Norway’s Equinor has partnered with France’s Engie to jointly develop ways to produce low-carbon hydrogen from natural gas.
The companies will assess the production and market potential for hydrogen produced from natural gas, whereby the resulting CO2 will be permanently captured and stored offshore.
A memorandum of understanding has been signed by the parties to assess the development of low-carbon hydrogen value chains in Belgium, the Netherlands, and France.
The companies will also begin discussions with potential customers to determine the project’s viability, as well as with stakeholders and relevant authorities.
Engie business unit global energy management CEO Edouard Neviaski said that the company produces renewable hydrogen and supports the development of the market for low-carbon hydrogen.
Neviaski added: “Both these technologies will be necessary to accelerate the development of a solid infrastructure and the transition to a carbon-neutral economy.”
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By GlobalDataEquinor and Engie expect the low-carbon and renewable hydrogen projects would help in significantly reducing CO2 emissions before 2030.
In a statement, Equinor said: “This development of low-carbon and renewable hydrogen will accelerate the construction of new hydrogen infrastructure and the repurposing of current natural gas infrastructure, thus paving the way for net-zero in 2050.”
Equinor low-carbon solutions senior vice-president Grete Tveit said: “Collaboration and partnerships will be absolutely necessary to find the best solutions. Our two companies have complementary areas of expertise that we can utilise to develop low-carbon hydrogen initiatives together.”
In a similar move, Australian oil and gas major Santos started a concept study last year to investigate a hydrogen future for the Cooper Basin that spans across the north-east corner of South Australia and south-west Queensland.
