Hydrogen: one of the solutions towards energy transition

Leanne Bloor, energy storage and hydrogen lead, Xodus Group

Hydrogen is considered a zero-emission energy carrier that can be used as part of the energy mix for heat, transport and electricity and as feedstock for important chemical processes. Production can be ‘green’ via electrolysis and renewable energy meaning no carbon emissions or ‘blue’ through separation of natural gas and subsequent carbon capture and storage (CCS). At Xodus, we see both ‘green’ and ‘blue’ hydrogen as one of the many solutions that will be a part of the energy transition towards a net-zero future.

From our Aberdeen headquarters, we have supported pioneering North Sea projects including the Hywind floating wind project and working with the European Marine Energy Centre on hydrogen from marine renewables. The EMEC project began when we examined various options for power export from EMEC’s tidal test site and nearby onshore wind turbine, including the production of green hydrogen and the viability of a hydrogen economy.   Now Orkney is considered a world leader of islanded hydrogen production with projects such as ‘surf and turf’ and ‘big hit’ delivering energy security to local communities.

We believe the next logical step for green hydrogen production is offshore. Either by utilising curtailed energy or as a dedicated hydrogen generation centre, green hydrogen can be produced by offshore wind generation. The North Sea has an abundance of resource and space to produce the scale of hydrogen required to decarbonise the UK’s energy requirements and to be used as an export product. Internally, we have developed detailed tools to assess and compare the anticipated costs of electricity and hydrogen produced offshore, based on geographical locations. This tool allows us to support our clients with independent advice on designing a comprehensive application for the Scotwind leasing rounds.

With blue hydrogen, the oil and gas industry has an opportunity to utilise commercially ready technology for new applications. The process for blue hydrogen produces the greenhouse gas carbon dioxide as a by-product which should not be released to the environment. This technology has proven benefits for the oil industry, as it assists with enhanced oil recovery through CO2 re-injection. Hydrogen production could potentially be made more cost effective by the reuse of existing infrastructure for both the generation and transmission of the gas.

Work we completed last year for the OGTC investigated the suitability of the existing pipeline infrastructure for hydrogen. It identified that many gas pipelines are suitable for hydrogen injection. Our work also outlines that existing infrastructure can be utilised for carbon dioxide transportation and storage, which is key for blue hydrogen as a net-zero solution. With the extensive experience already in place within the oil and gas industry, blue hydrogen is now technologically ready for large scale production and reuse of existing infrastructure helps to prolong the economic life of petroleum assets.

Beyond the UK, we see the Asia-Pacific region as leading the way in utilising a hydrogen economy. Japan is one of several countries moving towards a low-carbon future including renewable energy such as offshore wind and a hydrogen. We are currently working with several Japanese clients on projects geared at unlocking the potential for offshore wind and the local supply chain. Japan has ambitious plans for hydrogen, including powering the Olympic Flame and athlete village with hydrogen for the games in Tokyo later this year. However, as an islanded nation with a dense population and little natural resource, much of this energy needs to be imported from other countries, including Australia.

Australia has a large resource for renewable energy and natural gas. This, coupled with the launch of a national hydrogen strategy, leaves the country well positioned to supply the Asian region with hydrogen as well as decarbonising their own energy sector. Australia already has pilot projects in place for both green and blue hydrogen and we are working with our Australian clients to provide technical services aimed at preparing for energy transition in the blue and green hydrogen spaces.

Hydrogen is not without its technical, economic and regulatory challenges. As an example, the elements that make up blue hydrogen are technologically mature and exist at scale, whereas green hydrogen production exists as small-scale projects and as such, is more expensive. The transition towards a hydrogen economy will not happen overnight. It will be a slow transition, likely occurring over the next few decades.

Our hydrogen service line is expanding its reach across Europe and the Asia Pacific region this year as interest in hydrogen as an enabler continues to grow. We will continue to support our clients during the energy transition to net-zero using a collaborative approach, drawing on our experience across the oil and gas, environmental and renewables businesses.

There is huge potential for the existing oil and gas industry to be a key component of the future international hydrogen economy.