Seven major energy and industrial companies have formed an alliance to drive forward the creation of a low-carbon hub with hydrogen production in the industrial Northern Appalachian region of the US.

The companies involved are Norwegian state-owned energy group Equinor, Shell subsidiary Shell Polymers, steel manufacturer US Steel, US multinational GE, US refiner Marathon Petroleum, Japan’s Mitsubishi Power and independent gas producer EQT.

The alliance will work on concepts for an industrial hub spanning Ohio, Pennsylvania and West Virginia, with a focus on carbon capture, utilisation & storage (CCUS), as well as hydrogen production and utilisation. The concept could provide a template for other regions in the US, the companies say.

“Our region has an abundant source of low-cost, low emissions-intensive natural gas that can be converted to low-carbon fuels and used to reduce our country’s carbon footprint” Wingo, EQT

“Our region has an abundant source of low-cost, low emissions-intensive natural gas that can be converted to low-carbon fuels and used to reduce our country’s carbon footprint,” says Rob Wingo, EQT’s executive vice-president for corporate ventures.

Equinor this week signed a memorandum of understanding with science and technology firm Battelle to explore the feasibility of CCS in the region.

Shell Polymers’ involvement comes as it prepares to bring online a major new petrochemical complex at Monaca on the Ohio River, 30 miles northwest of Pittsburgh. The plant will be the first Shell-operated polyethylene facility in the Americas, taking ethane from the Marcellus and Utica gas fields and converting it into polyethylene.

“As we march towards finishing the construction of our world-scale petrochemical plant in Monaca, Pennsylvania, we are excited to be in on the ground floor of this tri-state project that could help us reach our net-zero carbon emission ambitions,” says Hilary Mercer, senior vice-president of Shell Polymers Pennsylvania Chemicals.

The Biden administration has committed to spend $8bn on the development of four clean hydrogen hubs.

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Author: Stuart Penson