On Day 2 of Gulf Energy Information’s Carbon+Intel Forum in Houston, Texas (U.S.), Noureen Faizee (NF), Global Director, Strategy & Growth for Worley, Brent Novak (BN), Vice President, Ammonia Strategy for 8 Rivers and Curtis Stubbings (CS), Vice President and General Manager, Industrial Gas Solution for Chart participated in a panel discussion about blue H₂, with Ryan Hopkins, Partner for White & Case as the moderator, followed by a brief Q&A.

Moderator: What are some issues that need to be considered when building an H₂ ecosystem?

NE: One of the key issues we have heard is the lack of regulated re-frameworks because projects will not be able to move forward without clear guidance on permitting processes. We are talking about having a H₂ industry built by the end of this decade, so we cannot continue to work the way we are used to. The other issue is that we need to identify demand drivers because the hubs must have multiple offtakers to spread the risk across different markets. The most important challenge I see is community consent for long-term success. Last year, there was strong public opposition to an offshore wind project in Massachusetts regarding endangered species and property values.

Moderator: How do you see the existing H₂ infrastructure in the U.S. being integrated into clusters?

CS: There is large infrastructure, especially on the Gulf Coast, and I think that is a real opportunity for the U.S. to take that grey H₂ and turn it blue. We can do that at a lower cost as we build new applications, which helps build the market for future green H₂ projects. If we try to force green H₂ onto the market at high costs, the market may never develop to the extent it needs to. It is similar on the liquid H₂ side; North America probably has 85%–90% of the liquid H₂ capacity of the world.

Moderator: How do you see that being distributed and moved around?

BN: H₂ is a very difficult molecule to transport, with low energy density and expensive to through the liquefaction process. There is around 100 MMt–120 MMt of H₂ worldwide, but most is consumed onsite. The infrastructure to ship it does not exist. You can convert H₂ into ammonia or methanol for transport. There are over 200 ports worldwide that can import or export ammonia; this method can be used in the short term because the infrastructure already exists. In the long term, liquid organic H₂ carriers would be a good option.

Moderator: How will we build the H₂ market and get a supply and demand balance?

NE: The IRA has been an excellent platform for creating a vast supply push for H₂ production, but there has not been enough focus on the demand side of the equation. We could look at government initiatives; for example, “x” percentage of ammonia should come from green H₂, or a certain percentage of H₂ produced must be blended into existing gas networks. Most H₂ users are in refining, ammonia and methanol. By 2050, we need to use H₂ in power, buildings and transportation.

CS: We can look at California and what they have accomplished with the low-carbon fuel standard, which has successfully built a lot of infrastructure. This has given people more confidence in acquiring H₂ vehicles. To greatly increase the use of H₂ as a fuel, we need to continue that on a larger scale, especially by incentivizing heavy-duty trucks to switch over to H₂.

Moderator: What can we do to promote ourselves and educate the public?

BN: The public perception of H₂ is that people do not want to drive around with a bomb in their tank. It is something you do not want to take lightly, but things can be done to make it extremely safe. Once people are educated, they can understand the advantages of H₂, and there will be much more acceptance.