In light of the need to address pertinent knowledge gaps with regards to the key aspects of blue (CCS-abated) hydrogen deployment, IEAGHG commissioned two parallel blue hydrogen studies. These studies are:
The study “Low-Carbon Hydrogen from Natural Gas: Global Roadmap” concluded that in the short term, all the natural gas-based blue hydrogen production technologies analysed are likely to be costlier than the established grey hydrogen production in the Netherlands. However, as carbon pricing increases (to make grey hydrogen production being an unattractive economic option), CCS integration will be crucial for reducing the cost of natural gas-based hydrogen production. Therefore, development of policy instruments is imperative to establish demand via incentivising decarbonisation through low-carbon hydrogen pathways; ensuring access via making hydrogen accessible through the developing infrastructure; and lower cost via creating economies of scale to reduce cost and open new markets.