This is a series of articles examining environmental, social and corporate governance (ESG) programs in the oil industry, focusing on how some companies use hydrogen to improve their metrics. There were previous articles
Today I want to talk about some examples of how various companies include hydrogen in their business.
Arian on Midstream ESG
This series is based on a recent study by Alerian, a private energy infrastructure and MLP marketing information provider: Medium / MLPs: Unspecified ESG pressure.
The research department covers a wide range of initiatives, but I was particularly interested in learning what these companies do in the hydrogen environment. I asked and heard back from Mauricio Samanigo, Senior Research Analyst, Alerne and S-Network Global Indexes:
As you know, the topic of medium hydrogen has revolved around natural gas pipelines and storage facilities used to transport and store hydrogen in the coming decades.
Today, hydrogen initiatives are at an early stage and are primarily focused on existing natural gas pipelines designed by NB, TC Energy (TRP), Kinder Morgan (KMI). ), And The Williams Company (WMB). In addition, TRP and Enterprise Production Partners (EPD) have also discussed – and are evaluating – the use of existing nuclear and petrochemical plants for hydrogen production.
It contains several bullet points that identify these hydrogen-related stimuli, some of which I have used in the commentary below.
Hydrogen in the middle line
There are three easy-to-use uses for hydrogen produced near natural gas fields. The first is compression. Middle-class operators rely on compressors to transport natural gas from the field to the customer.
The National Energy Technology Laboratory (NETL), a branch of the Department of Energy, estimates that there are a total of 5,000-7,000 compressors, approximately 13,000-15,000 compressors, and 1,700 intermediate natural gas pipelines. Basin (all sizes) in Lower Basin Oil and Gas and Liquid Natural Gas (LNG) applications. DOE estimates that 2-3% of US natural gas production is used by these compressors. (Source:).
Among other companies, GE has developed hydrogen compressors. They have it now More than 100 rooms It works on up to 100% hydrogen in the field. Therefore, a medium-sized operator can use locally produced hydrogen from unused products such as ethane to improve ESG parameters.
Industrial gas turbines are currently the main drivers of choice for most major line applications. Each of the turbines emits carbon dioxide, and they are high profile targets for ESG improvements. An estimated 5 million compressors need to be replaced over the next 15 years. (Source:).
Gas-fired power plant operators are also at the crossroads, and regulators and investors are setting significant CO2 reduction targets. Power turbines can be made using a mixture of methane and up to 20% hydrogen to reduce CO2 emissions. Mitsubishi has announced the development of 100% hydrogen-powered turbines.
To get that hydrogen to the power plants, many medium-sized operators are trying to combine hydrogen into natural gas pipelines. Kindergarten said in a Q4 2020 earnings call that there is technology to integrate hydrogen with natural gas and move it through pipelines.
Enbridge currently has two subsequent hydrogen projects, a $ 5.2M Hydrogen Mixture Test Project In Markham, Ontario and a $ 90 million, 20 MW hydrogen production and mixing project In Gatino, western Quebec.
At a recent energy conference, energy product partners mentioned ongoing discussions with a petrochemical company about hydrogen pipelines and storage projects and reviewing hydrogen applications for transportation and storage.
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TC Energy (formerly Transcanada) is reviewing Combining hydrogen in the existing pipeline, as well as adding specific hydrogen properties. In his Q1 2021 conference call, he noted that when it comes to thinking about how hydrogen works, the pipeline is seen as a great resource.
Finally, the Government of Canada a Hydrogen Strategy That Canada intends to become a world leader in pure hydrogen production. This explains why Canadian medium-sized corporations control hydrogen activity (eg, Enbridge, TC Energy).
For U.S. mid-flow operators, US policy support has begun to take shape over the past few months, with both the Biden administration and Congress offering new and expanded hydrogen tax credits, and other incentives for hydrogen investment. With the proposed policies, more supportive legislation may accelerate hydrogen intake and lead to hydrogen-related developments in the medium term.
By Robert Rapier
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