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Economic and Logistical Hurdles in the Widespread Adoption of Green Hydrogen

Economic and Logistical Hurdles in the Widespread Adoption of Green Hydrogen

Anela DoksoBy Anela Dokso04/07/20242 Mins Read
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The production and implementation of green hydrogen as a major energy source face significant challenges that warrant critical examination. While green hydrogen is often heralded as a key to a successful energy transition, its practical and economic feasibility raises several concerns.

Green hydrogen, produced using renewable energy sources, is far more expensive than conventional grey hydrogen, which is derived from natural gas and is laden with carbon dioxide emissions. The hope that the price of green hydrogen will decrease sufficiently to make it widely accessible is currently unrealistic. The high costs associated with its production limit its use to areas where there are no viable alternatives.

Producing green hydrogen on a large scale requires an enormous amount of renewable energy. For countries like Austria, meeting this demand would necessitate a significant expansion of wind and solar power infrastructure. Given the existing challenges in scaling up renewable energy to meet daily electricity needs, the prospect of further expansion to support green hydrogen production is highly optimistic, if not utopian.

Relying on imports of green hydrogen from regions like North Africa presents its own set of risks. Political instability in these areas could render such investments futile. The long-term viability of depending on external sources of green hydrogen is uncertain and poses a significant risk to energy security.

Due to its high production costs, green hydrogen is likely to remain a niche energy source, reserved for sectors where alternatives are not feasible. These include the steel and chemical industries, aviation, shipping, and possibly heavy-duty trucking. For most other applications, electricity remains a more practical and economical energy source.

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