PTQ Q2 2024 Issue

Blue hydrogen – a low-carbon energy carrier: Part 1

Through the capture and storage of CO 2 generated during hydrogen production, blue hydrogen can achieve carbon neutrality or even yield negative emissions

Himmat Singh Research Scientist

T he global blue hydrogen (H 2 ) market size is anticipated to grow at a compound annual growth rate (CAGR) of 14.8% in the present decade. The growing emphasis on clean hydrogen energy with low carbon content, rising usage of hydrogen fuel as an active propulsion system in the automotive industry, and speculation of blue hydrogen working as an enabler of green hydrogen are some reasons behind the growth of the market. Blue hydrogen has a strong role to play in the energy transition by helping to build a hydrogen market while continuing to lower emissions. Like the green variety, blue hydrogen at present is expen- sive to produce compared to the traditional carbon-intensive production processes used today. By reducing blue hydro- gen’s costs, companies could speed up hydrogen’s much- vaunted replacement of fossil fuels. European countries have been working on several projects to boost the adoption of blue hydrogen in various regions. Part 1 is an overview of hydrogen and blue hydrogen in terms of their role in energy mix, estimated demand in the coming decades, and committed huge investments. The overview also covers emerging and matured blue hydro- gen technologies, namely steam methane reforming (SMR), autothermal reforming (ATR), natural gas decomposition (NGD), and the newly introduced Shell SGP process. Part 2 concludes in PTQ Q3 2024 with a detailed compar- ative assessment of cost, greenhouse gas (GHG) emissions, and other parameters relating to three mature technologies, with a brief appraisal of blue hydrogen market dynamics, end-use insights, and concluding remarks. CO 2 -to-H 2 ratio Hydrogen is the most abundant element in the universe, and it could play an essential role in tomorrow’s energy mix, from fuelling all modes of transport to generating electricity and powering industry. Colours of hydrogen are increasingly used to distinguish different production methods and as a proxy to represent the associated environmental impact. Today, close to 95% of hydrogen production comes from fossil resources. As a result, the carbon dioxide (CO 2 ) emis- sions from hydrogen production are quite high. Grey, black, and brown hydrogen refer to fossil-based production. Grey is the most common form of production and comes from natu- ral gas, or methane (CH 4 ), using steam methane reformation

but without capturing CO 2 . It creates around 10 tons of CO 2 for every ton of hydrogen produced. Therefore, there is a need to find a way to produce clean hydrogen that is less carbon intensive. There are two ways to move toward cleaner hydrogen pro- duction. One is applying carbon capture and storage (CCS) for fossil fuel-based hydrogen production processes. Natural gas-based hydrogen production with CCS is referred to as blue hydrogen – a low-carbon energy carrier. CO 2 storage is typically accomplished by injecting the gas into geologi- cal formations such as saline aquifers or depleted oil fields. Green hydrogen is produced by using electricity generated from renewable sources, such as wind and solar, to produce hydrogen via electrolysis. The IEA estimates that the demand for hydrogen today is about 90 mtpa, almost all of which is used for ammonia production and refining and is forecast to reach about 200 mtpa by 2030 and more than 500 mtpa by 2050. There are other estimates as well, but they are at variance with the IEA. Meeting this demand will require an unparalleled transfor- mation in how clean hydrogen is produced. Europe and China have committed huge investments through to 2030 to lower carbon via blue and green hydro- gen projects, for an estimated production capacity of more than 10 mtpa by 2030. However, this is far below the demand forecast, leaving a considerable need for further projects and investments. While green hydrogen may be the better economic option in some locations, blue hydrogen has an advantage in others, and therefore both are needed in the short and medium term. In short, both types of hydrogen reinforce each other’s strength. To meet their Paris Agreement commitments, many coun- tries are turning to blue hydrogen projects as a medium-term solution for hydrogen mass production while also developing green hydrogen for future production. The UK, for example, has prioritised driving the growth of blue hydrogen as part of its Ten Point Plan to reach its net zero ambitions. Blue hydrogen shares similarities with grey hydrogen, the key difference being that instead of releasing CO 2 into the atmosphere, it is captured and stored. Blue hydrogen has been a clear leader in the evolution of the hydrogen industry. Carbon capture technologies can be retrofitted onto existing hydrogen processes or integrated into new plants by design.

PTQ Q2 2024