Green hydrogen produced utilizing renewable energy is more and more seen as a key asset for grid and transport decarbonization.
Interest within the technology is surging. Shell believes the hydrogen sector deserves the identical ranges of assist that went to solar energy over time.
But a minimum of within the medium time period, the decarbonization potential of hydrogen is proscribed. In some areas, it is “simply not economical, and it gained’t be,” stated Wood Mackenzie senior analyst Ben Gallagher.
Green hydrogen stays inefficient and costly immediately, with an end-to-end effectivity of solely round 30 p.c, stated Gallagher.
As a end result, it is exhausting to see it getting used for electrical energy technology in markets such because the U.S., the place pure gasoline costs are anticipated to stay low for the foreseeable future.
Similar challenges may hamper makes an attempt to make hydrogen a viable different to electrification within the automotive sector.
“On the mobility side, you not only have the electrolyzer, you have a large distribution network that you need to build out,” stated Gallagher. “Compared to either EVs or gasoline, I don’t understand how it’s going to be cost-competitive in any way, anytime soon.”
Not a lot “green” immediately
Gallagher’s views echo the findings of a major report on green hydrogen revealed by the International Renewable Energy Agency (Irena) in September, which warned that the gasoline “should not be considered a panacea.”
“A hydrogen-based energy transition will not happen overnight,” Irena’s report states. “Hydrogen will likely trail other strategies such as electrification of end-use sectors, and its use will target specific applications. The need for a dedicated new supply infrastructure may limit hydrogen use.”
Despite the challenges, many are bullish on green hydrogen’s progress prospects.
In research revealed final month, Wood Mackenzie stated greater than 3.2 gigawatts of green hydrogen electrolyzer capability is perhaps deployed between now and 2025, a 1,272 p.c improve on the 253 megawatts put in from 2000 to the top of 2019.
“The large increase in the 2019-2025 period is partially due to the nascency of the market,” Gallagher stated. “But aggressive targets in East Asia and increased interest from major international stakeholders will drive deployment in the near term.”
Green hydrogen is produced when renewable power is used within the electrolysis course of. The ensuing hydrogen can be utilized later to return electrical energy to the grid by way of a gasoline cell.
At current, round 99 p.c of the roughly 130 million tons of hydrogen a 12 months used for industrial processes — largely oil refining and ammonia manufacturing — is made utilizing coal or lignite gasification processes, or steam methane reformation.
The hydrogen trade is seeking to transfer away from these carbon-intensive manufacturing strategies, both by pairing steam methane reformation with carbon seize and storage or by utilizing renewable energy to power water electrolysis.
Neither possibility is reasonable, although. And the primary one, which yields what’s known as “blue” hydrogen, will not be inherently carbon-free, Irena famous.
“Development of blue hydrogen as a transition solution also faces challenges in terms of production upscaling and supply logistics,” stated the company.
On the opposite hand, the price of green hydrogen appears to be like set to fall as electrolyzer manufacturing ramps up and renewable energies get cheaper.
As a results of these altering dynamics, Wood Mackenzie expects green hydrogen manufacturing to be aggressive with gasification and steam methane reformation by 2030 in Australia, Germany and Japan.
Playing the heating card
Given that present manufacturing strategies account for round 2.5 p.c of all world carbon emissions, as soon as renewable-energy-based electrolysis turns into aggressive, “[green] hydrogen will be used to replace [other forms of] hydrogen,” stated Gallagher.
Beyond that, green hydrogen’s fortunes will possible be tied to how environment friendly its manufacturing and utilization can grow to be.
Neil Crumpton, a U.Okay. energy marketing consultant and former chair of the green hydrogen advocacy group known as Planet Hydrogen, stated next-generation electrolyzers would possibly be capable to obtain a close to 80 p.c conversion effectivity.
This may deliver up green hydrogen’s round-trip effectivity for electrical energy manufacturing to between 45 p.c and 50 p.c relying on the kind of gasoline cell, turbine or gasoline engine used to ship power to the grid.
The effectivity might be greater if hydrogen have been used for heating as an alternative of electrical energy manufacturing. “All the thermal energy could be available for heating,” stated Crumpton. “The electrolyzer’s reject heat could also be utilized to heat buildings.”
The wide selection of attainable makes use of for green hydrogen signifies that environment friendly and cost-effective manufacturing might be a boon for nations the place excessive ranges of renewable energy technology are already resulting in vital quantities of curtailment.
Hydrogen might be transported by ship, so it may launch “otherwise stranded renewable energy resources” in locations akin to Australia, stated Crumpton. “In a well-designed system with timely deployment of transmission lines, there would be zero curtailment necessary,” he stated.
“All the electricity generated would either meet consumer demand [or be sent] to electrolyzers.”
But it’s a imaginative and prescient that’s nonetheless a way off.
Learn extra about Wood Mackenzie’s green hydrogen report here.