Because of climate change, many industrialized nations have been searching for alternatives to fossil fuels that are both ecologically beneficial and suit their long-term goals.
Hydrogen is expected to play a key part in decarbonizing economies by extending its usage in energy and transportation systems across the European Union, the United Kingdom, the United States, China, and Japan.
Electricity is the future of global decarbonization, according to all models. For the most part, electric power is the best and most cost-effective method of reducing greenhouse gas emissions.
There are several reasons why solar and wind energy are currently among the cheapest types of power generation in most regions of the world, thanks to decades of subsidy-driven technological improvement.
To make up for this shortcoming, quick technical advancements have allowed for the widespread use of electric power in previously fossil-fuel-reliant industries like transportation, heating, and manufacturing.
According to Bruegel, the key problem for operators of diverse systems is to try to keep up with the demand for electricity in real-time in order to minimize power outages as global energy systems transition to the use of electricity. It gets harder to match as the percentage of solar and wind energy grows.
So, how do we generate power when the sun isn’t shining or the wind isn’t blowing?
This question has a simple answer: hydrogen. Hydrogen is a chemical energy carrier that can be used to store and transport renewable energy while also decarbonizing industries that rely on electricity to do so, such as heavy industry, transportation, aviation, and shipping.
For decarbonization efforts, hydrogen is a suitable complement to renewable energy if it is created by electrolysis based on electricity generated by the same renewable energy sources.
As of 2018, global demand for hydrogen had increased to 70 million metric tons per year, more than tripling from 1975 levels. Oil refining and ammonia production both use it as a feedstock.
Carbon dioxide emissions of 830 million tons a year, equal to Indonesia and Britain’s, are now used to supply hydrogen, which is currently produced using fossil fuels.
Renewable hydrogen techniques, on the other hand, are becoming more and more practical, due in part to lower costs associated with wind and solar technologies.
Renewable hydrogen may presently be generated at a cost of between 2.5 and 6.3 euros per kilogram, with the anticipation of additional cost reductions, according to a website that provides information on hydrogen production prices. As a result, countries all around the world are working to build a strategy for producing sustainable hydrogen.
Hydrogen is the preferred fuel for the future of the world
To get a sense of the present condition of global hydrogen development initiatives, the paper compares plans from the European Union, the United Kingdom, the United States, China, and Japan.
Initiatives of the European Union in relation to climate neutrality
To achieve climate neutrality by 2050, the EU expects hydrogen to play a significant role, and thus it has prioritized the development of renewable hydrogen schemes, according to the site’s statement.
Hydrogen production from fossil fuels will be temporarily replaced by hydrogen produced from alternative sources of low-carbon hydrogen. A three-phased approach to hydrogen deployment in Europe is expected, according to the organization.
Both the industrial and transportation sectors will be major markets for hydrogen, according to EU policy. Hydrogen produced from fossil fuels is being phased out in refineries and ammonia production, while fossil fuels in the steel sector are being partially replaced for immediate industrial use.
The European Union’s strategic vision is included in national hydrogen policies and investment plans throughout the EU. The hydrogen plan for 2020 has been accepted by a number of EU nations, including Germany, France, Italy, and Spain. About 11.5 billion euros have been set aside for this strategy’s implementation over the next five years, with 3 billion euros slated for German and Italian shores, 2 billion dollars slated for France, 1.5 billion dollars slated for Spain, and roughly 1 billion dollars slated to be spent in Poland and Romania.
In order to hasten the development of Europe’s hydrogen value chain, significant projects of common European interest were also started in 2020. The ambition level of national strategies varies, but it is obvious in certain situations that they are quite ambitious.
There are plans to create 5 gigawatts capacity in electrolytes by 2030 in order to meet the country’s national objective of 90 to 110 TWh of energy consumption by then, said the center. EU plans to cut emissions call for Germany to use around 4% of its final energy consumption, according to a report from the European Commission’s Joint Research Center.
9 billion euros were saved in Germany as a result of their national hydrogen policy. A target of 6.5 gigawatts of electrolyzer capacity by 2030, and 7 billion euros in public investment till 2030, is France’s goal for hydrogen uses in the industrial and transportation sectors, respectively.
An official strategy for hydrogen has been implemented in Italy as well, with the main goal being to build up to 5 gigawatt-hours of electrolyzer capacity by 2030 and grow that capacity by 20 percent over the next two decades.
With a total of 9 billion euros in public and private investment, Spain hopes to have 4 gigawatts of electrolyzer capacity by 2030.
The hydrogen economy is a priority for the British government
Britain’s “world-leading hydrogen economy” strategy was unveiled in August 2021, according to Bruegel, which views hydrogen as a major component of the energy transition, particularly in sectors such as electric power, industry, and some modes of transportation.
Developing a low-carbon hydrogen production capacity of 5 gigawatts by 2030, equivalent to Germany and Italy, is the key target, culminating in 20 to 35 percent of the country’s energy consumption being hydrogen-based by 2050.
To decarbonize those sectors that now consume hydrogen excessively from fossil fuels, such as the chemical industry and oil refineries, as well as household heating systems, electricity, and some transportation sectors, the objective remains to allow hydrogen to play a key role.
It’s intriguing to see the high hopes that the British public has for hydrogen’s potential in the home heating industry. Hydrogen is expected to provide around 1 terawatt-hour of household heating demand in the United Kingdom by 2030, allowing about 67,000 homes to stop using natural gas and begin utilizing hydrogen instead.
First, 45 TWh of hydrogen will be produced by 2035, which will cover around 10% of local heating demand.
It is crucial to highlight that the plan does not support the use of hydrogen in automobiles, but there are still sectors that are difficult to bring electricity systems into, such as shipping, aviation, trucks, buses, and trains.
According to the plan, the hydrogen economy in the United Kingdom will be worth 900 million pounds by 2030, create over 9,000 employment, and reach 100,000 jobs and 13 billion pounds by 2050.
The US strategy
When the Infrastructure and Jobs Investment Act was signed into law in November of last year, the Center for American Progress claimed that the United States would not begin formulating a national strategy for clean hydrogen until then. Additionally, the Department of Energy offered a strategy framework for converting hydrogen into an inexpensive, widely available, and dependable technology that is a vital element of numerous sectors of the economy across the United States.
In order to meet the requirements of the Investment and Jobs in Infrastructure Act, at least four regional clean hydrogen centers must be established. They’ll be located in areas with a lot of natural gas, according to a measure passed by Congress.
A fossil fuel-based hub, a nuclear-powered hub, and a renewable energy-based hub will all be used. As a potential source of hydrogen, coal was also mentioned, but there was no objective to boost hydrogen production from renewable energy.
According to the regulations, “clean hydrogen” is defined as hydrogen produced with no more than two kilos of carbon dioxide emissions.
By giving subsidies for research and development initiatives, the United States is aiming to overcome technological constraints and verify hydrogen prototype uses. Public hydrogen investments by the Department of Energy were capped at $150 million per year in 2017, but the Infrastructure and Jobs Investment Act enables up to $9 billion in future investments between 2022 and 2026.
As with the EU’s Next Generation Programme, $8 billion of the $9 billion will be spent on building regional hydrogen hubs for industrial, heating, and transportation purposes. Research and development programs, including electrolyzer demonstrations, will get an extra $1 billion from this round of funding. A 4- to 6-fold rise in hydrogen use is expected by 2050 if the United States is able to keep up with its goals. By 2050, hydrogen will account for up to 14 percent of the United States’ total energy consumption.
China has a strategy
While China is now the world’s greatest producer of hydrogen, it cannot be considered a green source of energy because the vast majority of its hydrogen production relies on coal. It’s not only the usual uses of hydrogen, such as ammonia manufacturing or feedstock for a petroleum refinery, that the government is aiming for.
Hydrogen has been designated as a key developing sector in China’s newly issued 14th Five-Year Plan, with the objective of boosting renewable energy-based hydrogen production to 50% of total hydrogen production by 2030. Given the country’s existing reliance on coal for hydrogen generation, this is a significant commitment.
Similar to the US strategy, future perspectives suggest that CCS will play a key role in eliminating carbon from hydrogen generation.
The National Hydrogen Development Strategy, which has not yet been released, is anticipated to explain hydrogen’s future applications. Because there are so many potential uses for hydrogen, some provinces, like Shandong, are working to create industrial hydrogen clusters. Hydrogen-based renewable energy-based steel manufacturing pilot initiatives have also been developed.
Market experts believe that existing transportation sector subsidies and investment programs will be extended to hydrogen supply and storage infrastructure, as well as carbon capture and storage technologies and electrolysis. Until a national hydrogen development plan is created, it is impossible to know the exact quantity of these investments.
Hydrogen is now part of Japan’s green growth plan in ten different sectors.
A “Basic Hydrogen Strategy” was established by Japan in 2017, according to the institute. In this plan, hydrogen will be used both in the home and the workplace. A total of ten of Japan’s fourteen “Green Growth Strategy” key technological sectors include hydrogen.
A key aspect of Japan’s goal to become self-sufficient in fossil fuels is its hydrogen plan.
By 2030, Japan plans to boost its hydrogen consumption from 300,000 tons to 6 million tons, a 20-fold increase. In the present primary energy consumption, hydrogen now accounts for 4.5% of total energy consumption, up from 0.2% previously.
Locally produced renewable hydrogen is predicted to meet the increasing demand in 2030, and between 5 and 10 million tons in 2050. Energy from renewable sources will also provide the remaining demand, as well as natural gas and hydrogen imports from abroad. There is no precise objective for the percentage of imported hydrogen derived from renewable energy sources, although domestic production intends to be 100 percent renewable by 2030.
Since the first decade of the twenty-first century, both Japan and China have been using hydrogen in their transportation systems. By 2030, Japan hopes to have 800,000 fuel cell vehicles on the road, or around 1% of the country’s total registered vehicle population.
Interesting to note is that by 2030, Japan intends to have 5.3 million household fuel cell units powering the country’s industrial sector and providing electricity and heat for its citizens’ homes.
Look at it this way
By examining the data in the study, the center found that, although starting early, China’s national hydrogen plan remains vague and focused on renewable hydrogen. The EU, the UK, and Japan have the most thorough hydrogen policies. Also, the United States will shortly release its own strategy for dealing with ISIS. In terms of per-capita public investment, the US, Japan, and the EU are all forecasting comparable levels of investment.
Hydrogen is a goal for all countries in terms of future uses. In comparison to other tactics, the UK’s reliance on domestic heating looks out of place.
As a result, participants expect a gradual shift to low-carbon hydrogen, whether that means an emphasis on renewable hydrogen or carbon-reducing technology, most notably, in the United States and the European Union.
Because of its limited domestic hydrogen supplies, Japan plays a unique role in the development of a worldwide hydrogen supply chain. All participating nations, despite their differences, seem to have a common goal of decarbonizing their economy through the use of hydrogen.
