Green hydrogen: Future game changer or false hope? | Climate Conversations podcast

Key Concepts

Green hydrogen, electrolysis, renewable energy, hydrogen colors (gray, blue, brown, black, gold, white, pink, turquoise, yellow), scale, cost, storage, transportation, infrastructure, international standards, Asia-Pacific region, Intercontinental Energy, molecules vs. electrons, decarbonization, wind and solar energy, seawater, historical context of energy technologies, hype cycle, applications of green hydrogen (fertilizer, industrial processes, refineries, aviation, shipping, steel production, long-term energy storage), P2H2 node concept, modularity, policy, global coordination.

Green Hydrogen: A Status Check

Introduction

The podcast discusses the current state of green hydrogen, an energy source that once held great promise but has seen slower than expected development. While the science is established – green hydrogen is produced from water using electrolysis powered by renewable energy – the challenges lie in accessibility, availability, and affordability.

Hydrogen Colors

The podcast introduces a wide range of hydrogen "colors," each representing a different production method and carbon footprint:

• Green: Electrolysis of water using renewable energy.
• Gray: From natural gas.
• Blue: From natural gas with carbon capture and storage.
• Brown/Black: From different types of coal.
• Gold/White: Naturally occurring hydrogen.
• Pink: From nuclear power.
• Turquoise: From methane without CO2 emissions.
• Yellow: From solar power or a mix of renewables and fossil fuels.

The most commonly produced form is gray hydrogen, powered by fossil fuels, accounting for up to 75% of total hydrogen production.

The Promise and Slowdown of Green Hydrogen

In 2021, the host witnessed firsthand the applications of hydrogen energy in regular life in the Ornne Archipelago, Scotland, a "living lab" for clean energy technologies. Examples included hydrogen-powered local council vehicles, plans to power ferries with hydrogen, and converting electricity into hydrogen for auxiliary ship power or storage. However, since then, development and investment in green hydrogen have slowed down.

Challenges Facing Green Hydrogen

The podcast outlines several challenges:

• High Production Costs: Electrolysis is energy-intensive and expensive to scale up.
• Storage and Transportation: Storing and transporting hydrogen are problematic.
• Infrastructure Issues: Lack of adequate infrastructure globally.
• Lack of International Standards: Hinders investment and research.
• Competition from Batteries: Batteries are proving more viable in some applications, such as passenger vehicles.

Intercontinental Energy's Perspective

Alex Tancock, CEO of Intercontinental Energy, provides insights into the industry.

• Molecules vs. Electrons: He emphasizes that many industries (fertilizer, refineries, aviation, shipping, steel production) require molecules, not just electrons, and cannot be easily electrified.
• Scale is Crucial: To compete with fossil fuels, green molecules need to be produced at a similar scale.
• Location Matters: Green hydrogen production requires vast areas with abundant wind, sun, and seawater, often found in deserts or remote areas. Intercontinental Energy's largest project in Australia is 30 times the size of Singapore.
• Historical Context: Tancock argues that the hype around green hydrogen has led to unrealistic expectations. Historically, new energy technologies (LNG, nuclear, wind, solar) have grown at a rate of 0.07% of global energy per year. Normalizing this rate, hydrogen could reach 2% of global energy by 2050.
• Applications: Green hydrogen is most viable for refineries, chemical production (methanol), shipping, aviation, steel production, and long-term energy storage. Battery electric vehicles are likely to dominate the car sector.
• The Scale of the Challenge: Tancock illustrates the scale of decarbonization with the example of iron ore exports from the Pilbara region in Australia. A 26 GW renewable energy project (larger than the Three Gorges Dam) would only offset 4% of the Pilbara's energy consumption in iron production.
• Cost Reduction: Tancock predicts that green hydrogen projects will start achieving necessary scale and price points in the 2030s due to advancements in electrolyzer technology, compressor technology, and balance of plant. The Chinese market is also expected to drive down costs and improve efficiency.
• Buyer Engagement: Buyers are increasingly developing plans to purchase green hydrogen in the coming years.

The P2H2 Node Concept

Intercontinental Energy utilizes the P2H2 node concept to overcome logistical challenges and reduce costs.

• Modularity: Large projects are broken down into smaller, repeatable "nodes," simplifying project risk and enabling mass production manufacturing with on-site modularity.
• Cost Reduction: The node approach reduces green hydrogen production costs by 10-20% compared to conventional methods.
• Proximity: Turbines and solar panels are placed as close as possible to the electrolyzer within each node.
• Hydrogen Pipelines as Batteries: Nodes are connected by hydrogen pipelines, which act as batteries, eliminating the need for separate battery storage.

Navigating Turbulence

Tancock acknowledges the turbulence in global markets and supply chains but remains optimistic. He emphasizes that the fundamentals matter: a commercially attractive, emissions-free energy source will ultimately be in demand.

Policy Recommendations

Tancock suggests that the development of the renewable energy industry in the wind and solar space had the good fortune of being very local and domestic plays to begin with. Unlike electricity, molecules are globally traded, requiring more international coordination and collaboration between buyers and sellers. He anticipates a patchwork of policies across the world to support green hydrogen development.

Conclusion

While green hydrogen faces significant challenges, particularly in terms of cost and infrastructure, it remains a crucial component of decarbonizing hard-to-abate sectors like shipping, aviation, and steel production. The industry is undergoing a "course correction" after a period of excessive hype, with a more realistic understanding of its near-term potential and long-term prospects. Innovations like the P2H2 node concept and increasing engagement from buyers and governments offer hope for a significant ramp-up in green hydrogen production in the coming decades.