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Hydrogen: the missing link in the energy transition

Hydrogen is rapidly emerging as a promising alternative to polluting fossil fuels in manufacturing. Will it be the potential clean energy game-changer?

Achieving net zero emissions by 2050 is a formidable global challenge, transitioning from mere possibility to practical reality. Bridging the gap between words and actions is imperative to have a fighting chance at reaching net zero by 2050 and capping global temperature increase at 1.5 °C. This necessitates a complete overhaul of our energy systems, with hydrogen emerging as a promising eco-friendly alternative to fossil fuels.

“Hydrogen is seen as a safe, non-toxic, and renewable alternative energy source that can be used in place of petroleum-derived fuels. When burned, it produces heat and water without emitting greenhouse gases, making it a zero-emission fuel,” says Kalyan Kumar Bhattacherjee, Chief Sustainability Officer, Jindal Stainless. “Since it requires substantial infrastructure, hydrogen is not a magic bullet for decreasing greenhouse gas emissions, Kalyan cautions.

“Hydrogen-as-a-fuel already has established use cases in high energy consumption industries such as refineries, iron and steel, ammonia, industrial heating et al. Ongoing shift of hydrogen production from fossil fuels to renewable sources will increase the adoption of Hydrogen-as-a-fuel by multiple other industries that are focused on sustainability,” explains Akhil Dokania, Director, Infra & Real Assets Investment Banking, Avendus Capital.

Understanding hydrogen
Hydrogen is the simplest and most abundant element in the universe. It can be produced through various methods, including electrolysis, steam methane reforming, and biomass gasification. “Hydrogen can be produced from diverse sources, including renewable energy, nuclear power, and fossil fuels with carbon capture and storage (CCS). This flexibility enables creating decentralised energy systems that can utilise local renewable resources and reduce dependence on imported energy sources,” shares Anurag Jain, Managing Director, GH2 Solar Pvt Ltd.

The key advantage of hydrogen lies in its ability to produce energy without emitting greenhouse gases, as the only by-product of its combustion is water vapour. Although hydrogen is the lightest and most prevalent element in the universe, it is never found in nature in its elemental state and is always extracted from other compounds that also include hydrogen. It also implies that how effectively hydrogen aids in decarbonisation depends on how clean and environmentally friendly the production process is.

“Each production method has benefits and drawbacks. Green hydrogen, created by electrolysing water using electricity obtained from renewable sources, is the cleanest choice but necessitates a substantial infrastructure investment. Ultimately, the carbon intensity is determined by how carbon-neutral the power source is. To ensure the long-term production of clean and green hydrogen, it is essential to critically evaluate various production pathways and their effects on the environment,” shares Kalyan.

There are several methods used for hydrogen production, each with its own advantages and disadvantages.

  • The most common method of hydrogen production is Steam Methane Reforming (SMR), which involves reacting natural gas (methane) with steam in the presence of a catalyst to produce hydrogen and carbon dioxide as a byproduct. However, SMR is not considered environmentally friendly because of the release of CO2, a greenhouse gas that contributes to climate change.
  • Electrolysis is another method used for hydrogen production, where electricity is used to split water into hydrogen and oxygen. When electricity is sourced from renewable energy sources such as solar or wind, electrolysis can produce “green hydrogen” with zero greenhouse gas emissions.
  • Biomass gasification is a process that involves heating organic materials, such as agricultural waste or dedicated energy crops, in a controlled environment to produce a synthesis gas (syngas) consisting of hydrogen, carbon monoxide (CO), and other gases. The syngas can then be processed to separate hydrogen. Biomass gasification can be a renewable and sustainable method of hydrogen production if the biomass feedstock is sourced responsibly.
  • Nuclear Thermochemical Processes use high-temperature heat from nuclear reactors to initiate a series of chemical reactions that ultimately produce hydrogen. However, they require access to nuclear energy, which raises concerns related to safety, waste management, and proliferation.

Challenges and considerations
Anurag says, “Although hydrogen technology shows great potential as an alternative to fossil fuels, it faces several significant obstacles that must be addressed before it can become a viable and widely adopted solution. While hydrogen holds great promise, some challenges need to be addressed for its widespread adoption in manufacturing.” He shares:

  1. Production and Infrastructure: The development of efficient and cost-effective hydrogen production methods and a well-connected distribution network is crucial to support industrial demand.
  2. Cost Competitiveness: Further advancements in production technologies and economies of scale are needed to make hydrogen economically viable. Government support, incentives, and research funding can play a crucial role.
  3. Safety Considerations: Proper safety measures, training, and regulations must be in place to mitigate risks and ensure safe handling, storage, and utilisation of hydrogen in manufacturing facilities.
  4. Supply Chain Dependencies: The availability and sustainability of raw materials need careful consideration to avoid creating new supply chain dependencies or environmental impacts in the pursuit of hydrogen-based solutions.
  5. Renewable Energy Integration: It is crucial to scale up renewable energy generation and integrate it into the hydrogen production.
  6. Technology Maturity and Efficiency: Hydrogen production, storage, and utilisation technologies continuously evolve. Further research and development are needed to enhance these technologies’ efficiency, reliability, and durability.
  7. Policy and Regulatory Support: Governments must provide incentives, funding, and a favourable regulatory environment to drive investment in hydrogen technologies, encourage R&D, and facilitate market adoption.
  8. Public Awareness and Acceptance: Education and awareness campaigns are necessary to highlight the benefits of hydrogen technology, dispel misconceptions, and generate public support.

Kalyan points out that “According to NITI Aayog, green hydrogen utilising Round-The-Clock (RTC) RE with Transmission & Distribution waiver is projected to cost $2.1/kg by 2030, whereas GH2 using onsite RE may be in the range of $1.8-$2.4/kg.” Hydrogen technology needs to overcome these challenges in order to be a viable alternative to fossil fuels. According to Prateek Jhawar, Managing Director and Head, Infra & Real Assets Investment Banking, Avendus Capital,  “Currently, hydrogen production from renewable sources is more expensive (~2x) than fossil fuel-based hydrogen production, making it less competitive in the market. A comprehensive infrastructure is needed for hydrogen production, transportation, storage, and distribution. This infrastructure requires significant R&D, investments and time to build, which can be a barrier to adoption.

Safety
Some of the properties of hydrogen make it safer to handle and use than the fuels commonly used today. For example, hydrogen is non-toxic. But this much-touted fuel of the future may have a pitfall. If hydrogen leaks into the atmosphere, the benefits of using it over fossil fuels could be completely wiped out. Kalyan points out, “Some of the hydrogen’s features necessitate additional technical restrictions to ensure its safe use. In particular, hydrogen can ignite more readily than petrol or natural gas due to its wide range of airborne flammable concentrations and lower ignition energy. Adequate ventilation and leak detection are important elements in the design of safe hydrogen systems. When some metals are exposed to hydrogen, can become brittle; therefore, choosing the right materials is crucial for the development of secure hydrogen systems.  A crucial component of guaranteeing the safety of hydrogen use is training in safe hydrogen handling procedures and designing safety elements into hydrogen systems.  Additionally, testing of hydrogen systems, such as hydrogen tank drops and models of garage leaks, demonstrates that hydrogen can be produced, stored, and supplied securely.”

To ensure the safe use of hydrogen as an energy carrier, several measures need to be taken, including:

  • Robust Safety Standards and Regulations: It’s crucial to establish comprehensive safety standards and regulations to guide the safe handling, storage, and transportation of hydrogen. Regulatory bodies work closely with industry stakeholders to develop and update safety guidelines to mitigate risks effectively.
  • Safe Storage and Infrastructure: Properly designed and maintained hydrogen storage and infrastructure systems play a crucial role in preventing leaks. Regular inspections, maintenance, and adherence to safety protocols are essential to prevent leaks and address potential issues promptly.
  • Leak Detection and Mitigation: Various technologies and methods are used for detecting hydrogen leaks and minimising their impact. These include advanced sensors, monitoring systems, and leak detection algorithms.
  • Training and Education: Workers must be knowledgeable about safe handling practices, emergency response procedures, and risk mitigation strategies.
  • Public Awareness and Acceptance: Educating the public about the safety measures, benefits, and real-world applications of hydrogen can help alleviate concerns.
  • Experience and Lessons Learned: Collaborative efforts among industry stakeholders, research institutions, and regulatory bodies help disseminate best practices and ensure continuous safety enhancements.

According to Sudhir Pathak, Head- Central Design & Engg (CDE), QA, Green Hydrogen, Hero Future Energies, “The major concern on safety is handling very High pressure (to the tune to 300 to 700Bar) or Liquefied Hydrogen (upto -253 DegC). Special Carbon Fiber based Vessels are being invented to handle such high-pressure hydrogen safely, special double-walled vessels to handle liquefied hydrogen associated with adequate valves, and leak devices to handle and mitigate any leakage, flammable matters.”

Future prospects
Hydrogen is rapidly emerging as a promising alternative to polluting fossil fuels in manufacturing. However, overcoming production, cost competitiveness, safety, and supply chain dependencies challenges is crucial for widespread adoption. “I can really foresee the Hydrogen taking the shape of a noble molecule that has the potential of Panacea to Decarbonising Mother Earth. With all strong economies fully focussed on Decarbonising, especially through Green Hydrogen and renewables through specially funded focus through R&D and mass deployment incentives, it is very clear that Green Hydrogen will reach its viability and exponential growth over the next decade,” says Sudhir.

By investing in research, infrastructure, and supportive policies, manufacturers can transition to a greener and more sustainable future, contributing to a cleaner environment and a thriving economy. Hydrogen has the potential to be a game-changer not just in the manufacturing sector, but to be the missing link of massive clean energy expansion.