Channoil Energy, newly rebranded from Channoil Consulting, launched a new Net-Zero-Solution division on Tuesday—and has a clear message for majors and IOCs relating to the emerging hydrogen economy.

Should the majors and IOCs be focusing on this area? “Yes, they should,” says Vincent Couffon, lead, Net-Zero-Solution. “The hydrogen economy is ideally suited to the skills of the IOCs in managing large capital projects successfully.”

“The green hydrogen economy is not expected to emerge fully for another ten years or so. However, this is an excellent time to enter the planning phase”

The IOCs are generally strong on project management, capital discipline and investment evaluation so they are particularly well suited to the demands of the hydrogen economy, according to Couffon.

“The renewable hydrogen sector is going to require a transformation of the existing energy economy, with new renewable hydrogen production facilities, modification to gas grids and transport infrastructure,” he says.

“According to our sources, the green hydrogen economy is not expected to emerge fully for another ten years or so. However, this is an excellent time to enter the planning phase for what is expected to be a major transition, given the nature and complexity of the task at hand.”

Ultimately, IOCs could opt to enter the hydrogen sector by adopting an organic growth strategy or get out their large chequebooks and target companies for M&A. “It may be possible to acquire specialist engineering know-how. As far as infrastructure is concerned, it is probably too early for M&A, as the hydrogen economy assets are still being built,” he adds.

The full interview discussing the energy transition can be found on Transition Economist.

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Author: Alastair O’Dell<BR>Senior Editor