Policy & Socio-Economics

Authored by the Hydrogen Council in collaboration with McKinsey and Company Global Hydrogen Flows addresses the midstream challenge of aligning and optimizing global supply and demand. It finds that trade can reduce overall system costs.

In doing so it provides a perspective on how the global trade of hydrogen and derivatives including hydrogen carriers ammonia methanol synthetic kerosene and green steel (which uses hydrogen in its production) can develop as well as the investments needed to unlock the full potential of global hydrogen and derivatives trade.

Our hope is that this report offers stakeholders – suppliers buyers original equipment manufacturers (OEMs) investors and governments – a thorough and quantitative perspective that will help them make the decisions required to accelerate the uptake of hydrogen.

Key messages from the report:

Hydrogen and its derivatives will become heavily traded: 400 out of the 660 million tons (MT) of hydrogen needed for carbon neutrality by 2050 will be transported over long distances with 190 MT crossing international borders.

In a cost-optimal world around 50% of trade uses pipelines while synthetic fuels ammonia and sponge iron transported on ships account for approximately 45%. Europe and countries in the Far East will rely on imports while North America and China are mostly self-reliant.

Trade has huge benefits: It can lower the cost of hydrogen supply by 25% or as much as US$6 trillion of investments from now until 2050. This will accelerate the hydrogen transition which can abate 80 gigatons of CO2 until 2050.

The paper can be found on their website.

This study was aimed to define a methodology based on existing literature and evaluate the levelized cost of hydrogen (LCOH) for a decentralized hydrogen refueling station (HRS) in Halle Belgium. The results are based on a comprehensive data collection along with real cost information. The main results indicated that a LCOH of 10.3 €/kg at the HRS can be reached over a lifetime of 20 years if an average electricity cost of 0.04 €/kWh could be achieved and if the operating hours are maximized. Furthermore if the initial capital costs can be reduced by 80% in the case of direct subsidy the LCOH could even fall to 6.7 €/k

Comprehensive risk assessment across multiple fields is required to assess the potential utility of hydrogen energy technology. In this research we analyzed environmental and socio-economic effects during the entire life cycle of a hydrogen energy system using input-output tables. The target system included hydrogen production by naphtha reforming transportation to hydrogen stations and FCV (Fuel Cell Vehicle) refilling. The results indicated that 31% 44% and 9% of the production employment and greenhouse gas (GHG) emission effects respectively during the manufacturing and construction stages were temporary. During the continuous operation and maintenance stages these values were found to be 69% 56% and 91% respectively. The effect of naphtha reforming was dominant in GHG emissions and the effect of electrical power input on the entire system was significant. Production and employment had notable effects in both the direct and indirect sectors including manufacturing (pumps compressors and chemical machinery) and services (equipment maintenance and trade). This study used data to introduce a life cycle perspective to environmental and socio-economic analysis of hydrogen energy systems and the results will contribute to their comprehensive risk assessment in the future.

In many industries low-carbon hydrogen will substitute fossil fuels in the course of the transformation to climate neutrality. This paper contributes to understanding this transformation. This paper provides an overview of energy- and emission-intensive industry sectors with great potential to defossilize their production processes with hydrogen. An assessment of future hydrogen demand for various defossilization strategies in Germany that rely on hydrogen as a feedstock or as an energy carrier to a different extent in the sectors steel chemicals cement lime glass as well as pulp and paper is carried out. Results indicate that aggregate industrial hydrogen demand in those industries would range between 197 TWh and 298 TWh if production did not relocate abroad for any industry sector. The range for hydrogen demand is mainly due to differences in the extent of hydrogen utilization as compared to alternative transformation paths for example based on electrification. The attractiveness of production abroad is then assessed based on the prospective comparative cost advantage of relocating parts of the value chain to excellent production sites for low-carbon hydrogen. Case studies are provided for the steel industry as well as the chemical industry with ethylene production through methanol and the production of urea on the basis of ammonia. The energy cost of the respective value chains in Germany is then compared to the case of value chains partly located in regions with excellent conditions for renewable energies and hydrogen production. The results illustrate that at least for some processes – as ammonia production – relocation to those favorable regions may occur due to substantial comparative cost advantages.

Hydrogen’s wide availability and versatile production methods establish it as a primary green energy source driving substantial interest among the public industry and governments due to its future fuel potential. Notable investment is directed toward hydrogen research and material innovation for transmission storage fuel cells and sensors. Ensuring safe and dependable hydrogen facilities is paramount given the challenges in accident control. Addressing material compatibility issues within hydrogen systems remains a critical focus. Challenges roadmaps and scenarios steer long-term planning and technology outlooks. Strategic visions align actions and policies encompassing societal and ecological dimensions. The confluence of hydrogen’s promise with material progress holds the prospect of reshaping our energy landscape sustainably. Forming collective future perspectives to foresee this emerging technology’s potential benefits is valuable. Our review article comprehensively explores the forthcoming challenges in hydrogen technology. We extensively examine the challenges and opportunities associated with hydrogen production incorporating CO2 capture technology. Furthermore the interaction of materials and composites with hydrogen particularly in the context of hydrogen transmission pipeline and infrastructure are discussed to understand the interplay between materials and hydrogen dynamics. Additionally the exploration extends to the embrittlement phenomena during storage and transmission coupled with a comprehensive examination of the advancements and hurdles intrinsic to hydrogen fuel cells. Finally our exploration encompasses addressing hydrogen safety from an industrial perspective. By illuminating these dimensions our article provides a panoramic view of the evolving hydrogen landscape.

In this paper we aim to analyse the impact of hydrogen production decarbonisation and electrification scenarios on the infrastructure development generation mix CO2 emissions and system costs of the European power system considering the retrofit of the natural gas infrastructure. We define a reference scenario for the European power system in 2050 and use scenario variants to obtain additional insights by breaking down the effects of different assumptions. The scenarios were analysed using the European electricity market model COMPETES including a proposed formulation to consider retrofitting existing natural gas networks to transport hydrogen instead of methane. According to the results 60% of the EU’s hydrogen demand is electrified and approximately 30% of the total electricity demand will be to cover that hydrogen demand. The primary source of this electricity would be non-polluting technologies. Moreover hydrogen flexibility significantly increases variable renewable energy investment and production and reduces CO2 emissions. In contrast relying on only electricity transmission increases costs and CO2 emissions emphasising the importance of investing in an H2 network through retrofitting or new pipelines. In conclusion this paper shows that electrifying hydrogen is necessary and cost-effective to achieve the EU’s objective of reducing long-term emissions.

Energy and environmental issues are of great importance in the present era. The transition to renewable energy sources necessitates technological political and behavioral transformations. Hydrogen is a promising solution and many countries are investing in the hydrogen economy. Global demand for hydrogen is expected to reach 120 million tonnes by 2024. The incorporation of hydrogen for efficient energy transport and storage and its integration into the transport sector are crucial measures. However to fully develop a hydrogen-based economy the sustainability and safety of hydrogen in all its applications must be ensured. This work describes and compares different technologies for hydrogen production storage and utilization (especially in fuel cell applications) with focus on the research activities under study at SaRAH group of the University of Naples Federico II. More precisely the focus is on the production of hydrogen from bio-alcohols and its storage in formate solutions produced from renewable sources such as biomass or carbon dioxide. In addition the use of materials inspired by nature including biowaste as feedstock to produce porous electrodes for fuel cell applications is presented. We hope that this review can be useful to stimulate more focused and fruitful research in this area and that it can open new avenues for the development of sustainable hydrogen technologies.

The energy production market based on hydrogen technologies is an innovative solution that will allow the industry to achieve climate neutrality in the future in Poland and in the world. The paper presents the idea of using hydrogen as a modern energy carrier and devices that in cooperation with renewable energy sources produce the so-called green hydrogen and the applicable legal acts that allow for the implementation of the new technology were analyzed. Energy transformation is inevitable and according to reports on good practices in European Union countries hydrogen and the hydrogen value chain (production transport and transmission storage use in transport and energy) have wide potential. Thanks to joint projects and subsidies from the EU initiatives supporting hydrogen technologies are created such as hydrogen clusters and hydrogen valleys and EU and national strategic programs set the main goals. Poland is one of the leaders in hydrogen production both in the world and in Europe. Domestic tycoons from the energy refining and chemical industries are involved in the projects. Eight hydrogen valleys that have recently been created in Poland successfully implement the assumptions of the “Polish Hydrogen Strategy until 2030 with a perspective until 2040” and “Energy Policy of Poland until 2040” which are in line with the assumptions of the most important legal acts of the EU including the European Union’s energy and climate policy the Green Deal and the Fit for 55 Package. The review of the analysis of the development of hydrogen technologies in Poland shows that Poland does not differ from other European countries. As part of the assumptions of the European Hydrogen Strategy and the trend related to the management of energy surpluses electrolyzers with a capacity of at least 6 GW will be installed in Poland in 2020–2024. It is also assumed that in the next phase planned for 2025–2030 hydrogen will be a carrier in the energy system in Poland. Poland as a member of the EU is the creator of documents that take into account the assumptions of the European Union Commission and systematically implement the assumed goals. The strategy of activities supporting the development of hydrogen technologies in Poland and the value chain includes very extensive activities related to among others obtaining hydrogen using hydrogen in transport energy and industry developing human resources for the new economy supporting the activities of hydrogen valley stakeholders building hydrogen refueling stations and cooperation among Poland Slovakia and the Czech Republic as part of the HydrogenEagle project.

The global resurgence of hydrogen as a clean energy source particularly green hydrogen derived from renewable energy is pivotal for achieving a carbon-neutral future. However scalability poses a significant challenge. This research proposes innovative business models leveraging the low-emission property of green hydrogen to reduce its financial costs thereby fostering its widespread adoption. Key components of the business workflow are elaborated mathematical formulations of market parameters are derived and case studies are presented to demonstrate the feasibility and efficiency of these models. Results demonstrate that the substantial costs associated with the current hydrogen industry can be effectively subsidized via the implementation of proposed business models. When the carbon emission price falls within the range of approximately 86–105 USD/ton free access to hydrogen becomes a viable option for end-users. This highlights the significance and promising potential of the proposed business models within the green hydrogen credit framework.

The use of hydrogen as an energy carrier within the scope of the decarbonisation of the world’s energy production and utilisation is seen by many as an integral part of this endeavour. However the discussion around hydrogen technologies often lacks some perspective on the currently available technologies their Technology Readiness Level (TRL) scope of application and important performance parameters such as energy density or conversion efficiency. This makes it difficult for the policy makers and investors to evaluate the technologies that are most promising. The present study aims to provide help in this respect by assessing the available technologies in which hydrogen is used as an energy carrier including its main challenges needs and opportunities in a scenario in which fossil fuels still dominate global energy sources but in which renewables are expected to assume a progressively vital role in the future. The production of green hydrogen using water electrolysis technologies is described in detail. Various methods of hydrogen storage are referred including underground storage physical storage and material-based storage. Hydrogen transportation technologies are examined taking into account different storage methods volume requirements and transportation distances. Lastly an assessment of well-known technologies for harnessing energy from hydrogen is undertaken including gas turbines reciprocating internal combustion engines and fuel cells. It seems that the many of the technologies assessed have already achieved a satisfactory degree of development such as several solutions for high-pressure hydrogen storage while others still require some maturation such as the still limited life and/or excessive cost of the various fuel cell technologies or the suitable operation of gas turbines and reciprocating internal combustion engines operating with hydrogen. Costs below 200 USD/kWproduced lives above 50 kh and conversion efficiencies approaching 80% are being aimed at green hydrogen production or electricity production from hydrogen fuel cells. Nonetheless notable advances have been achieved in these technologies in recent years. For instance electrolysis with solid oxide cells may now sometimes reach up to 85% efficiency although with a life still in the range of 20 kh. Conversely proton exchange membrane fuel cells (PEMFCs) working as electrolysers are able to sometimes achieve a life in the range of 80 kh with efficiencies up to 68%. Regarding electricity production from hydrogen the maximum efficiencies are slightly lower (72% and 55% respectively). The combination of the energy losses due to hydrogen production compression storage and electricity production yields overall efficiencies that could be as low as 25% although smart applications such as those that can use available process or waste heat could substantially improve the overall energy efficiency figures. Despite the challenges the foreseeable future seems to hold significant potential for hydrogen as a clean energy carrier as the demand for hydrogen continues to grow particularly in transportation building heating and power generation new business prospects emerge. However this should be done with careful regard to the fact that many of these technologies still need to increase their technological readiness level before they become viable options. For this an emphasis needs to be put on research innovation and collaboration among industry academia and policymakers to unlock the full potential of hydrogen as an energy vector in the sustainable economy.