Fundamentals and Q&As
Hydrogen as an energy carrier is one solution to decarbonization. Early phase hydrogen projects will contribute to market build, and we have a broad portfolio of Hydrogen projects, in the North West Europe including UK, US and in Norway.
Scaling up hydrogen production will contribute to a gradual and simultaneous development of market and production capacity and secure cost-effective solutions for both production facilities and infrastructure to ensure market access. We aim to build the first 2-GW stage of capacity for hydrogen production from natural gas, with an incremental increase to a capacity of 10 GW in 2040. A next step is to supplement low-emission hydrogen with green hydrogen and thus utilise established infrastructure.
A sizeable demand for hydrogen and hydrogen-derived fuels (ammonia, methanol, etc.) as energy carriers is primarily seen to evolve in a scenario with forceful policies to reduce global CO2-emissions. However, in less aggressive transition scenarios hydrogen does not play a significant role in the energy mix. Together with partners, Equinor’s ambition is to supply hydrogen to 3-5 major industrial clusters by 2035, aiming at 10 percent share of the European market.
Like electricity, hydrogen is an energy carrier – not a source of energy. It must therefore be produced.
Blue, so called “low carbon hydrogen” is produced using natural gas and refinery fuel gas, and where the CO2 that is released during production is captured and stored.
Green, so called” renewable hydrogen” is defined as hydrogen produced via electrolysis using power sources from renewable sources. The electrolysis of water (H2O) is a simple method of producing hydrogen.
In parts of the transport sector, direct electrification is demanding to achieve. The same applies to industrial processes that require high temperatures, such as in the aluminum and steel industries. To successfully decarbonise these sectors, we must adopt new solutions and technologies to cut emissions. Carbon capture and storage and use of hydrogen are among the most promising technology races the industry is looking at.
In the journey to zero-carbon energy, many believe that hydrogen should be considered the world’s destination fuel. The carbon capture and storage part of this journey is the essential transitional step to facilitating a longer term, sustainable, global hydrogen economy.
Blue hydrogen production in Norway with NCS gas and 96% carbon capture is calculated to be well below thresholds proposed by policymakers.
H2 has some challenging properties but with safety in design and operation it can be done in a safe manner. Hydrogen is an indirect greenhouse gas that is highly explosive. Safety is therefore fundamental for all handling along the hydrogen value chain. We build on experience in O&G to ensure safe design and operation of H2 and CCS solutions. We produce hydrogen today at several of our onshore plants, and since 1996 we have safe and permanently stored CO2 below the seabed. The technologies are ready and proven.
The main challenges are related to high costs, energy demanding production and political ambitions. Cost-effective development of hydrogen production in line with current and future expected demand requires a lot; scale-up production, transport solutions, and CO2 storage licenses. A market also needs to be developed, both for blue and green hydrogen, domestically and in relation to export.
Decarbonisation by using hydrogen will require significant amounts of electricity and natural gas, and converting these will mean large "energy" costs through conversion losses. To use resources and existing infrastructure efficiently, both Norwegian companies and authorities will benefit from a coordinated approach vis-à-vis potential partners and customers, as well as EU and member states' politicians.
Hydrogen will primarily play a role in the decarbonisation of sectors that are difficult to electrify. Low carbon hydrogen in a large scale is linked to the availability of CO2 storage capacity. Infrastructure and transport solutions must be built or reused, both for CO2 and H2
A growing hydrogen market will have to be supported by increasing costs of CO2-emissions, policy-driven limitations on CO2-emitting fuel use, public subsidies and/or soft funding to enable investing in adapted technology for consumption.
On the production side, rapid scaling is important to reduce costs and create a strong value chain. The authorities can contribute by focusing support on scaling production where the market exists. The authorities can ensure access to power and grid for the hydrogen industry, and actively influence the development of EU legislation to ensure market access for Norwegian hydrogen.