Hydrogen Adoption to Transform Carbon-Intensive Industries

Investment, incentives, and collaborative efforts are needed to scale the supply and demand of low-carbon hydrogen, contributing to the fight against climate change.

FREMONT, CA: On a global scale, the utilization of clean hydrogen and hydrogen-based fuels is emerging as a pivotal component in decarbonizing the energy landscape. Other transformative technologies, such as renewables and carbon capture, utilization, and storage, are also being pursued. One of the key strengths of hydrogen lies in renewable energy sources. While renewables like solar and wind are integral to the energy transition, they can be complemented by hydrogen-based power generation when the output from renewables falls short of meeting electricity demand.

Traditionally, natural gas has been a significant energy source for heating homes, powering businesses, and generating electricity. Most homes and electricity generation across regions such as the UK and the US heavily rely on natural gas. Despite its prevalence, the combustion of natural gas results in carbon dioxide emissions, contributing to the global challenge of climate change. Unlike natural gas, burning hydrogen produces only heat and water, eliminating carbon dioxide emissions.

Hydrogen holds immense potential for decarbonizing industries that have proven resistant to traditional emissions reduction strategies, such as transportation and heavy industries. Notably, hydrogen fuel cell vehicles are already on the roads, with countries leading in establishing hydrogen refueling infrastructure. Hydrogen also presents an attractive option for various modes of transportation, including road, air, and maritime, hydrogen-powered vans, and the adoption of emissions-free hydrogen in steel production.

In the shipping sector, where government regulations are imposing stringent emissions regulations, hydrogen is gaining traction as a cleaner alternative. Numerous pilot projects are underway to explore the feasibility of using hydrogen or its derivatives as a ship fuel. Industries traditionally marked by high carbon emissions, such as steel production, are also exploring the transformative potential of hydrogen. Projects aimed at using emissions-free hydrogen to directly reduce iron in steel production are gaining momentum.

Despite challenges associated with regulatory frameworks, infrastructure, and uncertain demand, there is a growing interest in clean hydrogen projects. While most new hydrogen projects are still in the planning phase, the potential for significant growth is evident, especially if the announced projects come to fruition. The expansion of manufacturing capacities alongside the realization of new projects could lead to a notable decline in the cost of electrolyzers, a critical component of hydrogen production. This cost reduction could mirror the patterns observed in the wind and solar power sectors, catalyzing further uptake of hydrogen technologies.

In light of the energy crisis and increasing government emphasis on future-proof strategies, investment in natural gas and LNG infrastructure is rising. Such infrastructure could be adapted to accommodate clean hydrogen, offering a bridge between the current energy landscape and a greener future. The journey to widespread adoption of clean hydrogen is multifaceted and faces various challenges. However, the potential benefits are significant, ranging from emissions reductions in various sectors to technological advancements and cost reductions.