A recent Danfoss Impact paper emphasizes the importance of smart use and efficient production of green hydrogen. By 2050, hydrogen production is projected to surpass half of today’s electricity demand, underscoring the pressing need for energy efficiency in the generation process.
Danfoss advocates for a strategic approach to green hydrogen, given its critical part in the shift from fossil fuels. Applying due attention to the efficient production and usage of green hydrogen could help to decrease costs and the demand for renewables.
A crucial recommendation is to consider hydrogen production as a finite resource that should be strategically designated to sectors with significant decarbonization challenges, such as heavy industry and long-distance transport.
Emphasizing Efficiency, Minimizing Wastage
Energy efficiency is integral to sustainable green hydrogen production, considering its hefty electricity requirements. While around 30% energy loss is common in green hydrogen conversion processes, it’s possible to minimize this through existing technologies. Effective converters could enhance the overall production efficiency by about 1%. As minor as it may seem, a 1% saving of the electricity demand for hydrogen by 2050 could provide power to a city like London for nearly four years.
Countries globally recognize hydrogen’s promise in their climate strategies and significant funding programs are in progress. However, to achieve the Paris Agreement targets, worldwide electrolysis capacity must exceed 550 GW by 2030, necessitating rapid action.
However, despite projections of massive growth for green hydrogen production, cost challenges are affecting deployment. As per the International Energy Agency’s latest update, the anticipated growth for hydrogen-dedicated renewable energy capacity between 2022 and 2028 has been reduced by 35%, due to slower than expected progress in implementation.
Another crucial factor in energy efficiency is the recovery of excess heat from electrolysis. By 2030, about 114 TWh, equivalent to double Germany’s current domestic heating, could be recovered from green hydrogen production in the EU. Danfoss warns that overlooking this massive potential while planning future energy infrastructure could be a major policy misstep. It is thereby vital to establish the right regulatory and economic setup for an efficient rollout of hydrogen on a large scale.
The Danfoss Impact paper “Green hydrogen: A critical balancing act” recommends a balanced approach to hydrogen where efficiency and affordability are crucial.
