19 Mar 2020 | 18:11 UTC — London

Mining companies form green hydrogen research consortium

Highlights

Three-year project to drive costs down

Heavy industry decarbonisation drive

Hatch to act as project manager

London — Mining companies Anglo American, BHP, Hatch and Fortescue have formed a green hydrogen consortium to look at using the gas to decarbonize their operations, Hatch said in a statement Thursday.

"The goal is to identify opportunities to develop green hydrogen technologies for the resources sector and other heavy industries," it said.

Through research, supply chain development and pilot projects, the consortium would seek to "de-risk and accelerate the technologies," Hatch said.

Green hydrogen is produced using electrolysis powered by renewable energy, splitting water into hydrogen and oxygen.

Hydrogen production has traditionally been carbon-intensive, either because of the emissions associated with steam methane reformation of fossil fuels, or from use of conventional electricity in electrolysis, the companies said in a factsheet.

"Some of the consortium members are considering producing green hydrogen onsite, and others are considering sourcing it from a provider," they said.

They were technology agnostic and would consider a range of options to decarbonize.

"At this stage, green hydrogen is costly, technically challenging and can be hazardous," they acknowledged.

Nevertheless, hydrogen's different applications made it an ideal technology to collaborate on and, through innovation, the group "hopes to accelerate cost reductions and technology readiness."

The consortium is to run for three years. Progress would be monitored every six months. Hatch is to act as project manager.

Platts assessed the price of green hydrogen Wednesday at $2.81/kg (California PEM Electrolysis).

Conventional SMR hydrogen derived from natural gas was assessed at $1.35/kg (California SMR without CCS).