US to probe hydrogen transport in pipelines: correction

  • : Emissions, Hydrogen, Natural gas
  • 21/10/20

Corrects title of Deputy US energy secretary David Turk.

President Joe Biden's administration is starting to lay the groundwork to safely scale up the volumes of hydrogen that could be transported through pipelines and stored, possibly in blends with natural gas.

The US Pipeline and Hazardous Materials Safety Administration (PHMSA) plans to expand its research to look at the effects of hydrogen on pipelines and underground storage, according to a notice issued today. The research, set for discussion at a public forum on 1 December, comes as the administration looks toward hydrogen as a fuel that could be useful in hard-to-decarbonize industries such as heavy transportation.

"Hydrogen is one of the most interesting versatile energy sources of the future," Deputy US energy secretary David Turk said yesterday. "It provides solutions not only for heavy duty-transport but for a variety of industrial applications."

The oil and gas sector has pushed for greater use of hydrogen as a way to meet its climate goals, but doing so requires bringing down its cost, producing it without releasing vast amounts of greenhouse gases, and finding a way to transport it safely. But one of the challenges with hydrogen transportation is that at high concentrations and pressures, it can cause metal to become brittle.

PHMSA wants to conduct further research into how hydrogen gas behaves in underground storage facilities, how it chemically reacts with nearby rocks, its leakage properties and potential effects on microbes. Other research topics include how hydrogen and hydrogen-methane blends could affect in-line inspection tools used on pipelines, compressor station equipment and polyvinyl chloride pipes used in distribution systems.

The new research comes as the Biden administration works with the Democratic-led US Congress to reduce the cost of clean hydrogen. The vast majority of hydrogen produced in the US is derived from methane, a process scientists say is worse for the climate than just burning natural gas because of the extra energy required. Averting emissions will require capturing CO2 during the process, or producing hydrogen from renewable energy or nuclear power.

Democrats are considering a $3.5 trillion budget bill that offers tax credits for hydrogen that achieves lifecycle carbon emission reductions of at least 40pc compared to the conventional methane process. The tax credit would be $3/kg for hydrogen with a 95pc reduction in emissions down to 60¢/kg for a 40-75pc emission reduction.


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24/04/28

Industry leaders urge realism in green hydrogen push

Industry leaders urge realism in green hydrogen push

Dubai, 28 April (Argus) — Hydrogen and its derivatives will have a critically important role to play in accelerating the energy transition but policymakers need to be more realistic given that many of the technologies are still in their infancy, energy industry leaders from the Middle East and Europe said Sunday at a special meeting of the World Economic Forum in the Saudi capital Riyadh. "The market is a challenge," UAE energy minister Suhail al-Mazrouei said. "There is development of the market, but are we there yet? No. At the same time, are we serious about our production? I would say yes. It's between planning something, and getting the result you are aiming for." The UAE is planning to produce 1.4mn t/yr of hydrogen by 2031, more than 70pc of which will be green hydrogen, al-Mazrouei said. In the longer term the country aims to build its hydrogen capacity to 15mn t/yr by 2050. "Clean energy is something we decided to venture into 17 years ago when we began investing in the likes of [UAE state-owned renewables firm] Masdar and started thinking about what would happen after we export the last barrel of oil," UAE energy minister Suhail al-Mazrouei said. "What we did first is regulate and put a strategy of how much to produce." Al-Mazrouei's Saudi counterpart, Prince Abdulaziz bin Salman, voiced similar concerns. "We don't mind partnering with everybody… With the Koreans, the Japanese, our friends the UAE… but there are challenges," he said. "There is a lack of clarity on the policies, a lack of clarity on the receiving or consumer end, a lack of clarity on the incentives and a lack of clarity around what it takes to develop these technologies." Arguably more prohibitive is the "economics" of new energies such as hydrogen, he said. The cost of green hydrogen today is "between roughly $250-300/bl of oil equivalent," Prince Abdulaziz said. "What kind of a business acumen would choose to buy at $250-300/bl?" Al-Mazrouei agreed that costs are too high. "We cannot just treat the consumers as if they are ready to just pay double or triple the price [of conventional energies today]." Let's be serious The EU has set ambitious targets on renewable hydrogen. In 2022, the bloc doubled its 2030 production target to 10mn t/yr, from 5.6mn t/yr previously, and it is also working towards a separate pledge to import another 10mn t/yr by the same date. The production target is an unrealistic goal, according to the Saudi energy minister. "Those projects that have crossed the finishing line only come to 400,000t ꟷ around 4pc of the target," Prince Abdulaziz said. "How is it conceivable that in 2024, only 4pc has been achieved? How can people imagine that 10mn t/yr can be achieved?" TotalEnergies chief executive Patrick Pouyanne, who was speaking on the same panel, was even more blunt in his assessment, describing the EU's target as "impossible" and "not in reality". "Let us recognise that we are still at the infancy stage, and stop speaking about 10mn t, 20mn t, just to the media. It makes no sense," Pouyanne said. "Let's just be serious about it and find the right roadmap. Yes, we probably won't reach our target by 2030, but that's not a problem. It's more important to take steps and spend the money economically, to give them affordable and clean energy." By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Azerbaijan wants certainty from EU on gas needs


24/04/26
24/04/26

Azerbaijan wants certainty from EU on gas needs

London, 26 April (Argus) — Azerbaijan needs long-term guarantees and available financial instruments to invest in gas production growth, its president Ilham Aliyev said earlier this week. Azerbaijan and the EU signed a strategic partnership agreement in 2022, in which Azerbaijan committed to increasing its supply to the EU to 20bn m³/yr by 2027 from 8bn m³ in 2021. This is a "target that we are moving towards" and exports to Europe will be around 12bn m³ this year, Aliyev said on 23 April at the Cop 29 and Green Vision for Azerbaijan forum ( see Azeri gas production graph ). But Azerbaijan needs investments to reach this export target, and restrictions from financing institutions on fossil fuel projects make them harder to realise, Alyiev said. The European Investment Bank has removed fossil fuel projects from its portfolio and the European Bank for Reconstruction and Development has only a small share of such projects, Aliyev said. Corporations tend to finance 30pc of gas production or infrastructure projects on their own and the remainder through loans, he said. The other issue is a need to receive long-term guarantees for Azeri gas supply, as "Azerbaijan cannot invest billions only for 5-10 years and not be able to recover the costs", Aliyev said. Azerbaijan is still paying back loans for the Southern Gas Corridor and Shah Deniz Stage 2 projects, he said. A long-proposed Ionian-Adriatic pipeline that could provide the Balkan region with Azeri gas is yet to materialise because it lacks EU funding support and gas consumption in the countries involved is low, particularly considering the challenges involved with building a pipeline in a mountainous region, Aliyev said. But Azeri gas can already reach Croatia, Bosnia Herzegovina and Montenegro through Hungary, while it can flow to Serbia through Bulgaria, he said. Aliyev said he believes that the Croatian and Azeri governments are already in consultation about this. Referring to a long-mooted project to build a pipeline across the Caspian Sea to deliver Turkmen gas to Europe, Aliyev said that Azerbaijan has "received no messages from Turkmenistan". Azerbaijan as a transit country cannot become the initiator or co-ordinator of a trans-Caspian pipeline project, Aliyev said. The Southern Gas Corridor is fully booked, meaning that infrastructure developments are needed to transport more gas to Europe, which is "under discussion", Aliyev said. Azerbaijan plans renewables build-out Azerbaijan is targeting 5GW of additional renewable generation capacity, which it aims to substitute for gas, releasing this supply for export to Europe, Aliyev said. Azerbaijan's first 240MW solar plant was inaugurated in 2023. It plans to add four new 1.3GW solar and wind projects this year and is considering some offshore and onshore wind projects as well as solar and hydropower plants. Azeri gas consumption for power generation and heating needs increased to 6.6bn m³ in 2022 from 6.1bn m³ in 2020, and made up almost half of domestic consumption in 2022 ( see data and download ). Azerbaijan is in the last phase of a feasibility study for a green energy cable from the Caspian Sea to the Black Sea and then further down to Europe. The project aims to initially connect the Georgian Black Sea to the Romanian coast, and plans to expand it further down to the eastern Caspian and Kazakhstan, according to Aliyev. The state plans to keep investing to strengthen the energy grid to allow it to cope with the renewables build-out. Foreign investors are mainly involved with renewables projects. Oil and gas makes up less than half of Azerbaijan's GDP today, but 95pc of its exports, Aliyev said. By Victoria Dovgal Azeri gas production bn m³ Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US M&A deals dip after record 1Q: Enverus


24/04/26
24/04/26

US M&A deals dip after record 1Q: Enverus

New York, 26 April (Argus) — US oil and gas sector mergers and acquisitions (M&A) are likely to slow for the rest of the year following a record $51bn in deals in the first quarter, consultancy Enverus says. Following an unprecedented $192bn of upstream deals last year, the Permian shale basin continued to dominate first-quarter M&A as firms competed for the remaining high-quality inventory on offer. Acquisitions were led by Diamondback Energy's $26bn takeover of Endeavor Energy Resources. Other private operators, such as Mewbourne Oil and Fasken Oil & Ranch, would be highly sought after if they decided to put themselves up for sale, Enverus says. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU adopts Net-Zero Industry Act


24/04/26
24/04/26

EU adopts Net-Zero Industry Act

London, 26 April (Argus) — Members of the European Parliament (MEPs) have adopted Net-Zero Industry Act, which plans to allocate funds towards the production of net-zero technologies. The act provides a pathway to scale up development and production of technologies that are critical towards meeting the EU's recommendation of net-zero greenhouse gas (GHG) emissions by 2050. This would include solar panels, electrolysers and fuel cells, batteries, heat pumps, onshore and offshore wind turbines, grid technologies, sustainable biomethane, as well as carbon capture and storage (CCS). The act is designed to help simplify the regulatory framework for the manufacture of these technologies in order to incentivise European production and supply. It also sets a target of 40pc production within the EU for its annual "deployment needs" of these technologies by 2030. Time limits will be instated on permit grants for manufacturing projects, at 12 months if the manufacturing capacity is under 1 GW/yr and 18 months for those above that. It will introduce time limits of nine months for "net-zero strategic projects" of less than 1 GW/yr and 12 months for those above. This is further complemented by the introduction of net-zero strategic projects for CO2 storage, to help support the development of CCS technology. The act was met with positive reactions from the European Community Shipowners' Association (ECSA), which said the bill will set the benchmark for member states to match 40pc of the deployment needs for clean fuels for shipping with production capacity. ECSA said the Net-Zero Industry Act will be instrumental in supporting the shipping industry to meet targets set under FuelEU Maritime regulations , which are set to come into effect next year. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

New technologies aim to boost SAF production


24/04/26
24/04/26

New technologies aim to boost SAF production

London, 26 April (Argus) — A likely rise in global demand for sustainable aviation fuel (SAF), underpinned by mandates for its use, is encouraging development of new production pathways. While hydrotreated esters and fatty acids synthesised paraffinic kerosine (HEFA-SPK) remains the most common type of SAF available today, much more production will be needed. The International Air Transport Association (Iata) estimated SAF output at around 500,000t in 2023, and expects this to rise to 1.5mn t this year, but that only meets around 0.5pc of global jet fuel demand. An EU-wide SAF mandate will come into effect in 2025 that will set a minimum target of 2pc, with a sub-target for synthetic SAF starting from 2030. This week the UK published its domestic SAF mandate , also targeting a 2pc SAF share in 2025 and introducing a power-to-liquid (PtL) obligation from 2028. New pathways involve different technology to unlock use of a wider feedstock base. US engineering company Honeywell said this week its hydrocracking technology, Fischer-Tropsch (FT) Unicracking, can be used to produce SAF from biomass such as crop residue or wood and food waste. Renewable fuels producer DG Fuels will use the technology for its SAF facility in Louisiana, US. The plant will be able to produce 13,000 b/d of SAF starting from 2028, Honeywell said. The company said its SAF technologies — which include ethanol-to-jet , which converts cellulosic ethanol into SAF — have been adopted at more than 50 sites worldwide including Brazil and China. Honeywell is part of the Google and Boeing-backed United Airlines Ventures Sustainable Flight Fund , which is aimed at scaling up SAF production. German alternative fuels company Ineratec said this week it will use South African integrated energy firm Sasol's FT catalysts for SAF production. The catalysts will be used in Ineratec's plants, including a PtL facility it is building in Frankfurt, Germany. The plant will be able to produce e-fuels from green hydrogen and CO2, with a capacity of 2,500 t/yr of e-fuels beginning in 2024. The e-fuels will then be processed into synthetic SAF. Earlier this month , ethanol-to-jet producer LanzaJet said it has received funding from technology giant Microsoft's Climate Innovation Fund, "to continue building its capability and capacity to deploy its sustainable fuels process technology globally". The producer recently signed a licence and engineering agreement with sustainable fuels company Jet Zero Australia to progress development of an SAF plant in north Queensland, Australia. The plant will have capacity of 102mn l/yr of SAF. Polish oil firm Orlen formed a partnership with Japanese electrical engineering company Yakogawa to develop SAF technology . They aim to develop a technological process to synthesise CO2 and hydrogen to form PtL SAF. The SAF will be produced from renewable hydrogen as defined by the recast EU Renewable Energy Directive (RED II) and bio-CO2 from biomass boilers, Orlen told Argus . By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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