“Investments in hydrogen could solve the climate problem and at the same time stimulate the economy.” The green variant in particular is sustainable and promising, according to a paper from the European Bank for Reconstruction and Development (EBRD).
“Now that the post-coronavirus world is planning to pour big money into economic recovery and is poised to invest trillions of dollars and euros in 'build-back-better' approaches, more and more scientists say Politicians that the time has come for green hydrogen to be fully integrated into the energy mix of the future,” said the EBRD, citing Fatih Birol, Executive Director of the International Energy Agency, and Frans Timmermans, Executive Vice-President of the European Commission: “If “If the EU seizes this opportunity, it will gain an edge in global markets.”
The pace of development and the discussion about green hydrogen have accelerated and intensified. Governments including Germany, Britain, Australia and Japan are working on or have announced hydrogen strategies. Australia has committed 300 million Australian dollars (184 million euros) to kick-start hydrogen projects. Portugal plans to build a large solar power plant by 2023 to use the output to produce hydrogen. The Netherlands presented a hydrogen strategy at the end of March, outlining plans for 500 megawatts of green electrolysis capacity by 2025.
“If clean hydrogen does indeed play a larger role in the global energy mix, its inclusion will be technically relatively simple,” as the infrastructure already built for natural gas can also transport hydrogen, explains Christian Carraretto, associate director of sustainable resource investments at the EBRD. A study showed that 70 percent of the Italian gas network is hydrogen-compatible.
However, there are some sectors that are “typically difficult to decarbonize,” such as the steel or chemical industries, including aviation. “So they either stick with the cleanest of fossil fuels, or they switch to decarbonized fuels like hydrogen or biogas.” However, biogas technology has not developed much further because there is a problem with the availability of organic waste. “Hydrogen is therefore the most promising option at the moment.”
A question of price
If hydrogen is produced from fossil fuels, it costs between $1,0 and $1,8 per kilogram. Green hydrogen is significantly more expensive at three to six dollars. However, increased demand could reduce costs. By 2050, Carraretto said, green hydrogen prices could fall to $1,5 per kilogram, possibly below a dollar.
“We see a lot of big players looking into this, pilot projects are happening everywhere.” With the recent drop in renewable energy prices, a number of countries could become producers of green hydrogen. “Particularly in the southern and eastern Mediterranean countries where we work, and also with the development of offshore wind energy in countries from Turkey to Poland and Greece,” there may be projects “in which we could consider investing,” said Carraretto.
Deep link:
https://www.ebrd.com/news/2020/is-green-hydrogen-the-sustainable-fuel-of-the-future-.html
Photos:
EBRD: “Investing in hydrogen could solve the climate problem and boost the economy at the same time.”/ © EBRD
