Impact of Hydrogen Energy in the Next 30 years

Written by Syedvali Pinjari on Nov 15, 2024. Posted in Electrolyzer Information, Fuel Cell Information

Protecting the environment by reducing carbon dioxide emissions and replacing fossil fuels with alternative energy sources is a key motivation for many nations worldwide. According to a recent survey, nearly 21% of global emissions come from the transportation sector due to increased population, economic growth, and oil-dependent engines. As shown in Figure 1, passenger cars have been substantially releasing 41% of global transportation emissions, followed by medium/heavy trucks accounting for 22%. Therefore, high-capacity energy carriers or materials are essential to reduce these carbon emissions. Among several energy sources, hydrogen has emerged as a sustainable fuel for industrial processes, transportation, and stationary applications. Over the next 30 years, hydrogen energy is poised to play a pivotal role in reshaping our energy landscape, offering a clean, efficient, and versatile alternative to fossil fuels.

Figure 1 Distribution of CO2 emissions in the transportation sector. Redrawn from Ref. [1]. © Statista 2022.

Overview of Hydrogen Energy

Hydrogen is the most abundant element in the universe, and when used as an energy source, it produces only water as a by-product, making it an incredibly clean option. Hydrogen can be produced through various methods. hydrogen production reaches around 90 million tons annually, primarily derived from natural gas and coal, creating what’s known as “gray hydrogen.” While this method is efficient, it results in considerable CO₂ emissions. “Blue hydrogen” is a cleaner alternative, capturing and storing the CO₂ emissions generated in the process, but it still depends on fossil fuels. The ultimate goal, however, is “green hydrogen,” which uses renewable energy to split water into hydrogen and oxygen through electrolysis, resulting in zero emissions. Although still in the early stages due to high production costs, advancements in green hydrogen technologies are expected to make it more accessible and affordable in the coming decades.

Hydrogen storage is typically achieved through three main methods: compressed gas, liquid hydrogen, and solid-state storage. Compressed gas storage involves high-pressure tanks (350-700 bar) to store hydrogen as a gas. This method is widely used but requires strong, heavy tanks for safety. Liquid hydrogen storage entails cooling hydrogen to cryogenic temperatures (-253°C), achieving higher density but requiring substantial energy for cooling and insulation. Lastly, solid-state storage uses materials like metal hydrides or porous materials to absorb hydrogen at lower pressures, offering compact, safe options, though at high cost and with slower release rates. Each method has unique challenges, including safety, cost, and efficiency, which are the focus of ongoing research to make hydrogen storage more practical for broad applications.

Environmental and Economic Implications

Adopting hydrogen at a larger scale brings both environmental and economic benefits. Environmentally, hydrogen can cut CO₂ emissions substantially, helping countries meet climate targets outlined in international agreements. If hydrogen reaches the projected 10-15% of total energy consumption by 2050, global emissions could drop by approximately 6 gigatons per year, a significant step towards a carbon-neutral future.

Economically, the hydrogen sector could foster job creation and regional development as demand for hydrogen production, distribution, and technology grows. Europe, Asia, and North America are investing heavily in hydrogen infrastructure, with multi-billion dollar initiatives aimed at building a hydrogen economy. This will drive innovation, stimulate green technology markets, and create new employment opportunities across the value chain.

Statistics and Projections

Despite its potential, the widespread adoption of hydrogen for energy faces several challenges. These include the high cost of production, the need for extensive infrastructure development, and the establishment of regulatory frameworks. However, ongoing research and development, coupled with supportive policies and investments, are expected to drive down costs and accelerate the deployment of hydrogen technologies.

Hydrogen demand is projected to grow significantly over the next few decades, with estimates ranging from 73 to 158 million tonnes (Mt) by 2030, 73 to 300 Mt by 2040, and 73 to 568 Mt by 2050, depending on various scenarios. Clean hydrogen could account for up to 73-100% of total hydrogen demand by 2050, with only a small fraction being met by grey hydrogen. Currently, around 350 hydrogen projects are under development, which could bring global capacity up to 54 gigawatts (GW) by 2030, with an additional 40 projects in early stages accounting for more than 35 GW of capacity.

The hydrogen economy holds significant economic potential, with the possibility of creating millions of jobs globally. For instance, the European Union alone could see up to 1 million jobs created by 2030 in the hydrogen sector. Investment in hydrogen infrastructure and technology are expected to reach hundreds of billions of dollars by 2050. Environmentally, hydrogen has the potential to avoid up to 60 gigatons of CO2 emissions by mid-century and could meet 10-20% of the world’s energy needs by 2050, significantly contributing to global decarbonization efforts. Technological advancements, such as improvements in electrolysis technology, are crucial, with the cost of producing green hydrogen expected to fall by 30-50% by 2030. Additionally, the deployment of hydrogen refueling stations is projected to increase, with over 163,000 stations needed globally by 2050.

Key players in hydrogen energy

These companies are at the forefront of hydrogen energy innovation, driving the transition towards a more sustainable and decarbonized future.

Table 1 Here are some of the key players in the hydrogen energy sector

# No	Company	Aim/Ongoing Work
1	Neom Green Hydrogen Company (NGHC)	Located in Saudi Arabia, NGHC is building the world’s largest green hydrogen plant, set to produce up to 600 tonnes per day by 2026.
2	Air Products	A global leader in industrial gases, Air Products is heavily invested in hydrogen infrastructure and production, including a $7 billion carbon-free hydrogen project in Saudi Arabia.
3	Plug Power	Known for its end-to-end green hydrogen ecosystem, Plug Power produces carbon-free hydrogen and has deployed over 60,000 fuel cell systems.
4	BP	BP aims to be a net-zero company by 2050, with significant investments in both green and blue hydrogen projects, including H2Teesside in the UK.
5	Siemens Energy	Siemens Energy is advancing green hydrogen production through its Silyzer technology, which uses renewable energy to produce hydrogen via electrolysis.
6	Linde	Linde is a leading supplier of PEM electrolyzer technologies and produces grey, blue, and green hydrogen.
7	First Hydrogen	This company focuses on green hydrogen solutions for zero-emission fleets, offering a comprehensive Hydrogen-as-a-Service model.
8	Lhyfe	Based in France, Lhyfe is pioneering offshore green hydrogen production, aiming to decarbonize industry and transport.

Conclusions

In conclusion, hydrogen energy stands as a transformative force in the global shift towards sustainable and clean energy solutions. Over the next 30 years, its role is expected to expand significantly, driven by technological advancements, supportive policies, and substantial investments. Hydrogen’s potential to drastically reduce CO₂ emissions and meet a significant portion of the world’s energy needs positions it as a key player in achieving climate goals and fostering economic growth. As the hydrogen economy develops, it will not only contribute to environmental sustainability but also create new opportunities for innovation and employment, paving the way for a greener and more prosperous future.