HP March 2022 eBook—Energy Transition - 120

EXECUTIVE VIEWPOINT
Blue hydrogen's role in the energy transition
D. BAWA, Director of Project Development, New Fortress Energy
H2Tech sat down with Deepak Bawa,
Director of Project Development-LNG
and Hydrogen Projects for New Fortress
Energy, to discuss the roles of blue and
green H2
as how blue H2
in the energy transition, as well
both complements and
competes with the natural gas midstream
sector.
An expanded discussion on these
and other topics is available in our
H2TechTalk
podcast interview with
Mr. Bawa. Visit blubrry.com/H2TechTalk
to listen and subscribe!
H2T. How do you view blue H2
DEEPAK BAWA is the Director of Project
Development
for New Fortress Energy.
Mr. Bawa is a Six Sigma Green Belt Certified
Project Management Professional (PMP) with
significant experience in LNG, chemical plants
and refinery projects spanning more than 17 yr.
He has led teams of 40-100 people for EPC
projects valued at $2 MM-$4 B. In the past, he
has worked with companies including KBR, IHI,
UOP, TechnipFMC and ISGEC. Mr. Bawa holds
a BS degree in mechanical engineering from
the Sant Longowal Institute of Engineering and
Technology in Punjab, India.
blue H2
's
role in the existing oil and gas
energy infrastructure?
DB. In this energy transition period,
will play a crucial role. Overall,
we can say that H2
the energy transition. In the past, H2
is the " rock star " of
was
used mainly for hydrotreating fossil fuels
and in chemical production-ammonia,
methanol, urea, etc. Now, though, people
are looking at H2
as a fuel for the transis
being discussed for
, blue
portation and aviation industries, which
is a big change. H2
use in the power, steel and other industries-basically,
wherever we have been
using fossil fuels.
Of all the different " colors " of H2
H2 is the most balanced. Gray H2
from reforming
of natural gas is cheap but emits a
lot of carbon; green H2
is clean but relies
on very low-cost renewable energies to be
competitive. Blue H2
sits at a sweet spot
where it can be less expensive than green
H2
without emitting carbon like gray H2
As the cost of renewables continues to
.
come down, and as more renewable energy
is in use around the world, green H2
will be the future. As we strive to lower
emissions during the energy transition,
blue H2
presents a viable economic and
environmental pathway for doing so.
H2Tech | Q1 2021 | H2-Tech.com
H2T. Do you see H2
as being
complementary to or competitive
with the natural gas sector?
DB. Both, actually, but it is more complimentary.
Natural gas has its own place
in the industry, while H2
will be used
can be used
wherever it is economical to substitute
for natural gas. Moreover, H2
in different industries as a feedstock, or
as a fuel for transportation and aviation,
whereas natural gas is better utilized for
heat and power generation.
New Fortress Energy has helped several
developing countries switch their
power generation from diesel to natural
gas. As we transition to green H2
, natural
gas will continue to be used to produce
blue and gray H2
.
H2T. What are the present
challenges for blue H2
production and application?
DB. Right now, the current challenge
) capture. CAPEX and
capture systems are high,
is carbon (CO2
OPEX for CO2
and not many companies are interested
in buying CO2
for enhanced oil recovery
, under the U.S.
, which
.
credit will be incan
be motivated to
(EOR) when crude oil is around $45/bbl.
If you sequester the CO2
government's 45Q tax credit program
you get around $50/ton of CO2
barely covers the cost of capturing CO2
I hope that this CO2
creased in the near future so that the biggest
producers of H2
install CO2
sequestration is a lengthy process
that takes around 18-24 months. This
process should be expedited. If the CO2
tax credit is increased to $70/t-$80/t and
a sequestration permit is provided in 6
months, then it can change the scenario
for carbon capture in the U.S.
capture systems at their existing
steam methane reforming (SMR) production
plants. Also, the permit required
for CO2
http://www.blubrry.com/H2TechTalk http://www.H2-Tech.com
HP March 2022 eBook—Energy Transition

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