Prelude

One objective that nations all around the world have set for 2050 is to decarbonize the planet. Decarbonizing the production of an element like hydrogen—which produces green hydrogen—is essential to achieving this because it accounts for more than 2% of the world's current CO2 emissions.

Watts are becoming more and more necessary for our way of life to run. Due to a shortage of fossil fuels, the conflict in Ukraine has exacerbated the world's energy crisis. As a result, the price of coal and natural gas has increased to an unprecedented level, forcing Europe to import significantly more liquefied natural gas than usual, which exacerbates the issue of climate change. Decarbonizing the environment, however, points to a different world in 2050—one powered by clean energy sources like green hydrogen and more accessible, effective, and sustainable.

75% of matter on Earth is made up of hydrogen, the most prevalent chemical element. But we never discover it by itself—rather, we always find it in combination with other chemical components, like carbon producing organic compounds or oxygen forming water.

It has long been utilized by humanity as a fuel and as a raw material in metallurgy and the chemical industry, but because it cannot be obtained naturally in its purest form, humanity must “manufacture” it. And whether or not hydrogen is a clean, sustainable fuel depends on the exact process by which we extract it.

By 2050, there will likely be 500–680 million metric tons (MT) of hydrogen consumed, up from an anticipated 87 million MT in 2020. The market for hydrogen generation was expected to be worth $130 billion in 2020 and is projected to expand at a rate of up to 9.2% year through 2030. However, there's a catch: relatively little of the hydrogen produced today is "green," with over 95% of it derived from fossil fuels. Nowadays, the manufacturing of hydrogen uses 2% of the world's coal and 6% of its natural gas.

Green hydrogen, also known as sustainable hydrogen, is hydrogen that has been produced without emitting any pollutants. a fuel that is currently being positioned as the primary energy vector for accomplishing global decarbonization and meeting the climate change mitigation pledges made for 2050.

The biggest issue confronting our generation is the climate disaster. The Paris Agreement's target of preventing a 2°C rise in global temperature cannot be met with wind power alone, despite the fact that wind is vital to the battle. It takes creativity and commitment to decarbonize the entire economy, including heavy industries and transportation.

Green hydrogen, in our opinion, is a superb technology for extending the advantages of renewable energy sources outside the electrical industry.

Where does green hydrogen come from?

Hydrogen energy is highly adaptable since it may be produced in a variety of ways, utilized as fuel or as a gas, and turned into electricity. Global production of hydrogen is already estimated to be around 70 million metric tons annually, with applications including oil refining, ammonia production, steel production, chemical and fertilizer manufacture, food processing, metallurgy, and more.

Hydrogen is the most abundant element in the universe, accounting for around 90% of all atoms, according to estimates. However, individual hydrogen atoms are not found in nature. Hydrogen can only be created when its atoms are separated from other elements, such as those found in plants, water, and fossil fuels. The sustainability of hydrogen energy depends on how this decoupling is accomplished.

The majority of the hydrogen used today is created via a process known as steam methane reforming, which reacts methane with high-temperature steam using a catalyst to produce hydrogen, carbon monoxide, and a trace amount of carbon dioxide. Carbon monoxide, steam, and a catalyst combine in a later step to create more carbon dioxide and hydrogen. Pure hydrogen remains after the carbon dioxide and other impurities are eliminated.  In order to create hydrogen through steam reforming, other fossil fuels including coal, propane, and gasoline can also be utilized. This fossil fuel-based production process produces 830 million metric tons of CO2 emissions year, which is equivalent to the emissions of Indonesia and the United Kingdom put together, in addition to gray hydrogen.

Different colours of hydrogen

What is blue hydrogen?

Blue hydrogen is produced when natural gas is broken down into hydrogen and carbon dioxide using either Auto Thermal Reforming (ATR) or Steam Methane Reforming (SMR), with the CO2 being collected and then stored. The planet's environmental effects are lessened as a result of the greenhouse gases being trapped. The procedure known as Carbon Capture Usage and Storage (CCUS) is used to accomplish the "capturing."

What is green hydrogen?

Green hydrogen is the result of electrolyzing water to divide it. Only oxygen and hydrogen are produced by this. Without causing any harm, we can use the hydrogen and release the oxygen into the environment. We require power and electricity in order to accomplish the electrolysis. Solar and wind energy are two forms of renewable energy that power this process of creating green hydrogen. Hence, green hydrogen—hydrogen derived from renewable energy sources without CO2 as a byproduct—is the most environmentally friendly choice.

What is grey hydrogen?

For a long time, grey hydrogen has been created. The method is comparable to that of blue hydrogen: natural gas is divided into hydrogen and carbon dioxide using SMR or ATR. However, the CO2 is discharged into the atmosphere without being collected.

What is pink hydrogen?

Pink hydrogen is produced by electrolysis, just as green hydrogen, but with nuclear energy as the power source.

What is yellow hydrogen?

Yellow hydrogen is another type of hydrogen produced by electrolysis; unlike green hydrogen, which may employ a variety of sustainable energy sources including solar and wind, yellow hydrogen is produced exclusively by solar electricity.

HOW IS GREEN HYDROGEN ACHIEVED?

Green hydrogen is produced by electrolyzing water using sustainable energy sources like solar or wind power. Electrolysis is the process of splitting a water molecule into hydrogen and oxygen using electrodes and an electrical current.

When electrolysers driven by renewable energy sources are utilized to split water into hydrogen and oxygen, greenhouse gas emissions can be avoided while producing hydrogen. Green hydrogen is the term used to describe hydrogen produced in this manner. Green power can be converted into a fuel for transportation or used as feedstock in industrial processes, where there are currently no alternatives that are climate neutral. Green hydrogen can serve as the bridge to make this happen. We will be able to integrate wind power into a container ship's fuel tank thanks to green hydrogen and its derivative fuels, such as green ammonia. Hydrogen has the ability to greatly increase the decarbonization potential of renewable energy sources in this manner.

BENEFITS OF USING GREEN HYDROGEN AS A FUEL

One of the main players in the impending energy revolution that the world's economies must spearhead in order to become carbon neutral and fight climate change will be green hydrogen.

Because of all of its inherent advantages, green hydrogen can be used in applications where it is now impossible to electrify, where it will be crucial to reduce emissions:

It produces no waste other than water, making it a clean energy source.

It is a renewable energy source since it draws from untapped natural resources.

It can be stored: Ad hoc tanks can hold compressed green hydrogen for an extended period of time.

It is portable: Compressed hydrogen tanks are lighter than lithium batteries, making them easier to handle and therefore more convenient for transportation.

Technologies for producing green hydrogen are seeing a surge in interest again. This is due to the fact that there are an increasing number of potential applications for hydrogen in various fields, such as electricity generation, manufacturing processes in sectors like cement and steel, fuel cells for electric vehicles, heavy transportation like shipping, production of green ammonia for fertilizers and cleaning products, refrigeration, and electricity grid stabilization.

BARRIERS TO GREEN HYDROGEN

Green hydrogen is not currently a part of our energy mix, despite all of these benefits, because of a number of issues that science, public policy, and private investment are still working to resolve:

The cost of producing green hydrogen is higher than that of gray hydrogen. Nonetheless, a fresh window of opportunity has been created for the cost of renewable energies to become more competitive due to their recent price decline. The cost of the power required for the electrolysis process can be decreased because solar energy is ten times less expensive than it was ten years ago, and wind energy is less expensive than it was ten years ago.

Its installation will cost a lot of money. It is estimated that the world's infrastructure and research needs would exceed USD 300 billion in the next years. However, if regulations are in place to promote its development, the demand for green hydrogen may rise to 700 million tonnes by 2050, according to a report published by BloombergNEF (BNEF). For this reason, there is a cost associated with this development, but there is also a significant financial upside.

There is growing agreement that nearly every industry that now relies on fossil fuels and is challenging to decarbonize might benefit from the usage of green hydrogen. For this reason, it is imperative to support it in order to meet the Paris Agreement's climate obligations and the climate emergency's zero-emission requirements. In Europe, there are already initiatives being encouraged along the whole hydrogen value chain, including the production of more cost-effective electrolysers, the building of transportation infrastructure, and the installation of hydrogeneration for use in road transportation. Long-term savings on hydrogen installation costs could range from 40% to 80%. This implies that green hydrogen might turn a profit starting in 2030, especially when combined with cheaper renewable energy sources.

Impact of green hydrogen

In nations including the US, Russia, China, France, and Germany, hydrogen is used as fuel. Some, like Japan, are even more ambitious and hope to transition to a hydrogen economy. What the future impact will be as explained below:

Electricity and drinking water generator

In a fuel cell, hydrogen and oxygen react to produce these two elements. For instance, this procedure has shown to be quite helpful on space missions by giving crews access to sustainable electrical and water sources.

Energy storage

Long-term energy storage is possible with compressed hydrogen tanks, which are also lighter than lithium-ion batteries and easier to handle.

Transport and mobility

Because of its extreme adaptability, hydrogen may be employed in industries like heavy transportation, aviation, and marine transportation that are particularly challenging to decarbonize. The European Union (EU) is pushing a number of current projects in this field, including Hycarus and Cryoplane, which seek to integrate it into passenger planes.

Quantifying the opportunity in green hydrogen

Promising markets for importing and exporting renewable energy are identified through an analysis of the economics of the future.

The production of green hydrogen from renewable resources like solar and wind power has great potential to supply the world's energy needs in the future. The economics of green hydrogen are difficult now, nevertheless, mostly due to the significant variations in the underlying costs and availability of renewable energy sources.

Through specialized applications, demand growth will increase through 2030 at a moderate, steady pace.

Demand growth will pick up speed after 2030, especially after 2035.

Depending on the goals set for the global climate, sector-specific initiatives, energy-efficiency initiatives, direct electrification, and the application of carbon-capture technologies, the amount of hydrogen required by 2050 might range from 150 to 500 million metric tons annually.

In the United States, the cost of producing green hydrogen is currently three times higher than that of natural gas. This is due to the high cost of electrolysis, which makes producing green hydrogen more expensive than producing gray or blue hydrogen, though the cost of electrolyzers is decreasing as production increases. Gray hydrogen currently costs roughly €1.50 euros ($1.84 USD) per kilogram, blue hydrogen costs between €2 and €3 per kilogram, and green hydrogen costs between €3.50 and €6 per kilogram.

Strategies that are key to bringing down the price of green hydrogen

Encouragement of new ideas in the production and application of hydrogen. He pointed out that in the next years, the cost of producing green hydrogen and fuel cells will decline thanks to the stimulus program recently passed.

Hydrogen prices were lowered with the aid of price supports, such as an investment tax credit or production tax credit akin to those created for solar and wind energy.

A legal requirement to control emissions. For example, fertilizer is made with half of the ammonia used today. "If we said, 'We have an emission standard for low carbon ammonia,' people would start making ammonia from low carbon hydrogen, which is more expensive today," "However, it is easier to comply with if there is a law that requires you to."

An other regulation approach would be for the government to purchase green hydrogen and mandate that a specific percentage of green hydrogen be used in the production of all military fuels.

The amount of money that automakers, gas station developers, energy firms, and governments are ready to put in green hydrogen over the coming years will determine whether or not it lives up to its potential.

Analysing the future market

The need for hydrogen will increase gradually until 2030 due to a variety of specialized uses in the energy, construction, transportation, and industrial sectors.

To build hydrogen initiatives, new alliances will emerge through cross-sector collaborations.

The cost of producing hydrogen will drop by about 50% by 2030 and then gradually decline at a somewhat slower rate until 2050.

Some regions of the Middle East, Africa, Russia, China, the US, and Australia will have green hydrogen production prices between €1 and €1.5/kg by 2050.

Production costs in areas with few renewable resources, such most of Europe, Japan, or Korea, will be about €2/kg during the same time period, meaning that these markets are probably going to buy green hydrogen from elsewhere.

Due to land limits, the production of green electricity for direct use and conversion to hydrogen is limited, therefore even locations with good renewable resources but high populations will import hydrogen.

There are areas for both competitive and non-competitive hydrogen production in many large countries, including the US, Canada, Russia, China, India, and Australia. This could lead to the development of in-country commerce.

Similar to present oil and gas centers, export and import hubs will grow globally, but with new participants in renewable-rich areas.

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