H2Tech - Q1 2021 - 16

  EXECUTIVE VIEWPOINT

Blue hydrogen's role in the energy transition
D. BAWA, Director of Project Development, New Fortress Energy

H2Tech sat down with Deepak Bawa,
Director of Project Development-LNG
and Hydrogen Projects for New Fortress
Energy, to discuss the roles of blue and
green H2 in the energy transition, as well
as how blue H2 both complements and
competes with the natural gas midstream
sector.
An expanded discussion on these
and other topics is available in our
H2TechTalk podcast interview with
Mr. Bawa. Visit blubrry.com/H2TechTalk
to listen and subscribe!
H2T. How do you view blue H2's
role in the existing oil and gas
energy infrastructure?

DEEPAK BAWA is the Director of Project
Development for New Fortress Energy.
Mr. Bawa is a Six Sigma Green Belt Certified
Project Management Professional (PMP) with
significant experience in LNG, chemical plants
and refinery projects spanning more than 17 yr.
He has led teams of 40-100 people for EPC
projects valued at $2 MM-$4 B. In the past, he
has worked with companies including KBR, IHI,
UOP, TechnipFMC and ISGEC. Mr. Bawa holds
a BS degree in mechanical engineering from
the Sant Longowal Institute of Engineering and
Technology in Punjab, India.

16 Q1 2021 | H2-Tech.com

DB. In this energy transition period,
blue H2 will play a crucial role. Overall,
we can say that H2 is the " rock star " of
the energy transition. In the past, H2 was
used mainly for hydrotreating fossil fuels
and in chemical production-ammonia,
methanol, urea, etc. Now, though, people
are looking at H2 as a fuel for the transportation and aviation industries, which
is a big change. H2 is being discussed for
use in the power, steel and other industries-basically, wherever we have been
using fossil fuels.
Of all the different " colors " of H2 , blue
H2 is the most balanced. Gray H2 from reforming of natural gas is cheap but emits a
lot of carbon; green H2 is clean but relies
on very low-cost renewable energies to be
competitive. Blue H2 sits at a sweet spot
where it can be less expensive than green
H2 without emitting carbon like gray H2 .
As the cost of renewables continues to
come down, and as more renewable energy is in use around the world, green H2
will be the future. As we strive to lower
emissions during the energy transition,
blue H2 presents a viable economic and
environmental pathway for doing so.

H2T. Do you see H2 as being
complementary to or competitive
with the natural gas sector?

DB. Both, actually, but it is more complimentary. Natural gas has its own place
in the industry, while H2 will be used
wherever it is economical to substitute
for natural gas. Moreover, H2 can be used
in different industries as a feedstock, or
as a fuel for transportation and aviation,
whereas natural gas is better utilized for
heat and power generation.
New Fortress Energy has helped several developing countries switch their
power generation from diesel to natural
gas. As we transition to green H2 , natural
gas will continue to be used to produce
blue and gray H2.
H2T. What are the present
challenges for blue H2
production and application?

DB. Right now, the current challenge
is carbon (CO2 ) capture. CAPEX and
OPEX for CO2 capture systems are high,
and not many companies are interested
in buying CO2 for enhanced oil recovery
(EOR) when crude oil is around $45/bbl.
If you sequester the CO2 , under the U.S.
government's 45Q tax credit program
you get around $50/ton of CO2 , which
barely covers the cost of capturing CO2 .
I hope that this CO2 credit will be increased in the near future so that the biggest producers of H2 can be motivated to
install CO2 capture systems at their existing steam methane reforming (SMR) production plants. Also, the permit required
for CO2 sequestration is a lengthy process
that takes around 18-24 months. This
process should be expedited. If the CO2
tax credit is increased to $70/t-$80/t and
a sequestration permit is provided in 6
months, then it can change the scenario
for carbon capture in the U.S.


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H2Tech - Q1 2021

Table of Contents for the Digital Edition of H2Tech - Q1 2021

Contents
H2Tech - Q1 2021 - Cover1
H2Tech - Q1 2021 - Cover2
H2Tech - Q1 2021 - Contents
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H2Tech - Q1 2021 - Cover3
H2Tech - Q1 2021 - Cover4
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