Hydrogen Map shows 57 projects are operational globally
Currently there are 57 projects operational and a further 58 will be in development by the end of 2021. Construction of another 92 are slated to begin in the next decade.
Western Europe and Asia Pacific, which account for more than 83% of known low-carbon hydrogen projects, are driving growth, but US projects are rising. The US is well positioned to lead the green hydrogen economy due to the abundant, low cost renewable energy sources needed to produce it, such as wind, solar, hydropower and nuclear, according to McKinsey.
A hydrogen production facility being built at the Tabangao refinery in Batangas, Philippines is slated to be the first to generate blue hydrogen, in which hydrogen is produced using fossil-fueled sources but the resulting carbon emissions are captured, stored or reused.
"Low carbon hydrogen and ammonia production is the key to decarbonising the hard-to-decarbonise sectors like transportation, industry and buildings”, said Pillsbury energy partner and Deputy Energy Industry Group leader Elina Teplinsky.
"This map will be a helpful tool for a broad audience of policy makers, industry participants and investors, sustainability analysts, advocates and journalists tracking the development of low-carbon hydrogen projects and encourage dialogue between those parties to further accelerate adoption of this transformational technology."
"With governments and enterprises worldwide increasingly prioritising decarbonisation goals, we are laser-focused on helping clients capitalise on the enormous opportunities that the ongoing energy transition presents,” said partner Sheila Harvey, who serves as firm-wide Energy Industry Group leader at Pillsbury and co-leads the firm’s Hydrogen practice.
Hydrogen practice group co-leader Mona Dajani, who heads Energy & Infrastructure Projects and Renewable Energy teams, said energy demand is driving significant innovation in the hydrogen space.
"Green hydrogen projects, which combine renewable power sources with hydrogen production, are unlocking new possibilities for regions previously constrained by weak grid connections and transmission bottlenecks and marking a crucial step in the development of the green hydrogen business case," she said.
New Australian clean energy storage startup Endua aims to build hydrogen-powered energy storage and deliver sustainable, reliable and affordable power.
Endua is backed by $5 million in funding, technology and industry expertise from CSIRO, Australia’s national science agency; Main Sequence, the deep tech investment fund founded by CSIRO; and Ampol, the country’s largest fuel network.
The 'People versus Shell' landmark ruling implications
A Netherlands court has ruled that Shell must reduce its emissions by 45% by 2030 compared to 2019 levels - the first time a company has been legally obliged to align its policies with the Paris climate accords.
While Shell has committed itself to net zero by 2050, its near-term targets have only concerned the 'carbon intensity' of its business. The ruling means Shell, in line with other majors, must ramp up its decarbonisation efforts.
Shell's Projects & Technology Director Harry Brekelmans said it "expects to appeal" the decision.
“We are investing billions of dollars in low-carbon energy, including electric vehicle charging, hydrogen, renewables and biofuels," he said. "We want to grow demand for these products and scale up our new energy businesses even more quickly."
Yesterday's ruling makes that a legal, as much as a commercial, imperative. The legal action was brought by Friends of the Earth Netherlands (Milieudefensie) together with 17,000 co-plaintiffs and six other organisations.
Rachel Kennerley, climate campaigner at Friends of the Earth England, Wales and Northern Ireland said: “Today an historic line has been drawn, no more spin, no more greenwashing, big oil is over. The future is in clean renewables. This is also for the urgent attention of the UK government, because real emissions reductions are required urgently, not offsetting or other smoke and mirrors distractions."
Shell said it has built around 200 fast charging points, increasing to 250 by the end of the year, and will offer 200,000 charging points throughout Europe, through its subsidiary NewMotion.
It is opening hydrogen fueling stations and has plans to build electrolysers in the Port of Rotterdam and the Eemshaven for green hydrogen production from green electricity. These hydrogen plants could reduce industry emissions, are at the centre of new value chains (wind to hydrogen to industries/freight transport) and provide jobs.
But the clear message inside and outside the courtrooms is the industry needs to act faster. Last week the IEA turned up the heat on the oil industry, stating no new oil and gas fields should be developed from this year in its Net Zero by 2050 report.
In the near term, the report describes a net zero pathway that requires 'the immediate and massive deployment of all available clean and efficient energy technologies, combined with a major global push to accelerate innovation.'
The difficulty for majors is reconciling environmental strategies with financial practicalities, in a world that still evolves around oil and gas. How can organisations balance legacy core hydrocarbon businesses while also diversifying into a range of low-carbon options? The 'double whammy' of the pandemic and declining oil prices has rocked the industry to the core. In the first three quarters of 2020 alone, oil and gas companies in North America and Europe wrote down asset values of $145 billion.
bp and ENI recently signed an MoU to combine their upstream portfolios in Angola, including all oil, gas and LNG interests, and it announced gas production from the Raven field, the third stage of its major West Nile Delta (WND) development off the Mediterranean coast in Egypt - part of a $9 billion development. Though in sustainable moves, it also teamed up with CEMEX and secured planning approval for upscaling plans for the Wellington North solar project.
"The first response of oil and gas companies ... must be to build a portfolio that is resilient to both lower commodity prices and higher carbon prices," advises a McKinsey report.
According to McKinsey’s 1.5-degree-pathway scenario, over the next decade $750 billion is needed to flow to CCUS, $200 billion to EV infrastructure, and $700 billion to hydrogen-production capacity, while Renewable power capital expenditures of $8.5 trillion are required to build the solar and on- and offshore wind capacity required from 2020 to 2030.
"We continue to take significant steps to accelerate the transition of our business to net-zero emissions, which includes working with our suppliers, customers and other partners in reducing their emissions," said Brekelmans. "To find the solutions the world needs, we continue to engage in dialogue with NGOs, industry partners, governments, academia, shareholders and wider society."