Blue Gas: Hype or Reality for Sustainable Fuel?

What is Blue Gas?

Updated June 2023

Blue gas, also known as blue hydrogen, has gained significant attention over the past 24 months. It’s produced from natural gas through steam methane reforming (SMR), where the carbon emissions are captured and stored or utilized, making it a low-carbon energy source.

Regarding prospects, blue hydrogen is seen as a crucial stepping stone towards a green hydrogen economy. It’s currently more economical to produce than green hydrogen, made using renewable energy and electrolysis. This makes blue hydrogen a viable option for countries and industries looking to reduce carbon emissions in the short to medium term.

Several countries have included blue hydrogen in their energy transition strategies. For instance, the UK government has committed to a “twin track” approach, supporting blue and green hydrogen. Similarly, Canada is investing in blue hydrogen with its abundant natural gas reserves and carbon capture and storage (CCS) technology.

In the corporate world, major energy companies like BP, Shell, and Equinor are investing in blue hydrogen projects. For example, BP plans to build a blue hydrogen production facility in the UK, which could start operation by 2027.

However, there are challenges to blue hydrogen becoming mainstream. The process of producing blue hydrogen is energy-intensive, and the effectiveness of carbon capture and storage is not 100%. There are also concerns about methane leakage during natural gas extraction, which could offset the carbon benefits of blue hydrogen.

Moreover, the falling costs of renewable energy and electrolyzers are making green hydrogen increasingly competitive. Some critics argue that investments in blue hydrogen could divert resources away from green hydrogen, which is ultimately the more sustainable solution.

Blue Gas: The Tesla Challenger?

It appears that the success of Tesla, while silencing a lot of naysayers, has given some marketers ideas to conjure up investments that could deliver Tesla-like yields. Tesla is so successful that every car manufacturer has jumped onto the EV bandwagon. So now, a new fuel called blue gas is being marketed as the battery killer. The technology is being sold as nothing but hydrogen, albeit blue hydrogen, and the sales point is that it does not emit any harmful emissions.

So what makes it blue? Well, it is created from a carbon-neutral process as opposed to grey or regular hydrogen. According to woodside.com, this is how blue hydrogen is manufactured.

Blue hydrogen is made from our natural gas through the process of steam methane reforming (SMR). While CO₂ emissions are generated during SMR, we are committed to managing these through market offset or technical abatement to offer a carbon-neutral product. Green hydrogen is produced from water using renewable power.

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Elon Musk’s Take on Blue Gas: Is It Worth Considering

He seems to think the concept of blue gas is mind-boggling and stupid, and instead of being called fuel cells, they should carry the label of “fool cells.”

Arval, part of the French bank BNP Paribas Group, lists the following positives and negatives:

Faster refuelling compared to charging an electric car – 3 to 5 minutes, just like gasoline.
No harmful emissions, only water.
Impressive range of around 300 miles, on par with conventional vehicles.
Good efficiency levels; fuel cell powertrains are much more efficient at getting energy out of hydrogen than traditional cars are at getting energy out of gasoline or diesel.

The negative factors are:

Refuelling locations are sparse.
Although the cost of fueling a hydrogen car would be similar to traditional fuels, developing the technology isn’t cheap, nor is storing or moving hydrogen itself.
The electricity must be renewable. Otherwise, there is no CO2 gain. Forbes

The Unfeasibility of Blue Gas for Sustainable Fuel

The falling cost of producing hydrogen from renewable power offers a promising route to cutting emissions. Still, governments need to step in and provide $150 billion of subsidies over the next decade to scale up the technology, according to research from Bloomberg New Energy Finance (BNEF). Reuters, However, the massive losses caused by the coronavirus pandemic mean that such an idea is now moot as few governments will look to fund something that might or might not be viable after the damage wrecked by the coronavirus.

The Rise of Electric Trucks: A Game-Changer for the Industry?

Adding a scenario of an electric truck with a 400-kilometre range, Hoekstra found that “it blew diesel and hydrogen out of the water with minimal downsides” while adding that “Catenary is great too but requires international institutional cooperation” – a result Hoekstra is not holding his breath over.

The conclusion of Hoekstra’s research, based on a modern truck needing on average 1.3kWh/km and studies of how companies around the Port of Rotterdam drive, was that “a 1.3*750=975 kWh or 1 MWh battery can provide almost all trucks with the means to drive all day and charge overnight in the garage.”

This warrants questions about weight, but by redesigning trucks with electric motors close to the wheels, you save 3 tonnes using a 1MWh battery weighing in at 6 tonnes. thedriven

Debating the Hype Around Blue Gas: Separating Fact from Fiction

If blue gas were a viable option, there would be no need to come out with bombastic pitches. The hype surrounding blue gas is enormous; it appears that most experts are high on some illegal substance, for no sane mind could honestly attach their name to some of the claims being put forward.

For example, despite all the nonsense being pushed out that blue gas will mark the death of Tesla, nothing has happened so far. Take a look at TSLA’s stock price. Does it look like investors are running away from Tesla? On the contrary, they can’t seem to get enough. The stock’s performance over the past several years, especially post-coronavirus, clearly reflects that investors feel the outlook for TSLA is very bright.

Evs vs Hydrogen Fuel Cells: Which is the Future of Clean Transportation

EVs have gained widespread adoption, giving them an advantage over hydrogen fuel cell-based vehicles. The cost of EVs is decreasing as batteries become more efficient and cheaper to produce. Tesla is working on a million-mile battery and aims to reduce the price to $100 per kilowatt-hour.

Tesla has filed intellectual property applications for a new electrode design for its battery and may partner with a production partner. CATL, another player in the battery industry, is also making advancements and claims to have a battery that lasts 16 years and covers a distance of 2 million kilometers. electrek

Tesla at a Crucial Crossroads

Tesla has achieved profitability after experiencing significant losses for several consecutive years. In contrast, blue gas players are encountering challenges, as government subsidies are unlikely to support them in the post-coronavirus era.

Tesla announced on Wednesday that it had turned a profit in the fourth quarter of 2019. Additionally, the company was ahead of schedule on its latest model, instilling renewed confidence as it enters a potentially crucial year.

For the quarter, Tesla reported a net income of $105 million. Although this figure was lower than the $143 million reported in the previous quarter, investors remained optimistic. As a result, Tesla’s shares increased by 12% during after-hours trading. NYTimes

Blue Gas has almost no footprint compared to EVs

While blue gas fuel cells have received significant attention, they are considerably more expensive than the batteries used in electric vehicles (EVs). Furthermore, the lack of a widespread refuelling network for blue gas poses a challenge. In contrast, the presence of charging stations for EVs is increasing.

The global market for EV charging stations is expected to experience significant growth due to the rising number of electric vehicles worldwide. This growth will impact various aspects of charging stations, such as load profiles, generation capacity, and transformer loading levels.

Moreover, advancements in wide-area communication technology will positively affect the market. These insights are presented in a recent report titled “Global Electric Vehicle Charging Station Market Size, Share & Industry Analysis, By Charger Type (Fast, Slow/Moderate), By Application (Commercial, Residential), and Regional Forecasts, 2019-2026,” published by Fortune Business Insights™. According to the report, the market is projected to reach USD 264.80 billion by 2026, with a notable CAGR of 31.1% during the forecast period. In 2018, the market was valued at USD 27.21 billion. Globenewswire

The Electric Vehicle Revolution: The Rise of Supercharging Stations?

Tesla’s network of supercharging stations continues to grow; it takes only 30 minutes to charge a car at these stations fully. Tesla has 1,971 Supercharger Stations with 17,467 Superchargers.

Charging costs are approximate. The charging cost estimate assumes a Supercharger cost of $0.26 per kilowatt-hour. Gasoline cost assumes 21 MPG for Model X and Model S and 28 MPG for Model 3 at $2.85 per gallon. Cost may vary depending on the vehicle location, configuration, battery age and condition, driving style and operation, and environmental and climate conditions. Tesla

Therefore, one can conclude that despite all the hype surrounding blue gas, the industry will need to significantly boost the supply and work on lowering the cost of production. Hence, until someone commits huge amounts of money, don’t expect any great strides from this sector; for now, blue gas is a long shot.

An unbiased look at Blue Gas: Separating Hype from Facts

While blue gas, essentially hydrogen gas, is being touted as an alternative to traditional fuel sources like gasoline, many factors must be considered before declaring it the battery killer.

Blue gas may not emit harmful emissions. However, the process of producing it is not without environmental impact. The current method of producing blue gas, known as steam methane reforming, releases large amounts of carbon dioxide into the atmosphere. This is a significant concern, as reducing carbon emissions is a key focus of many global climate change initiatives.

Secondly, blue gas is not an entirely new technology. It has been around for decades. While it has been gaining attention as an alternative to traditional fuels, many challenges still need to be addressed. One major issue is the cost of producing blue gas, which is still higher than conventional fuels like gasoline.

Lastly, the idea that blue gas is the battery killer is a bold claim. This needs to be examined more closely. While hydrogen fuel cells have the potential to power electric vehicles, they are not without their own set of challenges. For example, fuel cells require a lot of space and infrastructure, which could make it difficult to scale up their production and use.

In summary, while blue gas is being marketed as a promising alternative to traditional fuel sources, it has challenges and limitations. Whether blue gas will genuinely be, the battery killer remains to be seen. Still, it is essential to consider this technology’s pros and cons before making investment decisions.

Concluding thoughts on Blue Gas

Blue gas may not be the future of clean transportation for several reasons. First, blue gas still produces carbon dioxide emissions at a lower rate than traditional gasoline. In contrast, electric vehicles have zero emissions at the tailpipe, and the carbon footprint of EVs continues to decrease as the grid becomes increasingly powered by renewable energy sources. Second, the infrastructure for electric vehicles is already well established, with a vast network of charging stations available.

While blue gas fueling stations are starting to emerge, they are nowhere near as ubiquitous as EV charging stations. Lastly, blue gas fueling stations cost much more than EV charging stations. In conclusion, while blue gas may be a cleaner alternative to gasoline, it is unlikely to overtake EVs as the future of clean transportation.

In closing, while blue hydrogen has significant potential as a low-carbon energy source and is likely to play a role in the energy transition, whether it will become mainstream depends on a range of factors, including technological advancements, policy support, and market dynamics.

Random Reflections on the stock market

Since abandoning the gold standard, lacking backing for our money has allowed corruption and unethical practices. With the increase in money supply, moral values have declined, leading to a disregard for human life. Money has become the sole focus, and the Federal Reserve deliberately creates boom and bust cycles by manipulating interest rates.

They are indifferent to the consequences of inflation or deflation and even initiate actions that contribute to these issues. Understanding this truth opens the possibility of delving deeper into the matter. However, true change will only occur when the masses rise and revolt. Mass psychology shows that people only awaken when they are on the brink of disaster, at which point they can do nothing but protest.

Taking a step back and adopting a wider perspective reveals powerful individuals’ intricate web of influence. They manipulate crucial sectors like the media, healthcare, and the military-industrial complex to shape a distorted reality that serves their interests. This control extends even further, permeating the fabric of society and influencing the narratives that shape our collective understanding.

Approximately 75% of individuals face significant challenges from the moment they are born. Factors beyond their control limit their opportunities and keep them at a disadvantage, perpetuating a cycle of hardship and inequality.

Initially published on July 5, 2020, with subsequent updates in 2021 and 2022, culminating in the latest revision in July 2023.