Page 5 - LatAmOil Week 40 2021

LatAmOil COMMENTARY LatAmOil

The third phase, which will run from 2040 of 2021, with the aim of creating a reliable reg-
to 2050, will see blue hydrogen phased out in ulatory framework for emissions reduction.
favour of green hydrogen. This law establishes incentives for non-conven-
According to Felipe Bayon, the head of tional and renewable energy projects, including
national oil company (NOC) Ecopetrol, this both blue and green hydrogen schemes, they
gradual approach represents Colombia’s best explained.
option for establishing a viable hydrogen
economy. Big ambitions and concrete plans
“Blue hydrogen [can] serve as the base to The Hydrogen Roadmap is certainly ambitious,
start expanding the hydrogen value chain in given that Colombia’s renewable generation
Colombia to the large-scale competitive devel- capacity remains modest.
opment of green hydrogen,” he was quoted as But as H2 Bulletin reported last week, the
saying by Argus Media last week. South American state has greatly expanded its
capabilities on this front in recent years. It went
Emerging hydrogen economy from having just one wind park and one solar
Meanwhile, ministry officials said last week that farm with a combined capacity of 28 MW, equiv-
Colombia hoped to attract $2.5-5.5bn for hydro- alent to less than 0.2% of the national total, as The first phase
gen projects each year during the first phase of of August 2018 to having 322 MW of renewa- of Colombia’s
the plan, with most of the money coming from ble capacity, following the construction of more
the private sector. than 1,500 small and medium-sized photovol- Hydrogen
With this level of funding, they said, the taic (PV) installations, seven self-generation
country will be able to establish hydrogen pro- projects and 14 more large-scale solar farms. Roadmap will
duction facilities capable of meeting the needs of Moreover, Colombia is taking some concrete focus on blue
oil refineries, chemical plants and fertiliser pro- steps to realise its ambitions. As Argus Media
ducers. It will also be able to establish a fleet of reported last week, state-owned Ecopetrol has hydrogen, which
hydrogen-fuelled vehicles, which will include at joined privately owned Grupo de Energia de
least 1,000-1,500 heavy vehicles and 1,500-2,000 Bogota and six other local companies in signing is less costly to
light vehicles by 2030, they stated. a letter declaring commitment to investing in
These developments are expected to lead to hydrogen projects. produce than the
the creation of around 15,000 new jobs by 2030, This pledge is not just rhetorical. Bayon told green variety
they added. It could also raise the country’s reporters in Bogota on October 1 that the NOC
hydrogen production capacity to 50,000 tonnes was ready to launch a test project within the
per year (tpy) or more during the same period, next year. In the first quarter of 2022, he stated,
they said. Ecopetrol is slated to import a small electrolysis
The officials did not offer the same level of unit from Spain for installation at the Cartagena
detail about the second and third phases of the refinery. The 165,000 barrel per day (bpd) refin-
plan. They said, though, that Colombia could ery will use this unit to test the production and
eventually become an exporter of hydrogen to application of green hydrogen as a replacement
other countries in the medium to long term. for grey hydrogen, he said.
The South American country can reach many Refineries typically use grey hydrogen, which
markets, as it has access to both the Atlantic and is derived from fossil fuels, to reduce sulphur
Pacific Oceans, they commented. content in gasoline and other motor fuels. Cur-
Ministry officials also pointed out that the rently Ecopetrol’s oil-processing consumes as
Hydrogen Roadmap would support the Colom- much as 130,000 tonnes per year of grey hydro-
bian government’s plans to reduce GHG emis- gen, with 68% of the total, or 88,400 tpy, going to
sions by 51% as of 2030 and then achieve carbon the Cartagena plant and the remaining 32% or
neutrality by 2050. They noted that Bogota had 41,600 tpy going to the 250,000 bpd Barranca-
adopted new legislation, known as Law 2099 bermeja plant. ™

Colombia sees natural gas as key to its move toward a hydrogen economy (Image: Euractiv)

Week 40 07•October•2021 www. NEWSBASE .com P5