Hydrogen On The Horizon, Embracing The New Wave

Introduction:?

Green hydrogen has emerged as a game-changing technology in the pursuit of a sustainable future. Hydrogen, in its molecular form (H2), is an energy carrier that can be produced through various methods. What sets "green" hydrogen apart is its production process. It relies on renewable sources of energy such as solar, wind, or hydropower to split water into hydrogen and oxygen through a process called electrolysis; this method produces no carbon emissions.

?Green hydrogen presents a significant opportunity for emerging markets to leapfrog traditional fossil fuel dependencies. This article explores how green hydrogen can help decarbonise heavy industry, presenting possible solutions to climate challenges. Concurrently, it fosters economic advancement in emerging markets by reducing dependency on fossil fuels, attracting investments in infrastructure and technology and creating jobs in the renewable energy sector.?

Quantifying the opportunity:

?Green hydrogen is garnering support as a reliable, sustainable energy source. The market is expected to top the value of the liquid natural gas trade by 2030 and grow further to US$1.4 trillion per year by 2050.

While market growth will likely be important for industrialised economies, clean hydrogen represents a major sustainable growth opportunity for emerging markets. With targeted and significant investment, it could account for nearly 70% of the US$1.4 trillion market in 2050 while supporting up to 2 million jobs globally per year between 2030 and 2050. (The projections come from Deloitte’s Hydrogen Pathway Explorer (HyPE) model)

?

?

Hydrogen demand will grow at a moderate pace through many niche applications across the industrial, transport, energy and buildings sectors through 2030.? New alliances will form through cross – sector collaboration to develop hydrogen projects. Hydrogen production costs will decrease by around 50% through 2030, and then continue to fall steadily at a slightly slower rate until 2050. By 2050, green hydrogen production costs in some parts of the Middle East, Africa, Russia, China, the US and Australia will be in the range of €1 to €1.5/kg, currently it stands at €3 to €8/kg. (PwC)

?

Which sectors could benefit:

Where does GH2 currently stand:?

Potential bottlenecks:

Electrolyzer Efficiency and Scalability:

Electrolysis, the process of splitting water into hydrogen and oxygen, requires efficient and scalable electrolyzer technology. Current electrolyzers often have limitations in terms of efficiency, durability, and the ability to operate at varying scales. Improving these aspects is crucial to achieve cost-effective and large-scale green hydrogen production. Traditional alkaline electrolyzers have relatively low efficiency levels compared to advanced proton exchange membrane (PEM) electrolyzers. Enhancing the efficiency of PEM electrolyzers through innovations in materials, catalysts, and design can lead to more efficient hydrogen production with reduced energy consumption. According to the U.S. Department of Energy, advanced PEM electrolyzers have shown efficiency levels above 80%, while alkaline electrolyzers typically operate at efficiency levels of around 60-70%.

Infrastructure Development:

Developing a dedicated infrastructure for green hydrogen production, storage, and distribution is a significant challenge. While existing natural gas pipelines can be repurposed for hydrogen transport, establishing new pipelines, storage facilities, and distribution networks requires substantial investment and planning. Retrofitting existing natural gas pipelines to transport hydrogen requires thorough testing and potential upgrades to ensure compatibility, safety, and efficiency. In cases where pipelines are not available, building new ones involves regulatory approvals, land acquisition, and technological adaptation.The European Commission's Hydrogen Strategy envisions a need for significant investments in hydrogen infrastructure, estimating the requirement of €180-470 billion by 2030 to scale up production, storage, and distribution.

Storage and Transportation:

Hydrogen's low energy density compared to fossil fuels presents challenges in terms of storage and transportation. Finding efficient methods to store and transport hydrogen safely, economically, and with minimal energy loss is essential for its viability. Compressed hydrogen gas requires high-pressure storage tanks, which can be bulky and have energy-intensive compression requirements. Liquid hydrogen requires cryogenic temperatures, posing challenges in maintaining low temperatures during storage and transport. According to the U.S. Department of Energy, compressed hydrogen gas can have energy densities of around 2-3% of gasoline, while liquid hydrogen can achieve energy densities of about 25-30%.

Addressing these bottlenecks through technological advancements, policy support, and increased investment will be crucial to unlocking the full potential of green hydrogen as a clean and sustainable energy carrier.

Conclusion:

The future of green hydrogen shines with promise. In the last few years we have witnessed a remarkable surge in the capacity of electrolysers. This exponential growth is a testament to the global recognition of the potential that green hydrogen holds in reshaping our energy landscape. Nations like Mauritania and Namibia are looking to tap into their solar and wind resources for future green hydrogen production. This shift, driven by collaborations between local and international partners, signals a move towards cleaner energy alternatives. Green hydrogen embodies not just an idea but a tangible alternative to emission heavy fossil fuels. The moment to embrace GH2 is now.