All the talk is about clean and green hydrogen as the future fuel, and the role of blue hydrogen in the interim as a bridge to our carbon free utopia But what's new in traditional, industrial and merchant hydrogen circles? What challenges does this dominant but now 'old school' hydrogen sector face? And what lies ahead for conventional hydrogen technology against the backdrop of a future in a clean and green hydrogen-fueled society?
GasWorld caught up with leading hydrogen pioneer Rommel Oates who has been spearheading all things hydrogen since his days of researching large-scale hydrogen storage in the late 90's with world-renowned hydrogen expert, Dr. T.Nejat Veziroglu. Rommel worked with Dr. Veziroglu studying all things hydrogen during his tenure spent at the Clean Energy Research Institute (CF.R.I.), within the University of Miami's campus in Coral Gables, Florida. Here's what he had to say.
As we transition to lower carbon fuels with hydrogen being projected as the front runner in winning the long-distance energy carrier relay race for the upcoming Cenergy transition Olympics', we must remember the now-called 'grey' hydrogen road, which has paved the way for our low-to-no-carbon future.
The world has learned a lot from the very established and yet increasingly dirty-labelled 'grey hydrogen' business, which is still very critical today in helping humanity enjoy a fruitful life. Grey hydrogen supports refining and chemical industries' key products that are directly tied into our modern way of life, such as fertilizers for agriculture, housing and building materials, rubber for tyres, fuels for mobility and transport, and even more lighter fair uses such as waxes for lipstick. I am thankful that the industrial gas hydrogen industry has laid the foundation over decades for the hydrogen market of tomorrow — from handling and safety through to storage in large volumes and at high pressures.
Underground storage
"Large-scale hydrogen storage technology is one of the key technologies that is enabling the energy transition era to a carbon-less future..."
Take large-scale hydrogen storage as an example. What is often taken for granted and often overlooked is the significance of industry leaders such as Linde (formerly Praxair, Inc.), who have successfully demonstrated that large-scale, high pressure and high purity hydrogen can be stored in underground geological domal salt formations.
Without successful implementation and somewhat Cde-risking' of this technology, the path to transitioning to using hydrogen as the perfect complement to solve the renewable energy storage problem would be questionable and uncertain.
Large-scale hydrogen storage technology is one of the key technologies that is enabling the energy transition era to a carbon-less future, which was brought to life by providing instantaneous back-up to refinery and chemical plants relying on a reliable supply of 'grey' hydrogen.
However, what most people don't know is that when I was researching large-scale [hydrogen] underground storage in the late 1990s and early 2000s, there was no blueprint that provided a certainty this feat could be achieved. At that time, there was an operator storing ethylene off-gas hydrogen streams (<95% pure hydrogen) in a salt cavern in the Clemens Dome in Sweeney, Texas — but it leaked! Further, there were only three small caverns storing low purity hydrogen operating in a low pressure brine compensation mode in Teeside, England.
These were the only examples in the world that gave credence to the possibility of storing hydrogen underground, and they were far from perfect examples to follow. The world would need to solve this problem if we hoped to solve the renewable energy storage problem with green hydrogen, which has a purity of > 99.990/0, hence making it very difficult to store without leakage.
Consequently, storing hydrogen safely, at high pressure and at high purities within underground salt caverns, without leakage or seepage, was a feat that had yet to be accomplished. I am proud of the fact that I played a lead role in inventing systems and methods that enabled the safe storage of large quantities of hydrogen without leakage or seepage. Further, I am at the forefront of developing advanced mechanical integrity methods to ensure that chemicals such as hydrogen and carbon dioxide stay within their intentionally designed underground storage containers.
What's new in industrial and merchant hydrogen circles today?
Large-scale underground hydrogen storage technology has allowed for the critical supply of hydrogen to remain constant to some of the largest refineries and chemical plants in the world. So let's stay here for a moment and look at the merchant market for hydrogen today.
The industrial uses of hydrogen which serve the chemical and refining sectors account for over 99% of the total market for hydrogen globally. Refiners are enjoying and reaping generous profits again as both W TI and Brent crude benchmarks soar past $80/bbl. This is good news for current hydrogen suppliers serving up 'grey' hydrogen. As consumer appetite increases (and there is a willingness to pay a price premium for greener fuels), expect the refining market to generate more renewable fuels and biofuels in which both blue and green hydrogen will play a more prominent role.
Nonetheless, we must perform the transition to the clean energy era with hydrogen as its chief energy carrier, in a surgical manner, to avoid short-term painful price spikes in traditional fossil energy sources that could derail the back decades.
There are many valuable captive hydrogen streams coming off from chemical processes such as propane dehydrogenation, chlor alkali facilities, ethylene steam cracker facilities just to name a few, that produce billions of cubic feet of hydrogen per year. Depending on how the carbon is burdened or allocated to the products being produced from these facilities could open up the door to these forms of hydrogen being cheaper to bring to market. Everyone focuses on steam methane reforming (SMR) hydrogen production, with price targets of catching up with this technology below $1.50/kg. What is often overlooked is the untapped quantity of supply and low-cost of by-product hydrogen — and the role that it will play in the energy transition era.
The market price of by-product is typically a third of the price of SMR produced hydrogen (< $.50/kg). And if the carbon from the process is allocated to the ethylene product for example (coming off of the steam cracker), then that by-product hydrogen would at least be considered blue or low-carbon hydrogen, which would further compete with green hydrogen. This would mean that green hydrogen would really need to be able to compete with cheap by-product hydrogen at below $.50/kg... and not the currently accepted benchmark of $1.50/kg!
"Everyone focuses on steam methane reforming hydrogen production with price targets of catching up with this technology..."
What lies ahead for conventional hydrogen technology?
Traditional hydrogen technology is challenged with carbon emissions and overall carbon management. Operators of this technology will be forced to find creative ways to further increase efficiency and develop technologies that will reduce carbon emissions simultaneously.
As a result, look for more oxy-burner technologies to be incorporated into traditional hydrogen production technologies to reduce emissions and improve conversion of feedstocks. We might also note that what are considered as waste streams today, such as agriculture waste, trash, construction materials, plastics and other landfill products, will serve as valuable feedstocks in the future with the advent of technologies such as Knighthawk Engineering's Hydrogen Torch Reforming technology exclusively licensed by Sovereign Energy Services and manufactured by GasTech Engineering.
Further still, I would add that feedstock flexibility in the steam methane reforming process will be critical in the near future. Look for SMRs to be able to run off renewable natural gas and other renewable feedstocks; I can also see pressure swing adsorption (PSA) units being designed to remove C02 from the exhaust streams of an SMR as an alternative removal method of C02 via amine treatment. Lastly, I predict companies such as Monolith, as an example, and others will find a way to utilise torch reforming or 'new-aged' gasification processes to generate hydrogen from a multitude of new low-carbon or waste feedstocks.
What green hydrogen technology will stand aloft in the 'Olympic' podium positions?
Given that I am all things hydrogen — I don't see a division between brown, grey, blue and green hydrogen sources because they all play a critical role in our energy transition that is predicated with hydrogen being the long distance carrier. I've only always seen hydrogen as hydrogen.
However, on the green hydrogen front, hence conforming to recent vernacular, I see current PEM and alkaline systems being challenged by improved electrolytic systems. One such company and technology, I'm bullish on is Hysata, which is commercializing new technology that is set to redefine the economics of green hydrogen. Hysata's technology is ahead of its time and incorporates the best of both worlds from PEM and alkaline-based systems.
This is a revolutionary period for hydrogen and with it will come challenges and opportunities of the kind that are equally difficult and rewarding. Great minds from oil and gas, nuclear, solar, wind and other forms of energy are all needed to help us transition to a future carbon-free society. I have been serving on the 'front lines' of the hydrogen energy transition for a couple of decades and am grateful of the progress that we have made thus far - and even more excited about the future.
