Department of Renewable Energies and New Technologies

5th year Engineering in Green Hydrogen

Dr. Necib Nihal

Chapter 2: Current Uses and Future Demand for Power-to-X (PtX)

1. Introduction
The rise of PtX is closely linked to the energy transition, because it provides a way to use surplus
variable renewable electricity and to decarbonize sectors that are difficult to electrify directly, such
as heavy industry, long‑distance transport, and high‑temperature heat. By converting renewable
electricity into chemical energy stored in molecules, PtX supports long‑duration energy storage,
sector coupling between power, gas, transport and industry networks, and the progressive
substitution of fossil‑based feedstocks (natural gas, oil, coal) by green hydrogen and its derivatives.
Many national and regional roadmaps now view PtX as a key pillar for achieving net‑zero
greenhouse gas emissions by mid‑century.
Historically, most hydrogen, ammonia, methanol and synthetic fuels have been produced from
fossil resources (natural gas reforming, coal gasification) for decades, which locked in significant
CO₂ emissions in refineries, fertilizer plants and chemical complexes. Over the last ten to fifteen
years, however, rapid cost reductions in solar and wind power, combined with climate policies and
carbon pricing, have triggered strong interest in green hydrogen and PtX projects worldwide.
Large‑scale demonstrations and industrial projects are now emerging in Europe, the Middle East,
North Africa and other regions, positioning PtX as an essential tool for both decarbonization and
energy security.
2. Current Uses of Power to X (PtX)
Current applications of PtX build on existing industrial hydrogen value chains and gradually shift
them from fossil‑based hydrogen (“grey” or “blue”) to renewable hydrogen (“green”) and e‑fuels.
Today, the largest hydrogen consumers remain oil refining, ammonia production, and methanol
synthesis, which together account for most global hydrogen demand and offer the most immediate
opportunities for PtX deployment. In these sectors, PtX primarily replaces conventional hydrogen
supply or natural gas feedstock, reducing CO₂ emissions while maintaining the same end‑products
and infrastructure.
Beyond traditional chemical and refining uses, PtX is increasingly explored in iron and steel
production, where hydrogen can substitute coal or natural gas in direct reduction processes, and in
high‑temperature industrial heating applications such as cement, glass and ceramics. In the
transport sector, PtX enables the production of synthetic fuels (e‑kerosene, e‑diesel, e‑methanol,
ammonia) for long‑distance road freight, maritime shipping and aviation, where direct
electrification is technically or economically challenging. These current uses illustrate how PtX

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can progressively decarbonize both existing industries and new energy applications by coupling
renewable electricity with molecule‑based energy carriers
2.1. Industrial sector
2.1.1. Refining
a. Hydrotreating
Hydrotreating is a catalytic hydroprocessing operation in petroleum refineries that removes
heteroatoms (sulfur, nitrogen, oxygen) and metals from crude oil distillation cuts in the presence
of hydrogen gas. Hydrotreating is mainly a purification process. It removes impurities such as:
Sulfur (S) → forms H₂S (hydrogen sulfide)
Nitrogen (N) → forms NH₃ (ammonia)
Oxygen (O) → forms H₂O (water)
Metals (Ni, V, Fe, etc.) → trapped on catalyst
Unsaturated hydrocarbons (olefins, aromatics) → partially saturated to improve stability
Typical Feedstocks:
Naphtha Remove sulfur/nitrogen before catalytic reforming
Kerosene Remove sulfur for jet fuel specification
Diesel Remove sulfur (ULSD – Ultra-Low Sulfur Diesel)
VGO / Residue Prepare for further cracking (FCC or Hydrocracking)
Operating Conditions:
Temperature 300 – 400 °C
Pressure 30 – 130 bar
Hydrogen-to-oil ratio 100 – 600 Nm³ H₂/m³ feed
Catalysts:
Co-Mo/Al₂O₃ → good for desulfurization
Ni-Mo/Al₂O₃ → good for denitrogenation
Ni-W/Al₂O₃ → for deeper hydrotreating or heavier feeds
b. Hydrockracking
Hydrocracking is a catalytic cracking process that occurs in the presence of hydrogen under high
pressure and temperature.
It combines two simultaneous processes:

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Cracking → breaks large hydrocarbon molecules into smaller ones (like gasoline, diesel, jet fuel).
Hydrogenation → saturates these smaller molecules with hydrogen, making them stable and clean.
Hydrocracking converts heavy, low-value fractions (like vacuum gas oil or residue) into light, high-
value fuels such as:
Feedstocks High value fuels
Vacuum gas oil (VGO) Jet fuel

Deasphalted oil (DAO) Diesel

Heavy cycle oil (from Naphtha

FCC)
LPG (propane, butane)
Coker gas oil

Residuum (in mild

hydrocracking)

Operation condition
Parameter Typical Range
Temperature 350 – 450 °C
Pressure 100 – 200 bar
Hydrogen-to-oil ratio 500 – 2000 Nm³ H₂/m³ oil
Catalyst Bifunctional: metal + acid sites

Figure 1 demonstrate a schematic of the industrial refining process. In the initial stage of the
refining process, heavy hydrocarbon feedstock such as vacuum gas oil or atmospheric residue is
introduced into a fired heater, where it is heated to the required reaction temperature range of
approximately 350–420 °C. This heating ensures sufficient thermal energy for downstream
catalytic reactions. The heated feed is then mixed with make-up hydrogen to establish a hydrogen-
rich environment, which is necessary to promote hydrogenation reactions and prevent coke
formation within the reactors.
Hydrotreating Stage
The preheated feed enters the hydrotreating reactor, where catalytic reactions remove undesirable
impurities from the feedstream. Sulfur-containing compounds are converted into hydrogen sulfide
(H₂S), nitrogen-containing compounds are transformed into ammonia (NH₃), and oxygenated
compounds are converted into water. Additionally, trace metals are either deposited onto the
catalyst or removed with by-products. This purification step is essential because it protects the
catalysts used in the subsequent hydrocracking stages from deactivation or poisoning.
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Intermediate Gas Separation
Following hydrotreating, the reactor effluent is directed to a gas separation unit, where the mixture
is divided into gaseous and liquid phases. Light gases, including hydrogen, hydrogen sulfide, and
ammonia, are removed from the system, while the purified liquid hydrocarbon stream proceeds to
the hydrocracking stage. This separation improves hydrogen efficiency and reduces contamination
in downstream reactors.
First-Stage Hydrocracking
The treated liquid feed enters the first-stage hydrocracking reactor, where partial cracking of large
hydrocarbon molecules occurs in the presence of hydrogen and a bifunctional catalyst. This process
breaks heavy molecules into lighter fractions such as middle distillates (kerosene and diesel) and
lighter hydrocarbons (naphtha and LPG). Hydrogenation reactions simultaneously saturate
unstable compounds, thereby improving the thermal and chemical stability of the produced fuels.
Hydrogen Recovery and Sour Water Separation
Effluent from the hydrocracking reactor passes through a hydrogen separation unit, where
unreacted hydrogen is recovered and recycled back into the system. The separated aqueous phase,
known as sour water, contains dissolved ammonia and hydrogen sulfide and is sent to dedicated
wastewater treatment facilities. Effective hydrogen recovery is critical for minimizing operating
costs and enhancing process sustainability.
Second-Stage Hydrocracking
The partially converted hydrocarbon stream is further processed in the second-stage hydrocracking
reactor to achieve a higher degree of conversion. In this stage, more severe operating conditions
promote deeper molecular breakdown, thereby maximizing the yield of lighter products and
minimizing heavy residue. Additional hydrogen is consumed to ensure complete saturation and
cracking of refractory hydrocarbons.

Final Fractionation
Finally, the product stream is introduced into a distillation column, where separation is achieved
based on boiling-point differences. Light gases and LPG are withdrawn from the top of the column,
followed by naphtha, which is typically directed to gasoline blending or reforming units. Middle
distillates, including kerosene and diesel, are recovered as primary commercial products, while a
small quantity of residue is removed from the bottom. This residue may be recycled, further
processed, or used as fuel oil.

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 Figure 1. Diagram of refining process.

2.2. Ammonia Production

Ammonia is the second most produced synthetic chemical in the world, with around 80%
currently used for fertilizer production. Other applications include explosives and various
chemical and pharmaceutical intermediates, such as nitric acid and acrylonitrile.
There are three major ammonia production complexes in Algeria. Sorfert Algérie was created in
2013 through a partnership between OCI NV (51%) and Sonatrach (49%), with construction of
the petrochemical complex entrusted to OCI and Thyssenkrupp Industrial Solutions (TKIS) for
1.6 billion USD. The Sorfert complex consists of two ammonia units with a capacity of
2,200 t/day each and one granular urea unit with a capacity of 3,450 t/day; Sorfert exports 95% of
its urea production and 100% of its ammonia. In Arzew, an ammonia–urea complex developed in
partnership with the Egyptian company Orascom Construction Industries (OCI) comprises two
ammonia units with a total capacity of 1.5 million t/year and one urea unit with a capacity of
1.1 million t/year. Another ammonia–urea complex at Mers El Hadjadj (Arzew), in partnership
with the Omani Suhail Bahwan Group Holding (SBGH), includes two ammonia units with a
capacity of 1.3 million t/year and two urea units with a capacity of 2.3 million t/year. The Spanish
group Fertiberia also operates two production centers in Algeria (Annaba and Arzew), producing
between 650,000 and 700,000 t/year of ammonia.

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2.3. Iron and Steel production
Steel is one of the most important materials in modern society, used in buildings, transportation,
machinery, and countless everyday products. To meet this global demand, the world relies on two
main sources of steel: recycled scrap steel and newly produced, or primary, steel. While recycling
plays an important role, it cannot produce enough steel on its own. High-quality scrap is limited,
and as economies grow especially in developing regions the need for new steel increases faster
than the amount of scrap available.
For this reason, primary steelmaking remains essential. Primary production starts from iron ore
and converts it into steel through large industrial processes. There are three main routes used
around the world:
 the traditional Blast Furnace–Basic Oxygen Furnace (BF-BOF) route,
 the Natural Gas–based Direct Reduced Iron–Electric Arc Furnace (NG-DRI-EAF) route,
 the Hydrogen-based Direct Reduced Iron–Electric Arc Furnace (H₂-DRI-EAF) route,
which aims to significantly reduce CO₂ emissions.
Each of these routes uses different technologies and energy sources to transform iron ore into
steel, and each has different environmental impacts. In the following sections, we will introduce
and explain how these three routes work. Figure 2 provides an overview of their simplified
production steps.

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 Figure 2. Steel production routes.
Route 1: Blast Furnace–Basic Oxygen Furnace BF-BOF (traditional route)
The Blast Furnace-Basic Oxygen Furnace (BF-BOF) process is the most widely used steelmaking
route globally, accounting for approximately 70% of worldwide steel production. This integrated
method, which was invented in 1948, combines two stages: iron production in the blast furnace
followed by steel refining in the basic oxygen furnace. While highly efficient for large-scale
production, this process releases the highest carbon emissions of 2.2 tons of CO₂ per ton of crude
steel. Figure 3 shows the schematic diagram process.

Coke Oven

 Heats coking coal without oxygen.

 Produces coke (solid fuel + reducing agent) and coke oven gas (COG).

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2. Sinter Plant

 Converts fine iron ore into sinter (porous lumps).

 Improves blast furnace performance.

3. Blast Furnace (BF)

 Inputs: sinter, pellets, lump ore, coke, hot air (oxygen).

 Coke burns → generates heat + carbon monoxide (CO).
 CO reduces iron ore to molten iron (hot metal).
 Outputs: hot metal + blast furnace gas (BFG).

4. Basic Oxygen Furnace (BOF)

 Inputs: hot metal + scrap steel + pure oxygen.

 Oxygen removes carbon and impurities.
 Converts molten iron into molten steel.
 Generates BOF gas (BOFG).

Figure 3. Schematic process of blast furnace–basic oxygen furnace BF-BOF.

Route 2: Natural Gas–based Direct Reduced Iron–Electric Arc Furnace NG-DRI-EAF

1. DRI Shaft Furnace

 Inputs: iron ore pellets, natural gas–based reducing gas (H₂ + CO).
 Gas reacts with oxygen in the ore → iron is reduced without melting.
 Produces solid sponge iron (DRI).
 Reducing reactions:
o Fe2O3+3CO→2Fe+3CO2
o Fe2O3+3H2→2Fe+3H2O

2. Electric Arc Furnace (EAF)

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  Inputs: DRI, scrap steel, electricity, fluxes.
 Electric arcs melt the solid iron and scrap.
 Impurities removed into slag.
 Final output: molten steel.

Route 3: Hydrogen-based Direct Reduced Iron–Electric Arc Furnace H₂-DRI-EAF (Green

steel)

H₂–DRI Shaft Furnace

 Input: iron ore pellets + 100% hydrogen gas.

 Hydrogen removes oxygen from ore, producing only water vapor.
 Reduction reaction:
o Fe2O3+3H2→2Fe+3H2O
 Output: DRI with very low carbon content.

2. Electric Arc Furnace (EAF)

 Inputs: DRI, scrap, renewable electricity.

 EAF melts and refines the iron.
 Output: green molten steel.

2.4. High Temperature Industrial Heating

Heat represents a significant part of industrial energy demand, and fossil fuels are the main source
of heat generation in the industrial sector. For temperatures below about 400°C, the use of thermal
energy from solar sources can be a viable solution, especially in countries like Algeria with high
solar radiation. Hydrogen could also be an option to generate the high-temperature heat required
for certain industrial applications, such as melting, gasification, and drying (IEA, 2019).
In the cement industry, for example, high temperatures are needed to produce clinker. The glass
and ceramics industries also require very high temperatures in their furnaces. In theory, hydrogen
could be used as a heat source to replace fossil fuels in these sectors; however, this application of
hydrogen is not easily feasible (IEA, 2019). Hydrogen cannot easily replace fossil fuels in most
sectors due to its different physical and chemical properties—such as lower energy density, specific
combustion characteristics, higher combustion speed, and reduced heat transfer efficiency in
radiant heat exchange.
Therefore, using hydrogen requires modifying existing equipment and combustion systems, which
entails significant investment. This limits the short-term viability of hydrogen as a high-
temperature heat source in Algeria, although, in the long term, hydrogen could offer a decarbonized
solution for industrial heat in key sectors such as cement, glass, and ceramics.

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3. Future Demand of Power to X
Global demand for hydrogen is expected to grow dramatically over the coming decades, driven by
the need to decarbonize major industrial and energy sectors. Today, hydrogen is used primarily in
oil refining and ammonia production, which together account for the vast majority of current
consumption. However, according to long-term projections from the International Energy Agency
(IEA), demand could increase by a factor of four to six by 2050, rising from approximately 75
million tons per year to nearly 520 million tons in a sustainable development scenario. This
substantial growth is linked to the emergence of new applications, particularly in the steel industry,
where hydrogen is anticipated to replace coal in direct reduction processes, as well as in heavy-
duty transportation, including long-distance trucks, non-electrified rail, and, in the longer term,
maritime shipping and aviation through e-fuels. Hydrogen will also play a strategic role in seasonal
energy storage, helping stabilize electricity grids with high shares of solar and wind power.
Furthermore, ammonia produced from green hydrogen is expected to become a major energy
carrier, facilitating long-distance transport and international trade of hydrogen. Consequently, the
rise of green hydrogen and e-fuels is positioned as a fundamental pillar of the global energy
transition.

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