Hydrogen production has claimed pole position in the oil and gas sector’s decarbonisation drive, a survey shows.
A fifth of oil and gas professionals said their organisation is actively entering the hydrogen market, according to DNV GL’s poll, which had more than 1,000 respondents.
Forty-two percent intended to invest in hydrogen in the year leading up to the Covid-19-induced price crash, up from 20% previously.
The report indicates recent shifts are unlikely to affect the sector’s long-term efforts to cut carbon emissions.
More than half (53%) of those in Europe believe hydrogen will be a significant part of the energy mix within 10 years.
DNV GL did say that scaling up hydrogen would be “complex”.
While hydrogen gas produced from renewable energy (green hydrogen) is the industry’s ultimate destination, analysis shows that the sector can only realistically scale up to large volumes and infrastructure with hydrogen produced from fossil fuels combined with CCS technology (blue hydrogen).
Liv Hovem, chief executive of DNV GL – Oil & Gas, said: “Hydrogen is in the spotlight as the energy transition moves at pace – and rightly so.
“But to realize its potential, both governments and industry will need to make bold decisions.
“The challenge now is not in the ambition, but in changing the timeline: from hydrogen on the horizon, to hydrogen in our homes, businesses, and transport systems.”