THP-E156: Will The US Gulf Coast Become The World’s Largest H2 And Ammonia Exporter?

October 20, 2022 • Paul Rodden • Season: 2022 • Episode: 156

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In episode 156, A massive hydrogen announcement between four powerhouses of oil and gas and Williams talks hydrogen blending in Wyoming. All of this on today’s hydrogen podcast.

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Transcript:

A massive hydrogen announcement between four powerhouses of oil and gas and Williams talks hydrogen blending in Wyoming. All of this on today’s hydrogen podcast.

So the big questions in the energy industry today are, how is hydrogen the primary driving force behind the evolution of energy? Where is capital being deployed for hydrogen projects globally? And where are the best investment opportunities for early adopters who recognize the importance of hydrogen? I will address the critical issues and give you the information you need to deploy capital. Those are the questions that will unlock the potential of hydrogen and this podcast will give you the answers. My name is Paul Rodden, and welcome to the hydrogen podcast.

In a press release on October 19, Air Liquide, Chevron, LyondellBasell and Uniper SE to pursue lower carbon hydrogen and ammonia project along the US Gulf Coast. Air Liquide, Chevron, LyondellBasell and Uniper SE have announced their intent to collaborate on a joint study that will evaluate and potentially advance the development of a hydrogen and ammonia production facility along the US Gulf Coast. The facility could support industrial, decarbonisation, and mobility applications in the region and expand clean ammonia exports, helping to increase the supply of lower carbon power internationally. The potential project could be studied as intended to cover the end to end energy value chain, utilizing each participants technical expertise and production, operational experience storage, distribution and export logistics. Collectively, the consortium will bring capabilities and expertise in air separation technology, hydrogen technologies, lower carbon intensity and renewable natural gas, carbon capture and storage, electrolysis based technologies and petrochemicals. Specifically, the consortium will assess the potential for producing hydrogen using natural gas with CCS and renewable hydrogen via electrolysis to supply in use markets, including the ammonia, petrochemicals, power and mobility markets.

If development proceeds, the project could leverage existing advances along the Gulf Coast, including pipeline infrastructure to supply lower carbon and renewable hydrogen to local industrial clusters. Likewise, ammonia infrastructure could support exports to both Europe and the Asia Pacific region. In a quote from Adam Peters, CEO of Air Liquide of North America, Air Liquide is proud to evaluate with its customers and industry partners, the opportunities to further develop and deploy low carbon and renewable hydrogen as well as carbon capture technologies in the region. The Gulf Coast is the ideal location to model hydrogen and carbon capture technologies as immediate pathways to decarbonizing hard to abate sectors. This project exemplifies Air Liquide commitment to decarbonizing industrial basins around the world. Prioritizing sustainable technologies like hydrogen and carbon capture means we can provide energy transition careers for many 1000s of American workers while building a more sustainable energy future for all.

And a quote from Austin Knight vice president of hydrogen at Chevron new energies across the value chain collaborations are critical to developing a hydrogen ecosystem. And this is an example of bringing together leaders in the space to explore lower carbon hydrogen opportunities and contribute complementary expertise. He says we are seeking to accelerate the deployment of lower carbon solutions and believe companies like Chevron can help bring the capabilities needed to make this reality. We’re excited to be a part of this effort. In a quote from Aaron Ledet, Senior Vice President of olefins and polyolefins. Americas of LyondellBasell said, while our products play an important role in helping to enable greenhouse gas emissions reductions through their use of renewable energy technologies, such as our wind turbines, solar panels and electric batteries. We are also taking concrete steps to reduce the greenhouse gas emissions from our operations. We look forward to collaborating with the members of this consortium to continue evaluating and advancing clean hydrogen as a potential solution for reducing the greenhouse gas emissions of our US Gulf Coast manufacturing assets.

And lastly, in a quote from Marc Merrill, President and CEO of Uniper in North America said Uniper is very excited to collaborate with this unique group of companies to explore a truly transformative US Gulf Coast hydrogen infrastructure project. He says we look forward to bringing the best of our US business and global technical and commercial platforms to support this effort. Uniper is committed to the green expansion of our Wilhelmshaven LNG receiving terminal and Germany and expects to receive and store roughly 1 million tons per year of clean ammonia at the port. By the end of the decade. US Gulf Coast supplies from this initiative can be critical to meeting that goal. Okay, so a huge press release announcing a great collaboration between Air Liquide, Chevron, LyondellBasell and Uniper. Now, these companies are known as industry leaders in the upstream, midstream and downstream sections of oil and gas. Now, we’ve covered several pieces of news regarding Air Liquide, Chevron and Uniper in the hydrogen space, but the one that stands out the most to me is LyondellBasell. In September of last year, they announced that they were going to try to achieve net zero by 2050, and announced that they wanted to use hydrogen to be a big part of that. But since then, I haven’t heard much news. And so with this announcement, it seems like LyondellBasell is finally moving forward with their net zero goal, and they couldn’t find three better partners to help them along the way. Next, in a press release on October 18, Williams advances clean hydrogen commercialization strategy and joins forces with developer of distributed generation energy assets.

Williams on October 18, announced progress on its clean hydrogen commercialization strategy, with a recently signed memorandum of understanding with Daroga Power, a New York based investor and developer of distributed generation energy assets, including hydrogen fuel cells, and solar power generation. Williams and Daroga Power are working to identify long term end use customers for clean hydrogen, as well as offtake options for environmental attributes generated by hydrogen production. In Wyoming. Deliveries of hydrogen could begin as soon as 2025. Williams plans to leverage its nationwide assets for the blending storage and transportation of clean hydrogen to local and regional markets, including the Pacific Northwest via the company’s 4000 mile bidirectional Northwest pipeline transmission system that passes through Wyoming. Williams is currently working with the University of Wyoming School of energy resources to evaluate hydrogen production, as well as the impacts of hydrogen blending on existing energy infrastructure in Wyoming. The research funded by a grant from the Wyoming Energy Authority is expected to be complete in 2023.

In a quote from Chad Zamarin, Senior Vice President for Corporate strategic development at Williams, this partnership with Daroga Power could lead to the commercial certainty required to enable the first major phase of hydrogen based energy transportation and storage in Wyoming, building toward our long term goal to scale up over time and create a clean energy hub in the southwest part of the state where we own significant acreage, the potential to blend hydrogen into our existing natural gas stream is a significant advantage to accelerate the use of hydrogen in reducing carbon emissions across many sectors and applications, particularly those most difficult to decarbonize. demand for clean energy is on the rise. And we expect the commercialization and cost competitiveness of hydrogen to take hold as inflation Reduction Act incentives, seed market growth, and in a quote from David Matt, co founder of Daroga Power, our partnership with Williams is a critical step toward advancing the hydrogen economy, both in Wyoming and beyond. Hydrogen offers a flexible, clean and immediate solution to help achieve decarbonisation goals that will benefit Daroga Power’s and Williams customers. Daroga Power has unique development capabilities alongside Williams best in class infrastructure, and operational experience is the ideal combination for providing consumers access to clean hydrogen. Wyoming belongs to a four state pack to become one of several regional clean energy hydrogen hubs designated through federal regional clean hydrogen hubs program included in the bipartisan infrastructure investment and jobs act.

The western interstate hydrogen hub, known as WISHH, is an example of Interstate and bipartisan cooperation to advance innovative solutions for the country’s energy future. Beyond Wyoming, Williams has joined several recently launched industry led regional alliances, including Appalachian energy future ATF and Appalachian Regional clean hydrogen hub or arch2. Williams is also engaged with the New York State Energy Research and Development Authority, a multi state Alliance including utilities, hydrogen technology manufacturers, universities, nonprofit organizations, transportation companies, and state agencies. Williams as identified to potential projects to deliver hydrogen in New York and New Jersey using the company’s existing infrastructure. Okay, so Williams going big on hydrogen transportation. And it seems like more and more large midstream companies are looking into see just how much blending they can afford in their natural gas lines. And the hydrogen storage and transportation panel that I was a part of last week. Linde said this is something that they’re looking at, also. And that pipeline transportation offers the cleanest, easiest and most economic solution for transporting hydrogen. But what I find most appealing about this announcement is the geographic location. Wyoming is loaded with natural gas assets. And its distribution system through its pipeline network is incredibly robust, although it is older. So it’s going to be interesting to see how Williams decides to start blending hydrogen into these pipelines, and at what percentage?

All right, that’s it for me, everyone. If you have a second, I would really appreciate it. If you could leave a good review on whatever platform it is that you listen to Apple podcasts, Spotify, Google, YouTube, whatever it is, that would be a tremendous help to the show. And as always, if you ever have any feedback, you’re welcome to email me directly at info@thehydrogenpodcast.com. And as always, take care. Stay safe. I’ll talk to you later.

Hey, this is Paul. I hope you liked this podcast. If you did and want to hear more. I’d appreciate it if you would either subscribe to this channel on YouTube, or connect with your favorite platform through my website at www.thehydrogenpodcast.com. Thanks for listening. I very much. Appreciate it. Have a great day.