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QatarEnergy, Shell agree to look into UK hydrogen projects

Highlights

Project to focus on London, reducing carbon emissions

Investments may include low carbon fuels, technologies

QatarEnergy and Royal Dutch Shell have agreed to join forces to pursue investments in blue and green hydrogen projects in the UK that might be able to reduce carbon emissions in industrial clusters and transport sectors, with a focus on the London metropolitan area, the companies said in a statement Oct. 19.

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This is the first hydrogen agreement between both companies, and will target "integrated and scalable opportunities," the companies said. The agreement was signed on the sidelines of the UK Global Investment Summit, they said. The UK, which released its hydrogen strategy Aug. 17, supports both renewable '"green" production by electrolysis of water as well as fossil fuel-derived "blue" production with carbon capture and storage.

The QatarEnergy, Shell investments may include low carbon fuels and technologies, they said.

Middle East oil and gas companies are in a race with Australian peers to develop blue hydrogen, developed from natural gas, while oil majors such as Shell are bringing in global technological expertise to lower hydrogen costs. QatarEnergy is the world's largest LNG exporter. Japan's Mitsubishi said in September that it signed a memorandum of understanding with Shell to consider producing around 165,000 mt/year of blue hydrogen near Edmonton, Canada, in the late 2020s with an eye to convert it into ammonia for exports to Japan.