Page 162 - CW E-Magazine (11-2-2025)

News from Abroad

ENERGY TRANSITION
Hydrogen economy development entering a critical phase:

Report

A recently released thematic re-
port on hydrogen by leading data and
analytics company, GlobalData, has
tracked the changing fortunes of this
gas poised to play a signifi cant role in
global energy transition journey.

The hydrogen economy has recently
experienced some hiccups in its growth
story. Apparently, demand for this com-
modity is not rising at the pace it was
envisaged back in 2020 when compa-
nies had aggressively announced their
energy transition plans. As more indus-
tries, such as steel, transportation, and Conventionally, hydrogen has been noted Mr. Puranik. Blue and green hy-
power, try to decarbonise their opera- consumed in the oil and gas industry as drogen production offers particularly
tions, the demand for low-carbon hy- a reagent in the refi ning sector and as promising growth potential for oil and
drogen is expected to grow. Neverthe- a feedstock in the petrochemical sector. gas companies pursuing energy transi-
less, the hydrogen economy is currently The demand from the oil and gas in- tion. Companies are investing in this
in its critical phase of its development, dustry will remain the dominant driver energy source for their long-term goals,
the GlobalData report said. for hydrogen in the foreseeable future. with a preference for green hydrogen.
Additional demand for this commodity
The report revealed that about 83% is expected to emerge from industries “Several oil and gas companies have
of the low carbon hydrogen capacity such as metallurgy, power generation, announced new blue and green hydrogen
coming online by 2030, is expected to and transportation. plants, which are expected to be ope-
come from green hydrogen plants, while rational by 2030. Nevertheless, there is
the remainder is from blue hydrogen. “There has been a signifi cant jump in a need for the hydrogen distribution net-
Purple and turquoise hydrogen capa- low-carbon hydrogen project announce- work to expand at scale, which includes
cities are anticipated to be miniscule. ments in the last few years as industries the addition of new pipelines. The cur-
Only about 2% of the total expected unveiled plans to decarbonise their ope- rent scenario signals a critical phase for
capacity by 2030 is currently operational. rations. Nearly 75% of these projects are the development of the global hydrogen
in the feasibility stage of development. economy. Its fate and momentum in
Mr. Ravindra Puranik, Oil and Gas This refl ects the momentum in new plant the coming years will be decided by
Analyst at GlobalData, said, “Low- announcements within this market to how things pan out in the near future,”
carbon hydrogen is set to occupy a reap from the global energy transition,” informed Mr. Puranik.
crucial role in the decarbonisation efforts
of several energy-intensive industry Arctic Lithium plans to start lithium
verticals. As hydrogen is an essential
feedstock in downstream oil and gas mining in Russia
processes, switching to low-carbon
hydrogen would help companies reduce Russian lithium products fi rm, ing to information released by Russia’s
their emissions footprint. It also has Arctic Lithium, plans to produce 12,000 Ministry of Natural Resources and
massive potential in the transportation tons of lithium oxide by 2027 within Environment, the mining and processing
sector, especially in marine and heavy the framework of pilot development plant is planned to be put into opera-
vehicle applications, due to its energy of Polmostundrovskoye deposit in the tion no later than 2030. At the moment,
density properties.” Murmansk region in Russia. Accord- lithium is not mined in Russia.

162 Chemical Weekly February 11, 2025

Contents Index to Advertisers Index to Products Advertised