CNX Resources Proposes $1.5B Hydrogen Facility at Pittsburgh Airport using Coal Mine Methane, Pending Biden Administration Tax Credit Approval

CNX Resources, a natural gas producer, has announced plans to construct a $1.5 billion hydrogen-production facility at Pittsburgh International Airport, subject to approval from the Biden administration’s tax credits scheme aimed at combating climate change. The proposed project involves the utilization of methane released from coal mines, which environmental groups oppose due to its contribution to greenhouse gas emissions. The administration has yet to release a final rule regarding the tax credits, and it remains uncertain whether coal mine methane will be eligible. Top Pennsylvania officials, including Senator Bob Casey, and local unions support the initiative, which is expected to provide thousands of construction jobs and reduce greenhouse gas emissions by 84%. The project’s viability hinges on a tax credit to make the derived hydrogen competitive, according to CNX executives. The Treasury Department’s proposed regulation, published in December, suggests that qualifying hydrogen projects utilizing coal mine methane will be permitted. However, green energy advocates have expressed concerns about the project’s potential to prolong reliance on fossil fuels rather than promoting genuinely carbon-free alternatives. Lobbying is ongoing as the administration weighs the final rule, with the midterm elections approaching in November.