Blue Hydrogen: A Game-Changer for Oil Refineries?
London, Saturday, 27 September 2025.
A recent study shows blue hydrogen can cut emissions in crude oil refineries at the lowest cost. This shift could revolutionise the industry, making refineries greener with minimal infrastructure changes.
Blue Hydrogen’s Impact on Emission Reduction
The study shows that blue hydrogen could significantly reduce emissions from crude oil distillation units, which are responsible for 15-20% of a refinery’s total carbon output [1]. This is a big deal, as refineries are under pressure to cut emissions without overhauling everything [1].
Cost-Effective Transition
Switching to blue hydrogen offers the lowest carbon avoidance cost, pegged at $101 per tonne of CO2. That’s quite the bargain compared to other options like green ammonia [1]. It’s like finding out your favourite snack is on sale – but for carbon emissions!
Economic Viability and Risks
Monetising carbon dioxide could make or break these strategies. The study uses a Monte Carlo analysis to show that blue hydrogen, combined with carbon dioxide-to-urea utilization, presents the lowest economic risk for refineries looking to decarbonize [1]. Imagine a world where your CO2 pays for itself!
Blue Hydrogen in the Broader Energy Context
Globally, blue hydrogen is gaining traction as a key player in reducing refinery emissions. The hydrogen market is projected to grow, with blue hydrogen playing a central role due to its compatibility with existing infrastructure [2][3]. It’s like upgrading your old phone with the latest software – all the benefits without the hassle.
Challenges and Future Prospects
While promising, the transition to blue hydrogen isn’t without challenges. The feasibility study suggests the need for robust carbon management frameworks and potential revenue from carbon products to ensure success [1]. It’s like planning a road trip: exciting, but you better have a map and a full tank!