Supporting Hydrogen’s Huge, Versatile Potential in Decarbonised Energy

As the world races to reduce greenhouse gas emissions and transition to a low-carbon economy, hydrogen energy systems are emerging as a powerful tool in our arsenal against climate change. Hydrogen, often hailed as the “fuel of the future,” is proving to be much more than just a promising energy source; it is rapidly becoming a cornerstone of sustainable energy systems, with the potential to revolutionise multiple sectors.

The Versatility of Hydrogen

Hydrogen’s unique properties make it an exceptionally versatile energy carrier, with applications spanning across transportation, power generation, and industrial processes. In transportation, hydrogen-powered fuel cell vehicles are seen as a viable solution to decarbonise road, air, and maritime transport. These vehicles offer the advantage of long ranges and short refuelling times, making them particularly suited for heavy-duty and long-distance travel.

In the power sector, hydrogen can play a critical role in stabilising the grid by providing a reliable storage solution for intermittent renewable energy sources like wind and solar. This capability is essential as we increasingly rely on renewables to meet our energy needs. Hydrogen’s role extends further into industrial applications, where it can provide high-temperature heat necessary for processes in steel, cement, and chemical production—industries that are notoriously difficult to decarbonise.

Economic Viability and Challenges

One of the key factors determining the widespread adoption of hydrogen is its economic viability, particularly the levelised cost of hydrogen (LCOH). Currently, the cost of hydrogen production varies significantly depending on the method used. Fossil-based hydrogen production, such as steam methane reforming (SMR), remains the cheapest but comes with a higher environmental cost. On the other hand, green hydrogen, produced via electrolysis using renewable energy, is more environmentally friendly but currently more expensive.

However, there is optimism that the cost of green hydrogen will decrease as technology advances and scales up, especially in regions with abundant renewable energy resources. Strategic investments and government incentives are crucial to accelerate this cost reduction.

Hydrogen’s Role in a Decarbonised Future

By 2030, hydrogen energy systems could substantially reduce global CO₂ emissions. In the electricity and power generation sector alone, hydrogen could reduce emissions by 50–100 million tons annually, provided the necessary investments are made. In the heating sector, hydrogen has the potential to facilitate a CO₂ abatement of 30–50 million tons. These figures underscore the critical role hydrogen can play in our efforts to combat climate change.

Moreover, hydrogen’s ability to integrate with existing infrastructure, such as the natural gas grid, offers additional pathways for decarbonisation. For example, power-to-gas (P2G) technology allows excess renewable energy to be converted into hydrogen, which can then be injected into the gas grid, stored, or used to produce synthetic natural gas. This technology not only supports renewable energy integration but also enhances the flexibility and resilience of the energy system.

Strategic Investments and Future Prospects

To fully realise the potential of hydrogen energy systems, we need a coordinated approach involving substantial investments, policy support, and technological innovation. The investment gap in the hydrogen sector is estimated at $540 billion globally. Japan and South Korea, along with European nations, are leading the charge by developing hydrogen economy frameworks, investing in infrastructure, and introducing support mechanisms like contracts for difference (CfDs) to bridge the cost gap between green hydrogen and fossil fuels.

The development of large-scale hydrogen production and distribution networks, alongside advancements in hydrogen storage technologies, will be critical to overcoming the current economic and technical barriers. As these challenges are addressed, hydrogen is poised to become a central pillar of the global energy landscape, driving the transition to a cleaner, more sustainable future.

We mustn’t be discouraged by the challenges around hydrogen energy systems; the potential benefits are too significant to ignore. With the right investments and policies in place, hydrogen could well be the key to unlocking our sustainable and prosperous future.

Source

Advancements in hydrogen energy systems: A review of levelized costs, financial incentives and technological innovations, Innovation and Green Development, 2024-09-03