The nation’s largest municipal utility and largest investor-owned natural gas distributor have joined a green hydrogen-buying coalition, HyDeal LA, to create commercial-scale buying for the Los Angeles area.

Sempra Energy’s Southern California Gas Co. (SoCalGas) and the Los Angeles Department of Water and Power (LADWP) have joined the effort to “achieve at-scale green hydrogen procurement” at $1.50/kilogram in the Los Angeles Basin by 2030.

Hydrogen “will play an important part in helping SoCalGas reach our goal of achieving net-zero emissions by 2045,” CEO Scott Drury said. “The confluence of geography, visionary climate policies, and public-private partnerships like HyDeal LA mean we are well positioned to develop transformative, pragmatic and globally scalable...