PROSPECTS & CHALLENGES OF GREEN HYDROGEN ECONOMY: Is this fuel can be seen as economical viable under current market conditions:

PROSPECTS & CHALLENGES OF GREEN HYDROGEN ECONOMY: Is this fuel can be seen as economical viable under current market conditions:

Path to Hydrogen competitiveness: A cost perspective (Technical & Commercial issues)

As everybody knows, that other than Gaseous fuel like CNG, dry gases or Bio gas, Hydrogen fuel can be an excellent source of clean energy for keeping the expectations of Paris climate summit because no doubt hydrogen fuel can be a emerging fuel which can be used in various industrial applications (Gas based heavy duty machines) other than transportation and shipping sector. No, Doubt it is clear that it H2 can be act as feedstock replacement over Methane or other fossil fuels for # of applications. Hydrogen can play a key role where complete electrification is not possible or somehow difficult but in terms of sustainability, Green h2 is over all best as compare to Blue or Grey hydrogen ( current going on) because except electrical usage on the lower side, it has its macro usage in transport/heating applications/other industrial use applications like steel production ( just quoted 1 example)

However, we are seeing some barriers from the perspective of becoming hydrogen based economy in terms of

  • Production cost through alkaline electrolysis method (by renewable sources) a bit higher where as production of hydrogen through fossil fuels is a bit economical as compare to alkaline method ( Green hydrogen production is on the higher scale as compared to current going Grey hydrogen or Blue hydrogen
  • Infrastructure investments
  • Most important safety consideration****** ( considering the physical & chemical properties of Hydrogen fuel)
  • Supply-demand uncertainties

OTHER MARKET SCENARIOS

As per EIA, 70 million tons of H2 produced annually (MTPA), from fossil resources like gas & coal and few from renewable sources. If we consider from the environmental prospective, 7 % of Natural gas is dedicated to production of H2, but in return only 6 % of hydrogen is in demand, no doubt for the same gas, it is predominantly used for the production of its by products like methanol/ammonia, Gas to liquid where and when ever required and in various refining and steel production, but the matter of the fact is whether it is from coal/ gas/biomass gasification, somehow it is leading to carbon emission and green houses-THIS WE HAVE TO ACCEPT

My concern is whether we all can see a complete de carbonization or o-carbon emission. That is the main issue, because as I repeat Paris climate summit target to reduce the global temperature to1.5 -2 degree, considering this hydrogen fuel can play a predominant role in energy mix to meet carbon neutral target by 2050 as per HYDOGEN COUNCIL BODY.

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It is also been estimated from the hydrogen council that as per the current production, by year 2050, by next 29 years as of now, the production capacity will reach at least a minimum of 10 time of current production which will be around 600-650 MTPA against 70 MTPA for current global annual production and this will be utilized for various applications. ??????

E.g. If I be specific on the transportation segment, IMO (international Maritime organization), a united nation agency has decided to set the target to reduce its greenhouse gas emission by 50 % in 2050 compared to 2018 base line emission (Japan/US and few European nations are already started implementing it to achieve the target.)

But if we talk about the current prospective, NO DOUBT we have seen a gradual increase in the renewable electricity (from the solar segment) as levelized cost of electricity from the PV segment has considerable reduced by 77 % from 2010 to 2018 at a cost of USD 0.371/Kwh to 0.085 Kwh and from that integrating the process into a sustainable production of hydrogen H2 is really a feasible process. ( if we assume this)

But the main challenge is problem of high costing and expenses associated with the production process of green H2 by electrolysis method are relatively high as compared to gray H2 production (Produced from Coal/ gas sources). It has been seen that H2 production via electrolysis (which is $10.3 kg-H2) is 5 times more than the current technology landscape (which is $ 1.5-2.3 Kg-h2.)

We need to address on following points to see a hydrogen based economy

1 .Inclusion of Hydrogen in global energy mix

So first thing is we have to do is we make the integrated process system of hydrogen production within a large scale industrial complex. Many options can be trade off within the industrial sector like, suppose hydrogen can be produced from diverge resources

  • Fossil fuels method (steam reforming of methane and coke – the existing method)
  • Bio gasification (bio fuel waste) /waste bio mass
  • Nuclear source
  • Chlorine alkaline plants: Hydrogen can be created as a byproduct manufacturing of chemical CHLORINE.

Above process which I have mentioned are bit of cost effective and economical 2….Considering the factor of de carbonization & 0 carbon emission, we need to create or optimize any sort of H2 policies along with carbon tax benefit which can benefit the owners for the large scale production of green and blue H2. I would like to add that for making a complete globalization on hydrogen based economy, around the global, Qatar is one of the country which has vast amount of gas production like LNG and the facilities of converting Gas to liquid. ?That huge amount of water can be used for electrolysis at a reasonable cost. +additional advantage is that hydrogen is a fuel that can be used for energy or as a feed stock to produce large steam of value added products. E.g., use of H2 fuel in the industrial sector or the recovery of carbon emission and integrating them within the industrial sector for the production of ammonia

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2.Optimizing supply chain: (JAPAN & QATAR are the leading indicators & best examples)

Japan has initiated a plan to decarbonize and import hydrogen from large exporters like Australia & Qatar. Even Qatar also need a huge infrastructure investment, but Qatar is one of the country where large amount of gas are already there. + Qatar has large GTL plants and that liquid can be use in electrolysis method for optimizing the process for the production of Hydrogen . But definitely for supply chains, existing gas line infrastructure can be used transfer the hydrogen. The best example which i can quote is Netherland have already started implementing a blend of H2 + GAS that can be transferred with existing infrastructure for heavy duty gas turbine applications.

Howe-ever new /retrofit piping infrastructure hydrogen transport. would be necessary for 100 % . There will be challenge as well as opportunities.

3.Safety and storages/transportation challenges related to Hydrogen fuel across multi sectors

Weight & volume/Efficiency/Durability/Refueling/Costing – are some of the factors which are need to be counter for optimization related to storages/ transportation. Leakages is the main factor. Though it has low ignition energy but with a wide flammability range. Because of its low density, it has the chances to be kept at high pressure, otherwise its get leak.

4.We need to understand and implement the relationship between Economical industrial park + Hydrogen production.

For economical point of view, excess resources like waste heat, bio mass fuel waste and water can be used for hydrogen production facility. Energy and resource intensive use and based on its nature, and land resources are some of the limitations for stand by hydrogen facility

Solution:

  • Decision maker should construct a common hydrogen production facility for an eco-industrial park rather than separate hydrogen production facilities
  • Hydrogen can be generated at larger central plants/medium size /or very close to the point of operation in small dispersed units such as refueling stations or stationary power station.?

????5.Development of Multi-Sector Hydrogen supply chain mapping and optimization.?

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Aligning and mapping Hydrogen supply chain network within a single site or combining multiple sites ( here site i am referring to plant)

  • Primary feedstock stock node (stream sources): Natural gas / water/ waste heat / solar energy
  • Second layer include (Energy resources): solar electricity/ solar heat /electricity from the power grid/ any sort of by product such as methane/ ethane.
  • Third layer include all the production nodes (production process) : electrolysis/ steam reformation method/ dry reformation with utilization of Co2
  • Fourth layer: H2 resources: Blue hydrogen /Green hydrogen/Grey hydrogen
  • And finally the 5th layer includes all the demands where each demand node refers the aggregated demand for a specific sector ( Transportation/Industrial/Shipping )

?If we refer to the optimization, for industrial, there is a future solution while optimizing the multi chain, but for the transportation, few things need to be addressed.

  • No works addressed the integration of raw materials for large scale green or blue (CCS technology or from nuclear resource)
  • Co2 emission policies /h2 prices/production cost were not considered in the formulation of HSCN ( Hydrogen supply chain network)
  • Very limited focus are there for the hydrogen export chain. Though optimization can be achieved by internal feed stock (domestic feedstock). we should also focus on trade deliverables (option and future market) that can give various exporting and importing countries a win situation, although the long distance transport of hydrogen trading and cross regional financing could become a future problem which we need to sort out.
  • Considering sustainability and reliability factor in terms of 0 carbon emission, There is no such whole sale market oh H2 as of now . we have to consider other factors like

  1. Is there any end user close to hydrogen production.
  2. what is the best location to the user / access to great RES sources.
  3. can a owner partner with a hydrogen transport specialist.
  4. Is my hydrogen competitive with alternative supplies with the addition of transportation cost.

so all this above 4 factors need to be work out for feasibility and cost prospective.

6. Integrating H2 supply with the off grid( Green H2 supply )

There might be a scope that green hydrogen might come directly with dedicated renewables by passing electricity grid supply.

Advantage:

  • Network charges might be saved. i mean to say grid connection costing
  • All electricity produced will be directed to electrolyser ( saving the marginal cost which is going to electrolyser.

Disadvantage:

  • to implement this, we need renewable load factor , so this may limit the location & type of renewable that are suited to application.
  • All revenues will come from the sale of H2, but for this we need some clarity on sort of pricing / policies /contracts ( we can refer natural gas pricing market ), but the same can be apply to hydrogen ?????????. Here is the challenge


CLOSING COMMENTS OF THE ARTICLE

I would like to conclude that still at this moment of hydrogen fuel optimization , supply chain network has still uncertainties because of it has no matured network (it’s a complete new in which lot of patent work has to be done). Kind of a lack of historical data. In addition, the exact limitation of model restriction cannot be specified by management and decision makers because of the complex nature of such network design problems. Something new hybrid network should be built to overcome the required challenges. It should allow policy makers to simultaneously monitor the complexity of parameters and the flexibility of constraints.

  • On a specific, the distribution of this fuel on schedule and customer requirement access to hydrogen are really and critical important as far as hydrogen vehicle mobility is concerned.
  • Policies such as carbon price limits/pollution regulation/renewable energy content regulation. As far as our country INDIA is concerned, state and central government has to intervene on the matter which is actually crucial to meet the target ( like the 1 which is been implemented for gas based economy by year 2030). so whether , INDIA can be a country which can see HYDROGEN BASED ECONOMY???????????
  • Upstream, maximum usage of renewable hydrogen capacity could be encouraged through the promotion of renewable hydrogen certification. Certifications schemes may help to track power consumption and further emphasize the systematic add value of electrolysis. ( because at the last we need Green hydrogen insist of Grey ) and certain extent to blue hydrogen.




What often is overlooked is the economics of global transport of hydrogen. Find out more here: --> https://www.h22you.com/ <--

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Mohit Gulati , PMP?

Program Manager||Commercial Management|| Contracts and Claims || Budgeting|| Project Execution||Lean Management ||Petrochemical|| Oil and Gas ||Power Plants

3 年

Really informative, pricing target set is USD 2.5/kg and with Ambani entering they are mentioning USD1/kg too If I am not wrong so we wil have interesting times ahead

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Rajesh KS Ph.D

Industries Officer

3 年

Really informative...??

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Faheem Ahmed

Field Specialist | Ex Siemens | Ex Shell

3 年

Well said

Avishek Ghosal PhD

Assistant Professor-Senior Scale at UPES specialization in Department of Energy Management

3 年

Pricing is an issue right now. price of Hydrogen should come down below $3/ kg to make it feasible

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