Half senior oil and gas professionals expect hydrogen to become an important part of the energy mix by 2030, according to a new report published by DNV GL, the technical advisor to the sector
A fifth of senior oil and gas industry professionals said their organisation is already actively entering the hydrogen market, the advisor added. The proportion intending to invest in the hydrogen economy doubled from 20 per cent to 42 per cent in the year leading up to the Coronavirus-induced oil price crash.
The report suggests that recent shifts in the industry’s investment priorities are unlikely to affect the sector’s long-term efforts to reduce carbon emissions.
In those reporting that their organisation is actively adapting to a less carbon-intensive energy mix, DNV GL found a significant increase – from 44per cent in 2018 to 60 per cent in 2020. The production, transmission and distribution of carbon-free hydrogen is now widely recognised as a central component of the decarbonisation efforts of the oil and gas industry.
“Hydrogen is in the spotlight as the energy transition moves at pace – and rightly so. But to realise its potential, both governments and industry will need to make bold decisions,” said Liv A. Hovem, CEO, DNV GL – Oil & Gas. “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.”
More than half of respondents to DNV GL’s research in Asia-Pacific, the Middle East, and North Africa and Europe agree that hydrogen will be a significant part of the energy mix within 10 years. North America and Latin America are only a little behind.
“To progress to the stage where societies and industry can enjoy the benefits of hydrogen at scale, all stakeholders will need immediate focus on proving safety, enabling infrastructure, scaling carbon capture and storage technology, and incentivising value chains through policy,” said Hovem.