In the heart of Europe, a bold vision is taking shape—converting conventional power plants to run on hydrogen, an emissions-free fuel touted as a key to meeting aggressive climate targets.
Currently, a bright yellow power plant behind a graffiti-covered fence burns natural gas to generate electricity. Policymakers envision this plant, and others like it, transitioning to hydrogen. This conversion is seen as a crucial step toward decarbonizing energy systems and achieving net-zero emissions. However, the path to this hydrogen future is fraught with significant technical, economic, and logistical challenges.
Hydrogen is considerably more expensive than natural gas. The infrastructure required to produce, transport, and store hydrogen is not only costly but also complex. For instance, hydrogen must be liquefied at an extremely low temperature of -253°C, far beyond the capabilities of current LNG ships. As a workaround, Germany plans to import hydrogen as liquid ammonia, which is easier to liquefy but poses its own risks due to its toxicity and the need for specialized handling and ventilation systems.
Moreover, converting ammonia back into hydrogen is currently not economically viable, adding another layer of complexity and cost. The efficiency loss in the hydrogen production and conversion process is substantial, with nearly 70% of the energy lost by the time hydrogen is made, stored, and burned to generate electricity again.
There are no measurable advancements in constructing hydrogen-ready power plants. A notable concern is the lack of a standardized definition for what constitutes “hydrogen-ready,” which raises the potential for greenwashing—where companies or governments make misleading claims about the environmental benefits of their operations.
Moving hydrogen also presents significant challenges. The Leipzig plant, for example, isn’t connected to the grid and lacks its own electrolyzers. Consequently, hydrogen must be transported by truck, an inefficient and potentially hazardous solution until more robust infrastructure is developed.
Other countries and companies are also pursuing hydrogen strategies, often with more concrete progress. Companies like Air Liquide and Linde have developed advanced hydrogen storage and distribution technologies, setting high industry benchmarks. The collaboration between policymakers and industry leaders in Europe must strive to match or exceed these standards to achieve their ambitious goals.
The potential environmental benefits of hydrogen are clear—it can help reduce carbon emissions significantly. However, the economic and logistical feasibility remains a sticking point. The substantial initial investment required, coupled with the ongoing operational costs, poses a question of economic sustainability. Germany, for example, is committing €1 billion to a liquefied natural gas terminal designed to eventually handle hydrogen, but this investment must be weighed against the potential economic and environmental returns.
