Hydrogen’s thirst: How much water supply is required for sustainable energy?
March 04, 2025
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Hydrogen development demands industrial water. The planning process must factor in new energy sources, water planning, and reuse.
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Never in history has water been scaled to serve as a reliable and long-term raw source for energy production. This is one trade-off to moving from conventional to new forms of energy. On one hand you are reducing carbon emissions. But on the other hand you are increasing the demand for industrial water resources.
The amount of water on Earth is finite, so it’s crucial to use it wisely. Since we can’t create more water, we need to meet demand through better global planning, water reuse, and using less conventional industrial water sources. With the high demand for water, we are seeing many clients look into wastewater reuse. Even some of the nastiest sources, like oilfield-produced water, opens the door for gaining long-term rights.
You likely know that energy and water systems rely on each other. But did you know the increasing level of demand for both? The growing energy demand will need industrial water to support its growth. This is also true for newer forms of low-carbon energy like hydrogen. Hydrogen will play a crucial role in the energy transition and in cutting global greenhouse gas emissions. What’s more, the demand for data centers to support artificial intelligence tools will also increase energy needs. For energy to grow and stay reliable, abundant, and affordable, our team is excited to work with clients to consider industrial water resources in our planning.
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The need for industrial water grows as the demand for energy increases.
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Hydrogen’s role
Using water to generate low-carbon intensity (LCI) hydrogen as a fuel can be part of the global energy solution. Hydrogen is an abundant resource that is energy dense and easy to transport. Energy from wind and solar can prove difficult to transmit and store. Hydrogen produced by electrolysis of water, using electricity to split oxygen and hydrogen, is clean and efficient.
LCI hydrogen and its derivatives seems to be one solution that can impact portions of the energy supply chain. These can help decarbonize sectors like transit, shipping, fertilizer, and heavy industries such as steel, concrete, and chemicals. The National Petroleum Council says using LCI H2 at scale could address up to 8 percent of emissions reductions required to reach net zero. The combustion of hydrogen with atmospheric oxygen creates water as its byproduct instead of CO2.
This is why many corporations, communities, and nations are going all in on hydrogen. The National Petroleum Council expects production to grow significantly in the coming years. It predicts growth between 200 percent and 800 percent by 2050 in just the US.
" }Using water to generate low-carbon intensity (LCI) hydrogen as a fuel can be part of the global energy solution.
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Hydrogen’s challenges
For this energy source to take off, we must first assess the constraints of hydrogen development. The challenges include:
- The creation of a market for hydrogen and willing early mover customers (offtake)
- Getting community support for new industrial facilities and processes like carbon capture and storage (CCS)
- Building transmission infrastructure to deliver electricity
- Establishing long-term access to a reliable industrial water supply
The Department of Energy’s (DOE) has a goal of producing 50 million metric tons of hydrogen annually. The DOE states that 3.2 trillion gallons of additional water per year will be needed to supply this new clean fuel industry. This equates to around nine times the annual water demand of New York City—the largest water-supply system in the US.
Addressing water supply
Industrial water sources often include diverting surface water and pumping groundwater. Going forward, we must change the lax approach to industrial water management. To provide reliable sourcing in the long term, we need to look into innovative solutions and reuse strategies. These sources include:
- Reusing municipal wastewater
- Desalinating seawater and brackish groundwater
- Industrial wastewater (possibly including oilfield water)
- Water reuse and capturing from hydrogen combustion
There are safety, economic, and environmental impacts that come with the new industrial water uses, hydrogen production and transport, and CCS. The rules for these industries are changing, with key roles for federal, state, and local agencies. As an example, the use of hydrogen as a fuel is not new, but the industry is still debating whether it falls within the definition of “natural gas,” “oil,” or “a commodity other than ... gas or oil.” These fuel types are regulated differently. Federal, state, and local governments are constantly reviewing these new industries, so regulations will continue to change in relation to needs.
Our field is conducting studies, which some of us have been involved in, to further understand the areas affected by the energy transition.
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A hydrogen energy facility.
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The creation of a hydrogen economy, with “hubs” that will become the center of a new energy ecosystem, will result in a large draw on local resources. This will especially true of industrial water. The production of LCI hydrogen as a fuel elevates the importance of reliable water sourcing due to its use as a raw material. Sustainable industrial water sourcing and disposal will be an ongoing challenge to solve in the earliest stages of project planning. These should be of equal importance to the availability of power and offtake.
When planning new hydrogen projects, it’s essential to evaluate the location and water risk. It’s likely the facility will have a 20-plus year lifetime. So, consider the availability and water rights to provide a reliable supply for that time frame. These projects also come with challenges around permitting, water disposal, and the acceptance of stakeholders and communities impacted by the use of the water (i.e., social license). Other water sources could offer benefits in long-term availability, cost, permitting, and social license. They should be strongly considered. Consider win-win solutions like leak detection and water reuse to enhance water stewardship and sourcing resilience.
As we look to increase energy while decreasing emissions, we must equip the industrial water resources that are helping us make that transition. To meet the growing demand for energy, we must get creative with the water sources that fuel it.
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