What is the context?
Global demand for hydrogen will increase dramatically. But is it really the green alternative?
- The majority of hydrogen production produces greenhouse gas emissions
- Green hydrogen accounts for less than 1% of global hydrogen production
- Countries are examining green initiatives to reduce emissions
LONDON – Hydrogen energy is often touted as a potential environmentally friendly alternative to fossil fuels such as oil, coal and gas because it produces steam and heat instead of greenhouse gases.
There is massive investment in hydrogen around the world. China, for example, wants to put 50,000 hydrogen-powered vehicles on the road by 2025, and the European Union wants to produce 10 million tonnes of renewable hydrogen by 2030.
But with billions being invested in hydrogen technologies, what exactly is hydrogen energy and is it really the green alternative the world needs to decarbonise?
What is hydrogen energy?
Hydrogen is considered a clean energy source because when burned as a fuel it produces only heat and water – and not the planet-warming greenhouse gas emissions that come from fossil fuels such as oil and gas.
Hydrogen is already used in many industries. More than half of the hydrogen produced worldwide is used to make ammonia, which is found in products such as fertilizers and plastics. About 25 percent is used for oil refining and about 10 percent for methanol production.
Is hydrogen energy renewable?
Since hydrogen does not exist on its own, it must be extracted from other chemicals. How this extraction takes place determines whether it is truly renewable.
The cleanest form of production is “green” hydrogen, which is produced using renewable energy such as solar or wind power. Hydrogen is separated from water through electrolysis without harmful byproducts.
However, despite its green potential, hydrogen is produced almost exclusively (98%) from fossil fuels. The production of the fuel, known as “grey” hydrogen, releases carbon dioxide into the atmosphere, making it the most harmful form of the fuel.
So-called “blue” hydrogen captures carbon to reduce these emissions, but it only accounts for about 1% of production.
How much of current hydrogen production is “green”?
According to the International Renewable Energy Agency (IRENA), green hydrogen accounts for less than 1 percent of global hydrogen production.
For example, across the EU, 96% of all hydrogen was produced from natural gas in 2022.
Experts say this is partly because green hydrogen is more expensive to produce. These costs are passed on to consumers – green hydrogen costs between $4 and $6 per kilogram, two to three times more than grey hydrogen, according to IRENA.
A Hyundai Xcient Fuel Cell hydrogen truck is parked at a hydrogen H2 filling station for trucks and cars in Berlin, Germany, January 11, 2023. REUTERS/Michele Tantussi
A Hyundai Xcient Fuel Cell hydrogen truck is parked at a hydrogen H2 filling station for trucks and cars in Berlin, Germany, January 11, 2023. REUTERS/Michele Tantussi
Where is green hydrogen currently used?
Green hydrogen is mainly limited to transport and is mostly used in road vehicles.
Today, there are over 72,000 hydrogen fuel cell vehicles on the roads worldwide, mainly in China, the USA, South Korea, Japan and Germany.
However, due to a lack of infrastructure, hydrogen is less readily available than conventional gasoline. For example, in the United States, one of the largest hydrogen producers, there are only 59 hydrogen filling stations for vehicles, most of them in California.
There are 354 hydrogen refueling stations in operation in China – the largest number in the world. More than 95% of all fuel cell-powered electric trucks and almost 85% of all hydrogen-powered buses are also based here.
In 2022, Germany launched the world’s first hydrogen-powered passenger train. It can travel up to 1,000 km on a single tank of fuel.
The aviation industry is also slowly but surely developing ways to use hydrogen for longer flights. In 2023, the first piloted flight of an electric aircraft powered by liquid hydrogen took place in Germany.
Which countries support green hydrogen projects?
The global race to build a hydrogen infrastructure is coming to a head.
According to Global Market Insights, a research and management consulting firm, the global hydrogen industry was valued at $183 billion in 2022. The World Bank projects that demand for hydrogen will grow to 500-680 million tons by 2050.
Although China is the largest producer and consumer of hydrogen, only 1.5 percent of production comes from renewable energy. According to the US think tank Center of International and Strategic Studies, coal-based hydrogen production in China costs almost half the price of renewable hydrogen.
China has also released its first long-term plan for hydrogen. The government has called hydrogen a “frontier” energy source and aims to produce between 100,000 and 250,000 tons of hydrogen annually from renewable sources by 2025.
China believes that these targets would reduce emissions by one to two million tonnes per year.
In the US, the Infrastructure Investment and Jobs Act (2021) approved $9.5 billion for clean hydrogen projects, incentives and job creation. The law aims to reduce the cost of producing clean hydrogen and make it more affordable for consumers.
(Reporting by Noah Anthony Enahoro; Editing by Jack Graham and Jon Hemming.)
