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Overview

Natural gas is one of the most important sources of energy. The demand for natural gas has also increased thanks to its many advantages. As the world population continues to grow, there is growing demand to support the population in terms of food, shelter, job security, all of which rely on a certain industry that in turn, relies on energy. Moreover, the world seeks to transition into an environmentally cleaner future given the alarming rising rates of carbon emissions that have had a major impact on global warming. Natural gas has been one of the paths followed due to its lower impact on the environment in comparison to its competitors such as oil. One such way natural gas can contribute, is in the production of hydrogen fuel. Currently, 80 % of the world’s energy is sourced from fossil fuels with 95% of hydrogen being produced from natural gas. The most common type of hydrogen produced from natural gas today is “grey hydrogen.” However, with further advancements in technology and alarming levels of environmental concern, cleaner sources of energy are still being sought after. One such source is “blue hydrogen” which is also produced from natural gas. Blue hydrogen which is also known as “low carbon hydrogen”, is on the rise as an environmentally friendly source of energy because the carbon dioxide captured during its production from natural gas is captured and stored underground using Carbon Capture, Utilization, and Storage (CCUS) technology. Blue hydrogen is often compared to green hydrogen that is produced from electrolysis. However, in comparison, blue hydrogen is a cheaper alternative.

Key Players In The Future of The Hydrogen Market

Price

Cost implications play a pivotal role in any venture, making it one of the most considerable evaluation aspects. Accordingly, multiple scholars build their arguments from that perspective, weighing the differences between investing in natural gas by embracing hydrogen or resorting to other sources of energy. In the case of grey hydrogen, since the natural gas prices and costs are established, there is a need to evaluate the unpopular cost implications of grey hydrogen solutions. Through various assessment methods such as thermochemical conversion, water electrolysis, renewable liquid forming, and biochemical conversion, the economics are compared through sensitivity to capital cost, feed cost, internal return rate, and uncertainty sensitivity analysis sources. The derivatives indicate certain barriers, among them technical ones like lower production efficiency due to expensive processes like dark fermentation compared with other methods.

Factually, effective articulation creates coherence and positively impacts economic ventures. Findings provide a basis for the posited argument, primarily focusing on hydrogen supply chains framework designs and their potential. Evaluating the costs and impacts on the hydrogen economy in Qatar is a tangible approach towards ascertaining industrial decarbonization and multisector integration cost implications due to the existing need. The results indicate higher production costs for a greener approach. Deductively, these findings point towards a potential price increase. If the prices increase, there is bound to be increased supply, but will the demand increase too, or will consumers seek alternative methods?

Various hydrogen production methods are evaluated to establish the relevant variables that may influence pricing. The findings provide insight into aspects such as energy sources and incentives, etc. Scholars suggest considerations on multiple energy sources for hydrogen production and receiving revenues for products such as carbon to help ease the cost of production. Deductive reasoning demands that one considers various energy sources to select a more cost-effective and feasible option. By so doing and incentivizing, pricing may remain bearable, fostering a green hydrogen economy possibility.