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US firms look to stranded gas for hydrogen production

Speciality Gas Compressor Oils

Two firms in the US are developing plans to make blue hydrogen from stranded natural gas.

Natural gas is frequently a by-product of crude oil production; but often, it can be taken away and used for productive purposes, such as for power generation, or for distribution through a domestic grid supply.

Sometimes, unfortunately, it is not economically feasible to transport it offsite, so it becomes stranded natural gas. This means it is often flared, which is a wasteful practice that produces carbon dioxide emissions without any purpose.

SJ Environmental (SJE), a Houston-based firm specialising in hydrogen sulphide removal, and Double Zero Holdings, an investment firm based in New York, are planning to leverage this wasted resource to produce so-called blue hydrogen. This is where hydrogen is made from natural gas while capturing the associated carbon emissions.

Double Zero Managing Partner Raja Ramachandran said about this:

“This collaboration allows us to turn stranded natural gas, a significant environmental liability, into a valuable resource, supporting the global shift toward cleaner energy.”

This in itself would be welcome news for shale oil producers like Chevron, the maker of the Texaco lubricant range, but the productive output will not be limited to hydrogen. John Chappel, a director at SJE, said:

“Together, we’re setting a new standard for energy production, delivering hydrogen and food-grade CO2 where natural gas would typically be flared.”

Carbon dioxide has a number of uses in the food industry, such as to carbonate fizzy drinks and increase the shelf life of packaged products.

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