Since 2010, the energy sector in Trinidad and Tobago has suffered from natural gas curtailments which have caused problems for the LNG industry and the petrochemical industry at Point Lisas. However, according to the Managing Director of the new private local enterprise, NewGen Energy Limited (NewGen), Philip Julien, “it might be helpful to reframe the challenge – the curtailments really mean that Point Lisas is actually suffering from a shortage of hydrogen – the essential input for ammonia and methanol production which is sourced from natural gas.”
Philip Julien and the team at NewGen propose the construction of a facility that uses excess heat and other carbon-neutral or “green” energy sources to produce hydrogen for the Point Lisas Estate.
Globally, there has been significant buzz around using hydrogen as a carbon-neutral source for a variety of applications. Recently, oil and gas majors bp and Shell have both indicated their interest in hydrogen projects around the world.
According to Julien, Trinidad and Point Lisas have a major opportunity to bring a project like this to fruition within a few short years. According to Julien, “Trinidad has all the raw materials to be a first mover in this hydrogen space, provided we move relatively quickly. The country is attractive because of the availability of excess heat from single cycle power plants, and access to this can create a differentiated price point for carbon-neutral hydrogen.” In addition, he said, “Trinidad has a developed petrochemical industry and therefore has significant experience in dealing with complex facilities and handling natural gas and hydrogen. The basic infrastructure already exists to allow carbon-neutral hydrogen to be converted to ammonia which when “greened” will attract a premium price. Simply put, the market for hydrogen in Trinidad and Tobago is huge and already built.”
In Point Lisas, petrochemical producers use natural gas feedstock which is split up into hydrogen and nitrogen and then used in the production of ammonia and methanol. He said that the shortfall, therefore, is not necessarily in the availability of natural gas per se, but rather a shortfall of hydrogen that is extracted from the natural gas.
The NewGen project would generate hydrogen that can be produced without adding to the carbon emissions of the country. It can be supplemented into an ammonia producer’s operations to improve production levels, without using more natural gas.
The ability to supplement the natural gas supply with hydrogen could mean the difference between operating and shuttering a plant in Point Lisas.
NewGen is currently developing an investment-grade feasibility study which can be used to support the project. They are currently in negotiations with an ammonia producer to be their feasibility study partner for exploring the possibility of their 100% offtake of the hydrogen produced. This would lead to reducing the emissions of the ammonia sector by creating green ammonia (ammonia that is carbon neutral). Negotiations are also ongoing to secure carbon-neutral sources of power for the project (either through waste heat or renewable energy).
Proposals for a bankable feasibility study are expected to be received by NewGen in June, with evaluation and award targeted for July. This will include the associated commencement of the pre- FEED shortly thereafter.
Creating hydrogen requires using energy to split water into oxygen and hydrogen. According to Julien, NewGen would require 170MW of electricity to do this - however, it would not require the combustion of any additional natural gas, since all the electricity needed will be generated by excess heat from existing power stations and renewable energy sources. The project, using waste heat, will also increase the efficiency of the electricity sector significantly.
Hydrogen raises very exciting opportunities in the energy transition. Trinidad has the opportunity to be at the forefront of the commercial development of this industry. In addition, when this project comes off the ground, it will be the only greenfield project that will be built in Point Lisas in the foreseeable future.