Climate neutrality is the goal that the EU have set by 2050. Hydrogen could play a central role in helping the world reach net-zero emissions. Hydrogen is the simplest element, and the most abundant substance in the universe. Vast quantities of hydrogen atoms are found in water or plants. As a complement to other technologies, including renewable energy and biofuels, hydrogen has the potential to decarbonise industries such as steel, petrochemicals, fertilisers, mobility, shipping and aviation, and to support flexible energy production (McKinsey & Company: Five charts on hydrogen’s role in a net-zero future).
To achieve these goals, the EU Hydrogen Strategy was adopted in July 2020. The strategy identified 20 key actions in four main areas, which were implemented and delivered by the first quarter of 2022. The aim of the strategy was to explore how the production and use of green hydrogen can help decarbonise the EU economy in a cost-effective way, in line with the European Green Deal, and contribute to the post-COVID-19 economic recovery.
The European Commission announced the REPowerEU plan in May 2022 which identifies hydrogen as a key energy carrier to accelerate the transition to clean energy.
The REPowerEU programme goals to double the EU’s 2030 target for domestic renewable hydrogen production to 10 million tonnes/year, which requires 80 GW of electrolysis in the region, with an additional 10 million tonnes/year of imports.
Several initiatives have been launched to implement the EU and Member States’ hydrogen strategy. The Horizon Europe and the Clean Hydrogen Partnership provide a number of opportunities to support hydrogen research and innovation projects. The Hydrogen Energy Network is an informal group of representatives from the energy ministries in EU countries that helps to exploit the potential of hydrogen as an energy carrier and the European Clean Hydrogen Alliance, which brings together industry, national and local authorities, civil society and other stakeholders.
Hydrogen is an energy carrier that can be used to store, move, and deliver energy produced from other sources. The source of energy and the production method used to make molecular hydrogen determines whether it’s classified as the type of hydrogen.
Hydrogen can be made from natural gas, coal or biomass but these energy sources have associated greenhouse gas emissions. Hydrogen can also be produced from renewable energy sources without carbon emissions. Depending on how it is produced, there are different types of hydrogen:
Grey hydrogen is made from natural gas reforming like blue hydrogen, but the CO2 is not being captured. It is currently the cheapest hydrogen to produce but the process releases large amounts of CO2 into the atmosphere.
Blue hydrogen obtained from fossil fuels, but with techniques which capable of capturing and storing the CO2 emissions produced. It is less polluting than grey hydrogen, but blue hydrogen can only reduce emissions from the production process, not eliminate them completely. Blue hydrogen is sometimes described „low-carbon hydrogen” because, although the CO2 produced is stored, the extraction of natural gas inevitably produces methane emissions.
Turquoise hydrogen is produced by a process called methane pyrolysis to produce hydrogen and solid carbon. This type of hydrogen could be evaluated as low-emission hydrogen, depending on whether the thermal process is powered by renewable energy and how use the carbon.
Yellow hydrogen obtained from the energy grid by electrolysis, the carbon emissions depend on the sources feeding the grid.
Pink hydrogen made from nuclear electrolysis and has no carbon dioxide emissions. The problem with the technology is that nuclear power produces radioactive waste that must be stored safely for thousands of years.
Green hydrogen is produced with electrolysis by splitting water into hydrogen and oxygen using renewable electricity. This produces only hydrogen and oxygen. The method is a highly energy-intensive process and the electricity must itself be carbon-free (such as wind or solar) in order to consider this hydrogen as green or renewable. Green hydrogen is the only one produced in a climate-neutral way, and it has a key role to play in reaching net zero by 2050. Green hydrogen can be used in industry and stored in existing gas pipelines to power household appliances. When converted into a carrier, it can supply renewable energy. Hydrogen can also be used with fuel cells to power anything that uses electricity, such as electric vehicles and electronic devices. Fuel cells work like batteries, but they do not run down or need recharging. They produce electricity and heat as long as fuel is supplied.
The International Energy Agency (IEA) has reported that the world needs to produce approximately 306 million tons of green hydrogen every year if it is going to meet net-zero emissions targets by 2050. As the IEA points out, this method of obtaining green hydrogen would save the 830 million tonnes of CO2 that are emitted annually when this gas is produced using fossil fuels. However, there are some questions about the viability of green hydrogen because of its high production cost; reasonable doubts that will disappear as the decarbonisation of the earth progresses and consequently the generation of renewable energy becomes cheaper.
At Enasco, we provide techno-economic analysis as part of our advisory services and have strong technological knowledge in the energy transition. Our experience enables us to evaluate all available options and identify the most suitable path for your business. Please, let us know if you would like to know more about hydrogen technologies and generation.
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