February 12, 2021 – Natural Gas Intelligence
Oil, Natural Gas Majors Say Hydrogen May Lie at Heart of Energy Future
By Kevin Dobbs
So-called green hydrogen, still in its infancy, is the key for energy companies navigating what many in the industry believe is an inevitable transition from fossil fuels to renewables over the next three decades. Made using water – not hydrocarbons – green hydrogen holds promise as a genuinely clean source of fuel to power everything from factories to homes to cars. Other forms of hydrogen are not carbon free, but they are widely viewed as cleaner than fossil fuels.
However, as RBN Energy LLC analyst Jason Ferguson notes, hydrogen is currently expensive and its ultimate future uncertain.
Estimated costs to develop and deliver green hydrogen approach $20/MMBtu today, according to the International Energy Agency (IEA), exponentially greater than natural gas.
“While it’s very early days for many production pathways to hydrogen, especially green hydrogen, time will tell if the costs to produce it follow a downward trend similar to those for producing hydrocarbons from shale or remain at levels so high the current hydrogen bubble bursts like others before it,” Ferguson said.
Read the full article here: https://www.naturalgasintel.com/oil-natural-gas-majors-say-hydrogen-may-lie-at-heart-of-energy-future/
