Pipelines and Transport

C. JOHNSTON, IFS, North Vancouver, British Columbia

From growing concerns for climate change and net-zero carbon emissions commitments to a focus on greenhouse gas (GHG) reduction, hydrogen’s (H₂’s) potential to help solve crucial energy issues has gained much attention. 

Demand for H₂ has soared, and there are no signs that it will slow down. Ensuring pipelines and infrastructure are up to the challenge must be a top priority in the near term. Integrating a H₂-powered energy economy is challenging, and modern technology will be required to support how power is stored, transported and generated in the future. 

H₂’s energy efficiency, lack of emissions, access readiness and abundance make it the greatest potential ally to transforming energy, utilities and resources. Due to these benefits, H₂ demand is expected to grow by 44% by 2030.   

Today, Canada leads the production charge in North America and worldwide, as a global producer of H₂, with many other countries set to follow suit as they look to advance technologies capable of making the transformation possible.  

To make H₂ a success, transportation and storage facilities, including pipelines, must have the grid capacity to safely manage these new levels of H₂—whether this means updating existing pipelines with H₂-safe coatings or components or building a new network. As with any major transformation, it will not be quick, but those who embrace the shift early will keep pace with changes in regulations and consumer preferences.

The promise of H₂. Specifically, there is a lot of focus on green H₂, which will lead to significant development for the renewable energy space and a huge step toward a decarbonized economy. Its importance comes down to how it is produced—green H₂ is derived from water and renewable energies (e.g., solar and wind) and is the only type of H₂ produced in a carbon-neutral manner, an invaluable trait for reaching net-zero emissions by 2050.  

If we look at the bigger picture and the use of H₂ in general, there is more to it than sustainability benefits. In the long term, H₂ has the potential to reduce the cost of energy production and the challenges of transportation and storage.   

H₂ presents an abundance of business opportunities across the entire value chain, such as power generation, energy efficiency, environmental improvement, industrial feedstock, an increased number of high-paying jobs and benefits in transportation.   

Consumers sit in the driver's seat for change for many sustainability initiatives, and H₂ is no different. However, the pressure does not all come from changing consumer preferences. Changes in regulations surrounding H₂ will be inevitable as governments and countries begin to set out their unique H₂ roadmaps. 

Infrastructure bills in the U.S. have been established to support wide-scale H₂ deployment, while H₂ strategies/roadmaps in Canada, Japan and several countries within Europe have commenced. Additional costs for transmission infrastructure include the undergrounding of vulnerable pipelines and equipment. In the U.S., the need to go underground takes on greater urgency considering catastrophic wildfires caused by extreme weather events and the sparking of flames by fallen transmission lines.  

In the U.S., 1,600 mi of H₂ pipelines are in operation, supplying H₂ to high-usage companies such as petroleum refineries and chemical plants, predominantly on the Gulf Coast. However, it does not end there—an additional 3 MM mi of natural gas pipelines are also in use.

H₂ produced through a natural, clean pathway can be injected into these natural gas pipelines to create an energy blend capable of generating heat and power with lower-carbon emissions. Of course, this energy blend will be dependent on the design and condition of current pipelines and infrastructure that—in the U.S.—are mostly comprised of steel.   

The growth in understanding the benefits of H₂ usage has spurred organizations to think more about repurposing existing natural gas pipelines and infrastructure to support transmission and storage, as opposed to building new pipelines. The advantages of doing so are clear. Firstly, existing pipeline networks are readily available, regulatory approved and routes are socially accepted.   

Secondly, building new H₂-dedicated pipelines would be extremely expensive and time-consuming. Converting existing infrastructure would mitigate some of these costs and, depending on geographies and demand, can be converted gradually (FIG. 1).

Finally, the technology required for transforming these pipelines is ready, tested and available. As with many major transformations, costs are a hurdle, but PwC research suggests that H₂ production costs will reduce over time due to scaling economies, technological advances and renewable energy costs. PwC forecasts that H₂ costs will decrease by 50% by 2030.¹

Hot potato. Three major constraints are holding back the transition to H₂ pipelines. The first is cost: in today’s market, not only is the price of H₂ high, but its extreme flammability makes the initial cost of new, specialized pipelines and carriers costly. Second, there are concerns over whether enough infrastructure is in place to turn H₂ into a global consumable product.   

Currently, enough pipelines remain in place in North America to support local needs. Still, with many organizations looking to capitalize on the higher selling price of exporting to other countries, the focus must rest on building new pipelines that can support H₂ transportation to other markets. Finally, the authorization of new pipelines is a difficult ask for residents that see no benefit in a new facility being built in their area for a product being shipped abroad. 

Moving an entire grid to renewable energies is no job for the faint-hearted and will require serious investment into the repurposing or further construction of electricity transmission, distribution and storage networks. By 2050, energy demand is set to increase by at least 50%, and future success will hinge on the right infrastructure keeping pace with these unprecedented levels of demand.   

Another infrastructure challenge revolves around positioning wind and solar farms that are heavily relied upon for green H₂ production. The options are limited. For example, the optimal locations for solar farms in North America are in the Midwest, where access to solar energy is consistent, but major consumers reside on the east and west coasts.   

The disconnect lies in interconnection proximity, and it is up to energy, utilities and resources organizations, as well as governments, to configure a suitable distribution network of pipelines that can transfer energy from the generator straight through to the end consumer. 

While green H₂ offers a decarbonized solution, it cannot be achieved without the digital helping hand of technology. For traditional technology companies, a deep understanding of the software and science will be essential to create a H₂ generation facility.   

Technology can support an organization’s transition into a new and emerging line of business. Implementing smart information technology support that leverages artificial intelligence and machine-learning is vital.   

As energy, utilities and resources organizations diversify, their energy mix will create increasingly complex organizations that require agile and flexible solutions to manage various production facilities. 

As energy needs rise, more organizations will turn to green H₂ as a power facilitator. With increased efficiency gains, carbon-neutral features and transferable capabilities, H₂ will undeniably be a significant part of the future energy equation, and infrastructure—especially pipelines—must be ready.H₂T

NOTE 

This article was first published in the XYZ issue of Pipeline & Gas Journal.

LITERATURE CITED 

¹ PwC Research, “Analysing the future cost of green hydrogen,” December 2022, online: https://www.pwc.com/gx/en/issues/esg/the-energy-transition/analysing-future-cost-of-green-hydrogen.html#:~:text=The%20key%20projections%20from%20our,slightly%20slower%20rate%20until%202050.