Abu Dhabi is seeking investors to help build hydrogen export facilities, as Middle Eastern oil producers step up plans to sell what’s seen as a crucial fuel in the transition to cleaner energy.
Although key barriers remain, the worldwide potential of hydrogen is vast. Some estimate an investment pipeline of $300 billion, with hydrogen possibly supplying 18% of global energy by 2050. The Gulf States are particularly well placed to capitalise as producers and exporters of clean hydrogen.
By Bracewell LLP Partners Kevin Ewing, Stephen Hug, Elizabeth McGinley and Christine Wyman
The energy transition will come in a variety of forms, but playing a critical role will be offshore wind, carbon capture utilisation and storage (CCUS), and hydrogen.
Energy professionals identify lack of investment in infrastructure as the joint-highest risk their organizations face in relation to hydrogen – and a significant majority (78%) say repurposing existing infrastructure will be crucial to developing a large-scale hydrogen economy.
ScottishPower has strengthened its hydrogen division with the appointment of an industry expert, who had a hand in developing Aberdeen’s hydrogen bus network.
India’s richest man, Mukesh Ambani, who has run one of the world’s largest petroleum businesses for over two decades, yesterday announced that his company Reliance Industries, will invest 750 billion rupees ($10 billion) towards clean energy solutions over the next three years.
South Asia, which includes India, Pakistan, Sri Lanka, and Bangladesh, is slowly following the rest of the world in the transition towards cleaner energy systems. The subtle shift opens potentially large market opportunities for energy service suppliers.
A new A$2 billion ($1.54 billion) Queensland Renewable Energy and Hydrogen Jobs Fund will be established to expand on the previous A$500 million Renewable Energy Fund in the Australian state.
The Premier of Western Australia, Mark McGowan, told the Australian Petroleum Production & Exploration Association (APPEA) conference on Tuesday that the state’s market share in renewable hydrogen exports in 2030 should be similar to its share of liquefied natural gas (LNG) exports today.
Hydrogen is a trending topic in any discussion of the energy transition. Blue hydrogen (from methane) is viewed as a potential transition fuel as we move to a low carbon economy. The OGA strategy which came into force in February requires licensees to ensure that technologies are deployed to enable hydrogen supply projects to be developed. But what would hydrogen be used for and is there a market for it?
The energy sector is awash with the benefits of hydrogen for domestic heating. It’s the most common element in Universe, it burns to water, it can be swapped out for natural gas – it is a wonder fuel.