Gas giants eye purple patch as they map route from blue to green hydrogen
They look to grab share of the market as carbon capture may help industry meet tighter emissions rules
The global gas industry is in an existential race: either find a way to be part of the next generation of energy or risk getting supplanted by alternatives.
BP, Sinopec, Equinor and Royal Dutch Shell are among the producers looking to hydrogen to help secure demand, that otherwise may falter as decarbonisation speeds up. They want to use existing pipelines, storage tankers and fuel supply to make blue hydrogen, a process that uses natural gas but captures the carbon emissions and stores them.
The straightest route to net-zero emissions, uses hydrogen produced by renewable electricity — known in the industry as green hydrogen — but the blue variety is expected to be cheaper until at least 2030, as wind and solar power ramp up. Gas companies aiming to lower emissions now and avoid obsolescence in the next decade are planning to pour billions of dollars into building their blue businesses. At least 15 projects are scheduled to go online through 2027 in the UK, Germany, Norway, the Netherlands, Sweden and New Zealand...