‘Hydrogen central to oil and gas industry decarbonisation efforts’

industry 1149888 640A new report by DNV GL has revealed that hydrogen has raised the priority list of many oil and gas organisations, taking a leading position in the sector’s decarbonisation efforts

A fifth of senior oil and gas industry professionals said their organisation is already actively entering the hydrogen market, according to a new report published by the technical advisor to the sector.

In the year leading up to the oil price crash induced by COVID-19, the proportion intended to invest in the hydrogen economy doubled from 20 per cent to 42 per cent.

The report suggests that recent shifts in the industry’s investment priorities are unlikely to affect the sector’s long-term efforts to reduce carbon emissions.

In those reporting that their organisation is actively adapting to a less carbon-intensive energy mix, DNV GL found a significant increase – from 44per cent in 2018 to 60 per cent in 2020. The production, transmission and distribution of carbon-free hydrogen is now widely recognised as a central component of the decarbonisation efforts of the oil and gas industry.

“Hydrogen is in the spotlight as the energy transition moves at pace – and rightly so. But to realise its potential, both governments and industry will need to make bold decisions,” said Liv A. Hovem, CEO, DNV GL – Oil & Gas. “The challenge now is not in the ambition, but in changing the timeline: from hydrogen on the horizon, to hydrogen in our homes, businesses, and transport systems.”

More than half of respondents to DNV GL’s research in Asia-Pacific, the Middle East, and North Africa and Europe agree that hydrogen will be a significant part of the energy mix within 10 years. North America and Latin America are only a little behind.

“To progress to the stage where societies and industry can enjoy the benefits of hydrogen at scale, all stakeholders will need immediate focus on proving safety, enabling infrastructure, scaling carbon capture and storage technology, and incentivising value chains through policy,” said Hovem.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?