The trajectory of low-carbon hydrogen hinges on a pivotal shift in global regulatory frameworks, favoring carbon intensity over color, asserts a groundbreaking report by Wood Mackenzie.
In the pursuit of emissions reduction, green hydrogen emerges as a beacon of hope, touted for its potential to deliver nearly carbon-free energy. However, the report underscores the necessity of scrutinizing the entire value chain, as green hydrogen projects risk tethering to high-carbon grids in the absence of renewable energy ubiquity.
Blue hydrogen, with its promise of carbon capture and storage, confronts challenges in scaling up carbon dioxide capture. Meanwhile, green hydrogen’s carbon footprint extends beyond production, encompassing transportation and processing emissions, a facet often overlooked in regulatory thresholds.
With a substantial portion of hydrogen earmarked for export, assessing life cycle emissions becomes imperative. Transporting hydrogen over vast distances introduces unaccounted emissions, complicating the quest for truly low-carbon solutions.
Countries like the EU, Japan, and the US set stringent carbon intensity thresholds, mandating comprehensive emission accounting. While green and blue hydrogen navigate regulatory hurdles, technological innovations in ammonia processing and transportation emerge as critical enablers.
As the sector braces for regulatory evolution, the report underscores the pivotal role of grants in driving the supply and demand dynamics of low-carbon hydrogen. The convergence of carbon intensity standards and incentive frameworks shapes the trajectory of hydrogen policy worldwide.
