2021 saw a global demand for hydrogen at 94 million tons, which occupied 2.5% of the global final energy consumption. With that being said, only 0.5% of hydrogen comes from the comparatively eco-friendly green hydrogen, and the attainment of carbon neutrality for the hydrogen field in the future would require immediate actions.
The so-called green hydrogen is produced from electrolysis through renewable energy, which although is more eco-friendly and green compared to the traditional hydrogen method using fossil fuels, and does not emit any carbon dioxide, has a lower level of efficiency and higher cost. Blue hydrogen, which is produced by pairing fossil fuels with carbon capture and storage technology, is a more eco-friendly option in the future. Carbon capture technology is currently under development.
According to the statistics of IRENA, the cost of oil equivalent per barrel is between US$250-400 for green hydrogen, when the current price for each barrel of oil is about US$100. In addition, the transportation of hydrogen is also a major issue as it requires going through pipelines, trucks, and shipping. Hydrogen, due to its small density, must be compressed or liquefied at -253℃ for efficient transportation.
The transportation of oil is less troublesome in comparison, which makes it even more expensive to transport and store the same volume of energy. IRENA has recommended to produce hydrogen into ammonia in order to facilitate transportation, though it requires additional equipment and time for equipment separation. The cost per kg is expected to increase by roughly US$2.50-4.20 accordingly.
Furthermore, hydrogen is a colorless and odorless fuel that is highly flammable, and like natural gas, it could lead to explosions and casualties during leakage. Hydrogen has a wide range of flammable concentration, and is flammable between 4-75% of volume in air, which is even wider than natural gas at 5-15%. Once leaked, it is much harder to realize and prevent fire and explosion hazards from happening, where hydrogen insurance, material handling, as well as fire protection and hazard management are indispensable.
However, hydrogen remains as one of the future trends as renewable energy is no longer sufficient for net-zero emission. With hydrogen technology catching up to relevant regulations, the energy solution is believed to be as safe and acceptable as other fuels. There are many green hydrogen plants under construction around the world, and most of them are centralized in the Southern Hemisphere. Saudi Arabia is currently establishing the first GW-grade green hydrogen plant by utilizing its rich experience in solar and wind power.
South Africa has also laid down its hydrogen roadmap. Energy company Sasol is currently discussing with Toyota on the possibility of a “hydrogen valley” that centralizes hydrogen production and corresponding industry clusters. Sasol is also in talks with the South African government on the establishment of a new port at Boegoebaai for the production and export of green hydrogen. Namibia, at the same time, is planning to launch a green hydrogen program costing US$10 billion.
Green hydrogen, however, is considered as a major construction for developing countries, where excessive plant establishment and budget allocation are possible challenges along the way.
(Cover photo source: shutterstock)