A recent report by the German National Academy of Sciences Leopoldina, acatech – National Academy of Science and Engineering, and the Union of the German Academies of Sciences and Humanities, provides an insightful overview of hydrogen’s potential to revolutionize our energy systems.

Hydrogen and its derivatives, such as methane, ammonia, and methanol, are poised to become crucial energy carriers in the quest for a defossilized economy. Unlike conventional fuels, hydrogen can store energy, be used across various industries, and transported over long distances, making it a versatile component in the energy transition.

Presently, hydrogen is primarily obtained from natural gas and coal, serving as an essential feedstock in industries like fuel desulfurization, ammonia production, and chemical manufacturing. However, its role as an energy source is set to expand significantly. The report emphasizes a transition to carbon-neutral hydrogen, produced using renewable energy, while also considering bridge technologies that capture and store emissions from fossil fuels.

Given the initially limited supply of low-emission hydrogen, its application should be strategic. The report identifies primary industry, aviation, and shipping as sectors where direct use of green electricity is technologically challenging or economically unfeasible. Here, hydrogen can provide a viable alternative to fossil fuels.

The EU’s Internal Energy Market

The production of renewable hydrogen is most cost-effective in regions with abundant sunshine and wind. A connected, Europe-wide infrastructure of pipelines, tankers, and ports will facilitate imports from within Europe and beyond, ensuring a stable supply.

Hydrogen has long been discussed as an environmentally-friendly alternative to fossil fuels, but its adoption was hindered by the low cost of oil and gas and insufficient climate policy incentives. However, with Germany and the EU committing to net zero by 2045 and 2050, respectively, the scenario has drastically changed.

Renewable electricity, whose costs have significantly decreased in the past decade, plays a pivotal role. However, direct electrification of certain processes remains technologically complex or economically prohibitive. In these cases, hydrogen produced from renewable electricity offers a practical solution. Moreover, hydrogen continues to be indispensable as a feedstock in various industrial applications.

Hydrogen Production

Different methods of hydrogen production vary in terms of costs, resource consumption, and greenhouse gas emissions. The report categorizes hydrogen based on production methods and associated emissions:

  • Grey Hydrogen: Produced from natural gas or coal, grey hydrogen generates high greenhouse gas emissions. Despite its lower production cost (€1.0–3.0/kg in 2021), rising carbon prices are likely to make this method less competitive over time.
  • Blue Hydrogen: Similar to grey hydrogen, but with carbon capture and storage (CCS) or utilization (CCU) technologies to reduce emissions. The cost is higher (€1.5–3.2/kg in 2021), but it offers a low-carbon solution.
  • Green Hydrogen: Produced by electrolysis using renewable electricity, green hydrogen is a net zero process with production costs ranging from €3.1 to 9.0/kg in 2021. Despite being more expensive, decreasing renewable energy costs and increasing carbon pricing are expected to make green hydrogen more competitive in the future.
  • Red Hydrogen: Produced using nuclear power, red hydrogen generates virtually no CO2 emissions and offers a largely net zero solution.

Hydrogen’s future applications span a wide range of sectors. In the primary industry, it can replace fossil fuels in processes like steel production. In transportation, particularly aviation and shipping, hydrogen offers a feasible alternative to conventional fuels. Furthermore, hydrogen can compensate for power generation fluctuations in the electricity sector.

The development of a robust hydrogen infrastructure, including pipelines, tankers, and storage facilities, is crucial. Germany, for instance, already has some hydrogen pipelines supplying major industrial sites, highlighting the feasibility of expanding this infrastructure.

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