A phased Hydrogen transition.

1. Achieving Efficiencies,
2. Realising Effectiveness
3. Delivering Enhancements

As the world struggles with the challenges of climate change, energy security, and sustainable development, the transition to a hydrogen economy has emerged as a promising solution. Green hydrogen, a clean-burning fuel that can be produced from renewable energy sources, has the potential to transform the way we generate, distribute, and use energy. However, transitioning to a hydrogen economy is a complex and multi-faceted process that requires careful planning, strategic investment, and phased implementation. In this short article, we will explore the three key phases of this transition: Achieving Efficiencies, Realising Effectiveness, and Delivering Enhancements. By understanding these phases and the challenges and opportunities they present, we can better understand the challenges, navigate the path, and seize the opportunities of a low-carbon future and unlock the full potential of hydrogen as a game-changing energy vector.

Background

In a world grappling with the urgent need to reduce carbon emissions, the future of hydrogen is undeniably bright. As the demand for low-carbon hydrogen continues to grow, we find ourselves on the cusp of a transformative energy shift. According to the two-degree Paris Agreement scenario, the demand for low-carbon hydrogen is projected to reach a staggering 343 million metric tonnes per annum (Mtpa). Of this potential demand, green hydrogen is expected to account for 70%, or roughly 241 Mtpa. Now, compare that to today’s reality, where a mere 80 Mtpa is being produced as grey hydrogen worldwide. This means that the green hydrogen market alone is poised to become three times the size of the current grey hydrogen market.

As we move towards a hydrogen-based economy, it becomes crucial to understand the role of expertise in energy optimization. Energy optimization is the process of maximizing the efficiency and effectiveness of energy systems, reducing waste, and minimizing costs. In this article, I will discuss the three phases of transitioning to a hydrogen economy: achieving efficiencies, realizing effectiveness, and delivering enhancements.

Introduction

The transition towards a hydrogen-based economy is gaining momentum, presenting new opportunities and challenges in equal measure. With global energy demands projected to double by 2050, hydrogen, as a versatile energy carrier, could play a pivotal role in decarbonising sectors such as long-haul transport, chemicals, and iron and steel. This article delves into the three phases of transitioning to a hydrogen economy, namely, achieving efficiencies, realising effectiveness, and delivering enhancements.

The growing international hydrogen economy represents a future where hydrogen, a versatile clean energy carrier, provides the power to shape our energy economy of the future. One where a growing dependence comes from clen energy opportunities and a reducing demand on fossil fuels, a transition to achieve a net zero destination. Currently, hydrogen in Ireland is mainly utilised in the refining and chemical sectors, produced primarily from fossil fuels such as coal and natural gas. For Ireland specifically transitioning to a hydrogen-based economy implies that key economic determinants like the cost and safety of hydrogen production, transport, storage and distribution system will be critical.

While hydrogen presents unique challenges due to its high diffusivity, low density as a gas and liquid, and broad flammability range, it is receiving significant international attention and financial support. Worldwide governments, universities, favour hydrogen as helps meet the climate and energy targets but it is crucial that industry achieve a threshold where they become ‘comfortable’ transition to hydrogen that is the crucial next step in this journey.

Success for Ireland becoming a hydrogen economy and successfully navigating the transition unlocking the full potential of hydrogen, requires a systematic approach that involves three distinct phases: achieving efficiencies, realizing effectiveness, and delivering enhancements. Each phase is akin to the process utilised in an innovation stage gate process, each phase builds upon the previous one, creating a roadmap for a sustainable energy future. A future that delivers energy autonomy for Ireland.

Advantages of Using Hydrogen in Energy Systems

The use of hydrogen in energy systems offers several advantages over traditional fossil fuels. Firstly, hydrogen is a clean and renewable energy source. When hydrogen is burned or used in fuel cells, the only by product is water, making it an environmentally friendly alternative to fossil fuels. Additionally, hydrogen can be produced from a variety of sources, including renewable sources such as wind and solar power, further reducing its carbon footprint.

Secondly, hydrogen has a high energy density, meaning that it contains a large amount of energy per unit of weight. This makes it an efficient and compact fuel source, particularly for applications where weight and space are critical, such as transportation. Furthermore, hydrogen can be stored and transported easily, allowing for greater flexibility in its use.

Lastly, the use of hydrogen in energy systems can contribute to energy security and independence. With the challenges of the climate crisis, energy costs, energy security and rising concerns over geopolitical tensions, diversifying our energy sources is crucial. Hydrogen offers a viable alternative that can be produced domestically, reducing reliance on foreign oil and gas.

Phase One: Achieving Efficiencies

Optimising the production and use of hydrogen to complement current energy delivery in achieving system resource efficiencies is the crucial first phase in the transition.  However, advancements in electrolysis, the ability to system couple this clean energy production method to renewables and increase the clean energy portfolio in Ireland paves the way for cleaner and more efficient energy production and use across the island.

Efficient storage solutions are also crucial for the widespread adoption of hydrogen as an energy source. Currently, hydrogen is primarily stored in compressed or liquefied form, which requires specialised infrastructure. To achieve efficiencies in storage, research is underway to develop innovative materials and technologies that can safely and efficiently store hydrogen at lower pressures and temperatures.

The Role of Hydrogen in Clean Energy Transitions

Hydrogen produced using renewable energy, can help to decarbonise a range of sectors. Existing fossil  fuel sourced hydrogen can be substituted with renewable hydrogen. Hydrogen -powered vehicles would improve air quality, promote energy security, and support the integration of variable renewables in the electricity system. However, faster action is required to create demand for low-emission hydrogen and unlock investment that can accelerate production scale-up and reduce the costs of technologies for producing and using clean hydrogen.

Centralised Production of Hydrogen

In the early stages of the transition to a hydrogen economy, centralised production of molecular hydrogen is likely to dominate, displacing fossil fuel sourced hydrogen used in existing chemical plants and petroleum refineries. Growth in demand will be met by strategically located electrolysers on the electricity grid to optimise the use of renewable electricity on the system This will assist the reduction of curtailed renewable energy and provide a source of clean dispatchable electricity when required to balance the electricity network through renewable energy derived fuels.

Transportation, Distribution and Storage of Hydrogen

Hydrogen is transported today in pipelines, pressurised gas cylinders and in derivative fuels such as ammonia, these means of transport will have to be scaled up in the future to accommodate the anticipated growth in production, storage and demand for hydrogen.

The existing natural gas transmission system is being prepared to transport hydrogen to the rigours safety standards that it deploys for natural gas today.

Hydrogen provides the ability to store renewable energy and large scale storage will be developed to provide a clean source of energy security, in the interim storage facilities at plant sites for inventory or to compensate for demand swings and plant interruptions may be required. In time larger geological storage facilities, capable of storing months of energy will be developed. The development of mature financial structures and contract mechanisms to mitigate risks will be crucial during this phase.

Technology Optimisation

Renewed research and development efforts required towards optimising hydrogen production technologies, through electrolysis enhancement to ‘connect’ with the intermittency of renewables in order to increase the penetration and use of green power in the energy system, increasing efficiency and reducing costs. Delivering a lower cost of hydrogen (LCOH) to bring the economic bar within reach. Additionally increased research and development initiatives focus on improving the efficiency of hydrogen storage and transportation methods.

Market Penetration

Policies and incentives developed and introduced to encourage the adoption of hydrogen technologies across various sectors, including transportation, industry, and power generation. Pilot projects and demonstration programs are launched to showcase the viability and benefits of hydrogen-based solutions.

Phase Two: Realising Effectiveness

Phase two focuses on harnessing the effectiveness of hydrogen through fuel cell technology, its applications and where they deliver benefit for the Irish economy and people. Fuel cells convert hydrogen and oxygen into electricity, emitting only water vapor as a byproduct. They have the potential to power a wide range of applications, from transportation to stationary power generation. Fuel cells can be used in stationary applications, such as backup power systems for buildings and remote areas where grid access is limited. Realising the effectiveness of fuel cells requires advancements in their durability, cost-effectiveness, and scalability.

Industrial Scaling

With falling hydrogen production costs, driven by economies of scale and R&D, privately funded hydrogen projects are expected to come online. The build-out of midstream distribution and storage networks connecting a greater number of producers and off takers will reduce delivered cost and drive adoption in new sectors.

For hydrogen to be a viable as an industrial scale energy solution it needs to operate as an integrated system, where the ability to store and transport hydrogen are as important as the production itself. To be economically viable, hydrogen production at an industrial (GW) scale will need to be able to address demand at the national level. It is unrealistic to expect that localised demand, in proximity to a hydrogen production site, will on its own be able to able to provide either sufficient scale or sufficient diversity of demand to justify the scaled hydrogen infrastructure costs.

Policy makers will need to ensure that there is co-ordination of storage and transport solutions simultaneously with the development of industrial scale hydrogen production, including providing the necessary market incentives for storage and transport.

Regulatory Developments

Developing regulations for a scaled hydrogen industry, including methods of lifecycle emissions analysis across feedstocks and production pathways, is essential during this phase. Policy and regulatory developments will provide the necessary certainty to accelerate private investment.

Technical Innovation through R&D

Accelerating technical innovation through research and development can help bring down costs and mitigate bottlenecks in some technologies. For instance, R&D is needed to bring down the cost of carbon capture, utilisation, and storage for reformation-based production as well as in end-use applications such as improving fuel cell durability.

As hydrogen technologies mature and costs decline, production capacity can be scaled up to meet growing demand. This involves investing in larger-scale hydrogen production facilities and expanding distribution networks to serve a wider geographic area.

Diversification of Applications

As we move from phase one into phase two and realising effectiveness then we need to develop diversification of use for green hydrogen and deploy it across a range of applications, beyond those in phase one. Increased use in transportation (e.g., fuel cell vehicles, hydrogen trains) will be realised and plans developed for use in an increased span of specific applications such and additional industry use   chemical manufacturing and energy storage. New horizons are then starting to be developed based on the technical results of the R&D work and then efforts can be made to identify new applications and markets for green hydrogen to further drive demand.

Claire Madden, General Counsel, Bord Gáis Energy said, “Bord Gais Energy is fundamentally repurposing its business to play a leading role in Ireland’s energy transition, and hydrogen has a key role to play. We have entered into a number of strategic partnerships to explore producing and storing hydrogen through project Kestrel; using new offshore wind capacity through our partnership with Corio Generation. We are also investing in two hydrogen enabled peaker plants in Dublin and Athlone due to come on stream mid next year to support the green energy transition.”

Phase Three: Delivering Enhancements

This third phase should build on the efficiencies and effectiveness achieved in the previous phase one and two. It focuses on delivering enhancements through advanced hydrogen technologies. This includes exploring innovative uses of hydrogen, such as its integration into existing infrastructure and its potential as a feedstock for industrial processes and for Irish industrial applications that are hard to decarbonise. Hydrogen could be utilised in various sectors, including fabrication, chemicals, and aviation, to reduce carbon emissions and enhance sustainability.

Long-Term Growth

In the long-term, a self-sustaining commercial market for hydrogen can materialise. Falling delivered costs will translate into a reduction in hydrogen production costs, making hydrogen a competitive alternative to fossil fuels. The commercial uptake of clean hydrogen is also expected to occur in three phases. The initial phase involves the accelerated replacement of carbon-intensive hydrogen with clean hydrogen, primarily in industrials/chemicals use cases. This is already being witnessed in leading countries across the globe, it is merely a clean substitution. The subsequent phase which is more difficult to achieve involves industrial scaling, where hydrogen production costs continue to fall due to economies of scale and R&D. The final phase is long-term growth, where a self-sustaining commercial market emerges from the current global lead being driven by governments and where industry take up the energy challenge after initial subsidies, grant assistance, tax credits and other financial assistance has expired.

Additionally, advancements in hydrogen production technologies, such as photoelectrochemical, biological processes and next generation electrolysis such as microbial electrolysis, hold promise for further enhancing the efficiency and effectiveness of hydrogen as an energy source. Research and development in these areas are crucial to unlock the full potential of hydrogen and drive its adoption on a global scale.

Áodhan McAleer, Hydrogen, Storage and Power to X Senior Manager at ESB said “ESB believe that green hydrogen will be part of the net zero energy system of the future, providing a vital source of back up dispatchable generation and helping ensure security of supply.  ESB is building the capability and investing in projects that will ensure we are ready to deploy at scale. Our hydrogen fuel cells showcase what is the first deployment of hydrogen to electricity in Ireland support the network by using fuel cell technology, converting hydrogen to electricity, to supply clean power when required – with the only by-product being pure water.”

Expansion and Acceleration of the Capital Base

Expanding and accelerating the capital base using mechanisms that manage price and volume risk will encourage long-term offtake. Development of hydrogen commodity markets, hedging contracts, and the entry of low-cost capital providers into the market are crucial at this stage.

The EU. clean hydrogen market is poised for rapid growth, accelerated by historic commitments to Europes clean energy economy. Clean hydrogen can play a role in decarbonizing up to 25% of global energy-related CO2 emissions, particularly in industrial/chemicals uses and heavy-duty transportation sectors.

Technological Innovation

Continued research and development efforts focus on advancing hydrogen technologies and overcoming remaining challenges, such as delivering second generation electrolysis, additionality in green hydrogen production from alternative green sources such as geothermal, enhancing hydrogen storage methods, and reducing production costs. A major attraction of hydrogen as a fuel is its natural compatibility with fuel cells. Fuel cells convert the chemical energy in hydrogen and oxygen directly into electrical energy, with water as the only by product, making them a potential game-changer in the energy sector.

Vikram Gulliani Atlas Copco Global Product Manager H2,Co2,Biogas & Other Gasses stated, “Atlas Copco is committed to driving innovation in hydrogen compression technologies. By focusing on efficiency, effectiveness, and sustainability, we aim to accelerate the transition to a hydrogen-powered future.”

Infrastructure Expansion

Plans for investments can be developed in expanding hydrogen infrastructure to support widespread adoption and enable seamless integration into existing energy systems. This includes building additional production facilities, expanding distribution networks, and deploying hydrogen refuelling infrastructure.

Brian Mullins, Hydrogen Programme Director , Gas Networks Ireland stated, “Gas Networks Ireland is fully committed to advancing green hydrogen as a cornerstone of our pathway to a net zero gas network. Our infrastructure provides a vital connection between hydrogen production and consumption, creating a secure bridge between green energy sources and end users.

We are working towards preparing our network to be repurposed to ultimately transport 100% hydrogen through supporting clusters which will be connected in the future as demand grows. By leveraging our expertise and Ireland’s extensive 14,725km gas network, we can support Ireland’s transition to renewable hydrogen, positioning the country as a leader in sustainable energy and contributing to a carbon neutral future.”

Conclusion

The transition to a hydrogen economy is a multi-phase process that requires concerted efforts in achieving efficiencies, realising effectiveness, and delivering enhancements. Through strategic planning, technology development, and regulatory support, a hydrogen economy can become a vibrant and competitive force in the global energy landscape.

If we are to achieve a successful hydrogen economy, it represents a monumental shift in our current global energy landscape. The journey is complex and challenging, requiring significant technological advancements, policy support, and market development. However, the promise of a cleaner, more sustainable energy future makes this transition not only necessary but also imperative.