The Role of Natural Gas and Hydrogen in the Global Energy Transition
Key Ideas
- Natural gas plays a crucial role in the energy transition due to its cleaner nature compared to coal and oil, providing stability and flexibility in electricity generation.
- Gas turbines are in high demand for their ability to utilize hydrogen and ammonia fuels, leading to a projected annual demand of 40-50 Gigawatts globally for the next few years.
- Mitsubishi Heavy Industries (MHI) is at the forefront of developing hydrogen-compatible gas turbines, aiming for complete decarbonization by using 100% hydrogen fuel after 2030.
- MHI's engineering excellence and customer-focused approach have resulted in market leadership, with a record-high order intake for gas turbines and a strong presence in regions like the Americas, Asia, and the Middle East.
In the context of the global Energy Transition, natural gas emerges as a key player due to its cleaner attributes compared to coal and oil. The International Energy Agency predicts a steady 16-18% contribution of natural gas to world electricity demand until at least 2030. Policymakers are recognizing the importance of natural gas in providing stable electricity, with the European Union acknowledging its role in the transition to Carbon Neutrality. The demand for gas turbines is on the rise, particularly for those that can utilize hydrogen and ammonia fuels, offering a significant reduction in CO₂ emissions. Mitsubishi Heavy Industries (MHI) is leading advancements in hydrogen co-firing technology, aiming for complete decarbonization using 100% hydrogen fuel post-2030. MHI's Takasago Machinery Works in Japan serves as a hub for research, design, and manufacturing of gas turbines, showcasing engineering excellence. The company's focus on reliability, efficiency, and decarbonization has propelled it to market leadership, with a strong presence in regions like the Americas, Asia, and the Middle East. Beyond gas turbines, MHI is exploring technologies like ammonia co-firing and solid oxide electrolysis cells for efficient hydrogen production, reflecting a commitment to decarbonizing energy generation and addressing global environmental challenges.