Hydrocarbon Processing - April 2021 - GP-13

EXECUTIVE VIEWPOINT
natural gas due to its similar gas composition and fuel properties. Where we
have seen the biggest demand for RNG,
however, is as a transportation fuel, due
to incentives from California's Low Carbon Fuel Standards (LCFS) program. In
2019, about 40% of natural gas vehicle
fuel was sourced from RNG.
While H2 may be a competitive decarbonization solution for the industrial
sector or energy-intensive, high-heat
applications, RNG is also attractive for
the buildings sector, especially in the
residential and commercial space where
modification or retrofitting of appliances
would not be needed.
GP&LNG: With respect to the
cost of H2 projects, do you expect
to see more " blue " H2 projects
(H2 produced from natural gas
reforming, with added carbon
capture and storage) implemented
over the near-term, vs. " green "
H2 projects (H2 produced from
electrolyzers using renewable energy
power, with zero carbon emissions),

due to the higher cost factor
for green H2 projects at present?

KW: To enable a low-cost, low-carbon
economy, we must expand our supply
of H2. As you noted, there are several
technologies to produce H2 , with steam
methane reforming (SMR) dominating
H2 production today. When SMR is combined with carbon capture, it enables production of clean H2 . Technologies that
we implement to reduce emissions must
be cost-effective for our economy and for
a diverse set of customers, whether focused on large-scale power generation or
serving disadvantaged communities.
Disruptive innovation will be needed
to produce a low-cost supply of H2 , regardless of the color or feedstock. As
many studies point out, the cost of blue
H2 is significantly lower than that of
green H2 , so in the near to medium term,
H2 from natural gas will continue to provide the majority of H2 supply, and this
trend will continue until electrolyzer
costs and electricity prices come down. It
is also important to note that the impact
of policies around tax incentives, produc-

tion credits and the cost of carbon will
further accelerate the supply of clean H2 .
We are also exploring the creation of H2 focused hubs or centers where existing
assets and infrastructure can be leveraged
and matched with multiple local end-users as a way to reduce costs.
As part of our Hydrogen Network
Demonstration in Texas, the project
team is also developing a framework for
integrating H2 as a low-carbon fuel within the Port of Houston, which includes
plans for production, delivery, transport
and use of H2 to decarbonize the port's
industries and operations (FIG. 1). The
intent is to apply similar frameworks to
other areas in the U.S. to expand the role
of H2 in our energy systems.
The global effort to reduce greenhouse gas emissions is driving a need to
deploy and develop low-carbon technologies quickly, and the increased use
of renewable resources is driving demand
for more means to store energy. H2 offers
great versatility that can go a long way
toward meeting decarbonization goals
across all sectors of the economy. GP

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Mike Reed
Editor-in-Chief
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Hydrocarbon Processing - April 2021

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