Blue sky mining: Strategy for a feasible transition in emerging countries from natural gas to hydrogen

• Published in: International journal of hydrogen energy 2021-07, Vol.46 (51), p.25843-25859
• Main Authors: Moreira dos Santos, Ricardo, Szklo, Alexandre, Lucena, André F.P., de Miranda, Paulo Emílio V.
• Format: Article
• Language: English
• Subjects: Energy planning; Hydrogen; Hydrogen energy; Infrastructure; Natural gas resources
• ISSN: 0360-3199; 1879-3487
• DOI: 10.1016/j.ijhydene.2021.05.112

Natural gas is often considered a transition fuel to a deep decarbonized world. However, for this to happen, new technologies should be fostered, among which a natural gas-based H2 industry can become a key-option. This study tests the hypothesis that the development of a natural gas-based H2 industry equipped with CO2 capture can monetize natural gas remaining resources, mitigate CO2 emissions and facilitate the transition to the renewable energy-based H2. To do that, this study evaluates a stepwise strategy for setting up the development of H2, departing from the idle capacity in the existing natural gas industry, to progressively create a H2 independent supply. Findings indicated that this strategy can be feasible, according to the case study assessed at relatively moderate crude oil prices. Nevertheless, CO2 storage can become a constraint to deal with the co-produced CO2 from the steam methane reforming units. Therefore, it is worth developing storage options. [Display omitted] •A strategy is defined for monetizing natural gas based on idle capacity in SMR units.•Blue Hydrogen may be a feasible source of income for avoiding stranded gas reserves.•Moderate Oil prices quickly pay investments in Blue H2 by means of Enhanced Oil Recovery (EOR).•This strategy can be replicated in other expanding markets.