Green hydrogen, often hailed as the fuel of the future, holds immense promise as a cornerstone in the global transition to a low-carbon economy. As governments and industries worldwide intensify their efforts to achieve net zero emissions, green hydrogen has emerged as a critical solution, particularly for decarbonising hard-to-abate sectors such as heavy industry, transport, and power generation. However, despite its potential, the large-scale adoption of green hydrogen faces significant challenges that must be addressed to unlock its full potential. This article explores the future of green hydrogen, examining both its potential benefits and the hurdles that must be overcome for widespread deployment.
Green hydrogen is produced by using renewable energy sources, such as wind, solar, or hydropower, to electrolyse water, splitting it into hydrogen and oxygen. Unlike grey or blue hydrogen, which is produced using fossil fuels and may involve carbon capture and storage, green hydrogen is entirely carbon-free, making it a vital component of a sustainable energy future.
1. The Potential of Green Hydrogen: Green hydrogen offers several key advantages that position it as a transformative energy carrier. Firstly, it can be used across a wide range of applications, from powering fuel cells in vehicles to serving as a feedstock in industrial processes. Secondly, it provides a means of storing and transporting renewable energy, helping to balance supply and demand in the electricity grid. Thirdly, green hydrogen can play a crucial role in decarbonising sectors that are difficult to electrify, such as steel production, aviation, and shipping.
2. Decarbonising Heavy Industry: One of the most promising applications of green hydrogen is in decarbonising heavy industries such as steel and cement production. These industries are responsible for a significant share of global carbon emissions and face substantial challenges in reducing their carbon footprints. Green hydrogen can be used as a reducing agent in steelmaking, replacing carbon-intensive coking coal, and as a high-temperature fuel in cement kilns. For instance, the HYBRIT project in Sweden, a collaboration between SSAB, LKAB, and Vattenfall, aims to produce fossil-free steel using green hydrogen, potentially eliminating 10% of Sweden’s total CO2 emissions.
3. Enabling the Transition in Transport: The transport sector is another area where green hydrogen can make a significant impact. While battery-electric vehicles (BEVs) are gaining traction in the passenger car market, green hydrogen is particularly well-suited for decarbonising heavy-duty vehicles, such as trucks, buses, and trains, as well as maritime and aviation sectors. Hydrogen fuel cells offer greater energy density and faster refuelling times compared to batteries, making them an attractive option for long-haul transport. Companies like Toyota, Hyundai, and Alstom are already pioneering hydrogen-powered vehicles and trains, highlighting the potential for green hydrogen in this sector.
4. Supporting Renewable Energy Integration: Green hydrogen also plays a vital role in supporting the integration of renewable energy into the grid. By converting excess renewable electricity into hydrogen, it can be stored for later use or transported to where it is needed. This capability to store and transport energy helps address the intermittency challenges associated with renewable energy sources, ensuring a stable and reliable energy supply. Moreover, green hydrogen can be converted back into electricity through fuel cells or gas turbines, providing a flexible and scalable solution for balancing the grid.
Despite its potential, the large-scale adoption of green hydrogen faces several significant challenges. These challenges must be addressed to ensure that green hydrogen can be deployed at the scale needed to meet global climate targets.
1. High Production Costs: One of the primary barriers to the widespread adoption of green hydrogen is its high production cost. Electrolysis, the process used to produce green hydrogen, is currently more expensive than traditional hydrogen production methods, such as steam methane reforming (SMR). The cost of renewable electricity, electrolyser technology, and infrastructure development all contribute to the higher price of green hydrogen. However, as the cost of renewable energy continues to fall and technological advancements drive down the cost of electrolysers, the economics of green hydrogen are expected to improve.
2. Infrastructure Development: The deployment of green hydrogen at scale requires significant investment in infrastructure, including production facilities, storage, transportation networks, and refuelling stations. Building this infrastructure will require coordinated efforts from governments, industry, and investors, as well as long-term planning and policy support. In Europe, the European Hydrogen Backbone initiative aims to develop a pan-European hydrogen network, repurposing existing natural gas infrastructure to transport hydrogen across the continent. However, similar initiatives are needed globally to facilitate the widespread use of green hydrogen.
3. Energy Efficiency: Green hydrogen production and utilisation involve multiple energy conversion steps, each of which incurs energy losses. For example, converting renewable electricity into hydrogen via electrolysis and then converting it back into electricity in a fuel cell can result in an overall efficiency of around 30-40%. This lower efficiency compared to direct electrification means that more renewable energy is required to produce and use green hydrogen. As a result, green hydrogen is most valuable in applications where direct electrification is not feasible or practical.
4. Policy and Regulatory Support: The successful deployment of green hydrogen also depends on strong policy and regulatory support. Governments must implement policies that incentivise the production and use of green hydrogen, such as carbon pricing, subsidies, and mandates. Additionally, clear standards and certifications are needed to ensure that hydrogen is produced and used in an environmentally sustainable manner. The UK government’s Hydrogen Strategy, launched in 2021, outlines a roadmap for scaling up hydrogen production and use, with the goal of achieving 5 GW of low-carbon hydrogen production capacity by 2030.
To overcome the challenges associated with large-scale green hydrogen adoption, a multi-faceted approach is required. This includes continued investment in research and development, supportive policies, and international collaboration.
1. Driving Down Costs: Technological innovation and economies of scale are critical to reducing the cost of green hydrogen. Governments and private sector companies must continue to invest in R&D to improve the efficiency and reduce the costs of electrolysers. Additionally, scaling up production facilities and supply chains will help achieve cost reductions through economies of scale.
2. Building Infrastructure: Developing the necessary infrastructure for green hydrogen requires coordinated efforts and significant investment. Public-private partnerships, such as those seen in Europe’s Hydrogen Backbone initiative, are essential for mobilising the resources needed to build production facilities, transportation networks, and refuelling stations.
3. Enhancing Policy Support: Governments play a crucial role in accelerating the adoption of green hydrogen through supportive policies and regulations. This includes implementing carbon pricing mechanisms, providing subsidies for green hydrogen projects, and establishing clear standards for hydrogen production and use. International cooperation is also essential for developing a global hydrogen market and ensuring the cross-border transport of hydrogen.
4. Focusing on Strategic Applications: Given the energy efficiency challenges, green hydrogen should be prioritised in applications where it offers the most value, such as in heavy industry, long-haul transport, and energy storage. By focusing on these strategic areas, green hydrogen can maximise its impact on global decarbonisation efforts.
Green hydrogen holds the potential to revolutionise the energy landscape and play a key role in achieving global net-zero targets. However, realising this potential requires overcoming significant challenges, including high production costs, infrastructure development, and energy efficiency. By addressing these challenges through technological innovation, supportive policies, and international collaboration, green hydrogen can become a cornerstone of the global energy transition, enabling the decarbonisation of sectors that are difficult to electrify and supporting the integration of renewable energy into the grid.
As the world moves towards a sustainable energy future, the Net Zero Transition Office is committed to helping businesses and governments navigate the complexities of green hydrogen adoption. By providing expert insights and strategic guidance, we aim to empower our clients to leverage green hydrogen as part of their broader decarbonisation strategies, ensuring a cleaner, greener future for all.