Claus Nussgruber | CEO, Utility Global.
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Low-carbon intensity hydrogen, or clean hydrogen, has been recognized as a pillar of the energy transition. This clean energy vector is making waves in various sectors, offering a path to significantly reduce global carbon emissions.
The following trends highlight the evolving landscape of clean hydrogen, reflecting its growing integration and significance in the global energy mix.
1. Move Toward Carbon Intensity Measurements
The use of color-coded terminology to describe hydrogen types (green, blue, and grey hydrogen, etc.) became a popular method to distinguish new technologies and processes throughout 2022 and 2023.
While initially clear-cut, the system can conceal the realities involved in hydrogen production and its overall environmental impact. It's crucial for those in the clean energy sector to critically evaluate and understand the limitations of these color-coded designations for hydrogen.
Additionally, recent advancements in technology are causing the lines between these color categories to blur, challenging the effectiveness and relevance of this color-coding system in distinguishing different types of hydrogen. The industry is rapidly moving away from color-coding toward the quantifiable metric of the actual carbon intensity of hydrogen produced.
2. Rethinking The Source Of Green Hydrogen
Case in point, so-called “green” hydrogen production has traditionally required electricity from renewable energy sources, like wind and solar power systems. Recent advances, as I've written about recently, have shown that removing electricity from the reaction process with technologies like electricity-free electrolysis can enable more economic and more efficient production of low-carbon intensity hydrogen.
Producing hydrogen in these ways can help ensure a more stable renewable energy supply and maximize the use of intermittent renewable resources for areas that need it more, reducing the cannibalization of these resources.
Such integration is crucial for balancing energy grids and enhancing the reliability of renewable energy sources. The industry will need to continue to develop and implement these efforts to balance the cost and effectiveness of green hydrogen.
3. Cost Reduction And Market Competitiveness
As electrolysis technologies mature, low-carbon intensity hydrogen is becoming increasingly competitive with conventional hydrogen sources. This cost reduction is a key driver for the broader adoption of hydrogen across various sectors.
Electrolysis-based technologies are now more efficient and cost-effective, thanks to advances in material science, engineering and manufacturing—mainly in the form of innovations in alkaline, proton exchange membrane (PEM) and solid oxide electrolyzers.
These developments will be pivotal for increasing the scalability and affordability of low-carbon intensity clean hydrogen production. These advances are projected to continue as policies support technology development in this field.
4. Hydrogen In Industrial Applications
Low-carbon intensity hydrogen is making inroads into industrial applications, particularly in sectors like steel and chemical manufacturing. Its ability to provide high-temperature heat and serve as a feedstock for various industrial processes should make it a viable alternative to fossil fuels, which could aid in the decarbonization of industrial operations.
5. Global Collaborations And Partnerships
Finally, global collaborations and partnerships are accelerating the development and deployment of low-carbon intensity hydrogen technologies.
International cooperation is essential for sharing knowledge, standardizing regulations and fostering cross-border hydrogen trade. Such collaborations are key to establishing a global clean hydrogen market, and I anticipate an increase in partnerships between technology developers, academia, energy performance contractors (EPCs) and original equipment manufacturers (OEMs).
Groups like the Clean Hydrogen Partnership in the European Union, for example, are pushing initiatives forward for cleaner fuels, as is the International Partnership for Hydrogen and Fuel Cells in the Economy with their 24 country members from six continents.
Government funding will also be key. Australia recently announced a $2 billion pledge to support clean hydrogen initiatives. The U.S., likewise, announced tax credits of up to $3 per kilogram for the production of low-emission green hydrogen. Numerous European countries, including France and Spain, also pledged multibillion-dollar investments as well.
The future will need to be developed in tandem, with leading countries all working together.
Embracing The Green Hydrogen Future
The trends of 2024 signal a bright future for low-carbon intensity hydrogen, characterized by technological innovations, market competitiveness and global cooperation. As we embrace these developments, low-carbon intensity hydrogen is set to play a pivotal role in the transition to a renewable energy-based, decarbonized world.
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