What was once a discussion is now becoming policy. As a result, hundreds of billions of dollars are being invested into projects aimed at helping achieve net-zero targets and creating zero-emission fuel.
Green hydrogen stands out as having a lot of potential to one day help us reach a net zero-emission. But before we delve into the crux of it, what is hydrogen and how can it help?
What Is Hydrogen?
Hydrogen is not just another element; it’s the most abundant element in the universe, accounting for about 92% of the atoms.
Hydrogen is present in water, the most common substance on Earth, and in numerous organic compounds that constitute life as we know it. It can be produced as a gas or liquid or made of other materials. Hydrogen can be produced from various domestic resources such as natural gas, nuclear power, biomass and renewable power such as solar and wind.
These qualities make Hydrogen an attractive fuel source for transportation and electricity generation applications. It can be used in cars, houses, portable chargers and more.
Hydrogen has been used as an energy source since the 19th century. Hydrogen is now most commonly used in petroleum refining and fertiliser production and more and more for utilities and transport industries.
Types Of Hydrogen
Grey hydrogen is the most common form, created from fossil fuels (oil and coal) and releases carbon dioxide into the atmosphere. This accounts for 95% of hydrogen production in the world today.
Blue hydrogen uses the same process as grey, except the carbon is captured and stored underground. This method is much more environmentally friendly but comes with added technical challenges and a price increase.
Green Hydrogen does not use fossil fuels but instead uses electrolysis, splitting water into hydrogen and oxygen. This process is powered by renewable energy sources such as solar or wind power.
Green hydrogen seems to be the ideal solution to transition, and eventually replace grey hydrogen, so why hasn’t it been done already?!
Production
Producing green hydrogen is a complex process.
Producing green hydrogen is a process that involves using water, an electrolyser and an ample supply of electricity. Green Hydrogen is created when the hydrogen and oxygen have been split using an electric current to breakwater into its two elements, hydrogen and oxygen.
This energy comes from a renewable source such as wind, solar or hydro, making the hydrogen effectively green as zero-emissions are released.
The production cost of green hydrogen is higher.
Due to the cheap coal and natural gases readily available, grey hydrogen can be as low as circa 1 USD/kg H2 in regionals such as the Middle East, Russia and North America and still staying below 2 USD/kg H2 for other regions, like Europe.
Green hydrogen reports being in the range of 2.5-6 USD/kg H2, being more expensive than both grey and blue. When it is at its lowest, it is cost-competitive with blue.
The key factor is therefore access to an abundance of inexpensive renewable energy, from wind and solar. However, as long as energy storage is not commonly available at utility scale, fluctuation in sunlight and wind will affect the power grid sustainability and electricity prices.
According to Bloomberg NEF, an $11 trillion investment in production and storage worldwide will be needed through 2050 to meet a quarter of the world’s energy needs. The European Union has already allocated $430 billions and Australia $275 billions until 2030 as part of their green hydrogen strategy. A recent analysis by MIT and Wood Mackenzie predicts a reduction of 30% in green hydrogen production cost by 2030 linked to the development of new technology.
Environmental Impact of Green Hydrogen Production
Unlike grey hydrogen, which is produced from fossil fuels, green hydrogen production emits no carbon dioxide or other harmful pollutants. However, there are several environmental considerations to keep in mind:
1. Energy Source: The environmental impact of green hydrogen largely depends on the source of energy used for electrolysis. If the electricity used comes from fossil fuels, it negates the environmental benefits. Therefore, it’s crucial to use renewable energy sources for green hydrogen production.
2. Leakage: Hydrogen is a small molecule that can leak from production facilities and pipelines. Even moderate leakage of hydrogen, whether it’s green or blue (produced from natural gas), could increase near-term warming.
3. Production Method: The environmental costs of green hydrogen vary depending on the method of production. For instance, green hydrogen produced from hydroenergy has the lowest environmental costs compared to that produced from wind and solar energy.
4. Life Cycle Analysis: A comprehensive life cycle analysis can help compare the environmental impact of different hydrogen production routes.
While green hydrogen has the potential to be a clean energy source, careful consideration must be given to its production process to ensure it’s truly environmentally friendly.
Challenges in Scaling Up Green Hydrogen Production
Scaling up green hydrogen production is a complex task with several challenges spanning technological, economic, and infrastructural domains:
1. Technological Challenges: The electrolysis process, crucial for producing green hydrogen, faces hurdles such as suboptimal energy efficiency, the need for significant improvements in the lifetime of electrolysers, and the requirement for additional onsite compressors for operation.
2. Economic Factors: The costs of renewable energies need to be viable themselves. There’s a lack of clarity on how subsidies will be implemented, and long-term offtake agreements are needed. The manufacturing costs of green hydrogen are currently higher than those of incumbent fossil-based hydrogen.
3. Infrastructure and Storage: The storage of electricity generated is still too inefficient, and the storage of hydrogen is too volatile. There are also challenges related to the capacity of EPC contractors, risk appetite, and capability.
4. Regulatory Hurdles: There’s a complexity in permitting and a lack of industrial demand for hydrogen, especially green hydrogen. Addressing these challenges requires unconventional policy measures to stimulate rapid investment and innovation in green hydrogen production.
5. Energy Source: Many countries do not produce enough renewable energy to power green hydrogen production. Solar and wind’s variability sharply reduces electrolyser utilisation, driving costs up.
6. Bankability: Green hydrogen players must overcome hurdles in their efforts to scale up to commercial production, such as long-term offtake agreements and bankability.
These challenges highlight the need for continued research, development, and policy support to realise the full potential of green hydrogen as a key player in the transition to a sustainable energy future.
Hydrogen Transportation Challenges
One of the key challenges associated with the use of green hydrogen is its transportation.
When green hydrogen is converted into liquid hydrogen or blended into gas, it is stored and transferred using liquid organic hydrogen carriers (LOHC).
These methods have a variety of challenges associated with them, but in saying that, there are many projects underway that are finding ways to overcome these challenges. For example, blending green hydrogen in natural pipelines is being tried and experimented with by different companies around the globe.
Existing pipelines and other infrastructure can unfortunately not be used. This is because embrittles metal and hydrogen are highly combustible. Therefore, hydrogen needs to be pressured / converted into ammonia to move safely through pipelines, trucks and ships.
What’s definite is that in the decarbonisation race, hydrogen can bridge the gap that other energy sources can not. With a high energy density, hydrogen can power aircrafts and long-haul trucks with a fraction of the weight, space and cost of electric batteries.
The challenge for aircrafts is storing hydrogen safely onboard and building infrastructure for alternate fuel at airports. As for long-haul trucks, engines can already be run on hydrogen, but these engines will eventually need to be replaced by hydrogen fuel cells, which is expensive to replace.
Therefore, new and emerging technology will need to become a focus for the green hydrogen revolution, not only for production but also for transportation nationwide and globally.
Exploring Applications
The applications of green hydrogen extend far beyond transportation and electricity generation. It’s a versatile energy carrier with the potential to revolutionise various sectors:
- Industrial Processes: Green hydrogen can be used in high-temperature processes, such as steelmaking, and as a feedstock for the production of green ammonia and organic chemicals.
- Heating: Hydrogen can be used for heating homes and commercial buildings, providing a clean alternative to fossil fuels.
- Energy Storage: Green hydrogen can serve as a medium for storing excess energy from renewable sources, helping to balance supply and demand.
How Does Australia Fit In?
With an abundance of water and clean electricity all year round, Australia could position itself as an industry leader. However, considering its geographical location, the question of transport is crucial to make it a success both locally and for export.
As part of Australia’s National Hydrogen Strategy, a network of hydrogen-hubs have already been deployed across the country, where hydrogen users and exporters work together to test and create the solutions of tomorrow.
The driving force of the Australian economy, the mining industry is also contributing and working to be part of the transition. In 2020, the big four – BHP, Fortescue, Anglo American and Hatch – formed the Green Hydrogen Consortium, embracing the challenge of decarbonisation to evolve their technology and processes to keep powering transportation and other heavy industries.
Where To From Here?
Green hydrogen still has a long way to go to fulfill its promises in the race to decarbonisation. The UN predicts fossil fuels production needs to decrease by 6% between 2020-2030 to prevent a catastrophic global temperature rise.
Green hydrogen could be the solution to cover the 15% to 20% energy need that can’t be met by wind and solar.
About the Author:
Jan is Anávo's VP of Global Talent Acquisition and he aims to continue making the world more aware of climate change & the importance of utilising clean energy for a better tomorrow.
Read more about Jan Rieche.
