Exploring Green Hydrogen

According to Precedence Research, the global green hydrogen market is valued at USD 8.78 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 38.77%, reaching approximately USD 165.84 billion by 2033. It is changing the way we think about sustainable power, but what are the reasons behind the growing traction?

The Basics of Green Hydrogen:

Green hydrogen is hydrogen produced without any carbon emissions. However, the process is not that simple. Unlike traditional hydrogen production, Dr. Emanuele Taibi, Head of the Power Sector Transformation Strategies at the International Renewable Energy Agency (IRENA). describes it as "Hydrogen produced by splitting water into hydrogen and oxygen using renewable electricity. This is a very different pathway compared to both grey and blue.”

How We Make It:

The production process is not complicated, the difficulty is getting it right at scale. The overall process is as follows:

• Renewable energy (solar panels, wind turbines, that sort of thing) generates electricity
• This powers an electrolyser
• The electrolyser splits water into hydrogen and oxygen
• The hydrogen is captured and stored

The latest PEM electrolysers are constantly improving over time however there are still issues regarding their cost and efficiency.

Real-World Applications:

Green hydrogen is no longer just a laboratory curiosity anymore; it is starting to make a real impact across different industries, with varying degrees of success:

-          Industrial Use:

Some manufacturing companies are starting to experiment with green hydrogen, particularly in steel production and chemical synthesis. One UK steel manufacturer [ML1] reported a 35% reduction in carbon emissions after partially switching to hydrogen power.

-          Transportation:

From hydrogen buses around London to experimental aircrafts, which are predominantly still in development, the transport sector is cautiously embracing this technology. The Aberdeen pilot project with their first hydrogen bus fleet has logged over 100,000 miles. However, they have faced several complications.

-          Power Generation:

Energy companies are increasingly looking at hydrogen as a way to store excess renewable energy. It's not ideal, but it does provide a viable option.

The Economics:

Green hydrogen is currently more expensive than fossil fuels. According to the latest research by Havard Scientists, published by Bloomberg, there is still uncertainty around the true cost of transporting and storing the gas. However, this renewable source is still attract mass investment:

• The UK government in 2023 committed £2 billion to hydrogen projects
• The investment package is for 15 years and supports 11 strategic production facilities
• Over 700 + specialised hydrogen jobs will be created

Challenges We're Facing:

-          Technical Challenges:

The infrastructure needed for storage and transportation remains the number one challenge. The small hydrogen molecules escape, and this is still something that engineers are struggling to understand.

-          Economic Barriers:

While costs are falling, we're not quite at price parity with fossil fuels. Carbon pricing might help close the gap, but this won’t be for the foreseeable future.

What's Next for Green Hydrogen?

The future looks promising despite the uncertainty. Industry experts suggest that by 2030:

• There will be 10GW of low-carbon hydrogen capacity
• Infrastructure will be substantially developed
• Major industrial clusters will be hydrogen-ready

As one expert speaking at Nomura Greentech’s Sustainable Leaders’ Summit noted: " We cannot export Saudi Arabian sunshine to Europe via electrons, but hydrogen provides the answer. We can use the molecule as a proxy energy carrier to tap into these new renewable resources that otherwise would be stranded.”