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In continuation of Feb and Mar 2023 “Tips of the Month” (TOTM) and given the amount of investment and interest in hydrogen, we have decided to publish a series of TOTM to explore the opportunities, challenges, and potential solutions to hydrogen applications and uses; this is the third paper in the series. In this TOTM we will review the physical properties of hydrogen and natural gas, which are quite different from one another. These differences govern the hydraulics of pipeline transmission. Specifically, we will discuss the impact of blending hydrogen on natural gas properties like higher heating value and the Wobbe Index, and the need for accurate gas mixture property estimation for reliable model representations of the pipeline system. Our future tips will explore the possible end uses and benefits of hydrogen, thermodynamics of natural gas use versus hydrogen in industrial applications, safety considerations, transportation challenges and opportunities, storage, and end use capabilities. In addition, we will look at some cost comparisons, where possible of the different hydrogen production options. We hope you enjoy taking this journey with us. Our aim is to take a thermodynamically balanced non-biased view of possible applications, costs, and implications.

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After an extended period of low U.S. benchmark Henry Hub natural gas prices, many gas producers would welcome build-out of U.S. LNG export facilities. The global demand for U.S. sourced LNG remains strong, and Henry Hub indexed LNG is very competitive globally. LNG exports are expected to be the largest driver for lower 48 demand growth over the next 5 years. We have demonstrated the capability to execute these projects successfully and quickly. With the first LNG exports in 2016, the US has become one of worlds’ three largest LNG exporters along with Qatar and Australia [1]. Currently there are seven US export facilities in operation, six under construction, and eleven proposed. There is intense competition between developers to bring these proposed liquefaction projects online. Securing long-term 20-year off-take contracts is required prior to the final investment decision (FID) due to the significant amount of capital required. Many European buyers hesitate to lock in multi-decade contracts that developers need to secure project financing. This is because their countries’ goals to meet net-zero by 2050 directly conflict with a secure, affordable supply of LNG feed-gas. Financiers have been encouraged to question the viability of long-term natural gas infrastructure as the industrialized world attempts to rapidly decarbonize. What are the primary challenges that these projects face, and what will it mean to the U.S. natural gas consumers if they all do come online? This TOTM provides a discussion and analysis to the following questions: 1. What is the current and future U.S. LNG Export Capacity? 2. Can U.S. Natural Gas Production support all these LNG projects? 3. How will this additional demand impact Henry Hub pricing in the U.S.? 4. Is there adequate pipeline capacity and expansion projects to ensure the required volumes of feed gas can be delivered when these plants are scheduled to come on-line? 5. What are the challenges of rising project costs because of inflation, higher interest rates, and supply chain constraints? 6. Which projects could potentially be negatively impacted because of the new Department of Energy (DOE) rule change announced April 21 that requires these projects export their first LNG cargo within a 7-year period with limited extension considerations?

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Producción baja o ninguna producción del Hidrógeno Carbono, su distribución y consumo se ha considerado una de soluciones primarias para lograr un cero neto para la Industria pesada, posible generación de potencia, uso residencial para cocinar, así como el transporte. El hidrogeno posee un valor alto de capacidad de calor, y cualquier reacción de combustión no produce el CO2 . De acuerdo con H2 Tech, existen unos 876 proyectos de hidrógeno verde, más 245 proyectos de hidrogeno azul en marcha. Como ejemplo del nivel de atención, en el 2021 los EEUUAA aprobó el “Infrastructure, Investment and Jobs Act (IIJA)”, el cual contiene $9.5 billones en fondos para el Hidrogeno.1 €8 billones de este monto se dedica al desarrollo de los Centros de hidrogeno (Centros del H2) en los EEUUAA. En el 2022 el “inflation Reduction Act (IRA)” incluyo dos provisiones tarifarias que ofrecerán subsidio para la producción del hidrogeno limpio2. El Departamento de Energía (DOE) define los Centros De H2 como una red de productores del hidrógeno limpio, consumidores comerciales, y una infraestructura conectiva que se agrupan próximos uno del otro. El DOE otorgará fondos para seis, y hasta diez centros de hidrógeno limpio en el territorio. El interés en el hidrógeno limpio no es solo una tendencia. El Reino Unido ha desarrollado una Estrategia de Hidrogeno3. Japon4, Australia5 mas otros Países consideran el Hidrogena como elemento clave para la solución de combatir el cambio climático. La comisión del RU también en el subsidio el hidrogeno “verde” hasta un monto de €800 millones y ofrecerá un “subsidio fijo“ por kg de “hidrogeno verde” producido, subsidiando esta producción a través de una década6. Dado el monto de inversión e interés en el hidrogeno, hemos decidido publicar una serie de “Previos del Mes” para explorar las oportunidades, retos, mas soluciones potenciales para la aplicación de hidrogeno y su uso; esta es la primera publicación de esta serie. Como tal comenzaremos esta exploración desde el principio – cuáles son los colores del hidrogeno? Como se producen. Cuáles son los retos técnicos para su aplicación? Posteriormente revisaremos los “casos de uso”. Porque existe tal interés importante en el enfoque para estas inversiones? Nuestros Previos del Mes futurísticos exploraran el posible uso y los beneficios del hidrogeno, la termodinámica del gas natural versus el hidrogeno en aplicaciones industriales, aspectos de seguridad, retos y oportunidades de transporte, almacenamiento, y capacidades de uso final. Adicionalmente, veremos unas comparaciones de costo, cuando posible, de las distintas oportunidades para la producción del hidrógeno. Esperamos disfruten de esta “travesía” con nosotros. Nuestra meta es lograr una vista balanceada termodinámica sin perjuicios de sus aplicaciones, costos, e implicaciones.

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In continuation of Feb 2023 “Tips of the Month” (TOTM) and given the amount of investment and interest in hydrogen, we have decided to publish a series of TOTM to explore the opportunities, challenges, and potential solutions to hydrogen applications and uses; this is the second paper in the series. As such, we will continue this exploration with hydrogen compression and transportation by transmission pipeline systems – what are the permissible conditions and restrictions? This TOTM does not cover the pipeline materials compatibility issues, which will be a focus of another tip. In terms of the compression characteristics, what are the technical challenges for deployment? Specifically, we explore the possibility of blending a relatively pure hydrogen stream with a natural gas residue to supply 5.65x106 SCMD (standard cube meter per day) or 200 MMSCFD fuel gas to a heavy industrial unit. With the aim of achieving net zero, the objective is to maximize amount of hydrogen in the fuel gas by replacing hydrocarbons while meeting pipeline tariff and sales specifications.

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Low or no carbon hydrogen production, distribution and consumption is thought to be one of the primary solutions to reaching net zero for heavy industry, possibly power generation, residential use for heating and cooking, as well as transportation. Hydrogen has a high heating value, and the combustion reaction does not produce CO2. According to H2 Tech, there are currently 876 green hydrogen projects, and 245 blue hydrogen projects ongoing. An example of the level of attention, in 2021 the U.S. passed the Infrastructure, Investment and Jobs Act (IIJA) which contains $9.5 billion in funding for hydrogen1. $8 billion of that is dedicated to the development of hydrogen hubs (H2Hubs) in the U.S.. In 2022, the Inflation Reduction Act (IRA) contained two tax provisions that will subsidize clean hydrogen production2. The U.S. Department of Energy (DOE) defines H2Hubs as a network of clean hydrogen producers, potential consumers, and connective infrastructure that are all located in close proximity to one another. The DOE will release the funding to six, and possibly up to ten, clean hydrogen hubs around the country. The interest in clean hydrogen is not just a U.S. trend. The U.K. has developed a Hydrogen Strategy3. Japan4, Australia5 and other countries are also looking to hydrogen as a key part to the solution of combatting climate change. The EU commission also plans on subsidizing “green” hydrogen to the tune of €800 million and will offer a “fixed premium” per kg of “green” hydrogen produced, subsidizing this production over a 10-year period6. Given the amount of investment and interest in hydrogen, we have decided to publish a series of “Tips of the Month” to explore the opportunities, challenges, and potential solutions to hydrogen applications and uses; this is the first paper in the series. As such, we will start this exploration from the beginning – what are the colors of hydrogen? How are they produced? What are their technical challenges for deployment? After that we will review the USE case for hydrogen. Why is there such an interest and focus for these investments? Our future tips will explore the possible end uses and benefits of hydrogen, thermodynamics of natural gas use versus hydrogen in industrial applications, safety considerations, transportation challenges and opportunities, storage, and end use capabilities. In addition, we will take a look at some cost comparisons, where possible of the different hydrogen production options. We hope you enjoy taking this journey with us. Our aim is to take a thermodynamically balanced non-biased view of possible applications, costs, and implications.

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This Tip of the Month shows how a Short Cut Method (SCM) after one Performance Test Run (PTR) may be used to estimate the life of a Type 4A molecular sieve dehydrating a water-saturated feed of natural gas. The results of the proposed SCM have been compared with the rigorous manual calculations (May 2015 Tip of the Month) and the computer-generated calculations (June 2016 Tip of the Month) and good agreements were obtained. To learn more about this tip and past Tips of the Month, visit JMC Tip of the Month.


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