New base 04 october 2021 energy news issue 1460 by khaled al awadi

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NewBase Energy News 04 October No. 1460 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
CEO of ADNOC receives ‘Energy Executive of the Year' Award
WAM/Tariq alfaham/Hatem Mohamed
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing
Director and Group CEO of the Abu Dhabi National Oil Company (ADNOC), was today honored
with the ‘Energy Executive of the Year Award for 2021’ by Energy Intelligence, validating the United
Arab Emirates’ (UAE) vision for a sustainable energy future.
The Energy Executive of the Year Award is the most prestigious in the energy industry and is a
testament to the UAE’s diversified energy leadership, progressive approach to the energy transition,
and pioneering climate action.
It recognizes the UAE’s approach to creating economic opportunity from all its energy sources as
well as a life of service to the nation by Dr. Al Jaber, and sends a message to the youth to give back
to a country that has given so much to its people.
Receiving the award virtually at the Energy Intelligence Forum, Dr. Al Jaber explained how decisive
the support of the UAE Leadership and His Highness Sheikh Mohamed bin Zayed Al Nahyan,
Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, was.
"The fact is, I would not be receiving this award today without the vision and continuous guidance
of His Highness Sheikh Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi. He enabled
everything I have achieved so far, both at ADNOC and beyond ADNOC. He has challenged me to
push the boundaries of the possible. He has inspired me with his wisdom and guidance. And when
times were tough, his support has been unwavering.

"I also owe a great deal to my family, who have been with me, and there for me, through everything.
You, my colleagues across the energy industry, have also been essential. You have given me
insight, support, and advice at key moments, and I thank you for that. And, importantly, I would like
to recognize the tireless efforts of my colleagues at all levels, as well as all our partners across our
businesses. This is an award built on the work of many. It is proof that we succeed together, in
partnership.
"Finally, my thanks to Energy Intelligence – not just for organising this award, but for all they do to
deepen our understanding of the energy industry," Dr. Al Jaber said.
Tracing his career journey, Dr. Al Jaber credited the Founding Father of the UAE, the late Sheikh
Zayed with providing opportunities for him and UAE citizens to fulfill their potential.
"From an early age, I always wanted to be an engineer and it was my dream to work at ADNOC.
And growing up in the UAE of Sheikh Zayed, I was given the opportunity to fulfill that dream. Our
founding father built a nation that shared its wealth with all its people and encouraged its young
people to be all they could be.
My father was part of that generation. He pushed me to work hard and to never give anything less
than everything I had to give. Importantly, he taught me to always show my love of my country
through my actions and by giving back.
"These values have guided me every day, every step of the way. And if there is one thing I want to
give back to my country today, it is to pass on to my children and the next generation of Emiratis
the most important lessons I have learned. That good work is hard and that hard work is good. And
that you can forget you are tired if you never forget that you are making an impact."
In awarding, Dr. Al Jaber the Energy Executive of the Year Award for 2021, Energy Intelligence
noted his role in mapping a path of modernization for national oil companies. He was elected by the
leaders of the world’s top energy companies and is the 25th winner of this distinguished honor. The
last two recipients of the award were Amin Nasser, President and CEO of Saudi Aramco, and Ben
van Beurden, CEO of Royal Dutch Shell.
The energy landscape has evolved significantly over the past five years he has been at the helm
and the industry must remain agile and adapt to a variety of externalities, according to Dr. Al Jaber.
"Climate action is fundamentally reshaping the geopolitics, the economics, and the policies of the
energy system. New energies are rebalancing the energy mix. And emerging technologies are
disrupting established business models.

Given these disruptions, we must be agile in future-proofing our businesses. We must continue to
make core investments to keep up with growing demand. And we must do all this, as the world
continues to recover from the COVID 19 pandemic. In short, the role of the energy executive today
is more complex than it has ever been."
Dr. Al Jaber went on to detail how his career journey led him to Masdar and the foresight of H.H.
Sheikh Mohamed bin Zayed in establishing the company.
"Back in 2006, some thought launching Abu Dhabi’s Future Energy Company, Masdar, was a
strange move for a major oil-producing nation," he explained. "Yet, Sheikh Mohamed bin Zayed
knew where the world was heading and wanted to get ahead of the curve.
In fact, our leadership viewed investment in clean, renewable energy as a natural and logical
extension of Abu Dhabi and the UAE’s role as a global energy leader and an opportunity to develop
new partnerships, new knowledge, new skills and new jobs."
Dr. Al Jaber noted that the UAE has since gone on to establish itself as a leader in renewable energy
with three of the largest and lowest-cost solar plants in the world, while its wind and solar portfolio
has grown to 13 gigawatts in over 30 countries, in five continents.
On ADNOC’s transformation, Dr. Al Jaber recalled the challenging market dynamics when he was
appointed as CEO and provided an insight into the motivation of the UAE Leadership in directing
the company’s transformation.
"Our Leadership saw this as an opportunity that should not be wasted. An opportunity to transform
our company. We focused on Performance, Profitability, and Efficiency, embedding technology
across the organization and underpinning everything with HSE," he said, adding that people were
at the core of ADNOC’s strategy and they will always be the "magic ingredient."
During his speech, Dr. Al Jaber rallied the oil and gas industry to embrace the opportunities being
created by the energy transition and highlighted the steps ADNOC is taking in this regard.
"We should embrace this transition as a unique opportunity for growth. Opportunity is what is driving
ADNOC’s investment into new zero-carbon energies like hydrogen. Opportunity is shaping the
business case for our carbon capture technologies. And opportunity is creating a premium for the
most carbon-efficient barrels in the world.
"At the same time let us remember that the energy transition is exactly that – a transition that will
require a mix of energies that we provide. Together, our companies represent the few who have
lifted the many to attain the most prosperity in history. Now our mission is to continue to supply the
energy for that prosperity, using the lowest carbon sources available."
Concluding his remarks, Dr. Al Jaber stressed that UAE is committed to working with partners
across the world to turn opportunities into reality when supplying the world with sustainable energy.
Since Dr. Al Jaber became Group CEO of ADNOC in 2016, the company has consolidated its
businesses and unified its brand identity; expanded its crude oil production capacity to over 4 million
barrels per day; embarked on a significant expansion of its downstream business; completed the
initial public offering (IPO) of ADNOC Distribution and ADNOC Drilling; launched the Murban
Futures Contract on ICE Futures Abu Dhabi; concluded Abu Dhabi’s first and second competitive
exploration block bid rounds; launched the UAE’s unconventional industry; completed several
landmark infrastructure investment deals and strategic equity partnerships; and driven over $64.5
billion (AED236.7 billion) in foreign direct investment to the UAE, amongst other notable
achievements.

Qatar: Q.P to build new LNG ships for the N.Field expansion projects
Source: Qatar Petroleum
Qatar Petroleum has ordered four new LNG carriers from Hudong-Zhonghua Shipbuilding Group, a
wholly owned subsidiary of China State Shipbuilding Corporation (CSSC).
These four carriers are the first batch of orders in Qatar Petroleum’s massive LNG shipbuilding
program, which will cater for future LNG fleet requirements for the North Field expansion projects as
well as for existing vessel replacement requirements.
This order is also the first ever placed by Qatar Petroleum or any of its affiliates with a Chinese
shipyard for LNG ships, and the first with Hudong in connection with the agreement to reserve ship
construction capacity that was executed in April 2020.
Qatar Petroleum commences LNG ship orders for North Field expansion projects
His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President
and CEO of Qatar Petroleum, commented on this occasion and said, 'We continue to push forward
with our LNG expansion projects, and today’s announcement is yet another step in our journey. I
am especially pleased with the signing of this order as it marks our first ever new LNG carrier to be
built in the People’s Republic of China.'
His Excellency Minister Al-Kaabi added, 'We are proud to contribute to the success story of the LNG
ship construction industry in China. We are also confident in Hudong’s capabilities to execute this
order, worth in excess of 2.8 billion Qatari Riyals, to the highest safety and technical standards and
to deliver top quality LNG carriers that will facilitate continued safe and reliable delivery of LNG to
the world.'

India: Adani Green Energy completes the acquisition of the 5 GW
renewable portfolio of SB Energy India… Source: TotalEnergies
Following the completion of Adani Green Energy’s (AGEL) acquisition of 100% interest in SB
Energy India from SoftBank Group Corp ('SBG') (80%) and Bharti Group (20%) announced on 19th
May 2021, TotalEnergies, which holds a 20% interest in AGEL adds a net capacity of ~1.4
GWp(1) of projects in operation and under construction to its renewable portfolio.
SB Energy India has a total renewable portfolio of 5 GWac(2) spread across four states in India. It
consists of utility-scale farms of which 84% solar capacity (4,180 MWac), 9% wind-solar hybrid
capacity (450 MW) and 7% wind capacity (324 MW) with 1,700 MW in operation and a further 2,554
MW under construction and 700MW near construction(3). All projects have 25-year PPAs with
sovereign rated counterparties such as Solar Energy Corporation of India Ltd. (SECI), NTPC Limited
and NHPC Limited.
The transaction by AGEL values SB Energy India at a fully completed enterprise valuation of approx.
USD 3.5 Bn(4).
'We would like to congratulate AGEL’s management for closing this major transaction, which is
reinforcing its leadership position in India and its capacity to contribute actively to the country’s
sustainable development, an objective that TotalEnergies shares with Adani Group', said Patrick
Pouyanné, Chairman and CEO of TotalEnergies. 'This transaction and our partnership with AGEL
are key contributors to the Company’s objective of reaching 35 GW of gross production capacity
from renewable sources by 2025 and to be among the world’s top 5 in renewable energies by 2030.'
TotalEnergies, renewables and electricity
As part of its ambition to get to net zero by 2050, TotalEnergies is building a portfolio of activities
in renewables and electricity that should account for up to 40% of its sales by 2050. At the end of
2020, TotalEnergies’ gross power generation capacity worldwide was around 12 GW, including 7
GW of renewable energy. TotalEnergies will continue to expand this business to reach 35 GW of
gross production capacity from renewable sources by 2025, and then 100 GW by 2030 with the
objective of being among the world's top 5 in renewable energies.
(1) Gigawatt peak (GWp)
(2) Gigawatt alternative current (GWac)
(3) ‘Near Construction’ denotes that Letter of Award is received and PPA to be signed
(4) Fully completed enterprise valuation includes all future projects capex

Opec's crude oil & Natural Gas reserves hit record in 2020
OPEC
Organisation of the Petroleum Exporting Countries (Opec) said the proven crude oil reserves in the
bloc's member countries increased by 0.3 per cent to 1.237 trillion barrels at the end of 2020,
following a firm increase its previous year.

At the end of 2020, world proven natural gas reserves fell by 0.4 percent to approximately 206.7
trillion standard cubic metres (cu m). Proven natural gas reserves in Opec member countries stood
at 73.74 trillion standard cu m at the end of 2020, down 1.4 per cent from the level at the end of
2019.
The Opec on Thursday (September 30) launched the 2021 ASB via videoconference.

The launch was attended by Mohammad Sanusi Barkindo, Opec Secretary General; Professor
Thomas Lindner of the Executive Academy at the Vienna University of Economics and Business;
as well as Members of Management at the Secretariat. It was livestreamed via the Organisation’s
website and official YouTube account.
In its 56th edition, the ASB continues to provide a wide range of data on the global oil and gas
industry, in addition to key economic indicators, serving as a leading industry reference for reliable
and timely information for various industry stakeholders, including policymakers, academics and
industry analysts.
The publication contains time-series data detailing key aspects of the petroleum industry, such as
production, demand, imports, exports, exploration, transportation and refining.
It also features key statistics on the oil and gas activities in Opec’s 13 member countries: Algeria,
Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the UAE
and Venezuela.
In line with the Secretariat’s efforts to enhance access to the publication, this year’s ASB is available
as an interactive version and a PDF on the Opec website, as well as through a smart app compatible
with iOS and Android platforms.
In his remarks, the Secretary General emphasised the crucial importance of data accuracy and
transparency to supporting stability in the global oil market.
"We at Opec are dedicated to enhancing data transparency through broad dissemination of accurate
and timely oil and gas data, not only for the ASB, but for all of our publications," he stated. "Indeed,
maintaining transparency in all that we do underpins our core goal of establishing sustainable oil
market stability."

The opening remarks were followed by a panel discussion led by Boshra AlSeiari, Head of Opec’s
Data Services Department, focusing on the publication’s key highlights, including: Total world crude
oil production declined in 2020 by 6.15 million barrels per day (mb/d), or 8.2 percent, as compared
to 2019, to average 69.09 mb/d, marking a historical year-on-year drop notably after the outbreak
of the Covid-19 pandemic.
Opec crude oil production declined sharply year-on-year by 3.72 mb/d, or 12.7 percent, while crude
production by non-Opec countries fell by 2.43 mb/d, or 5.3 percent. With an average of 90.73
mb/d in 2020, world oil demand was heavily impacted by the Covid-19 pandemic and fell by a
historic 9.30 mb/d y-o-y.
OECD oil demand fell sharply in 2020, while in the non-OECD it declined for the first year in history.
The oil demand in Opec countries was sluggish last year, losing 8.2 per cent y-o-y. Distillates and
gasoline accounted for around 55.1 percent of 2020 world oil demand with a steep downward trend,
amid Covid-19 containment measures. Residual fuel oil requirements were about 7.1 percent of
total oil demand in 2020.
According to the report, the Opec member countries exported an average of 19.70 mb/d of crude
oil in 2020, a sharp decrease of about 2.78 mb/d, or 12.4 percent, compared to 2019 and marking
the fourth consecutive annual decline. Following the pattern in previous years, the bulk of crude
oil from Opec countries – 14.43 mb/d or 73.2 per cent – was exported to Asia, particularly China
and India.
Considerable volumes of crude oil – about 3.13 mb/d – were also exported to OECD Europe in
2020, which, however, represents a decline compared with 3.74 mb/d recorded in 2019. OECD
Americas imported 0.84 mb/d of crude oil from Opec countries, which was about 0.38 mb/d, or 31.1
percent, less than the 2019 volumes, it added.

NewBase October 04-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Prices Jum to 7 year high after OPEC stick to plan
NewBase
Oil prices jumped Monday after OPEC and allied oil producing countries stayed with their gradual
approach to restoring output slashed during the pandemic, agreeing to add only 400,000 barrels
per day in November.
The decision Monday by the Vienna-based oil cartel tracks with its established schedule of adding
back that amount of oil every month until deep cuts made in 2020 to support prices during the depth
of the pandemic recession are restored next year.
The situation has changed since then as the global economy recovers. The decision comes amid
stronger demand for oil products like gasoline and jet fuel, as driving and flying pick up around the
globe due to the easing of restrictions aimed at containing the COVID-19 pandemic.
On top of that, unusually high prices for natural gas are pushing some electricity producers in Asia
to switch from natural gas to oil-based products, helping support prices.
The price of a barrel of crude jumped by 3%, or $2.32, to $78.17 on the New York Mercantile
Exchange, the highest since 2014. The Brent international benchmark hit a new 3-year high at
$81.69 up 2.8% on the day.
Oil price special
coverage

White House national security adviser Jake Sullivan raised concerns about rising oil prices when he
met officials in Saudi Arabia earlier this week in talks that largely focused on the war in Yemen,
according to a senior administration official who spoke on the condition of anonymity to discuss
private conversations. Sullivan and other members of his delegation reiterated the importance of
creating conditions to support the global economic recovery caused by the coronavirus pandemic,
the official added.
Earlier this week, White House press secretary Jen Psaki said that White House officials have
stayed in communication with OPEC about prices and were looking for tools to address the issue
as Brent crude topped $80 per barrel last month, the highest price in nearly three years.
U.S. national average gasoline prices have been holding steady at around $3.20 per gallon in recent
days, according to motoring club federation AAA, which foresaw stable short-term gas prices with
supply and demand “largely in sync.” The average is 97 cents more than a year ago.

Oil May Hit $100 This Winter and Spur Economic Crisis, BofA Says
The global energy crunch could help propel oil prices above $100 a barrel for the first time since
2014 and spur a global economic crisis, according to Bank of America.
Natural gas prices have already surged to almost double that level in oil equivalent terms, and BofA
says a spike in demand for diesel could push crude into similar territory. With monetary and fiscal
policy stretched to the limit and energy costs rising as a share of economic output, higher oil prices
could in turn create a macro crisis, the bank said Friday in a note.
The boost to crude would be driven by three factors: gas-to-oil switching as a result of high gas
prices, a jump in crude consumption over a cold winter and higher aviation demand as the U.S.
reopens its borders.
“If all these factors come together, oil prices could spike and lead to a second round of inflationary
pressures around the world,” analysts including Francisco Blanch wrote in the note. “Put differently,
we may just be one storm away from the next macro hurricane.”
Diesel prices could climb above $120 a barrel, the bank said, with stockpiles falling as refiners
prioritized the production of gasoline in recent months. Other oil-based fuels used in heating are
already seeing an uplift, with U.S. propane prices at their highest since 2014.
As well as the cooler weather, BofA also said that underinvestment in commodities due to poor
returns is also set to fuel higher oil prices in the longer-term. “A multiyear run up in crude oil prices
is now in the cards,” the bank said.

The Surge in Natural Gas Prices Is Equal to a $190 Oil Shock
The deepening global energy crunch has pushed natural gas in Europe and Asia to the equivalent
of about $190 a barrel, something the oil market has never seen.
Both regions saw fresh records in the heating and power-generation fuel this week as utilities rush
to restock lower-than-average inventories ahead of winter in the northern hemisphere, while
alternatives -- like coal -- are also in short supply.
Dutch front-month gas hit 100 euros a megawatt-hour early Friday, its highest ever, before retreating
later. That’s about $190 per barrel of oil equivalent, more than double the value of the energy in a
barrel of Brent crude oil the same day. The benchmark oil contract had its record of $147.50 a barrel
in July 2008.
On Thursday, the Japan-Korea Marker, North Asia’s benchmark for spot liquefied natural gas
shipments, surged to $34.47 per million British thermal units, the highest on records going back to
2009, according to price reporting agency S&P Global Platts. Converting that into oil units, also
gives a price of about $190 per barrel of oil equivalent.
Energy prices are rising from the U.S. to Europe and Asia as economies recover from the pandemic
while supply lags behind. Depleted storages after the past winter, colder and longer than usual,
coupled with reduced field investments in some regions and heavy maintenance deferred from 2020
because of Covid restrictions, all contributed to the global crisis.
The supply crunch is rippling across other markets, supporting oil prices as well since utilities are
struggling to get any alternatives to gas that they can, including fuel oil for power generation and
heating.

NewBase Special Coverage
The Energy world – Oct - 07- -2021
TotalEnergies, Air Liquide, VINCI and a group of international
companies launch the world’s largest clean hydrogen
infrastructure fund
Source: TotalEnergies
TotalEnergies, Air Liquide, and VINCI, are combining forces with other large international
companies to sponsor the creation of the world’s largest fund exclusively dedicated to clean
hydrogen infrastructure solutions.
The fund aims to reach 1.5 billion euros and has already secured initial commitments of 800 million
euros. Its objective is to accelerate the growth of the clean hydrogen ecosystem by investing in large
strategic projects and leveraging the alliance of industrial and financial players.
The clean hydrogen infrastructure fund will invest in the entire value chain of renewable and low
carbon hydrogen, in the most promising regions in the Americas, Asia and Europe.
It will invest as a partner, alongside other key project developers and/or industry players, in large
upstream and downstream clean hydrogen projects. Total commitments to the fund have already
reached 800 million euros out of a target of around 1.5 billion euros at signature.
TotalEnergies, Air Liquide, and VINCI Concessions have been at the forefront of setting up and
aggregating commitments to this clean hydrogen infrastructure fund. As anchor partners, fully
committed to low carbon and renewable hydrogen development, each has pledged to invest 100
million euros.
The fund will be managed by Hy24, a brand new 50/50 joint venture between Ardian, a world-leading
private investment house and FiveT Hydrogen, a clean hydrogen enabling investment platform.

The choice of this fund manager allows to merge with their similar initiative and to add Plug Power
as an anchor partner, as well as Chart Industries and Baker Hughes joining together.
LOTTE Chemical has also confirmed its intention to participate as anchor investor, and is the first
Asian company to join. The fund expects to attract further investments from large financial players,
with AXA as anchor investor.
Large international industrial players from North America and Europe, which are strongly committed
to carbon neutrality, also intend to join the initiative as non-anchor partners, such as Groupe ADP,
Ballard, EDF, and Schaeffler.
With solid industrial expertise and significant investment potential, the clean hydrogen infrastructure
fund will have a unique capacity to unlock large scale projects under development and accelerate
the scaling up of hydrogen markets.
With the announced support of public policies and some use of debt financing, the fund should be
able to contribute to the development of hydrogen projects with a total value of about 15 billion
euros.
As a broad energy Company, TotalEnergies’ ambition is to get to net-zero emissions by 2050
together with society for its global business across its production and energy products used by its
customers.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, commented: 'We believe that clean,
renewable hydrogen will play a key role in the energy transition, and TotalEnergies wants to be a
pioneer in its mass production. We are currently working on several projects, notably to decarbonize
the grey hydrogen used in our European refineries by 2030.
We are convinced that a collective effort is needed to kick-start the hydrogen sector and take it to
scale. We are thus proud to launch and invest in the Clean hydrogen infrastructure fund, which will
also give us privileged insights in the sector.'

As a pioneer in hydrogen for over 50 years, Air Liquide is convinced that hydrogen is a cornerstone
of the energy transition. The Group is providing its unique expertise along the entire value chain,
using hydrogen as a clean energy carrier for industrial processes and clean mobility.
Benoît Potier, Chairman and CEO of Air Liquide, declared: 'Hydrogen has become a central element
of the energy transition. The time to act is now, not only as companies on a stand-alone basis, but
by joining forces with states, other industrial groups and the financial community.
With the creation of this fund, we are demonstrating our leadership to participate in a collective
dynamic to build momentum. As Air Liquide, we have already committed to invest approximately 8
billion euros in the low-carbon hydrogen supply chain by 2035.
Our objective is to contribute to the development of the entire value chain from low-carbon hydrogen
production to end-uses, investing in the necessary infrastructure with storage and distribution
projects. Accelerating on Hydrogen development is key to mitigate climate change.'
A global player in concessions, construction and energy, present in some 100 countries, VINCI is
actively committed to Net Zero Emission by implementing an ambitious environmental policy. Its
mission is to design, finance, build and operate infrastructure and facilities that contribute to
improving daily life and mobility for everyone.
Xavier Huillard, Chairman and CEO of VINCI declared: 'VINCI is taking concrete action to support
the development of clean energy by mobilizing all its divisions in concessions, construction and
energy, with the aim of actively combating climate change and decarbonizing mobility in particular.
By launching this investment fund today, hand in hand with other major industrial leaders, we keep
moving forward to make green hydrogen a strong lever in achieving our objectives'.

The hydrogen economy is expected to be key in the fight against climate change. Many countries
have initiated hydrogen-related regulations and support schemes to enable clean hydrogen to help
decarbonize their economies. Hydrogen offers a solution to decarbonize industrial processes and
the mobility sector.
Subject to Hy24’s French Market Authority (AMF) accreditation as an Alternative Investment Fund
Manager (AIFM), the platform will be operational in late 2021 and first closing is expected before
the end of the year.
Low-carbon hydrogen set for widespread growth: IEA
There are encouraging signs that low-carbon hydrogen is on the cusp of significant cost declines
and widespread global growth, said the International Energy Agency (IEA) in its Global Hydrogen
Review 2021.
Meanwhile, governments need to move faster and more decisively on a wide range of policy
measures to enable low-carbon hydrogen to fulfil its potential to help the world reach net zero
emissions while supporting energy security, the report said.
Currently, global production of low-carbon hydrogen is minimal, its cost is not yet competitive, and
its use in promising sectors such as industry and transport remains limited, according to IEA.
When the IEA released its special report on The Future of Hydrogen for the G20 in 2019, only
France, Japan and Korea had strategies for the use of hydrogen. Today, 17 governments have
released hydrogen strategies, more than 20 others have publicly announced they are working to
develop strategies, and numerous companies are seeking to tap into hydrogen business
opportunities.

Pilot projects are underway to produce steel and chemicals with low-carbon hydrogen, with other
industrial uses under development. The cost of fuel cells that run on hydrogen continue to fall, and
sales of fuel-cell vehicles are growing.
“It is important to support the development of low-carbon hydrogen if governments are going to meet
their climate and energy ambitions,” said Fatih Birol, the IEA Executive Director, who is launching
the report today at the Hydrogen Energy Ministerial Meeting hosted by Japan.
“We have experienced false starts before with hydrogen, so we can’t take success for granted. But
this time, we are seeing exciting progress in making hydrogen cleaner, more affordable and more
available for use across different sectors of the economy.
Governments need to take rapid actions to lower the barriers that are holding low-carbon hydrogen
back from faster growth, which will be important if the world is to have a chance of reaching net zero
emissions by 2050.”
Hydrogen is light, storable and energy-dense, and its use as a fuel produces no direct emissions of
pollutants or greenhouse gases. The main obstacle to the extensive use of low-carbon hydrogen is
the cost of producing it.
This requires either large amounts of electricity to produce it from water, or the use of carbon capture
technologies if the hydrogen is produced from fossil fuels. Almost all hydrogen produced today
comes from fossil fuels without carbon capture, resulting in close to 900 million tonnes of CO2
emissions, equivalent to the combined CO2 emissions of the UK and Indonesia.
Investments and focused policies are needed to close the price gap between low-carbon hydrogen
and emissions-intensive hydrogen produced from fossil fuels. Depending on the prices of natural
gas and renewable electricity, producing hydrogen from renewables can cost between 2 and 7 times
as much as producing it from natural gas without carbon capture.

But with technological advances and economies of scale, the cost of making hydrogen with solar
PV electricity can become competitive with hydrogen made with natural gas, as set out in the IEA’s
Roadmap to Net Zero by 2050.
Global capacity of electrolysers, which produce hydrogen from water using electricity, doubled over
the last five years, with about 350 projects currently under development and another 40 projects in
early stages of development.
Should all these projects be realised, global hydrogen supply from electrolysers – which creates
zero emissions provided the electricity used is clean – would reach 8 million tonnes by 2030. This
is a huge increase from today’s level of less than 50 000 tonnes – but remains well below the 80
million tonnes required in 2030 in the IEA pathway to net zero emissions by 2050.
Practically all hydrogen use in 2020 was for refining and industrial applications. Hydrogen can be
used in many more applications than those common today, the report highlights. Hydrogen has
important potential uses in sectors where emissions are particularly challenging to reduce, such as
chemicals, steel, long-haul trucking, shipping and aviation.
The broader issue is that policy action so far focuses on the production of low-carbon hydrogen
while the necessary corresponding steps that are required to build demand in new applications is
limited. Enabling greater use of hydrogen in industry and transport will require much stronger policy
measures to foster the construction of the necessary storage, transmission and charging facilities.
Countries with hydrogen strategies have committed at least $37 billion to the development and
deployment of hydrogen technologies, and the private sector has announced additional investment
of $300 billion. But putting the hydrogen sector on path consistent with global net zero emissions
by 2050 requires $1.2 trillion of investment between now and 2030, the IEA estimates.

Hydrogen: The lifeblood of a low-carbon energy future
At the Paris Climate Conference in 2015, 195 countries adopted the first-ever universal, legally
binding global climate deal. The agreement sets out an action plan to put the world on track to avoid
dangerous climate change by limiting global warming and has been followed by a growing number
of carbon net zero commitments around the world.
Hydrogen is being widely touted as a key solution to phasing out our reliance on fossil fuels. But
what is the so-called ‘hydrogen economy’, what benefits does it offer and what are the challenges
and risks?
HYDROGEN ECONOMY
The term ‘hydrogen economy’ refers to the vision of using hydrogen as a complete, low-carbon
energy source. Using hydrogen as a fuel is attractive because, whether it is burned to produce heat
or combined chemically with oxygen in a fuel cell to produce electricity, the only by-product is water.
Figure 1 illustrates its potential scale and diversity.
PRODUCTION
Hydrogen isn’t found in pure form on Earth, so it must be produced from other compounds such as
natural gas or water. It takes energy to convert these into pure hydrogen. As such, hydrogen is
really an energy carrier rather than an energy source in its own right.

‘Green hydrogen’ is generated from zero-carbon energy sources, such as renewables or nuclear.
For intermittent generators, such as wind, wave and solar, converting electricity into green hydrogen
provides a medium to overcome fluctuations in supply and demand.
‘Blue hydrogen’ is produced from natural gas via a process known as steam reforming. Its
environmental footprint is greater than for green hydrogen as it is generated from a non-sustainable
energy source that emits greenhouse gases. However, if generated on a large scale, the carbon
dioxide produced can be captured and stored by Carbon Capture and Storage (CCS) facilities,
buying time for zero carbon energy technologies to deliver in the longer term.
STORAGE AND DISTRIBUTION
Hydrogen can be stored as a gas, liquid or solid, the last by either reacting the hydrogen with a
storage compound or through absorption into a storage material. These options imply varying
volumetric efficiency and distribution solutions. For example, gaseous and liquid hydrogen can be
stored underground in caverns, salt domes and depleted oil fields, which can serve as responsive
large scale energy reservoirs.
Whilst hydrogen can be transported via road, rail or marine vessel, there is also the opportunity to
convert existing natural gas distribution grids to supply hydrogen directly to domestic and
commercial users.
USES
The most likely beneficiary of a hydrogen economy is transportation. Road transport, rail and even
aviation can use hydrogen as a zero carbon fuel source, with an onboard fuel cell converting the
hydrogen into electricity, for instance.
Fuel cells are far more efficient than the internal combustion or jet engines they would replace. In
contrast to electric vehicles, which have received much attention in recent years, hydrogen vehicles
can be rapidly refuelled and have a much greater range.

More generally, fuel cell technology means that hydrogen could be used to generate electricity on
a national, district or consumer scale.
Finally, hydrogen has the potential to deliver a domestic heating revolution. Blended with natural
gas it can supply heating and cooking appliances with only fairly simple modifications required.
Better still, it could replace natural gas altogether, providing a zero-carbon domestic fuel.
HAZARDS AND RISKS
That liquid hydrogen is used as a fuel for space flight is testament to its exceptionally high energy
density. In its gaseous form, hydrogen is highly flammable and easily forms an explosive mixture in
air across a wide range of concentrations with a very low ignition energy.
Its small molecular size makes it highly buoyant, with a high diffusion rate and low viscosity. The
first two characteristics are beneficial in terms of mitigating the risk of explosion. But its small size
means that leaks are more prevalent than for natural gas. This is a key consideration in repurposing
gas networks to supply hydrogen.
To compound matters, hydrogen is odourless, colourless, and tasteless and burns with an invisible
flame making leak detection difficult. It can also cause embrittlement of higher carbon content
metallic alloys, so care must be taken when choosing materials.
Storage presents a number of hazards. To ensure volumetric efficiency, gaseous hydrogen must
be stored at very high pressures (up to 700 bar), whilst liquid hydrogen needs to be stored at very
low, cryogenic temperatures.
However, broadly speaking, all of these hazards are well understood and tried and tested
processes, tools and techniques exist to manage the risks effectively. For over forty years hydrogen
has been used in vast quantities as an industrial chemical and fuel for space exploration.
The challenges of enabling and supporting a hydrogen economy will more likely relate to the sheer
scale and proliferation of development required to make a meaningful impact on climate change.
Greater still will be the challenge of overturning negative public perception.
Hydrogen is perceived as a very dangerous substance, given its association with the Hindenburg
airship disaster and the hydrogen bomb. Whilst the hazards of hydrogen are very real, there is no
reason why hydrogen cannot be used safely.
Demonstrating this to the general public through clear and effective communication will be as
fundamental to the success of a hydrogen economy as the associated technical case for safety.

NewBase Energy News 04 October 2021 - Issue No. 1460 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.

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