Hydrogen is a key factor in accelerating the transition towards clean energy that can assist other energy sources in supporting reliable climate solutions, according to Daryl Wilson, executive director of Hydrogen Council.
He noted that the amount of hydrogen projects reaching a final investment decision has increased substantially in recent years.
"It’s somewhat easy to put some partners together and announce a project," said Wilson. "It’s a lot more difficult to bring it through the feasibility phases and reach a final investment decision. But a very substantial number of projects made that trip last year, tracking about $22 billion. Now we’re closer to $30 billion."
According to Wilson, overall hydrogen production has risen by 2.8 million mt, which is minor when compared to current industry production. To increase demand, Wilson notes that changes in policy are needed to expand the hydrogen sector.
"Demand-pull measures are not present in many of the policy portfolios and jurisdictions around the world, and a lot of measures are focused on the supply side, so I think we need to level that up," said Wilson. "One of the major focus items for the Hydrogen Council this year is around demand activation. We’re looking at specific ecosystems and how they can be built up — not just by asking the government to do more with policy, but also looking at action from the industrial side to build up these ecosystems."
Growth in hydrogen and renewable energy sectors is required to meet these challenges, which includes changes in regulation and certification for hydrogen production, according to Wilson.
"Inevitably, there will be national and regional regulations for hydrogen that will differ. That’s okay. The key point is that the certification schemes have to be designed so that they can talk to each other. And the evidence of the hydrogen GHG footprint or sustainability attributes have to be developed in a way that’s coherent and tradable," explained Wilson. "There needs to be a stronger focus in the U.S. on demand-pull measures so they can be assured that the customers will be there for the supply that’s been generated."
Wilson noted that North America’s potential for hydrogen production and integration is significant, and that the U.S.’ involvement is a critical aspect in developing the hydrogen sector.
"North America is very ripe territory for clean hydrogen production, whether it comes from fossil fuels with decarbonization, called low carbon hydrogen, or from renewable energy sources," said Wilson. "The U.S. and Texas, in particular, have a vital interest in the area."
Texas has an opportunity to participate substantially in the trade of hydrogen on an international basis, Wilson expressed during a presentation at the 3rd American Hydrogen Forum held in Houston.
"There’s tremendous hydrogen already produced today in the state of Texas, and these additional energy applications are over and above the current industrial demand for hydrogen in the state," said Wilson. "Hydrogen actually offers the opportunity to integrate these pieces together more strongly."
With Texas’ strong ties to energy, the potential for a profitable foundation in hydrogen is achievable, Wilson explained. Integrating hydrogen into the Texas energy system presents opportunities for the expansion of renewable energy.
"The ability to smoothly integrate a much greater amount of renewable energy can expand quite dramatically," said Wilson. "Some of the trouble and difficulty in the state is surrounded by the intermittency of renewable energy. Hydrogen provides a wonderful buffer and storage capability in association with particularly wind energy, so coupling electrolysis with wind generation in the Northwest — and then bringing that energy into the Southeast by pipeline — is an amazing opportunity."
Wilson described opportunities to start exporting synthetic kerosene, ammonia and other products from the Gulf Coast through hydrogen development, which can grow to complement low carbon hydrogen features within the industry. Looking ahead, Wilson described how hydrogen costs could compete with conventional fuels as the markets become streamlined.
"As we mature and drive costs down, the net cost of hydrogen will hover somewhere between $1 and $1.20 a kilogram, which is really competitive with conventional fuels today. We anticipate on this basis that hydrogen will reach about 20% of final energy use, or 100 million mt of hydrogen for North America."
Overall, Wilson noted that although there are many attributes in a sustainability program for hydrogen, it will ultimately require a mature ecosystem of manufacturing capability.
"This is the time to be building the infrastructure, having the vision for the infrastructure and getting the regional demand patterns aggregated, streamlining, permitting and just getting down to work," said Wilson. "It needs to be supported and subscribed to by all nations around the world. If we start there, we’re off to a good start."
