onto the next step

Houston company gets greenlight for liquid hydrogen storage system

CB&I got the approval it was looking for on its cargo containment system for liquid hydrogen. Photo courtesy

CB&I, the storage business of Houston-based energy contractor McDermott International, has gotten a preliminary green light for its design of a cargo containment system for liquid hydrogen.

DNV, a classification body for the maritime industry, extended the preliminary approval for the system’s design. CB&I is working on the project with Shell International Trading and Shipping, which transports crude oil, gas, carbon dioxide, and other cargo.

The Shell transportation unit operates the Suiso Frontier, the world’s first ship for hauling liquid hydrogen (LH2). The vessel can carry 75 metric tons of LH2. The Suiso Frontier, which completed its maiden voyage between Australia and Japan in 2022, is the key component of a $360 million coal-to-hydrogen venture.

CB&I designs and builds storage facilities, tanks, and terminals for energy companies. McDermott provides engineering and construction services for the energy industry.

Cesar Canals, senior vice president of CB&I, says his company’s collaboration with Shell and DNV is “making large-scale liquid hydrogen storage and transport more economical. This approval is a major milestone in making this groundbreaking technology available to all companies looking to build LH2 carriers, and we look forward to the possibilities this brings to advancing the hydrogen energy supply chain.”

The containment system’s design is based on CB&I’s technology for onshore storage of LH2. Over the past 60 years, CB&I has designed and built more than 130 onshore storage tanks for LH2.

“The combined cargo containment system and hull design effort aims to address the energy density challenge, benefitting from LH2’s properties and achieving more energy onboard,” says CB&I. “The cargo containment system was integrated into a concept vessel design developed by Houlder, which includes a hull that is optimized for the low-density cargo around … three large tanks.”

Today, LH2 is transported primarily via trucks and pipelines. The Getting to Zero Coalition, a proponent of zero-emission vessels, says the Suiso Frontier represents the first step toward commercializing a global LH2 supply chain by 2030.

“Maritime distribution of hydrogen promises much more flexible energy transfer than transmission of electricity generated from renewables, especially for longer distances,” according to a sponsored article published by Nature.com.

Trending News

A View From HETI

The Clean Hydrogen Buyers Alliance plans to create the Gulf Coast Hydrogen Index to bring to bring transparency and confidence to hydrogen pricing. Photo via Getty Images

The Clean Hydrogen Buyers Alliance has proposed an index aimed at bringing transparency to pricing in the emerging hydrogen market.

The Houston-based alliance said the Gulf Coast Hydrogen Index, based on real-time data, would provide more clarity to pricing in the global market for hydrogen. The benchmarking effort is being designed to benefit clean hydrogen buyers, sellers and investors. The index would help position the U.S. “as the trading anchor for hydrogen’s next chapter as a globally traded commodity,” the alliance said.

According to ResearchAndMarkets.com, the global market for clean hydrogen was valued at $200 billion in 2024 and is projected to reach $700 billion by 2040.

John Flory, president of the alliance, said the lack of a pricing index has relegated hydrogen to niche-market status.

“Capital is waiting. Buyers are ready. But until now, there’s been no credible, transparent pricing signal to guide clean hydrogen investing or contracting,” Edward Morse, co-chairman of the Clean Hydrogen Transaction Advisory Committee, said in a news release.

The index would treat the Gulf Coast as the primary delivery hub for pipeline-grade hydrogen in three categories: basic, low-carbon and ultra-low-carbon. It would be similar to the Henry Hub index for pricing of natural gas.

Roger Ballentine, co-chairman of the clean energy advisory committee, said the hydrogen index would build confidence in this energy source among government agencies, companies and investors. A Henry Hub-style benchmark for hydrogen “provides clarity, reduces risk, and lays the foundation for clean energy to become a globally traded commodity critical to decarbonization,” he said.

The Gulf Coast, with Texas as the focal point, is key to the evolution of the U.S. clean hydrogen economy, according to the Fuel Cell and Hydrogen Energy Association.

At the core of the Gulf Coast’s role is the U.S. Department of Energy's selection of the Gulf Coast as one of the country’s seven regional hubs for clean hydrogen. However, the DOE has proposed cutting funding for the HyVelocity Gulf Coast Hydrogen Hub, a $1.2 billion development in Texas and Louisiana by AES, Air Liquide, Chevron, ExxonMobil, MHI Hydrogen Infrastructure and Ørsted, according to a new list of proposed DOE funding cancellations.

Trending News