Overview
FGE’s Hydrogen and Carbon Capture, Utilisation and Storage (CCUS) annual report provides insight into hydrogen’s place in the energy transition and the potential for CCUS to help meet carbon reduction targets.
Hydrogen - Why Now?
The move to reduce CO2 emissions from the production and use of hydrocarbons has created significant momentum to reduce or replace the combustion of oil and gas with CO2-free and/or CO2-neutral fuel sources. As a consequence, a significant number of countries have either proposed or passed into law net-zero carbon targets for 2040-2060.
Chart/Table Appendix
More Countries Shift Focus to Hydrogen
Hydrogen can play an important role in hard-to-decarbonise sectors such as heavy industry, where high temperatures are required. In addition, a wide range of transportation sectors, such as marine, air and long-haul road freight, can use hydrogen to meet corporate and national CO2 emission reduction targets.
The past decade has been dominated by falling costs for solar and wind power. Coupled with climate change policies and emission reduction targets, this has paved the way for ‘green’ hydrogen, i.e. hydrogen produced from renewable electricity via the electrolysis of water.
The shape of the product barrel is changing, with an increasing focus on producing LPG and naphtha as petrochemical feedstocks. While the potential for gasoline demand growth in the Atlantic Basin is limited, we continue to see strong growth in all other regions. The challenge for refiners will be how to meet this demand while not oversupplying markets with gasoil/diesel.
Our conclusions highlight how changing demand is affecting refinery utilisation, the pressures on refinery throughput and yields and on refinery margins. This analysis is provided alongside accurate data for refinery capacity, estimated refinery margins, and product prices. We review how surplus refining capacity may change in future and forecast the need for further capacity additions in some parts of the world.
Key Areas Addressed
- In which regions will the hydrogen industry develop?
- Which sectors will drive hydrogen usage?
- What are the current and future applications for CO2?
- What are the economics of hydrogen production?
- How can CCUS help achieve a low-carbon world?
- What are the factors driving CO2 capture and storage costs?
Deliverables
- PDF copy of the report (PowerPoint layout).
- FGE will be available for a conference call, Zoom meeting, or a general meeting to present and discuss the key findings of the report.
- All associated tables available in Excel (if required).
This Service Will Add Value To
- Energy Users (Utilities Companies, Transportation Sector, City Gas Companies, Industrial Companies) Evaluating the place of H2 within their decarbonisation strategy.
- Energy Producers (Power/Electrolyser Projects/Refiners) Assessing the quantity of H2 demand they will be required to meet and where this might be found.
- Traders and Integrated Energy Companies Identifying opportunities for the inclusion of H2 within their energy portfolios.
- Infrastructure Players (Storage, Transport, Technology) Optimising their infrastructure solutions to meet the current and future needs of the H2 value chain.