How green hydrogen will shape the clean energy transition
The global energy system is undergoing a massive transformation.
From coal to natural gas to renewable sources, we see dramatic shifts in how people produce and consume energy. Although these changes are usually driven by economics and policy decisions, there's another reason why many nations are moving away from fossil fuels: it's simply cleaner.
The world now produces enough wind and solar capacity to meet nearly half the current demand.
Is hydrogen the best path to achieving our clean energy transition?
The article below takes a deep look at where green hydrogen fits into the global clean energy transition and how it might help accelerate the pace of change.
What is green hydrogen?
Hydrogen is one of the essential elements in the world. It is found in everything from rocket fuel to antifreeze to the air we breathe. It also is paving the future in decarbonizing our power systems.
Hydrogen is commonly produced via electrolysis, splitting water into oxygen and hydrogen using electricity. The hydrogen produced can be used for various purposes, including powering vehicles, fueling homes, or even making plastics.
Green hydrogen is when the electrolysis process is powered by renewable and clean energy sources such as wind, solar, or water. This process makes green hydrogen carbon-free as there are no CO2 by-products, which makes it a vital resource for achieving net-zero emissions.
In addition to being cleaner and having no greenhouse gases, green hydrogen can also be easily stored and transported for future use.
The use-cases for green hydrogen across industries
Green hydrogen has several use cases across several markets and industries. These include:
Decarbonizing the manufacturing process in hard-to-abate sectors such as steel, ammonia, oil, and chemicals.
Powering fuel cells that use hydrogen to create electricity. Fuel cells are an alternative to traditional combustion engines because they do not emit harmful gases like carbon dioxide.
Since green hydrogen is a viable methane-free alternative and serves as a clean replacement for natural gas, which emits methane, a greenhouse gas that contributes to global warming.
Auto manufacturers are producing hydrogen fuel-cell electric vehicles in the State of California and Asia.
Manufacturing includes 'green steel' refineries that use hydrogen instead of traditional fossil fuels to make steel.
How clean is green hydrogen?
Green hydrogen is 100% carbon-free.
No other greenhouse gases are emitted in generating it, and because green hydrogen is created through electrolysis, it doesn't require burning anything. This makes green hydrogen a zero-emission source of energy.
It also makes it a highly efficient way to generate electricity. A single kilowatt hour of green hydrogen produces about three times more power than a conventional coal plant.
Read more in our white paper Measuring the Carbon Intensity of Green Hydrogen.
The challenges with green hydrogen
One of the biggest challenges with green hydrogen is storing it safely and efficiently. The most common storage method is to convert it into liquid form using cryogenic cooling. However, this requires large amounts of energy and creates a lot of waste heat.
Another challenge is making sure that there is enough supply of hydrogen to meet demand. Currently, only a tiny fraction of all hydrogen produced worldwide is used for industrial purposes and most of it is burned in power plants. Many are looking at ways to capture hydrogen from water vapor, biomass, or biogas to increase the amount of green hydrogen available.
“We know how to make wind turbines, solar panels, and electric vehicles. What we don’t know how to do is convert dirty sources into clean ones.”
Green hydrogen's role in enabling the US green transition
Green hydrogen is a clean, renewable and sustainable alternative to fossil fuels that will play a vital role in the energy transition we must make to combat climate change. Unlike nuclear, solar, and wind power, green hydrogen does not produce radioactive waste or greenhouse gases.
The Natural Resources Defense Council (NRDC) states that the last 15 percent of the energy economy is difficult to decarbonize. "We know how to make wind turbines, solar panels, and electric vehicles," says Senior Advocate Rachel Fakhry, "What we don't know how to do is convert dirty sources into clean ones."
Green hydrogen has the potential to help us achieve that goal. Recent breakthroughs in electrolysis can potentially lead to cheap hydrogen production from water and electricity.
The global adoption and growth of green hydrogen
The United States has recently been leading the way in hydrogen development with the passing of the Bipartisan Infrastructure Law passed in 2022, which will provide $8 billion for hydrogen hubs across the US, $1 billion for a clean hydrogen electrolysis program, and $500 million for hydrogen manufacturing and recycling. The Inflation Reduction Act (IRA) will provide a hydrogen production tax credit (PTC) of up to $3/kg for low carbon intense hydrogen. It will also extend investment tax credits (ITC) for fuel cells.
The State of California has commitment to meeting 100% of its electricity needs through renewable energy by 2045. This commitment would mean the state must find new ways to store surplus energy produced by solar or wind power. Green electrolytic hydrogen storage is a robust solution for this need.
Across the EU, there are plans to install 40 gigawatts (GW) of green hydrogen capacity by 2030. France plans to invest $1.2 billion in research and development into green hydrogen technology over the next decade. The plan includes developing storage systems for excess electricity generated during off-peak hours and creating hydrogen production facilities powered by renewable energies such as wind or photovoltaic cells.
India aims to become the global leader in hydrogen fuel cell cars and introduced its plan to develop 1 million hydrogen fueling stations by 2030. India also announced plans to produce 5 million tons of green hydrogen by 2030.
Japan announced its plans to invest heavily in green hydrogen infrastructure by building one of the largest hydrogen stations in the world, which will generate enough hydrogen to fuel every car on its roads.
The tools for achieving a low-carbon future
The growth of the hydrogen economy is undoubtedly exciting and full of potential.
A critical missing piece to achieving its full potential is ensuring governments and industries are developing their hydrogen plans with an informed and throughout the complete business cycle.
That is our mission at Dash Clean Energy - to help companies and organizations around the globe achieve a sustainable, low-carbon future.
Dash Clean Energy provides advisory and digital solutions to spur the growth and development of the green hydrogen economy. We help our clients navigate the elaborate challenges associated with energy decarbonization, emerging technology assessments, and climate change policy.
Learn more about our solutions or schedule a call with one of our experts.
