For petrochemical companies on the U.S. Gulf Coast (USGC) that already produce hydrogen as a byproduct, expanding interest and demand for hydrogen could open up new sources of revenue. Potential exists for turning gray hydrogen (i.e., hydrogen produced from natural gas reforming, with no carbon capture) into blue hydrogen (i.e., the more environmentally friendly version of this process, which incorporates carbon capture and sequestration) for use as fuel and chemical/industrial feedstock.
The USGC already has significant use of hydrogen in its infrastructure. Hydrogen's potential for the energy transition is moving petrochemicals producers to look at how they can further take advantage of that infrastructure to leverage their hydrogen supply. Hydrogen can be used to store energy, provide residential and commercial power, and fuel vehicles. It can be transported as a gas or a liquid, and it can utilize existing midstream infrastructure that has been repurposed to transport hydrogen.
Westlake examines H2 economy. Westlake Chemical produces a significant volume of gray hydrogen as a byproduct during the ethane cracking process, and a smaller volume during chlorine production. The company is currently exploring ways to enter the hydrogen economy with its existing hydrogen production capacity. It is looking into buying renewable power, which would enable it to produce green (emissions-free) hydrogen from its chlor-alkali plants.
LyondellBasell to sell more H2. LyondellBasell produces significant hydrogen volumes during ethylene production. It normally sells some of this hydrogen to industrial gas companies, which refine the hydrogen. As industrial gas companies find new uses for hydrogen, LyondellBasell may look to sell more of its hydrogen to these entities.
Enterprise fills Air Liquide's H2 pipeline. Hydrogen produced from propane dehydrogenation (PDH) operations at Enterprise Products' Mont Belvieu plant helped Air Products expand its USGC hydrogen pipeline system by 40 MMsft3d. The 600-mile pipeline network provides more than 1.4 Bsft3d of hydrogen to refinery and petrochemical customers. Hydrogen is used in oil refining to remove sulfur, olefins and aromatics to meet fuel specifications.
Air Liquide to produce H2 fuel for CA. Air Liquide has investments in the U.S. that include a $150-MM plant in Las Vegas, Nevada to produce 30 tpd of liquid hydrogen from renewable natural gas. The project will enable California to establish an estimated 200 stations to provide hydrogen fuel to vehicles by 2025. Air Liquide's other U.S. projects involve hydrogen production from landfill biogas.