Importance and Uses of Hydrogen

Hydrogen is essential for the process industry. It is primarily used for fertiliser production, but in the future, it can also be used for high-temperature processes such as steel production, for which natural gas or coal is now used.

FREMONT, CA: Clean hydrogen and hydrogen-based fuels, when used at scale, could be a key component of efforts to decarbonise the world's energy system, along with renewable energy sources and strategies for carbon collection, use, and storage.

One of its main benefits is that it is an excellent addition to renewable energy sources. When the production from renewable sources cannot wholly meet the electricity demand, on-demand power generation can supplement wind, solar, and other renewable energy sources, which are still essential for the global energy transition. One factor is hydrogen's potential to help decarbonise businesses like transportation, electricity generation, and hard-to-abate industries.

Today, the chemical and refining sectors use most of the hydrogen produced. Since 1975, the demand for industrial use has tripled, and if it becomes a viable fuel. Likewise, hydrogen could help decarbonise difficult-to-electrify heavy mobility sectors such as shipping, railways, and buses for the energy transition, and demand might grow exponentially.

With several strategic partnerships within the shipping industry eager to reduce emissions in the face of ever-stricter regulatory restrictions imposed on fleet owners and operators by the International Maritime Organization, clean hydrogen is receiving significant interest from global players (IMO). More than 100 pilot and demonstration projects are underway that use hydrogen or its compounds as a fuel for shipping. Some large enterprises are also eager to take advantage of hydrogen's ability to reduce carbon emissions. A flurry of new steel projects has been launched that would employ emissions-free hydrogen in directly reducing iron, a year after the first experimental projects generated clean, "green" steel using renewable energy.

As illustrated by 26 countries issuing national hydrogen policies, clean hydrogen is a powerful tool that can support different countries' unique needs, complement natural endowments, and connect regions. There are 680 projects in the pipeline due to hydrogen's flexibility, ability to decarbonise difficult-to-abate sectors, provide energy security, and redistribute renewable energy across geographies. For example, Europe accounts for 30 per cent of hydrogen investment, while North America accounts for 80 per cent of global low-carbon hydrogen capacity. Meanwhile, South Korea and Japan are critical supply chain partners, having produced half of the world's fuel cell manufacturing capacity.