Month: July 2021

The colours of the hydrogen rainbow

 Green hydrogen – Made by using clean electricity from renewable energy technologies to electrolyse water (H2O), separating the hydrogen atom within it from its molecular twin oxygen. At present, very expensive.

• Blue hydrogen – Produced using natural gas but with carbon emissions being captured and stored, or reused. But negligible amounts are being produced due to a lack of carbon-capture projects.
• Grey hydrogen – This is the most common form of hydrogen production: it comes from natural gas via steam methane reformation but without emissions capture.
• Brown hydrogen – The cheapest way to make hydrogen but also the most environmentally damaging due to the use of thermal coal in the production process.
• Turquoise hydrogen – Uses a process called methane pyrolysis to produce hydrogen and solid carbon. But it is not proven at scale, and there are concerns around methane leakage.

 

Mandatory cash balancing: When the underproduced quantity of gas available to an underproduced party exceeds the threshold set in the agreement, the amount exceeding said threshold will be balanced in cash.

Penultimate cash balancing: When the remaining gas quantity in the lease is x BCM, the remaining underproduced quantity of gas available to the underproduced party at that date will be balanced in cash.

Final cash balancing: After the earlier of either the end of production from the Tamar reservoir or the expiration of the Tamar lease, the remaining underproduced quantity of gas available to the underproduced party at that date will be balanced in cash.

 

Each month, an underproduced party may choose between cash balancing and in-kind balancing of the underproduced quantity of gas available to him.