The natural gas and oil industry is calling on policymakers to treat all forms of low-carbon hydrogen equally when doling out incentives in order to maximize the reduction of climate-warming greenhouse gas (GHG) emissions.

Namely, so-called “blue” hydrogen, separated from natural gas in combination with carbon capture and sequestration (CCS), should not be put at a disadvantage to “green” hydrogen, according to the American Petroleum Institute (API). The green label applies to hydrogen split from water via electrolysis powered by carbon-free electricity.

A new study commissioned by the energy industry lobbying group found that blue hydrogen could eliminate an additional 180 million metric tons/year (mmty) of GHG emissions on average through 2050 if incentives were...