Hydrogen production refers to all the industrial applications for generating hydrogen gas. The vast majority of hydrogen, approximately 95% in 2020, is produced from fossil fuels via steam reforming of natural gas, partial oxidation of methane and coal gasification. CO2 is stripped off the natural gas with an efficiency of up to 95%. When this CO2 is prevented from entering the atmosphere through Carbon Capture and Storage (CCS), it is called “blue” hydrogen. The hydrogen produced through applications not involving fossil fuels, such as electrolysis from solar or hydro-electric power, is called “green” hydrogen. The cost associated with the production of blue hydrogen is 1-1.8 USD/kg, compared to the production of green hydrogen which stands approximately at 2.5-6.8 USD/kg. Both processes result in a liquid with improved energy density producing no direct emissions of pollutants or greenhouse gases.
Demand for hydrogen continues to rise and has triplicated since 1975, almost entirely produced from fossil fuels. Approximately 87M tons of hydrogen was generated globally in 2020 for multiple purposes. Its production is essential for many chemical processes such as petroleum refining and ammonia production. Hydrogen can also be used to generate zero or near-zero carbon emissions in other industrial applications, integrated clean energy systems and transportation. This is why hydrogen has a real potential to tackle global warming. It can also contribute to improving air quality and reinforce energy security.
The production of hydrogen from fossil fuels, is largely supported by the oil and gas industry. In fact, the oil and gas industry enables the production of such fossil fuels and the execution of CCS projects when the generated CO2 is to be stored in deep reservoirs. Reservoir characterisation, drilling and injection operations are the main components of a CCS project in which oil and gas has arguably more experience than any other sector. Therefore, the oil and gas industry has the necessary means to encourage as much CO2 as possible relating to the production of hydrogen to be prevented from circulating in the atmosphere.
We can successfully apply our unique Directional Coiled Tubing Drilling (DCTD) technology to maximise the efficiency and minimise the footprint and the cost associated with the production of blue hydrogen:
Get in touch with us to learn more how our CTD technology and how we can make your project successful
