Decarbon Daily - A Primer on H2

Hydrogen 101: A Primer on H2

Today, hydrogen is used as feedstock in many industrial processes. There are very few dedicated facilities to hydrogen. One is operated by Shell in Alberta, Canada and the other is operated by Air Products in Texas, USA.

There are four different types of hydrogen referred to:
1. "green" hydrogen is hydrogen produced from carbon-free sources, such as wind, solar, and hydro power and uses electrolysis of water
2. "brown" hydrogen is made from coal gasification
3. "grey" hydrogen is steam reforming of methane in natural gas
4. "blue" hydrogen is derived from carbon capture and uses steam methane reforming

According to the IEA, natural gas is the primary source of hydrogen, accounting for 75% of hydrogen production.

This week Plug Power unveiled plans to to build the largest green hydrogen facility on the west coast in Fresno Country, California. The plant will produce 30 metric tonnes of liquid green hydrogen daily and will be commissioned in early 2024.

Why hydrogen and why now?

Hydrogen has an energy density of about 120 megajoules per kilogram and is odorless, non-toxic, and highly combustible. Hydrogen has the potential to accelerate the energy transition across different sectors. Industrial applications, transportation, buildings, and power generation are potential uses for hydrogen.

There is the potential to use existing gas infrastructure to move and transport hydrogen. For the transportation sector, hydrogen has the energy density of nearly three times that of diesel making it an attractive alternative to gas and diesel.

The EU's commitment to net-zero by 2050 combined with incentives for renewables and green hydrogen are making projects more attractive. Project economics and costs for new hydrogen facilities, blue, green, brown, or gray, will prove costly. Extensive research and development is required to drive down the capital and operating costs that are preventing investors from closing deals.

Furthermore, with hydrogen production, countries that are net importers of natural gas and fossil fuels are able to decrease their dependence on resource-rich countries. Hydrogen like other commodities will need regulatory standards, require cross-border infrastructure, and create trading markets for institutional players.

Inside this Issue

♻️ Siemens Begins Work on 8.75MW Green Hydrogen Plant in Germany
🔌 Ørsted and US Gas Giant Williams to Explore Power-to-X Projects
🏷 Green Hydrogen and Carbon Prices
🐣 Gniewomir Flis - a Twitter Thread on Hydrogen
☀️ Major Green Hydrogen Facility Planned for California
🏭 Ineos to Invest $1.4 billion in Blue Hydrogen Production at Grangemouth Refinery