Don’t focus on colors. Focus on low carbon intensity.
Most oil and gas majors have set ambitious targets to minimize the GHG intensity of natural gas and achieve near zero methane emissions from their operations by 2030. Coupled with ultra-low carbon intensity blue hydrogen the road towards net zero is made significantly shorter.
Choosing a hydrogen solution shouldn't (just) be a question of color. It should be about reduction of Carbon Intensity (CI).
Legislation and subsidy mechanisms are color blind.
A significant number of governmental regulations and subsidies already impact and incentivize hydrogen producers. Most of these regulations focus on lowering the greenhouse gas footprint and thereby the carbon intensity. Every single CO2 saving counts in the energy transition.
Some countries encourage decarbonization with subsidies or incentives for low-carbon hydrogen production or carbon capture and storage (CCS). As an example, the US Inflation Reduction Act, promotes low-carbon hydrogen though subsidies which increase with reduced carbon intensity. A producer of ultra-low carbon intensity blue hydrogen using low methane emissions natural gas as feedstock, can qualify for up to $3/kg of hydrogen in tax credit. Thus, the business case for blue hydrogen has never been stronger.
CI numbers speak louder than colors.
The current spectrum of colors describing hydrogen is broad. But one should be aware that color is merely defined by how the hydrogen is produced. Not by calculating the value chain's total environmental impact.
The actual environmental impact of any hydrogen must be measured rigorously by considering the carbon intensity of each step in the value chain.
Not all blue is equal
Today, there is no set standard for blue hydrogen. One blue hydrogen solution is therefore not necessarily equal to another. The reason is that the carbon intensity of any blue hydrogen depends on all contributions from natural gas source into the product shipment gate including natural production & transport, CO2 handling & storage as well as hydrogen production technology.
So simply choosing a 'blue' hydrogen partner or 'blue' technology isn't enough. To meet targets, comply with legislation, or benefit from incentive schemes, you must look beyond the color blue and focus on the solution's carbon intensity.
Take the lowest energy route to ultra-low carbon intensity hydrogen.
To achieve low carbon intensity when converting natural gas to hydrogen, it is essential to capture as much CO2 as possible during the reforming process.
It is essential to capture most of the CO2 in the reforming process when converting natural gas to hydrogen to achieve low carbon intensity. With up to 99%+ CO2 removal capabilities, our blue hydrogen solutions lead the industry for decarbonization. We have the broadest toolbox of hydrogen technologies and deliver complete blue hydrogen solutions including carbon capture and product purification.
Our track record in blue hydrogen projects and wide-ranging expertise mean we can ensure scalability and economic feasibility for your project. Whether building new or revamping existing infrastructure, we are here to empower your success.