The Future of Hydrogen in the Oil and Gas Industry: A Path to Sustainable Energy

Kris Beezley, SVP of Strategic Business Development

The growing demand for hydrogen in various sectors presents new market opportunities for energy companies. In the past few years, we saw the potential for hydrogen, a merely emerging sector, to become a headliner. In 2022, large companies were preparing to be hydrogen-ready, suggesting that hydrogen could become a major renewable source in two to three years. Fast forward to 2024 and hydrogen is set to revolutionize the energy landscape.

What started out as a concept is now in full swing as the hydrogen market continues to grow at a remarkable rate to meet the needs of the transition toward sustainable energy sources. As companies intensify their efforts to reduce carbon emissions and combat climate change, hydrogen is emerging as a versatile and powerful solution to significantly lower carbon footprints.

As a longstanding ally of the energy industry, Lamons remains deeply committed to sustainability. We continuously monitor trends and opportunities to shape the future of renewable energy and responsibly manage our planet’s resources.

Driving Innovation and Collaboration

As part of the broader energy transition, oil and gas companies are diversifying their portfolios to include renewable and low-carbon energy sources. With its appeal lying in both its environmental benefits and versatility, hydrogen is garnering attention as a key component in this strategy.

The surge in interest drives technological advancements as major oil and gas companies invest heavily in research and development. Investment in hydrogen technologies, such as electrolyzers, fuel cells, and hydrogen storage solutions drives innovation and creates competitive advantages for companies in the evolving energy landscape.

Collaborations between energy companies, technology providers, and governments are crucial for advancing hydrogen projects. These partnerships are essential to accelerate the development and commercialization of hydrogen technologies and can lead to more efficient, cost-effective, and scalable hydrogen solutions, accelerating the transition to a hydrogen economy.

Piqued Interest and What it Reveals

The growing need for hydrogen solutions is evident by attendance of hydrogen trade shows and conferences, which only increases each year. The World Hydrogen Summit & Exhibition in Rotterdam had a 30% increase in attendance from 11,500 attendees in 2023 to 15,000 in 2024, making it a sold-out event. Similarly, Hyvolution, Europe’s largest hydrogen exhibition, set new records with a 46% increase in attendees and a 45% increase in exhibitors.

An increase in attendance at hydrogen shows indicates several important trends and implications for the oil and gas industry. The increased focus on hydrogen signifies a shift towards more sustainable practices within the oil and gas sector and shows a commitment to transitioning from traditional fossil fuels to cleaner energy sources. These events foster innovation and collaboration, providing a platform for companies to showcase new technologies, exchange ideas, and form strategic partnerships. This collaboration is crucial for overcoming technical and economic challenges associated with hydrogen adoption.

Increased attendance often aligns with supportive regulatory and policy frameworks. Governments worldwide are promoting hydrogen as a key component of their energy strategies, encouraging industry players to be more engaged in hydrogen development.

With this comes expanding market opportunities. More and more companies are focusing on exploring hydrogen’s potential and are allocating resources to develop and commercialize hydrogen solutions.

Global Momentum

Though the booming interest in hydrogen is somewhat newer to North America, it is by no means a new idea. Emerging markets have primarily included Europe, Australia, and parts of Asia, though it is now touching globally as it takes the industry by storm. 30+ countries have either already established or initiated the development of national hydrogen strategies in less than a decade. These strategies often include ambitious targets for hydrogen production and usage, along with substantial government funding and incentives.

Countries like Japan, Germany, and Australia are leading the way with large-scale hydrogen projects and international collaborations. Japan aims to become a hydrogen-based society by 2050, investing heavily in hydrogen technology and infrastructure.

Hydrogen Hubs

Hydrogen hubs have moved from a purely conceptual stage to actual projects and discovery. North America alone will be the home to seven major hydrogen hubs. By focusing on different regions’ unique strengths and resources, these hubs will play a vital role in scaling up hydrogen production, distribution, and utilization, paving the way for a hydrogen-powered world.

In addition to advancing environmental goals, integrating hydrogen hubs into various sectors also ensures that North America remains competitive in the emerging global hydrogen economy.

The Future of Hydrogen

The future of hydrogen in the oil and gas industry is closely tied to technological advancements in hydrogen production, storage, and distribution.

The transition from gray to blue and green hydrogen represents a critical pathway for the oil and gas industry to decarbonize and contribute to a sustainable energy future, and each day we strive to attain a full sustainability green status. As more companies participate and invest in hydrogen, economies of scale can be achieved, reducing costs and making hydrogen technologies more economically viable.

The Next Generation of Hydrogen Solutions

The unique properties of hydrogen present specific challenges for safety and sealability. Pressure and temperature resistance, permeability, and leak prevention are all factors to consider when discussing sealing solutions. For this reason, gaskets are the proven best solution for hydrogen applications. Even so, the gasket must be tailored specifically for hydrogen to be most effective and give the sealing results needed.

Lamons CorrLock gasket was custom designed and engineered specifically for hydrogen applications. This dual seal gasket is a superior sealing gasket that focuses on maintaining a reliably tight seal while simultaneously setting a new standard for safety.. With this gasket, Lamons addresses and provides a solution for each key concern. The CorrLock is made from a special material with low permeability that performs well at cryogenic temperatures. The dual seal is manufactured using two different sealing materials to reduce leakage and the possibility of seepage over time for transportation/pipelines using a PFAs-free solution.

Lamons has gone a step further and partnered with H2Scan, a leader in hydrogen sensing solutions. This partnership brings together technology and innovation to provide our customers with a solution that emphasizes safety, sustainability, and cost-effectiveness. With these hydrogen solutions, Lamons is pushing the boundaries and paving the way as a leader in hydrogen sealing solutions.

As technological advancements continue and global momentum builds, hydrogen has the potential to transform the energy industry, driving significant environmental and economic benefits. Companies that invest in hydrogen technologies today will be well-positioned to lead in the low-carbon economy of the future. By embracing hydrogen, the oil and gas industry can not only meet its sustainability goals, it can secure its place in the evolving energy landscape. The journey towards a hydrogen-powered future is just beginning.