OUR PATH TO GREEN HYDROGEN
31 March 2022
The goals of reaching net-zero CO2 emissions by 2050 and slowing down the global average temperature rise were set by Paris Agreement in 2015. Currently, 196 countries-participants have joined the Agreement. Since it entered into force, the number of low-carbon regulations has increased worldwide, currently promoting the transition to sustainable technologies. These trends are reflected in easy-to-decarbonise sectors, focused on the use of renewable energy, and hard-to-decarbonise sectors, where hydrogen plays a crucial role. The latter ones involve power generation in terms of power storage, heavy-duty vehicles, and high-temperature manufacturing. Hydrogen is a possible alternative for the energy transition path of the hard-to-decarbonise sectors, with the energy density three times higher than gasoline and better storage capacities than electrical power.
Despite many benefits, the manufacturing of hydrogen from fossil fuels still results in CO2 emissions. The solution was found in converting the current hydrogen production cycle to a more sustainable one, incorporating electrolysis technology, which uses only water, and renewable energy for the production of green hydrogen.
However, green hydrogen generation is not as common as fossil-based one, accounting for only 2% of the total hydrogen production. Green hydrogen's modest market share is reflected in its high production cost, which comprises a few primary components such as renewable electricity cost and electrolyser prices. Nonetheless, by 2030, the cost of renewables is predicted to drop up to 58%, reflecting an expected decline in the cost of green hydrogen production, advancing its competitiveness among other fuels.
The prospective cost-effectiveness of green hydrogen, its higher energy output & sustainability makes it a fuel of the future.