How Washington Is Advancing Hydrogen and Renewable Fuels

June 18, 2026

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(Washington State Department of Commerce) Washington is working with state and local governments, utilities, industry, tribes and communities to support cleaner fuels and energy systems.

Hydrogen is expected to help reduce greenhouse gas emissions and air pollution in parts of Washington’s economy that are difficult to decarbonize. Washington state is already working with utilities and other partners to speed up and improve the electrical grid to ensure reliability, affordability, and compliance with the Clean Energy Transformation Act (CETA).

Key hydrogen uses

Hydrogen is designed to help reduce greenhouse gas emissions and can be used in a variety of existing energy systems with some modifications. Hydrogen can power fuel cell vehicles such as cars, buses, trucks, and forklifts. It can also be used in turbines to generate electricity. In industry, hydrogen can provide high-temperature heat and serve as a key ingredient in products such as fertilizers, renewable fuels and chemicals.

Commerce’s 2023 legislative report identified specific sectors where green electrolytic hydrogen and renewable fuels are likely to be the most efficient decarbonization pathway in Washington though 2050. Producing hydrogen requires a large amount of energy. Because of this, hydrogen is best used in sectors where cleaner alternatives, such as electrification, are not practical or available.

How hydrogen and hydrogen-derived fuels are used in Washington

Hydrogen and hydrogen-derived fuels in Washington by end use

The graph above shows projected demand for green hydrogen and renewable fuels in Washington under the “Core Case” scenario from the Green Electrolytic Hydrogen and Renewable Fuels: Recommendations for Deployment in Washington report. The Core Case uses a common set of assumptions about future conditions in Washington and across the United States.

Demand is measured in exajoules, a unit used to describe very large amounts of energy. One exajoule equals one quintillion joules, or roughly 174 million barrels of oil.

The graph shows demand growing significantly between 2021 and 2050. In 2021, green hydrogen and renewable fuels were used primarily for petroleum refining, with demand of about 0.025 exajoules. By 2050, demand is projected to increase tenfold to about 0.25 exajoules, driven largely by uses such as aviation fuel, ammonia and hydrogen for marine fuel, gasoline and diesel production, and liquefied petroleum gas.

REACH technical assistance program

In partnership with the Washington State University Energy Program and CHARGE, Commerce launched a new program, Resources for the End-Use Advancement of Clean Hydrogen (REACH). This is Washington state’s first program designed to provide technical assistance to Washington end users, like businesses, fleets, facilities, communities, and tribal nations, who are considering whether hydrogen or renewable fuels may play a role in their future operations but need additional technical assistance to evaluate and plan.

The program offers guidance, expert support, and public resources for advancing clean hydrogen use. Any organization interested in exploring clean hydrogen can submit an intake form to connect with the team and be matched with technical assistance – no application or minimal qualifications needed.

The program will seek to support equity and environmental justice, including through the use of recommendations and best practices developed in Commerce’s Environmental Justice Toolkit for Hydrogen Project Developers. The toolkit includes recommendations for various project development stages including early planning.

This program is available through June 30, 2027, and has a budget of just under $1 million, funding supported by Washington’s Climate Commitment Act. Visit the program website for more information and to submit an intake form: https://jcdream.org/charge/reach-program/.

Alternative jet fuel

Alternative jet fuel (AJF), also called sustainable aviation fuel (SAF), is made from nonpetroleum sources. It can be blended with conventional jet fuel and used in existing aircraft and fuel infrastructure without modifications, making it a “drop-in” fuel (WAC 173-424-110).

Sustainable aviation fuel can be blended with conventional jet fuel at levels ranging from 10% to 50%, depending on the raw materials used and the production method. AJF can be made from materials such as used cooking oil, agricultural waste, municipal solid waste, renewable electricity, captured carbon dioxide and other biomass sources. Compared to conventional jet fuel, AJF produces fewer greenhouse gas emissions and air pollutants over its lifecycle.

Washington is supporting the growth of AJF that meets certain sustainability criteria to help reduce emissions from air travel, improve air quality for airport workers and adjacent communities, and create family wage jobs in clean energy and manufacturing. The state offers incentives for AJF production and use, including tax credits and participation in the Clean Fuel Standard program.

For example, to generate credits under the Clean Fuel Standard (CFS), fuel must have a lower carbon intensity that complies with annual carbon intensity standards. In 2023, the Legislature passed a tax credit for the manufacturing (production and blending) and use of AJF that is at least at 50% reduction in CO2e from conventional fossil jet fuel. (RCW 82.04.4361)

AJF is critical for meeting Washington’s transportation sector decarbonization goals outlined in the Washington 2021 State Energy Strategy. AJF is currently the main commercially available option for reducing emissions from long-distance air travel while newer technologies, such as hydrogen and electric aircraft, continue to develop.

Commerce is advancing AJF through participating in the Alternative Jet Fuel Work Group and the Cascadia Sustainable Aviation Accelerator, both described under Current initiatives and partnerships.

To learn more about alternative jet fuel, visit the US Department of Energy’s Alternative Fuels Data Center.

Sustainable maritime fuel

Sustainable maritime fuels (SMFs) are lower-carbon fuels used to power ships and other maritime vessels. These fuels can help reduce greenhouse gas emissions compared to conventional marine fuels. While there is no set state or federal definition of SMF, Washington’s Clean Fuel Standard (CFS) 2025 rulemaking defined alternative marine fuel as “a watercraft fuel made from liquified natural gas or nonpetroleum sources. Such fuel must have a lower carbon intensity than traditional marine fuel, and only the volume of fuel combusted within Washington waters is eligible for credit generation” (WAC 173-424-110).

SMFs include biofuels, hydrogen, ammonia, green methanol and synthetic fuels. Some biofuels are “drop-in” fuels, which means they can be used in existing ship engines and fuel systems with little or no modification. Other fuels, such as hydrogen, methanol, synthetic fuels, and ammonia, require new infrastructure, vessel technology and safety systems.

Depending on the fuel type and how it is made, SMFs can significantly reduce lifecycle greenhouse gas emissions. For example, fuels made from renewable materials such as waste oils and biomass can lower lifecycle greenhouse gas emissions. Green hydrogen and green ammonia contain no carbon and don’t release carbon emissions when used.

Washington is working to expand the use of sustainable maritime fuels to help reduce transportation emissions and support the state’s maritime industry. The state supports this work through partnerships such as the Sustainable Maritime Fuels Collaborative.

Washington state is a national and global leader in the maritime industry and seeks to grow SMF use to reach the transportation sector decarbonization goals set in the 2021 State Energy Strategy. The report recommends developing Washington’s leadership in the sustainable maritime space alongside Washington’s existing leadership in the maritime industry.

Energy system considerations

Producing hydrogen requires large amounts of electricity and infrastructure.

Electricity needs

On average, it takes about 50 kilowatt hours (kWh) of electricity to produce one kilogram of H2 through electrolysis. One kilogram of hydrogen provides about 39 kWh of energy. Despite this energy-intensive process, it is valuable to produce and use these fuels when they are deployed in activities or sectors that are not easily served directly with electricity, energy efficiency, or other renewable energy resources.

Transmission and grid capacity

Commerce’s 2024 legislative report, Green Electrolytic Hydrogen and Renewable Fuels Recommendations for Deployment in Washington, found that producing enough green electrolytic hydrogen to meet future demand projects will require significant amounts of new clean electricity and transmission capacity.

The current baseline for in-state green electrolytic hydrogen production via electrolysis is near zero. This report anticipates that Washington will install .8 gigawatts (GW) of electrolysis capacity by 2030 and 4.5 GW of electrolysis capacity by 2035.

To meet the needs of a growing green hydrogen economy alongside other existing and emerging electricity demand sectors, Washington will need to rapidly scale its electricity generation, storage, transmission, and distribution systems.

Current initiatives and partnerships

Alternative Jet Fuel Work Group

Commerce participates in the Alternative Jet Fuel Work group established by the Legislature and facilitated by Washington State University. (RCW 28B.30.646). The work group meets quarterly to discuss and develop policy recommendations to advance the production and use of alternative jet fuels in Washington.

Cascadia Sustainable Aviation Accelerator

Commerce is also involved in the Cascadia Sustainable Aviation Accelerator, a regional coalition whose mission is to rapidly accelerate production, deployment, and adoption of sustainable aviation fuel across the Pacific Northwest. The Legislature has appropriated funding for this work and for development of a research and development center at Paine Field Airport in Everett.

H2Skills

Commerce and Centralia College are partners in the Pacific Northwest National Laboratory’s federally-funded H2Skills workforce development program. The mission of H2Skills is to advance a hydrogen-ready skilled and technical workforce by delivering high-quality, safety-focused training to meet industry needs. As a partner, Commerce supports the strategic direction of the initiative in addition to engaging partners and coordinating training deployment in Washington state.

Sustainable Maritime Fuels Collaborative

In 2024, the Legislature directed Commerce to support development of sustainable maritime fuels in Washington. Commerce contracted with Maritime Blue to launch the Sustainable Maritime Fuels Collaborative in the Pacific Northwest.

The Collaborative brings together ports, tribes, labor, shipping companies, fuel providers, researchers, community organizations, and government agencies to support cleaner maritime fuels and low- and zero-emission vessels. Current work includes policy analysis, tribal engagement, and community outreach to help expand sustainable maritime fuels across the region. READ MORE

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