Faiez Sallie
Globally, interest in hydrogen as an alternative to fossil fuels is soaring. Making the transition is complex, however. Let’s look at the important questions to consider and how to successfully navigate the complexities to ensure viable project development and outcomes.
There is huge and growing momentum around hydrogen (H2). The Hydrogen Council is a good barometer for the exponential interest in exploiting H2 as an energy carrier. Formed in 2017, this global CEO-led initiative already has 109 members. These energy, transport, industry, and investment companies collectively have total revenues of more than $23.2 trillion and employ more than 6.5 million people worldwide.
The United States, Australia, Canada, Chile, China, Finland, Germany, Japan, the Netherlands, New Zealand, Norway, Portugal, Russia, South Korea, Spain, and the UK among others have established R&D programs, hydrogen vision documents, roadmaps, and strategies.
In the US, the Fuel Cell and Hydrogen Energy Association released its “Roadmap to a US Hydrogen Economy” in October 2020, while the Department of Energy published its “Hydrogen Program Plan” in November 2020. With appropriate steps, the DOE estimates that H2 could add up to $140 billion a year to the US economy by 2030, and as much as $750 billion a year by 2050. US employment in the hydrogen space could be increased by up to 700,000 jobs by 2030 and up to 3.4 million jobs by 2050.
The main drivers
Key drivers for the accelerating attention being afforded to H2 include these:
- Enhancing long-term energy security
- Decarbonizing multiple sectors and limiting greenhouse gas emissions and global warming
- Improving climate resilience
- Reducing air pollution
- Improving future competitiveness
- Lowering capital costs and improving efficiencies associated with technological innovation
H2 has a unique set of properties that make it an attractive alternative to fossil fuels. It is odorless, colorless, can be generated from renewable sources, has a high specific energy density, and on combustion it releases only water.