As ever more hydrogen projects are announced we look at why this almost ubiquitous chemical is in demand, as well as how to tell the truly green cleantech from the less environmentally beneficial.
Both Shell and BP have both recently announced hydrogen deals, teaming up with hydrogen specialists as they increase their investment in cleaner energy, while carmakers like Renault and companies like WalMart and Go-Ahead get into hydrogen-powered vehicles.
Hydrogen has been singled out by not only the British government in its hydrogen strategy last year but most countries around the world as one of the key elements in reducing greenhouse gas emissions from energy consumption.
Analysis by the UK government pointed to 20-35% of the UK’s energy consumption by 2050 potentially being based on hydrogen.
So why hydrogen?
Rather than being a fuel in and of itself, the popularity of hydrogen, aka H2, is because it is a good carrier or store of energy. Its versatility means it can be pumped through pipes like gas, or carried in tankers ships like liquid natural gas (LNG).
Another reason it is popular is that hydrogen can enable renewable like wind and solar power to provide an even greater contribution, by acting as a battery so that when there is less household or industrial demand, the energy is stored using hydrogen, which can then be used when demand is higher.
Hydrogen is also attractive as it can be produced using a wide variety of forms of energy and fuel stocks, be that water or natural gas or syngas.
Blue, grey and green hydrogen (and other colours)
Hydrogen is, therefore, only as emission-free as the method by which it was produced.
To try and make this clearer, hydrogen grouped under what was three categories (grey, blue and green) but others have been added:
- ‘Grey’ hydrogen is the currently dominant form of hydrogen manufacture, as it has been cheapest, as it is made from coal gasification or steam methane reforming, so this is not really green fuel at all.
- ‘Brown’ hydrogen uses coal as the feedstock.
- ‘Blue’ hydrogen is where the CO₂ emitted during the production of grey hydrogen is sequestered via carbon capture and storage (CCS), which produces energy with pretty low emissions, with around 90-95% of CO2 captured. Many states are anticipating significant use of blue hydrogen in the years to come - but the allure may be fading.
- ‘Pink’ hydrogen is made as a byproduct of nuclear energy.
- 'Turquoise' hydrogen is one of the newest additions, supposedly coming between blue and green. Turquoise hydrogen, like grey and blue hydrogen, is made using methane, with a process called methane pyrolysis producing hydrogen and solid carbon rather than as CO2 gas. It has the potential to be zero-carbon if the electricity driving the pyrolysis is renewable, and can even be carbon negative if the feedstock is biomethane rather than natural gas.
- ‘Green’ hydrogen, made by electrolysis that is powered by renewable energy, is the only version of the fuel that is free of CO2 at the point of use and at the point of production.
Hydrogen drivers
In 2020, global production of all forms of hydrogen was around 70mln tonnes per year from direct manufacturing processes, with 98% of that produced from fossil fuels, mostly natural gas, with only around 2% from lower-carbon or zero-carbon processes.
The 2020 hydrogen strategy from the EU Commission said renewable hydrogen is “the most compatible option” with its climate neutrality and zero pollution goal in the long term.
By mid-2021, global capacity of electrolysers was calculated to be standing at just over 300 MW, having doubled over the last five years.
But, based on reports projects, hydrogen will still only account for 0.5% of the global energy mix by 2030, according to consultant DNV, rising to 5% mid century.
This is not enough hydrogen production to meet greenhouse gas reduction targets set in the Paris Agreement, which DNV calculate would need to reach 15% by 2050.
Increasing investment in hydrogen was one of the main solutions suggested in the wake of Russia's invasion of Ukraine, with the EC President Ursula von der Leyen saying it meant “the case for a rapid clean energy transition has never been stronger and clearer” and that “the quicker we switch to renewables and hydrogen, combined with more energy efficiency, the quicker we will be truly independent and master our energy system.”
However, while there has also been a renewal of support for fossil fuels as politicians cite the need for cheap fuel, hydrogen has remained part of many nations' medium-term plans for greater energy independence.
Recent hydrogen deals
And as such recent deals and developments have included:
- BP PLC (LSE:BP.) taking a major stake in a US$36bn Australia’s Asian Renewable Energy Hub (AREH), one of the world's biggest projects to produce green hydrogen from wind and solar
- Shell PLC (LSE:SHEL, NYSE:SHEL) contracting Ceres Power Holdings PLC (AIM:CWR, OTC:CPWHF) to deliver a megawatt-scale solid oxide electrolyser demonstrator to produce green hydrogen, as the first stage of a new collaborative relationship
- Construction giant Kier Group PLC (LSE:KIE) trialling the first of a potential series of hydrogen generators from AFC Energy PLC at a construction site as it looks to reach its net-zero target
- Hydrogen Utopia starting a testing programme to convert waste plastic into hydrogen, using waste-to-energy tech developed by Powerhouse Energy Group PLC (AIM:PHE, ETR:BT81)
- Walmart expanding trials involving manufacturers of hydrogen-powered delivery vehicles and other low-emissions trucks
- Renault unveiling a prototype car powered by a hydrogen fuel-cell
- ATOME Energy PLC (AIM:ATOM) appointing engineers to start work on its large-scale plant to produce of green hydrogen and ammonia
- Scottish battery cell specialist AMTE Power agreeing a deal with powertrain developer Viritech to support the development of hydrogen fuel cell electric vehicles
- Hydrogen focused investment fund HydrogenOne Capital Growth PLC (LSE:HGEN) agreed to invest £5mln in clean hydrogen developer HH2E, which followed recent investments including £7mln in UK passenger flight innovator Cranfield Aerospace, which is developing the BrittenNorman Islander passenger aircraft using hydrogen fuel cell power, and £10mln in UK fuel cell innovator Bramble Energy, which is pioneering a printed circuit board fuel cell solution.
- The rebooting of a plan to turn Dorset salt caverns into a hydrogen-ready gas storage and green hydrogen generation capability
- Hydrogen Future Industries PLC (AQSE:HFI) preparing to start testing a prototype wind-based hydrogen production system
- FTSE 100 chemicals group Johnson Matthey teaming up with Germany's Enapter, a specialist in hydrogen electrolysis, to try and drive down the cost of green hydrogen
- Go-Ahead Group signed what it said was the largest passenger transport green hydrogen supply contract in Europe with Northern Ireland-based Wrightbus