Bridging the Awareness Gap: Potential of Hydrogen as a Replacement for Natural Gas

I participated in a forum a couple of weeks ago and had an opportunity to speak with several manufacturers. Most of them were utilising natural gas as a key component and part of their manufacturing process directly or indirectly (& that was my point of interest). After discussing and learning briefly about their respective businesses, I was overwhelmed to find their enthusiasm in adapting new technologies and the changes that they bring consistently to their businesses to optimise the production, resources and costs.

Simultaneously, I was (a bit) taken aback after learning about (some of) their level of awareness and interest in replacing natural gas with hydrogen in their respective businesses. They were however little to moderately aware of the fact that the industries strive to enhance their sustainability and reduce their carbon footprint and the opportunity to transition from natural gas to hydrogen is emerging as a compelling solution.

In my opinion, more and further awareness on feasibility of this <- SHIFT -> may be required to be raised during exhibitions, forums, discussions and other media much before jumping in to the manufacturing of hydrogen to replace natural gas. This shift could possibly be made by highly FEASIBLE options such as:

(1) arranging a real-time consistent supply chain of end users or

(2) setting up a hydrogen electrolyser unit in their respective manufacturing premises itself which doesn't take much space, time or even CAPEX thanks to ever-improving hydrogen technologies. This expertise is now available and handy.

This revelation highlights the pressing need to raise awareness and educate businesses about the advantages of adopting hydrogen technology. To address this gap, I attempt to list the following significant benefits that businesses can unlock by replacing natural gas with hydrogen:

• Opportunities for Innovation
• Future-proofing the Business
• Cost Savings in the Long Run
• Reduced Energy Costs
• Renewable Energy Integration
• Improve Operational Efficiency
• Improve and Contribute to the Economies of Scale
• Reduced Maintenance and Operational Costs
• Brand Enhancement and Stakeholder Value

POTENTIAL MONETORY BENEFITS*

• Investment Tax Credits
• Production Tax Credits
• Accelerated Depreciation
• Grants and Subsidies
• Carbon Pricing and Emissions Reduction Incentives
• Research and Development (R&D) Tax Credits
• Energy Efficiency Tax Deductions

*Subject to geographies, regulations, timeframes, type of business etc.

To capitalise on these benefits, the businesses may be required to proactively engage with the energy experts and exploring various options for establishing a consistent hydrogen supply chain or even setting up on-site hydrogen electrolyser units. As little as 100 Nm3/hr capacity of hydrogen electrolyser unit can be quickly set up in 3-5 months’ timeframe. By bridging the awareness gap and embracing the potential of hydrogen, businesses can unlock a more sustainable and efficient future. In addition, as part of their moral and social responsibilities, they may become enablers of a cleaner future for the existing generation and the generations to come.

If you are curious to know further, please do not hesitate to approach me on Linkedin to know further facts including:

• Calculating the LCOH (Levelised Cost of Hydrogen)
• Over-all savings & tax benefits
• Over-all feasibility and estimated timeframe for an in-house hydrogen electrolyser project &/or unit
• Real-time ROI to the stake holders and investors

Inviting #Hydrogenexperts and #Businessowners to share your comments and experience.