Blue sky mining: Strategy for a feasible transition in emerging countries from natural gas to hydrogen

Natural gas is often considered a transition fuel to a deep decarbonized world. However, for this to happen, new technologies should be fostered, among which a natural gas-based H₂ industry can become a key-option. This study tests the hypothesis that the development of a natural gas-based H₂ industry equipped with CO₂ capture can monetize natural gas remaining resources, mitigate CO₂ emissions and facilitate the transition to the renewable energy-based H₂. To do that, this study evaluates a stepwise strategy for setting up the development of H2, departing from the idle capacity in the existing natural gas industry, to progressively create a H₂ independent supply. Findings indicated that this strategy can be feasible, according to the case study assessed at relatively moderate crude oil prices. Nevertheless, CO₂ storage can become a constraint to deal with the co-produced CO₂ from the steam methane reforming units. Therefore, it is worth developing storage options.