RBN Energy

Thursday, 6/17/2021

With Environmental, Safety, and Governance (ESG) conscientiousness on the rise and the push to rein in greenhouse gas emissions gaining momentum by the day, many traditional players in the hydrocarbon sector are considering alternative energy sources to invest in. Two key questions they ask themselves when evaluating these options are: Does it make economic sense once you’ve factored in tax credits and other incentives, and can it be incorporated into North America’s existing energy infrastructure. Wind and solar power clearly fit the bill. So does renewable diesel, which also benefits from governmental programs and that it can be blended into petroleum-based diesel. Another alternative gaining traction is renewable natural gas, which is “produced” by capturing methane from landfills and wastewater treatment plants. Today, we discuss the potential and pitfalls of “the notorious RNG.”

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Daily energy Posts

Thursday, 06/17/2021

With Environmental, Safety, and Governance (ESG) conscientiousness on the rise and the push to rein in greenhouse gas emissions gaining momentum by the day, many traditional players in the hydrocarbon sector are considering alternative energy sources to invest in. Two key questions they ask themselves when evaluating these options are: Does it make economic sense once you’ve factored in tax credits and other incentives, and can it be incorporated into North America’s existing energy infrastructure. Wind and solar power clearly fit the bill. So does renewable diesel, which also benefits from governmental programs and that it can be blended into petroleum-based diesel. Another alternative gaining traction is renewable natural gas, which is “produced” by capturing methane from landfills and wastewater treatment plants. Today, we discuss the potential and pitfalls of “the notorious RNG.”

Wednesday, 06/16/2021

We get that the primary focus for oil and gas producers, midstream companies, and refiners needs to be on the business side of things — the strategies and capital plans they develop and implement to survive and hopefully thrive, and the day-to-day decisions they make to keep things running smoothly — and that’s what we at RBN devote most of our time to as well. Still, it seems increasingly apparent that many of these same companies need to pay more attention to environmental, social, and governance issues, not only because ESG is a front-and-center concern of investors and lenders but because addressing these issues in the right way can help to improve a company’s operations and prospects. The environmental element of ESG typically gets the spotlight, at least for companies that produce, transport, or process oil and gas, but the social and governance parts are important too.

Wednesday, 06/09/2021

We get the sense that many hydrogen-market observers are looking for a silver bullet — the absolute best way to produce H2 cheaply and in a way that has an extremely low carbon intensity. If anything has become clear to us over the last few months, however, there isn’t likely to be an “Aha!” or “Eureka!” moment anytime soon. Rather, what we have seen so far in regard to hydrogen production has been a veritable smorgasbord of production pathways, with varying degrees of carbon intensity. While costs vary by project, it is also fair to say that a front-runner has yet to emerge when it comes to producing inexpensive hydrogen at scale. There is a silver lining though, if not a bullet, and that is the realization that there are many options when it comes to procuring environmentally friendly hydrogen. Today, we provide an update of currently proposed hydrogen projects.

Sunday, 06/06/2021

Biodiesel has long constituted a small but stable portion of the diesel fuel diet in North America, its production being driven primarily by the U.S. Renewable Fuel Standard and Biodiesel Income Tax Credit (BTC). Produced from a variety of feedstocks, including soybean oil, corn oil, animal fats, and used cooking oils, biodiesel offers a low “carbon intensity,” or CI — a big plus in California and other jurisdictions with low carbon fuel regulations. The incentives for producing biodiesel are substantial, but there are two big catches with the fuel: a limited supply of feedstocks and properties limiting how much can be blended with petroleum-based diesel. Today, we continue our series on low carbon fuel standards with a look at biodiesel’s pros, cons, history, and prospects.

Tuesday, 06/01/2021

No doubt about it. The global effort to reduce emissions of carbon dioxide — the most prevalent of the greenhouse gases — is really heating up. Yes folks, CO2 is in the spotlight, and everyone from environmental activists and legislators to investors and lenders want to slash how much of it is released into the atmosphere. There are two ways to do that. First, produce less of it. That’s what the development of no- or low-carbon sources of power and the electrification of the transportation sector are intended to accomplish. The second way is to capture more of the CO2 that’s being emitted and make it go away, and the most cost-effective means to that end is sequestration — permanently storing CO2 deep underground, either in rock formations or in oil and gas reservoirs through a process called enhanced oil recovery, or EOR. Sure, there’s an irony in using and sequestering CO2 to produce more hydrocarbons, but the volumes of CO2 that could be squirreled away for eternity through EOR are enormous, and the crude produced might credibly be labeled “carbon-negative oil.” In today’s blog, we continue our look at the rapidly evolving CO2 market and the huge opportunities that may await those who pursue them.

Sunday, 05/30/2021

We’ve been writing on hydrogen for a few months now, covering everything from its physical properties to production methods and economics. Given the newness of the subject to most folks, who have spent their careers following traditional hydrocarbon markets, we have attempted to move methodically when it comes to hydrogen. However, we think that things may get more complicated in the months ahead. Why, you may ask. Well, the development of a hydrogen market — or “economy”, if you will — is going to be far from straightforward, we believe. Not only will hydrogen need some serious policy and regulatory help to gain a footing, the new fuel will have to become well-integrated into not only existing hydrocarbon markets, but also some established “green” markets, such as renewable natural gas, or RNG. So understanding how renewable natural gas is produced and valued is probably relevant for hydrogen market observers. In the encore edition of today’s blog, we take a look at the possible intersection of natural gas, particularly RNG, and hydrogen.

Tuesday, 05/25/2021

There’s a fresh breeze blowing through the energy patch. Oil and gas companies seem to have turned a corner and are piling on the climate change bandwagon. They’re talking green, walking green, and many are in hot pursuit of government subsidies and tax breaks that are here today, with expectations that more incentives are on the way. Carbon dioxide is their primary target — it’s by far the most prevalent greenhouse gas and technologies already exist for permanently depositing captured CO2 deep underground. In fact, the U.S. is #1 in the world at this, accounting for about 80% of all the CO2 being stored globally. But it may surprise you to learn that much of the CO2 being squirreled away for eternity isn’t captured from industrial processes or exhaust. Instead, a lot of it comes from CO2 reservoirs in Colorado and New Mexico, tapped on purpose to bring vast volumes of CO2 to the surface. Why? So that CO2 can be put right back into the ground. Sound crazy? Well, it’s not. In the blog series we begin today, we explore the rapidly evolving CO2 market and the huge opportunities that await those with the ambition to pursue them.

Wednesday, 05/19/2021

When it comes to hydrogen regulation, there are two buckets. The first includes safety and environmental regulations related to building and operating facilities that produce, transport, store, and consume hydrogen. There’s not much mystery here, just a multitude of rules from various organizations in place to cover the physical side of the hydrogen industry. That said, as hydrogen use is expected to grow over time, this bucket of regulation is likely to expand and maybe morph. The second bucket includes rules that are designed to provide market structure and incentives for hydrogen. This bucket is mostly empty, though, and for hydrogen markets to succeed, it will need to be filled up. Put another way, hydrogen needs rules and incentives that make it clear the powers-that-be want hydrogen to be around and thriving. In today’s blog, we look at existing hydrogen regulations and highlights the gas’s need for further regulatory incentives and clarity.

Wednesday, 05/12/2021

Ethanol is a biofuel that is found in nearly 98% of the gasoline purchased at retail stations in the U.S., in most cases accounting for 10% of the gasoline/ethanol blend. This high-octane, biofuel has grown in popularity around the world, particularly over the last 20 years, due to regulations that require or incentivize its use. As governments continue to evaluate regulations to control greenhouse gas (GHG) emissions, ethanol has been overshadowed by some other biofuels lately but it is expected to continue to play an important role as a pathway for meeting low-carbon mandates. Today, we discuss the history, the production, and the still-evolving role of ethanol in the global push to decarbonize.

Wednesday, 05/05/2021

It’s been two weeks since our last blog on hydrogen, so we’re back again with the latest installment of what has become something of a “Hydrogen 101” course. As with any college course, the time comes to review some material, in preparation for what will be our “final” on the subject, a one-day virtual conference in late June. No, today’s blog won’t be a repeat of what we discussed before, but we thought it would be helpful to look over the various hydrogen production pathways we have discussed so far this year, this time focusing on the drivers, advantages and disadvantages, and how they relate to each other. Finally, we will also review the general carbon intensity of each approach to producing H2, a method that we think will eventually replace the somewhat flawed hydrogen “color” scheme. In today’s blog, we draw upon our recent coverage of hydrogen production technologies and put them in perspective.

Tuesday, 04/27/2021

As governments and corporations around the world evaluate methods of decarbonization across sectors, one focus area has been transportation, since the petroleum fuels used to mobilize economies are significant contributors to greenhouse gas (GHG) emissions. California’s Low Carbon Fuel Standard (LCFS) is one of the longest-running programs for carbon intensity (CI) reduction targeting the transportation sector and provides an ideal case study to review for a better understanding of how one type of GHG reduction policy is anticipated to work. As many of the principles in this pioneering program are being evaluated for replication elsewhere, its results and consequences are still in the making. In today’s blog we’ll provide an overview of the Golden State’s groundbreaking LCFS, looking at its history, how it functions, and its effectiveness at meeting its goals to date.

Wednesday, 04/21/2021

We’ve been writing on hydrogen for a few months now, covering everything from its physical properties to production methods and economics. Given the newness of the subject to most folks, who have spent their careers following traditional hydrocarbon markets, we have attempted to move methodically when it comes to hydrogen. However, we think that things may get more complicated in the months ahead. Why, you may ask. Well, the development of a hydrogen market — or “economy”, if you will — is going to be far from straightforward, we believe. Not only will hydrogen need some serious policy and regulatory help to gain a footing, the new fuel will have to become well-integrated into not only existing hydrocarbon markets, but also some established “green” markets, such as renewable natural gas, or RNG. So understanding how renewable natural gas is produced and valued is probably relevant for hydrogen market observers. In today’s blog, we take a look at the possible intersection of natural gas, particularly RNG, and hydrogen.

Thursday, 04/08/2021

Each sector of the oil and gas industry — upstream, midstream, and downstream — faces its own unique set of challenges in dealing with the ongoing transition to a lower-carbon global economy and in addressing the increasing ESG-related demands of investors and lenders. Refiners are no exception. Their highly complex facilities may be capable of converting crude oil into gasoline, diesel, and jet fuel, but the fact remains these refined products generate greenhouse gases when they are produced and consumed. What can refiners do to prepare for an era of low- or no-carbon fuels and improve their enviro-cred at the same time? Many have been investing heavily in renewable fuels production, such as renewable diesel and ethanol, and in sourcing at least some of their electricity needs from wind and solar. Today, we continue our series on the environmental-social-governance movement in the oil and gas industry with a look at what refiners are doing on the ESG front.

Wednesday, 04/07/2021

When it comes to blogs on the developing hydrogen sector, many subjects can seem quite foreign to the traditional hydrocarbons expert. We have found ourselves spending a considerable amount of time over the last few months slowly peeling back the layers on this sector in an effort to be prepared should hydrogen enter a new phase of importance in the energy industry. Today’s blog is likely a much more straightforward one for the typical hydrocarbon-focused reader. That’s because, in our view, Monolith Materials’ unique process for transforming natural gas into “turquoise” hydrogen while sequestering the carbon, is easier to wrap your head around. This is not just because of the company’s clear goals and process, but also because what it does is proving to be economically viable. That’s not always the case when we discuss hydrogen, so covering Monolith’s operations is a welcome break. Today, we detail a truly one-of-a-kind method of low-carbon hydrogen production.

Thursday, 04/01/2021

When it comes to energy markets analysis, there’s nothing quite like spending the better part of an afternoon piecing together a long chain of unit conversions only to find the next day you’ve misplaced the sticky notes on which you wrote them. We’ve all been there, though for most of us it’s become commonplace to memorize the few hydrocarbon conversions needed to get through a lunch or happy hour. Unfortunately, the same cannot be said when it comes to hydrogen, which brings its own set of unique units of measure, many of them not usually bantered around your typical business development discussion. Crunching through them is tough, in our experience, and we find ourselves writing them down over and over again. Which gave us an idea: why not write a blog on the topic? Fortunately, we are in that business, and today we continue our series on hydrogen with a look a green hydrogen production projects and the math needed to make sense of them.