Challenges faced by Hydrogen as #TheFutureFuel

As we move towards a sustainable future, hydrogen has emerged as a promising alternative to traditional fossil fuels. However, the world faces several challenges in adopting hydrogen as a future fuel.

1. Large-scale production cost

One of the major challenges is the high cost of large-scale green hydrogen production. The current production methods, such as steam methane reforming and electrolysis, are expensive and require significant investment in infrastructure.

As per International Energy Agency, producing a kilogram of green hydrogen can cost $3-$8. That compares to $0.5-$1.7 for producing the same amount of hydrogen using natural gas and up to $2.5 per kg with coal.

Producing enough low-carbon hydrogen by using either natural gas or renewables will require government action—applying taxes or other mechanisms to set the price of carbon high enough to ensure cost competitiveness with the incumbent, fossil-intensive hydrogen and potentially subsidizing its production to close the cost gap between it and other low-carbon fuels.

2. Technology & Infrastructural limitations

The development of technologies and infrastructure in the hydrogen sector is at a slower pace, hence hindering the widespread adoption of hydrogen. While the final price for the consumers depends heavily on the efficiency and management of production as well as refueling infrastructure, it can surely be tackled by national and local governments through proper planning and coordination.

Hence, the need is to invest in building a robust hydrogen infrastructure, including production, storage, transportation, and distribution networks.

3. Safety considerations

Safety and security are also critical for hydrogen's adoption, as it is highly flammable and requires specialized equipment and handling. This necessitates a comprehensive safety protocol that ensures the safe handling and transportation of hydrogen.

4. Supply-demand uncertainties

The gap in the supply-demand cycle poses another challenge for hydrogen adoption in India. There is a strong need for a stable and sustainable supply of hydrogen to ensure that it can meet the growing demand for hydrogen fuel.

5. Lack of policy incentives for creating demand

Policy-related changes are needed to increase demand in the sector. Governments and industry leaders must come together to ensure that policies and regulations don’t act as barriers to investment in the sector. Some obligations may be imposed on certain industries and sectors to buy a portion of the hydrogen required from greener sources.

While hydrogen holds great promise as a future fuel, all these challenges need addressing to realize its potential fully. It requires collaborative efforts from the government, private sector, and research institutions to address these challenges and establish a robust hydrogen ecosystem.

Let's work together toward a #sustainablefuture.