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January 27, 2022

Hydrogen fuel has the potential to achieve global decarbonisation targets

According to GlobalData, hydrogen can help achieve clean energy transition and decarbonisation in the oil and gas industry.

By GlobalData Energy

GlobalData’s latest thematic report, ‘Hydrogen in Oil & Gas’ provides an overview of the unfolding of Hydrogen as a theme and its potential application in enabling the clean energy transition. It provides a detailed analysis of the hydrogen value chain, participation of leading players and hydrogen policies in key countries around the world.

Several oil and gas companies are investing in the hydrogen theme to create alternative revenue streams in the energy sector. The oil and gas industry is the largest consumer of hydrogen, deploying it in refining and petrochemical processes. The industry can leverage this edge into becoming the prominent supplier of this fuel as envisaged in the hydrogen economy.

The prospects of the hydrogen economy are rooted in the fact that it is a clean-burning fuel. Hydrogen can work in tandem with renewable energy from solar, wind and other sources. It can also take the role of an energy carrier for renewable energy when deployed for electrification purposes.

Governments around the world are allowing tax breaks and subsidies to encourage the fast adoption of the hydrogen economy, China, the US and some European countries have been at the forefront of the development of the hydrogen economy to advance their decarbonisation objectives.

Historically, hydrogen has been a key element in the manufacturing of several key industrial chemicals such as methanol and ammonia, but it is predominantly used as a feedstock in crude oil refining processes. The so-called ‘hydrogen economy’ seeks to disrupt these conventions and utilise hydrogen as industrial fuel in the power, transport and metallurgy sectors.

Figure: Hydrogen adoption in key industries



Source: GlobalData Thematic Research                                                                                                                                  ©GlobalData

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