Transition to a Hydrogen Future Has Begun

Shailaja A. Lakshmi
Sunday, April 28, 2019

There is a growing international consensus that clean hydrogen will play a key role in the world’s transition to a sustainable energy future, said  Noé van Hulst, who chairs the High-Level Advisory Panel for the International Energy Agency (IEA)’s forthcoming hydrogen study.

Hulst, the Hydrogen Envoy for the Ministry of Economic Affairs & Climate Policy, The Netherlands, said that it is crucial to help reduce carbon emissions from industry and heavy transport, and also to provide long-term energy storage at scale.

Hydrogen is a versatile energy carrier that can be produced from a wide range of sources and used in many ways across the entire energy sector. It could become a game-changer in its low-carbon form, but its widespread adoption faces challenges, Hulst, a former Chair of the IEA Governing Board (2017-2018) said.

The International Energy Agency is preparing a major new study to assess the state of play for hydrogen, its economics and potential. Due to be published in mid-June, the report will be a key contribution to Japan’s 2019 Presidency of the G20.

Researchers have found that clean hydrogen still costs too much to enable it to be widely deployed. Prices may not come down sufficiently until the 2030s, according to some estimates. But despite the uncertainty surrounding the future of clean hydrogen, there are promising signs that it could become more affordable sooner than expected.

Where the hydrogen comes from is important. At the moment, it’s mainly produced industrially from natural gas, which generates significant carbon emissions. That type is known as “grey” hydrogen.

A cleaner version is “blue” hydrogen, for which the carbon emissions are captured and stored, or reused. The cleanest one of all is “green” hydrogen, which is generated by renewable energy sources without producing carbon emissions in the first place.

Green hydrogen can in principle be shipped around the world to places that are less well endowed with cheap renewable energy sources.

Japan has several important pilot projects underway – with countries including Australia, Saudi Arabia and Brunei – to determine the best way to transport green or blue hydrogen over large distances by ship.

Energy policy can clearly make a big difference through measures such as minimum CO2 prices. Another important factor is the way in which the authorities can foster the energy transition.

The Dutch government has announced the broadening of its low-carbon program. At the moment, it’s restricted to subsidies for producing renewable energy, but it will soon be expanded to include all possible cost-effective ways to reduce CO2, including CCUS. This will help the market-driven activation of blue hydrogen projects and, depending on how costs evolve, hopefully that of green hydrogen projects in the near future.

Categories: Environmental Energy Hydrogen Fuel

Related Stories

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Sapura Energy Rebrands to Vantris Energy

CNOOC Brings New Offshore Gas Field On Stream

China Starts Production at Major Oil Field in Bohai Sea

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

EnQuest Acquires Harbour Energy’s Vietnamese Assets

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

Current News

Norwegian Oil Investment Will Peak in '25

Saipem Marks First Steel Cut for Tangguh UCC Project at Karimun Yard

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Sapura Energy Rebrands to Vantris Energy

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com