Decarbonisation Technology - November 2022

cleaner hydrogen grows. And, although Europe accounts for 80% of new projects, China is a rapidly emerging market with more than 50 announced projects. With these investments, green and blue hydrogen production capacity is set to exceed 10 mtpa by 2030. This is, however, far below the demand forecast for 2030, which leaves a considerable need for further projects and investments. Why blue hydrogen has an important role Blue hydrogen is similar to grey hydrogen except that the CO₂ is captured and either utilised or stored underground. Though the amount of CO₂ captured varies according to the project, blue hydrogen is widely regarded as low carbon. Green hydrogen is mostly carbon free and is seen as the ideal solution to satisfy future hydrogen demand. So, why do we need blue hydrogen? The reality is that the current economics of green hydrogen are challenging when compared to blue hydrogen. Even by 2030, it is likely that green hydrogen will be double the cost of blue hydrogen (see Figure 1 ), though cost parity may be achieved by 2045. This will not be the case everywhere. In some regions, particularly those with a high level of grid- connected renewable energy, green hydrogen

CO price Fuel cost Operating expenditure Sensitivity Capital expenditure

Green hydrogen

Grey hydrogen

Blue hydrogen

Figure 1 Hydrogen production costs in 2030

and is, according to the IEA, responsible for as much as 900 mtpa of CO₂ emissions. The energy industry cannot, therefore, just expand current grey hydrogen production if it is serious about achieving deep decarbonisation. Instead, it must rapidly transition to cleaner methods of hydrogen production, such as green and blue hydrogen. A global investment of $500 billion has already been committed to low-carbon (blue and green) hydrogen projects through to 2030; this figure is set to rise as demand for

Lower methane slip as SGP operates at high reactor temperatures

Energy suciency Produced steam satises most internal users

Higher operating pressure Hydrogen compression duty and ADIP ULTRA CO capture eciency are improved

To internal users (air separation unit, CO removal unit, triethylene glycol dehydration and power generation)

Superheated steam

Boiler feed water

Saturated steam

Natural gas and/or renery fuel gas

ADIP ULTRA CO removal unit

Syngas euent cooler

Hydrogen compression

SGP reactor

Water gas shift

Hydrogen purication

Hot syngas

Cooled syngas

Impure hydrogen

Hydrogen product

Shift euent

Hydrogen product export

Oxygen

Medium-pressure CO

Air separation unit

INTEGRATED SBHP

CO compression and dehydration

High-pressure CO to storage

Air

Low-pressure CO

Feed exibility: Non-catalytic process means robustness against feed contaminents (sulphur, olens, C ) +

Intermediate ash: High capture pressure means most of the CO can be regenerated at a medium pressure to minimise CO compressor size

Shell propriety technology

Shell technology embedded

Open source technology

Figure 2 The SBHP and the advantages of integration with other technologies