The fuel could account for up to one-fifth of energy demand by 2050, according to a new study that weighs the risks and benefits of mining businesses switching to the usage of green hydrogen. This means that the transition could help corporations bring in new income.
But, in order to reap the benefits of the material securely, businesses will need to develop comprehensive risk management systems.
Green hydrogen, often known as renewable hydrogen, is produced by electrolyzing water. Its utilization is a crucial part of the shift away from carbon-based fuels because the process is far more “green” than the conventional method of extracting hydrogen because it is totally driven by renewable energy.
Green hydrogen is currently a long way from becoming a commonplace energy source, though. According to earlier studies, it would need roughly twice as much electricity to replace the “bad” hydrogen that is already used in refineries, fertiliser factories, and chemical plants. Before green hydrogen could be utilized for other purposes, such as heating, transport, or the production of steel, that is.
Despite this, a recent report from the global risk consultancy dss+ predicts that if businesses move forward with green hydrogen projects, the financial and environmental advantages might be substantial. The company discovered that the use of green hydrogen in mining operations alone may significantly lower greenhouse gas emissions by replacing diesel fuel in hauling vehicles, which now account for between 30% and 80% of a mine’s emissions footprint.
The production of green hydrogen is predicted to provide between 12% and 20% of the world’s energy needs by the year 2050. For mining businesses willing to participate, this gives significant extra business prospects.
Yet businesses will also need to take big risks if they want to reap enormous benefits. Wilson cautioned that businesses would need to take into account a number of variables, including the technical difficulty of changing a whole fleet of trucks as well as a number of safety issues. In the end, only a “holistic organizational approach” can enable organizations to fully reap the advantages of green hydrogen.
Secondly, organizations need to be aware that adding a lot of hydrogen to their operations could make them more vulnerable to accidents like fires and explosions, and they need to plan accordingly. In light of this, businesses must stay current on hydrogen technology in order to support transformational aims.
Third, even though green hydrogen is now expensive, businesses can benefit from capital investments that aim to advance its development, which will enable them to scale effectively and safely. A complete examination of governance and safety policy across an organization’s ecosystem is required since businesses must ensure they have a high level of supply chain integrity in order to properly manufacture and handle hydrogen over their entire asset lifecycle. Finally, this means that businesses need to begin forging connections with reliable partners and suppliers so they can rapidly and securely develop the capacity necessary for a value chain that is still in its infancy.