BP is evaluating different transport options for its nascent hydrogen supply business and will provide updates on its plans in February next year.

The firm is investing in green hydrogen supply projects and has acquired a 40.5pc equity stake in, and become operator of, the Asian Renewable Energy Hub—a planned 26GW onshore wind and solar project in Australia that will also produce green hydrogen.

But it has not yet established in what form the hydrogen from this and its other projects will be shipped.

“Transport is a big challenge for green hydrogen,” says BP CEO Bernard Looney. “Not everyone wants ammonia. Our teams are looking at that.”

BP’s recently hired executive vice-president of gas and low-carbon energy, Anja-Isabel Dotzenrath, will provide further information on the firm’s plans in this area at an annual update in February 2023.

“Transport is a big challenge for green hydrogen” Looney, BP

There are three key technologies that could be used to transport hydrogen, all with varying levels of efficiency and cost.

The most developed in terms of intercontinental transport is conversion to ammonia, which relies on chemical and semi-refrigerated liquefied petroleum gas tankers. Liquid organic hydrogen carriers can also be used to transport the fuel on product tankers.

Hydrogen can also be liquefied and transported in the same way that natural gas is, but the technology required is relatively undeveloped. So far only one vessel has carried a liquefied hydrogen cargo.

Looking east

The firm will be targeting the Asian markets, many of which intend to co-fire ammonia in power stations. Japanese utility Jera aims to use a 20pc ammonia fuel mix at all of its coal-fired power plants by 2035, while South Korea’s Ministry of Trade, Industry and Energy announced ammonia coal co-combustion will be operational in over half the country’s coal-fired generating units by 2030.

But Japan’s hydrogen strategy also foresees a big role for hydrogen in the transport and industrial sectors, which would be better served by the fuel in its pure form because of the high reconversion costs involved with ammonia. The nation has targeted the rollout of 200,000 fuel-cell electric vehicles by 2025 and 800,000 by 2030, as well as 320 hydrogen refuelling stations by 2025 and 900 by 2030.

BP is collaborating with Japanese shipping firm NYK Line to investigate ways to develop hydrogen or ammonia supply chains.

As well as its Australian operations, BP is developing a blue hydrogen project in the UK called H2 Teesside, a green hydrogen production project in Rotterdam, and other projects in Spain and Portugal.

---

Author: Tom Young