Norway's Equinor and France's Engie have joined forces to develop hydrogen produced from natural gas with carbon capture and storage, they said Feb. 18.
Under a memorandum of understanding, Equinor and Engie said they would look at the development low-carbon hydrogen value chains in Belgium, the Netherlands and France.
"In the coming months, Engie and Equinor will start discussions with potential customers to assess the project, as well as with stakeholders and relevant authorities," they said.
The production of blue hydrogen -- which sees the CO2 removed from natural gas and stored -- is currently cheaper than green hydrogen, or hydrogen production from renewable power using electrolysis, and is considered a quick way to scale up hydrogen markets.
S&P Global Platts assessed the price of green hydrogen, the Netherlands, PEM electrolysis, at Eur2.87/kg on Feb. 17, compared with 97 euro cent/kg for blue hydrogen, SMR with CCS, based on front-month Dutch power and gas prices as well as front-year EUA carbon.
Equinor is a significant gas exporter to Europe from its fields offshore Norway and is keen to retain its market in a lower-carbon future.
"Equinor and Engie believe that it is essential to develop low-carbon and renewable hydrogen projects at scale in order to make it possible for industrial customers to significantly reduce CO2 emissions before 2030," they said.
"This development of low carbon and renewable hydrogen will accelerate the construction of new hydrogen infrastructure and the repurposing of current natural gas infrastructure, thus paving the way for net-zero in 2050."
Collaboration
Grete Tveit, Equinor's senior vice president for low carbon solutions, said the company was aiming to be a key participant in energy transition.
"We believe that hydrogen and CCS will be vital if we are going to succeed with the transition. Collaboration and partnerships will be absolutely necessary to find the best solutions," Tveit said.
Edouard Neviaski, CEO of the Engie's global energy management business unit, added: "Engie produces renewable hydrogen and supports the development of the market for low-carbon hydrogen. Both these technologies will be necessary to accelerate the development of a solid infrastructure and the transition to a carbon neutral economy."
