The covid-19 crisis highlighted the importance of leading a safe and healthy life. Oil companies came under even more pressure to deliver climate-friendly solutions. This is due to the high global emissions that influence surroundings and human health. Experts are trying to include green hydrogen solutions as a part of their future energy mix. The gas is produced through electrolysis and renewable electricity. So about 10% of the CO2 is released. Digital technology can expedite the green hydrogen transition with monitoring and control, advanced analytics and digital twins. Oil players can tap into this to ensure green units that will cater to both oil and clean energy needs.
Pursuing green oxygen has several advantages. It is safer than conventional fuels and is low in toxicity. Leading green hydrogen companies like GenH2 help to optimize multiple technologies to advance solutions that are accessible. Here’s a look at how oil companies can make the most of this great investment.
Why are Oil Companies Venturing into Hydrogen Green Energy?
It can ensure zero energy wastage. This is because top oil fields firms are trying to focus on using solar, nuclear, wind and integrated energy grids along with green hydrogen. Crude oil can also be processed into value-added products like diesel and petrol. The process will only use renewable energy which can reduce the emissions risks. The main point is to tackle the climate crisis and ensure a realistic solution with hydrogen production companies.
As of August 2021, the Indian government has plans to make it mandatory for fertilizers plans and refineries to use a certain percentage of green hydrogen. The US is also dominating the global green hydrogen energy. It has an edge over natural gas and can help oil companies win a sizeable market share. No wonder the global green hydrogen industry was valued at $786.9 million in 2019 and is expected to grow at a CAGR of 14.24% from 2020 to 2027.
Hydrogen: An Inseparable Part of Refining
Sulphur removal is an important process of oil refining. A chemical separation process called hydro-sulfurisation is done with the help of hydrogen. The gas bonds with sulfur to form hydrogen sulfide which is then processed in a separate treatment. The amount of sulfur is usually an indicator of crude oil quality. So H2 is a must demanded product to ensure optimal functioning of the oil industry.
Hydrogen Usage
Heavy oil by-products like pitch or bitumen are often processed to extract hydrogen. The oil companies can put this to multiple usages. It can easily become a small-scale revenue source. Try to work closely with a production and distribution company that can ensure top-tier facilities like green hydrogen solutions. Make sure the infrastructure firm has zero loss liquid hydrogen storage along with safe dispensing whenever needed.
Energy Transition: An Opportunity
Oil can transform into energy with a power component in its profiles. The addition of hydrogen only enhances these activities. It can ensure diversification by moving the usage to other sectors. Hydrogen green energy therefore should be a chance rather than a threat to eliminate the oil industry completely over time.
The addition of hydrogen to the operations of oil companies can help them stay ahead of competitors. This is because it is widely accepted as a renewable source of energy.
