including from tracking green hydrogen, and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the impact of disruption to the global supply chain; (2) financial market conditions; (3) general economic conditions; (4) the timing and impact of future regulatory and legislative decisions; (5) effects of competition; (6) weather variations; (7) changes in business plans; and (8) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, CenterPoint Energy's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
Net Zero Disclaimer
While CenterPoint Energy believes that it has a clear path towards achieving its net zero emissions (Scope 1 and Scope 2) by 2035 goals, its analysis and path forward required it to make a number of assumptions. These goals and underlying assumptions involve risks and uncertainties and are not guarantees. Should one or more of its underlying assumptions prove incorrect, its actual results and ability to achieve net zero emissions by 2035 could differ materially from its expectations. Certain of the assumptions that could impact its ability to meet its net zero emissions goals include, but are not limited to: emission levels, service territory size and capacity needs remaining in line with company expectations (inclusive of changes related to the sale of its Natural Gas businesses in Arkansas and Oklahoma); regulatory approval of Indiana Electric's generation transition plan; impacts of future environmental regulations or legislation; impacts of future carbon pricing regulation or legislation, including a future carbon tax; price, availability and regulation of carbon offsets; price of fuel, such as natural gas; cost of energy generation technologies, such as wind and solar, natural gas and storage solutions; adoption of alternative energy by the public, including adoption of electric vehicles; rate of technology innovation with regards to alternative energy resources; our ability to implement our modernization plans for our pipelines and facilities; the ability to complete and implement generation alternatives to Indiana Electric's coal generation and retirement dates of Indiana Electric's coal facilities by 2035; the ability to construct and/or permit new natural gas pipelines; the ability to procure resources needed to build at a reasonable cost, the lack of scarcity of resources and labor, the lack of any project cancellations, construction delays or overruns and the ability to appropriately estimate costs of new generation; impact of any supply chain disruptions; and enhancement of energy efficiencies. In addition, because Texas in an unregulated market, CenterPoint Energy's Scope 2 estimates do not take into account Texas electric transmission and distribution assets in the line loss calculation and exclude emissions related to purchased power between 2024E-2026. CenterPoint Energy's Scope 3 estimates are based on the total natural gas supply delivered to residential and commercial customers as reported in the U.S. Energy Information Administration (EIA) For EIA-176 reports and do not take into account the emissions and transport customers and emissions related to upstream extraction. Please also review the section entitled "Forward Looking Statement" in this news release.