Hydrogen key to de-carbonization
According to S&P Global Platts, hydrogen can de-carbonize sectors that renewables and batteries cannot, and there is growing interest in the resource as the energy sector seeks to understand the economics of a clean-energy future.
"Hydrogen production with carbon capture can help the energy system transition to a clean and affordable future by serving as a linkage between abundant, cost-effective fossil fuels and the ever-pressing requirement to curb global emissions," said Zane McDonald, hydrogen and alternative transportation lead at S&P Global Platts Analytics.
Blue hydrogen is produced from a fossil feedstock, primarily steam methane reforming of natural gas, coupled with carbon capture and sequestration. Green hydrogen is produced from a zero-carbon feedstock, primarily electrolysis of renewable electricity.
Around the globe, governments are developing ambitious de-carbonization strategies that make low-carbon hydrogen a key tool to achieve their goals. With support from both public and private sectors, significant cost declines are likely to emerge throughout the hydrogen supply chain, from production to transportation to storage.
"These cost declines will be critical in reducing CO2 emissions from sectors that have otherwise been challenging to de-carbonize, such as long-haul trucking, steel production, industrial heating, long-duration power storage and marine fuels. For this to occur, low-carbon hydrogen production needs to scale up dramatically from just under 2 percent of global supply today," said McDonald.
"We recognize the important role hydrogen will play in a clean- energy future," added Simon Thorne, global director of generating fuels at S&P Global Platts. "Independence and transparency [are] critical to market development and the impartial evaluation of hydrogen as a fuel.
"We view the trajectory of hydrogen as similar to liquefied natural gas ⦠although we expect hydrogen's evolution to be more accelerated."
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