Ecopetrol readying green hydrogen 'megaprojects'

Colombian state-run oil company Ecopetrol aims to begin industrial-scale green hydrogen production as soon as 2025 as it ratchets up energy transition plans, executives said on Wednesday. 

The company is using knowledge garnered from a pilot facility at its Cartagena refinery to develop two projects that will produce up to 9000t/y and boast electrolysis capacity of 60MW. 

"We are incorporating lessons learned and know-how to develop two megaprojects that will hopefully have a final investment decision approved by the end of the year," Yeimy Báez, Ecopetrol's head of low emission strategies, told analysts during a quarterly earnings call. 

Ecopetrol produced around 130,000t/y in 2022, of which 90% was gray – created from natural gas or methane without carbon capture – and 10% blue, produced from gas with carbon capture and storage.

The chemical element is currently used by Ecopetrol to remove sulfur and other impurities from its fuels. 

"We expect the first [green hydrogen] molecule to be produced in 2025 or 2026," Báez said. "Most will be used in our own refineries to cover the domestic deficit, but we also hope to enter new markets." 

In addition, Báez revealed the company has also identified white hydrogen resources from surface and subsoil samples in three basins. 

Details of Ecopetrol's hydrogen plans came as the company reported record net profit of 33.4tn pesos (US$6.9bn) for 2022, double the 2021 figure, boosted by higher oil prices and rising production. 

The Bogotá-based firm maintained its 2023 capital guidance range of 25.3tn pesos to 29.8tn pesos, having outlaid 21.9tn pesos in 2022.

"We'll be watchful of what's coming, but the good news is that we are nimble and can adapt," outgoing CEO Felipe Bayón said. "Having said that, the [forecast of] 25tn pesos to 30tn pesos of capital allocation stands."

Bayón, who will step down on March 31 after six-and-a-half years in charge, said Ecopetrol planned annual capital expenditure of US$4bn-6bn over the coming years. 

The company set a 2023 production guidance of 720-725,000boe/d, up from 709,500boe/d last year.