In focus: Will the hydrogen rainbow chase away fossil fuels’ clouds?

While we may not be saying goodbye to oil and gas anytime soon, the global energy players are burning the midnight oil in pursuit of low-carbon solutions to curb emissions and enrich the energy mix. New deals with familiar ingredients are springing up left and right to add to the growing pile of renewables and other clean sources in the energy arsenal with hydrogen emerging as the favourite gem in this crown of decarbonisation jewels.

Since fossil fuels – oil, gas, and coal – have been at the top of the energy chain, guarding the supply gates for decades, they are hardly likely to vanish from the scene in the foreseeable future, despite demands for their imminent demise in favour of ushering in a green future.

However, the low-carbon shift is leaving no stone unturned in the energy realm, which means that even regions that gained prominence in the industry as a result of the oil and gas boom, like the Middle East, are falling into the clutches of the transition to low-carbon sources. This region is hedging its bets by pursuing renewables and green hydrogen while building a more sustainable oil and gas sector, as oil still reigns supreme in most of these countries.

On the other hand, gas remains the unchallenged king on the global energy stage, which was further illustrated at the G7 summit in Hiroshima under Japan’s 2023 Presidency of the Group of Seven (G7), as leaders highlighted that further investments in the gas sector would be needed to address potential shortfalls due to the current energy crisis. The G7 also underscored that ramping up deliveries of LNG can play an important role in the energy arsenal, propelling the transition to clean energy forward.

In addition, stepping up renewable deployment is seen as a key piece in the quest to bring a sustainable and low-carbon energy future to life. With this in mind, the G7 plans to expand renewable energy worldwide through a collective increase in offshore wind capacity of 150 GW by 2030 and a collective increase of solar PV to more than 1 TW by 2030.

The global floating solar market is on the rise, as it is expected to pass the 6 GW threshold by 2031, with the Asia-Pacific region – especially China, Indonesia, India, South Korea, and Thailand – showing the highest demand, based on a recent analysis by Wood Mackenzie. While the second largest region spot for floating solar is reserved for Europe, the U.S. is coming in third place as it steadily gains ground.

While the phase-out of unabated fossil fuels and fossil fuel subsidies is on the G7’s agenda, the development and use of low-carbon and renewable hydrogen and its derivatives such as ammonia also takes a prominent spot, as it is seen as a positive step in the energy transition journey. These fuels of the future are perceived as key pieces on the energy mix’s chessboard of emission reduction tools to advance decarbonisation across hard-to-abate sectors and industries.

The hydrogen colour spectrum is very diverse and encompasses many colour codes used within the energy industry to differentiate between different types of hydrogen depending on the type of production used.

In line with this, there are green, blue, and grey hydrogen variants as the three main types, however, there are also black, brown, yellow, turquoise, and pink hydrogen variants. This rainbow of hydrogen options is imbued with hopes of it playing an important role in reaching net-zero and lowering the global reliance on fossil fuels, as the world turns to green alternatives to power its operations in a sustainable manner.

Recognising the inroads hydrogen is making, many energy players are laying the groundwork to employ different types of hydrogen and its derivatives – ammonia and methanol – in an effort to future-proof the energy mix and their operations. This is illustrated by Gasgrid Finland and Fingrid, which came up with three different scenarios in the joint project looking into the possibilities of the hydrogen economy and analysing its effects on the Finnish energy system.

These scenarios forecast that Finland will develop into a significant producer of clean hydrogen and/or power-to-X products with hydrogen production becoming the largest user of electricity, while wind power will turn into the number one form of electricity production.

Another hydrogen step this week was taken by Norway’s Hystar and the UK-based Johnson Matthey (JM) when they inked a three-year strategic supply agreement to accelerate renewable green hydrogen production. This will see JM deliver membrane electrode assemblies (MEAs) for Hystar PEM electrolysers with a hydrogen production capacity of up to 745 kg/day, which will be used in the HyPilot project in Norway.

Europe is not alone in exploring hydrogen roads, as the U.S. is also walking down the emerging hydrogen sector lanes and pursuing new paths for the fuel’s development as portrayed by the launch of a $10 million solicitation in New York for clean hydrogen research, development, and demonstration projects, covering clean hydrogen production and integration with renewable energy such as offshore wind. This is being undertaken to reduce emissions by 85 per cent by 2050 and transition to 100 per cent zero-emission electricity by 2040. 

Kathy Hochul, New York Governor, commented: “In partnership with the state’s leading innovators and problem-solvers, we are taking bold action to transition even the hardest-to-electrify sectors, helping secure a healthy and sustainable future for all New Yorkers”. 

The shipping industry is no stranger to decarbonisation, as the International Maritime Organization (IMO) is in the process of revising its initial GHG strategy. Many experts see 2023 as a vital window of opportunity to set a zero or minimum net-zero greenhouse gas emissions target by 2050 while setting ambitious goals for 2030 and 2040 is believed to be crucial.

In line with this, the shipping sector has been seeking ways to curb its emissions footprint, putting hydrogen and its derivates at the forefront of innovative efforts aimed at slashing emissions and enabling a net-zero future from international shipping by 2050 at the latest.

The events from the week now behind us spotlight the pivotal role that hydrogen-based fuels are expected to play in decarbonising the shipping sector, as demonstrated by Future Proof Shipping (FPS)’s launch of the first hydrogen-powered zero-emissions inland container ship, H2 Barge 1, in Rotterdam, the Netherlands.

The Dutch shipping player’s 110m x 11.45m inland containership, which will sail between Rotterdam and BCTN’s inland terminal in Meerhout several times a week, is expected to cut greenhouse gas emissions by 2,000 tonnes of CO2 per year. The vessel was retrofitted by Holland Shipyards with the 825 kW capacity hydrogen and fuel cell system to supply propulsion and auxiliary power and a 504 kWh lithium-ion battery pack for peak shaving, secondary, and bridging power. 

Richard Klatten, CEO of Future Proof Shipping, underscored: “This shipping project proves that moving cargo with zero-emission and zero impact is possible, and we hope it accelerates the industry to follow in Nike’s footsteps and move to zero.”

With decarbonisation gaining ground by leaps and bounds, this week also saw Damen shipyards joining forces with Boluda Towage, part of Spain’s Boluda Corporación Marítima, to bring zero-emission tugs to Europe. The duo plans to further bolster their decarbonisation game by setting the stage to launch its first zero-emission tug featuring a Damen RSD-E Tug 2513 design that will be powered by methanol.

On the other hand, an Asian country, China, is set on cutting down its emission footprint, as was demonstrated by China National Offshore Oil Corporation (CNOOC) recently, when the Chinese giant grid-connected its Haiyou Guanlan deepwater floating wind turbine and integrated it into the power grid of the Wenchang oilfield. With an installed capacity of 7.25 MW, the platform can produce up to 22 GWh of electricity, equivalent to saving nearly 10 million cubic metres of natural gas and reducing carbon dioxide emissions by 22,000 tonnes per year.

Another important tool in the energy sector’s decarbonisation arsenal is carbon capture and storage (CCS), which also made the headlines this week. One of the new announcements related to this came from RWE, which is putting in the work to progress three new carbon capture and storage projects across the UK, with a potential to secure up to 4.7 GW of generation and capture 11 million tonnes of CO2 per year. Aside from boosting the UK’s long-term energy security, the three proposed CCS projects would help RWE achieve its global ambition to be carbon neutral by 2040.

Tom Glover, UK Country Chair for RWE, commented: “Carbon capture can support the expansion of the other renewable and low-carbon technologies that RWE is a leader in deploying, by providing energy security through firm and flexible provision of electricity that is not reliant on weather.”

Even though oil and gas will keep their place within the energy mix for decades to come, their role is expected to diminish over time, thus, “embracing change and operating efficiently and sustainably within oil and gas while investing in diversification efforts, offers a blueprint for long-term success,” according to James Larnder, Managing Director at Aquaterra Energy.

Therefore, the more renewables and hydrogen the world brings to the fore, the merrier this global energy transition will be over the coming period. So set your sails towards the low-carbon future and embark on a voyage of green energy discovery!

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