European oil majors’ big bet on hydrogen as the transport fuel for the future is not so big in reality
KEY INSIGHTS
Where Europe’s oil giants Shell, BP, Total, Eni, and Repsol are investing in hydrogen, but only part of this is truly ‘green’. Most of their investments are going towards decreasing the carbon intensity of their refinery operations, not for developing green transport fuels, the study shows.
1-Industries investments in green hydrogen are pitiful.
2-They are focusing their new refining capacity on biofuels which cannot sustainably supply the world’s transport needs.
3-This is not an industry pushing the boundaries of clean technology.
4-Of the refining sector’s $42 billion in planned investments for alternative fuels up until 2030, almost 75 percent will go towards increasing
5-Companies are investing around $7 billion in so-called ‘low carbon’ blue hydrogen to clean up their production processes.
BOTTOMLINE
The study believes; Where oil producers are investing in hydrogen, most is going towards replacing dirty grey hydrogen operations with blue hydrogen, which still uses polluting fossil gas. Instead of wasting their time on easy, short-term solutions, oil refiners should switch to producing green hydrogen and e-fuels for ships and planes biofuel production