PTQ Q3 2024 Issue

Blue hydrogen produced from fossil fuels with carbon capture technology is more likely to be an area of growth over the next decade. Growth in electric vehicle demand for electricity, along with the growing pressure on renewable sources for power generation, is expected to challenge the grid at the same time creating an opportunity for the adop- tion of blue hydrogen. Hydrogen combines with oxygen during an electrochem- ical reaction comparable to a battery, producing electricity, water, and a tiny quantity of heat. However, unlike fossil fuels, hydrogen fuel cells do not generate GHGs during manufacturing, which is likely to drive demand for blue hydrogen in power generation and revenue development in this market. Portable power storage, especially for auto- motive and domestic electricity generation, is one of the market propellers. Drivers, opportunities, and challenges The increased usage of hydrogen in fuel cell vehicles is projected to drive the blue hydrogen market soon. Fuel cells offer environmentally friendly transportation and can be used as an alternative to fossil fuels. This increasing demand for blue hydrogen in fuel cell vehicles will drive the market’s growth. Increasing industrialisation and globalisa- tion are key drivers of the blue hydrogen market. One of the essential end-user industries for hydrogen is chemistry. More than two-thirds of the world’s hydrogen production is used mainly in the chemical industry for ammonia and methanol synthesis. The presence of methane, a GHG, in natural gas signif- icantly hinders market profit growth. Methane leaks dur - ing blue hydrogen synthesis contribute to global warming. Furthermore, utilising natural gas to generate the signifi - cant energy required to manufacture blue hydrogen pro- duces carbon CO 2 and limits the blue hydrogen market’s revenue development. Blue hydrogen faces limitations in deployment and com- petitiveness due to high capital and operating costs linked to CO₂ capture, transport, and storage technologies. Social and public acceptance may be challenging, with concerns about the continuation of the fossil fuel industry and the potential safety and environmental impacts of CCS. Future outlook Blue hydrogen is currently regarded as the intermediary solution bridging the gap between high-emission grey hydrogen and the more constrained, zero-emission green hydrogen. Numerous recent studies employing techno-eco- nomic assessments highlight the efficacy of oxygen-based systems, including auto-thermal methods, in this context. In pursuit of cleaner and more sustainable energy sources, blue hydrogen has emerged as a promising contributor to the global energy landscape. It is generated by harnessing natural gas in conjunction with CCS processes. This pursuit effectively addresses environmental concerns tied to con- ventional hydrogen production methods, thus positioning it as a key player in the transition towards a low-carbon future. A notable advantage of blue hydrogen lies in its capacity

to significantly diminish carbon emissions. Through the capture and storage of CO₂ generated during hydrogen production, blue hydrogen can achieve carbon neutrality or even yield negative emissions. This quality renders it a compelling option for industries seeking to decarbonise operations and for governments committed to ambitious climate goals. Blue hydrogen’s versatility extends across various indus- tries, including petrochemicals, steel manufacturing, and power generation. Its adaptability arises from its potential to serve as a clean and efficient fuel for industrial processes heavily reliant on fossil fuels. In the face of mounting pres- sure on industries to adopt sustainable practices, blue hydrogen emerges as a viable solution that aligns with both environmental and economic objectives. Advancing blue hydrogen production techniques neces- sitates critical investments in new technologies and pilot initiatives. Collaborative partnerships involving govern- ments, businesses, and academia can expedite the devel- opment of novel and environmentally friendly methods for hydrogen production, contributing to the overall progress in sustainable energy solutions. Hydrogen demand today is largely supplied by fossil fuel- based SMR technology and driven by fertiliser production and refining. These industries are expected to lead the uptake of blue and green hydrogen until 2030 in the slower scenarios as they switch their H₂-based operations to clean hydrogen. In parallel, ‘new’ emerging applications, such as steel, synthetic fuels production, and heavy road transport, may begin to emerge in the faster scenarios.

Conflicts of Interest: Author declares no conflict of interest.

References 1 Hydrogen Strategy Update to the Market: August 2023. https://assets. publishing.service.gov.uk/media/64e36b294002ee000d560c9f/ hydrogen-strategy-update-to-the-market-august-2023.pdf 2 Power Play Unlocking the Opportunity of Low-Carbon Hydrogen: Investment, Incentives and Collaboration, Vinson&Elkins, Spring 2023. www.velaw.com/insights/unlocking-the-opportunity-of-low-car - bon-hydrogen-investment-incentives-and-collaboration/ 3 Matalucci S, The Hydrogen Stream: Rising demand driving blue hydrogen plans, pv magazine , November 7, 2023 www.pv-magazine. com/2023/11/07/the-hydrogen-stream-rising-hydrogen-demand- drives-blue-pink-hydrogen-plans 4 Global Blue Hydrogen market is projected to grow at a CAGR of 8.0% by 2033: Visiongain Reports Ltd, March 17, 2023, www. globenewswire.com/en/news-release/2023/03/17/2629398/0/en/ Global-Blue-Hydrogen-market-is-projected-to-grow-at-a-CAGR-of- 8-0-by-2033-Visiongain-Reports-Ltd.html Dr Himmat Singh is a consultant in petroleum refining and natural gas. He was previously a Scientist ‘G’ at the CSIR Indian Institute of Petroleum and a professor/head of department with several institu - tions of higher education/universities. He holds an MSc in chemistry from ENSPM of IFP France and a PhD in refining lube basestocks. He has published 200+ articles, 12 patents, and three books. He has served on important CSIR and government of India committees/aca - demic councils and been the recipient of many prestigious awards.

PTQ Q3 2024