Eurasian Hydrogen Economy Scenario

Share on facebook
Share on twitter
Share on linkedin

Hrishikesh Nambiar

Figure: Colours of Hydrogen, Credit cat weeks

1. Introduction

Non-Renewable fuels are currently used as the major energy source for 78.4% of global energy demand [1]. But this excessive use of fossil fuels is a cause of major concern due to its harmful environmental impacts like acid rain and emission of greenhouse gases which contribute to global warming. To combat these negative climatic effects the Paris Agreement was signed at the Conference of the Parties (COP 21) agreeing to ‘significantly reduce the greenhouse gas (GHG) emissions to limit the global temperature rise to 2 degrees Celsius but trying to limit to 1.5 degrees’ [2]. To achieve this target, we are currently undergoing an energy transition and decarbonization at all sectors.

Due to its flexibility, versatility, and clean nature, Hydrogen plays a very important role as an energy carrier in the decarbonization and energy transition.  Renewable energy sources like solar and wind energy while being sustainable and low emission sources faces difficulties due to their dependence on the weather, and the location of the source position. Due to the intermittent nature of these sources robust energy storage with easier transport and distribution is required. Current battery sources are not versatile enough and are difficult to transport long distances.  Hydrogen offers a great solution where the clean energy from the non-renewable sources can be used to convert water to Hydrogen by electrolysis, which in turn can be stored and transported through tankers or pipelines. This stored clean Hydrogen can be converted to clean electricity using fuel cells with water as the only byproduct. It is particularly important in industries (like ammonia, chemicals, and steel production), transportation, and aviation where synthetic fuels and hydrogen are the only scalable decarbonization options available [3].

2. Hydrogen is possible High impact areas

2.1.  Transportation

Due to the higher energy density (both volume and weight) of Hydrogen compared to batteries, the Fuel Cell Electric vehicles (FCEVs) run on hydrogen can go further and can carry more payload than an electric vehicle. Thus, in the heavy vehicle sector where long-distance and heavy payload transportation service is required hydrogen is a great zero-emission alternative and FCEVs are the superior solution. Battery Electric vehicles (BEVs) are more energy-efficient [4] and cheaper than FCEVs in the lightweight vehicle sector, but it has higher charging time.

Decarbonizing trains, many of which are currently run by diesel or coal requires lesser infrastructure changes converting to hydrogen fuel cell engines than electrifying. Ships are another means of transportation that require high energy density fuel. Fuel cells in ships is again a most relevant addition which could reduce the GHG, NOx emission, and water pollution [5].

Synthetic fuel (Synfuel) is a man-made alternative to the current fossil fuel since they are chemically similar but is low emissions. Synfuel can be synthesized by combining hydrogen (electrolytic water splitting) and CO2 (direct capture from the air using Carbon Capture Utilisation and Storage systems-CCUS) which is called the fuel, or it can also be formed by processing biological matter which is called biofuel. Synfuel can be particularly used in aviation which is a high energy density utilization transport sector. The advantage of synfuel is in its versatility as it can be used as a quick substitute for current fossil fuels, but currently, it is more expensive than fossil fuels [6].

2.2.  Industrial heat and feedstock

Industrial heat is one of the most energy utilizing areas that require decarbonization. Aluminum, Cement, petrochemicals, Iron and Steel, and Paper are some of the most energy-intensive industries. Here emissions can be reduced by using CCUS, substituting the fossil fuel used for heat with Hydrogen, and using renewable electricity. Hydrogen is particularly useful and cost-effective in industries that use it as an input for their processes. The use of hydrogen across other sectors will see an increase in usage of this clean, weather-independent, reliable source of energy when its cost falls and more hydrogen is produced with industry incentives as part of decarbonization [5].

Hydrogen is also used as feedstock in chemical (Ammonia, methanol), refining (Hydro-cracking, Hydro-treating, biorefining), and steel industries. But currently, almost 95% of the hydrogen used is grey hydrogen produced from natural gas (Steam-methane reforming without CCUS). Thus, a great need for green hydrogen is in place.

2.3.  Hydrogen production

Hydrogen is the most abundant element in the periodic table. But currently, the hydrogen extracted is mostly using fossil fuels due to its low cost. The most common methods for producing hydrogen are steam-methane reforming (where natural gas is the main methane source) and electrolysis (splitting water with electricity). It can also be produced by biological processes with microbes or by Thermochemical processes where hydrogen is produced by thermal reactions using sources like natural gas, coal, and biomass [7]. Thus, how emission-free the hydrogen produced is can only be recognized by its production source.

Hydrogen is informally known by different colors depending upon how it is produced [8]:

Green Hydrogen is the hydrogen produced by electrolyzers using the excess clean renewable energy available. It has zero greenhouse gas emissions.

Blue Hydrogen is produced from natural gases using steam reforming. It has CO2 emission; thus, it should be used with CCUS. It is also referred to as low carbon-hydrogen.

Black and Brown Hydrogen is produced from black coal(black) or lignite(brown). It is thus the most harmful hydrogen.

Pink Hydrogen also referred to as purple or red hydrogen is produced by electrolysis using energy from nuclear energy sources.

Turquoise Hydrogen is produced by pyrolysis of methane to produce hydrogen and solid carbon. It has good potential to be low emissions hydrogen depending upon the use of the carbon produced in the future.

White Hydrogen is the hydrogen found in the natural geological formations and extracted through fracking.

2.4.   Hydrogen storage

Hydrogen has a high energy per mass content which is nearly three times that of gasoline and diesel, but its energy per volume content is just one-fourth of that of gasoline and hence requires more volume. Therefore, hydrogen requires four times higher volume to provide the same energy requirement of an average gasoline vehicle, this is a major issue for lightweight FCVs (Fuel Cell Vehicles) which generally require a good travel range with the ability to refill easily and quickly.

Generally, hydrogen can be stored as compressed gas using advanced pressure vessels with high-pressure capabilities, or liquid states in cryogenic tanks. It can also be stored using material-based technologies like chemical hydrogen, as an adsorbent, or as metal hydrides [9].  It can also be stored underground in already existing stable salt caverns, aquifers, or depleted gas wells.

2.5.  Electricity generation with hydrogen

Electricity can be generated from hydrogen by combustion, but the efficiency of hydrogen combustion engines is less compared to gasoline combustion engines due to their low volumetric energy density. Also, these combustion engines produce NOx which is not preferred [10]. Thus, fuel cells are used to convert this chemical energy from hydrogen to electricity, while being more efficient as well as a cleaner alternative to the combustion engines. The fuel cell uses hydrogen as the input fuel and the only byproduct is water.

3. Eurasian hydrogen strategy

3.1.  China

China is currently the largest producer of hydrogen at about 33 million tons (Mt), but approx. 80% of it is produced from coal and natural gas. China the largest GHG emitter and also the leading renewable energy producer, plan to reduce its carbon footprint by increasing its green hydrogen production from its large installed renewable energy sources.

On March 23, 2022, the Chinese government announced its hydrogen plan for 2021-2035, planning to produce 100,000-200,000 tons of green hydrogen every year and have a fleet of 50,000 hydrogen-fuelled vehicles by 2025.  While this policy is modest compared to their renewable energy policy where they plan to double the installed solar and wind capacities, this plan signals the future possibilities of hydrogen technology in their long-term decarbonization goals. It is also noteworthy that many provinces and regions have also included hydrogen in their development plans [11].

China accounted for 35% of the global electrolyzer manufacturing capacity in 2020. Chinese companies are trying to reach a capacity of 1.5-2.5 GW by 2022. And the China Hydrogen Alliance is aiming to reach 100GW hydrogen capacity by 2050. Currently, it costs double to produce green hydrogen compared to black hydrogen and this is a major hurdle hampering the wider deployment of green hydrogen [12][13].

3.2.  Japan

Japan was the first country to adopt a national hydrogen framework through the basic hydrogen strategy in 2017. Japan is highly ambitious regarding hydrogen and aims to be the first hydrogen economy in the world. It plans to reach hydrogen production to 3 Mt in 2030 and 20 Mt by 2050. Also, the country is trying to reduce the cost of hydrogen by one-third by 2030[14].

Japan also is investing heavily in the FCVs where they are aiming to have 200,000 FCVs on road by 2025 and 800,000 by 2030. Also increasing the refueling stations to 320 by 2025 and 900 by 2030[14].

But since Japan is a major importer with 96% of its energy imported. Also, Japan relies heavily on fossil fuels with 88% of its energy coming from non-renewable sources. While hydrogen is of great importance for the decarbonization goals of Japan, it is equally important to improve its energy mix to produce green hydrogen and not black/blue hydrogen [15].

3.3.  India

India introduced its National Hydrogen Mission on 15 Aug 2021, and as part of it, a new policy for hydrogen and ammonia was introduced on 17 Feb 2022. The Policy allows waiver from Inter-state transmission charges for green hydrogen & green ammonia producer projects for 25 years. It also proposes manufacturing zones to set up green hydrogen & ammonia production centers [16].

According to the power minister, India targets to reach the production of green hydrogen to 5Mt per annum by 2030 and make India a green hydrogen hub.  Several players like reliance industries limited (RIL), Adani Enterprises, Indian Oil Corporation Limited, and NTPC Limited also proposed their hydrogen plans. RIL plans to produce blue hydrogen at $1,2-$1,5/kg by repurposing its gasification assets, signaling its aim to be the first player to move into the hydrogen ecosystem and establish its position until green hydrogen is available at a cheaper rate. RIL owner Mukesh Ambani targets to produce green hydrogen at $1/kg by 2030 and wants his company to reach net-zero by 2030 [17][18].

3.4.  European Union (EU)

EU revealed their hydrogen strategy in July 2020 aiming to improve the hydrogen composition in their energy mix to 13-14% by 2050 from 2% in 2020 [19]. The Hydrogen strategy is planned to be executed in three phases. In phase 1, the EU targets 6GW installed green hydrogen electrolyzer capacities from the capacity of approx. 1GW in 2021. And plan to achieve production of 1Mt of green hydrogen. In phase 2, reach the installed electrolyzer capacity of 40Gw and produce up to 10 Mt green hydrogen. Phase 3, is to scale up the production to reach all hard to decarbonize sectors and improve the hydrogen technologies to reach maturity [20].

On 14 July 2021, the EU Commission presented the ‘Fit for 55’ package of climate legislation, a set of proposals and amendments to slash GHG emissions by at least 55% by 2030 compared to 1990[21]. But currently, the production is as much as €6 per kilo for the green version compared to around €2 per kilogram for grey hydrogen [22].

3.5.  United Kingdom (UK)

The UK released its hydrogen strategy in August 2021 to become the “world-leading hydrogen economy”. They plan to develop 5GW of low carbon hydrogen production capacity by 2030. Their plan for 2030 also includes 4 CCU clusters, a potential pilot hydrogen town, and an ambition for 40GW offshore wind capacity.

Their roadmap also includes plans to increase the number of large-scale electrolytic production, widespread deployment of large-scale CCU-enabled projects by end of the 2020s, and increase the range of hydrogen production to include nuclear and biomass. Also deploying hydrogen in all sectors including the steel industry, power system, transport: HGVs, aviation, shipping, and gas grid conversion by the 2030s [23].

4. Challenges and Way forward

  1. Hydrogen is a highly inflammable and explosive gas in presence of air and should be handled with utmost care. Thus, great safety measures along with regular inspections and maintenance should be in place.
  2. To make sure that the hydrogen produced and distributed is mainly from non-renewable energy i.e., green hydrogen, proper regulation, and a standardized certification system should be in place.
  3. A technological breakthrough in electrolyzer and fuel cell efficiency will expedite green hydrogen production as well as FCV production and usage. Catalyst requirements especially in finding an alternative to PGM (Platinum group metals), and membrane efficiency are a few areas that require further research.
  4. Infrastructure development is required for the widespread deployment of hydrogen. Industrial restructuring, refueling stations for FCVs.
  5. International cooperation among countries, local government subsidies, and an encouraging policy framework is needed for the hydrogen economy to catch up with the fossil fuel market.

5. Conclusion

For the world economy to achieve its sustainability goals, it is of utmost importance to have a hydrogen strategy and roadmap for the future. With the cost of production of renewable sources showing a great decline from the 2000s with the current rates being comparable to the non-renewable sources, the importance of hydrogen economy is more than ever. Many countries have therefore developed their targets for the hydrogen economy realizing its potential in the current energy transition phase. Hydrogen due to clean and versatile commodity can be a great carrier source of energy, also bridging the gap during the energy transition and decarbonization phase. It is still mostly produced from non-renewable sources, but the world is fast moving towards more green hydrogen. The hydrogen economy development strategy of countries should go hand in hand with the development of renewable energy sources. With better global cooperation, friendly policies, standardized certification, proper infrastructure development criteria, and countries’ hydrogen policy targets met, this decade could be a golden period for the global hydrogen economy.

6. Bibliography

  1. https://www.sciencedirect.com/science/article/pii/B9780128202975000104#bib4
  2. https://www.un.org/en/climatechange/paris-agreement
  3. https://www.ceps.eu/ceps-publications/is-renewable-hydrogen-a-silver-bullet-for-decarbonisation/
  4. https://www.volkswagenag.com/en/news/stories/2019/08/hydrogen-or-battery–that-is-the-question.html
  5. https://www.fch.europa.eu/sites/default/files/Hydrogen%20Roadmap%20Europe_Report.pdf
  6. https://royalsociety.org/topics-policy/projects/low-carbon-energy-programme/sustainable-synthetic-carbon-based-fuels-for-transport/
  7. https://www.energy.gov/eere/fuelcells/hydrogen-production
  8. https://www.nationalgrid.com/stories/energy-explained/hydrogen-colour-spectrum#:~:text=Green%20hydrogen%2C%20blue%20hydrogen%2C%20brown,between%20the%20types%20of%20hydrogen.
  9. https://www.energy.gov/eere/fuelcells/hydrogen-storage
  10. Hydrogen energy systems: A critical review of technologies, applications, trends and challenges Meiling Yue a,c,∗ , Hugo Lambert a,c , Elodie Pahon b,c , Robin Roche b,c , Samir Jemei a,c , Daniel Hissel a
  11. https://www.csis.org/analysis/china-unveils-its-first-long-term-hydrogen-plan#:~:text=China%20is%20the%20largest%20producer,in%20refineries%20or%20chemical%20facilities.
  12. https://www.reuters.com/world/china/china-produce-100000-200000-t-green-hydrogen-annually-by-2025-2022-03-23/
  13. https://www.argusmedia.com/en/news/2314483-china-outlines-hydrogen-development-plan-for-202135#:~:text=China%20is%20targeting%20to%20bring,1mn%2D2mn%20t%2Fyr.
  14. https://www.csis.org/analysis/japans-hydrogen-industrial-strategy#:~:text=Japan%20is%20focused%20on%20expanding,the%20current%20level%20by%202030.
  15. https://energytracker.asia/japan-hydrogen-strategy/
  16. https://powermin.gov.in/sites/default/files/Green_Hydrogen_Policy.pdf
  17. https://www.reuters.com/business/energy/india-plans-produce-5-mln-tonnes-green-hydrogen-by-2030-2022-02-17/
  18. https://www.reuters.com/world/india/indias-reliance-plans-turn-syngas-into-blue-hydrogen-2022-02-12/
  19. https://www.wfw.com/articles/the-european-hydrogen-strategy/
  20. https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/689332/EPRS_BRI(2021)689332_EN.pdf
  21. https://www.consilium.europa.eu/en/infographics/fit-for-55-how-the-eu-delivers-the-green-transition/
  22. EU reaches for hydrogen stars as economics shift | Reuters
  23. https://www.gov.uk/government/publications/uk-hydrogen-strategy/uk-hydrogen-strategy-accessible-html-version