Costs of Green Hydrogen Production and Storage
Costs of green hydrogen production and storage are some of the key concerns in the process of moving toward renewable energy. This article will explore the cost of green hydrogen production and storage, and how to store and transport this energy source.
We will also discuss the cost of green ammonia production and storage. Depending on the desired energy output, green hydrogen may also be used as a vehicle fuel. However, the cost of green hydrogen production and storage may still be higher than for fossil fuels.
What is Green Hydrogen?
Green hydrogen, frequently denoted as “clean hydrogen,” emerges as a revolutionary energy carrier, meticulously crafted through the intricate process of electrolysis. This cutting-edge method involves the deliberate separation of water molecules into their elemental components: hydrogen and oxygen. Remarkably, this transformative process occurs under the influence of electricity, an essential component generated exclusively from sustainable and renewable sources, including but not limited to solar arrays, wind turbines, and the potent force of hydroelectric installations.
Diverging significantly from its conventional counterpart, gray hydrogen, which is synthesized from fossil fuel-derived natural gas, green hydrogen stands as an emblem of environmental responsibility and sustainability. The disparity becomes manifest in the pronounced absence of carbon emissions during its production. While gray hydrogen perpetuates carbon dioxide release and exacerbates the ongoing climate crisis, the advent of green hydrogen offers a resounding departure from this unsustainable trajectory.
The Significance of Green Hydrogen
Green hydrogen, distinguished by its origin from sustainable electrolysis processes powered by renewable energy sources, harbors a transformative potential that spans across an array of critical sectors, heralding a paradigm shift in their operational frameworks.
- Transportation: Beyond its mere existence as an energy carrier, green hydrogen has the potential to completely reshape the landscape of transportation. As an environmentally benign fuel, it emerges as a prime contender to power fuel cell vehicles (FCVs). These vehicles leverage hydrogen in fuel cells to generate electricity, propelling them forward with zero tailpipe emissions—only emitting water vapor as a byproduct. This innovation not only addresses the vexing issue of vehicular emissions but also augments the viability of long-haul transport by offering a comparable range and refueling time to conventional gasoline-powered vehicles.
- Industrial Processes: The catalytic impact of green hydrogen in the realm of industrial processes cannot be overstated. As a clean and versatile feedstock, it unlocks innovative pathways in chemical manufacturing, refining, and other energy-intensive industries. Its malleability as a raw material promises to reduce the reliance on fossil fuels, enabling the synthesis of crucial products while circumventing the detrimental carbon footprint. This shift towards utilizing green hydrogen as a feedstock in these industries is poised to contribute substantively to sustainability agendas.
- Energy Storage and Grid Balancing: The intermittency of renewable energy sources like solar and wind poses a formidable challenge to grid stability. Green hydrogen, with its remarkable capacity to store energy for prolonged periods, emerges as a potent solution to this quandary. During periods of excess renewable energy generation, surplus electricity can be channeled into electrolysis to produce green hydrogen, effectively storing energy in the form of hydrogen gas. Subsequently, when renewable energy generation dwindles, the stored hydrogen can be employed in fuel cells to generate electricity, seamlessly stabilizing the grid and ensuring a consistent energy supply.
Different Pathways of Hydrogen Production
Beyond the intricate process of electrolysis, which has garnered substantial attention as a green hydrogen production method, the landscape of sustainable hydrogen generation expands to encompass a constellation of additional pathways. These alternative routes, marked by innovation and environmental conscientiousness, further underscore the versatility of green hydrogen production.
- Biomass Gasification: Among these inventive pathways, biomass gasification emerges as a notable contender. This intricate process entails the thermal conversion of biomass feedstocks, such as agricultural residues, forestry byproducts, and organic waste, into a synthesis gas, commonly known as syngas. This syngas, primarily composed of hydrogen, carbon monoxide, and carbon dioxide, can subsequently be subjected to separation processes to extract hydrogen. What distinguishes this method is its dual advantage of not only producing green hydrogen but also valorizing organic waste materials that would otherwise contribute to environmental degradation. By harnessing the potential of biomass gasification, a symbiotic relationship between energy generation and waste management is forged.
- Photobiological Production: In a departure from conventional methods, photobiological hydrogen production harnesses the power of photosynthetic microorganisms to generate hydrogen gas. These microorganisms, such as certain strains of algae and cyanobacteria, have the remarkable ability to utilize light energy to split water molecules, liberating hydrogen in the process. This approach intricately mimics nature's own mechanism of photosynthesis, but with a twist that focuses on hydrogen gas production rather than oxygen evolution. While currently in the realm of research and development, the potential of photobiological production holds promise for a future where renewable energy sources and natural processes harmoniously intersect.
Factors Influencing Green Hydrogen Production Costs
Cost of making green hydrogen
The costs associated with green hydrogen production are huge, but a recent report by Morgan Stanley says the cost of the fuel could be reduced by two-thirds by 2030.
This was announced just before the European Commission's announcement that hydrogen will be a key element of its efforts to achieve climate neutrality by 2050. In order to reduce costs, technology innovation is key. Purchasing wind power or other renewable energy near a hydrogen source can cost less than half a cent per kilowatt-hour.
However, a key step in scaling up the green-gas industry is bringing hydrogen onto the natural gas grid. Once hydrogen can be produced at 50 cents per megawatt-hour, it will be competitive with natural gas for transport and steelmaking.
Furthermore, plans to increase carbon emissions by some European governments may accelerate the process. For example, Germany's climate cabinet recently said that green hydrogen would play a vital role in regenerating its industrial base and achieving zero emissions by 2050.
While green hydrogen is much cheaper than fuel-based hydrogen, it is still an expensive form of fuel. The International Energy Agency estimates the cost of green hydrogen production to range from $3 to $7 per kilo. The cost of green hydrogen production is largely due to the use of renewable electricity, which is the main component.
The cost of green hydrogen production will continue to drop as countries ramp up their renewable energy ambitions. But while it may be a long way off, it is certainly possible to find an affordable way to produce it.
While renewable energy can be used to make hydrogen, the process remains expensive. Even with the recent reduction in demand, the cost of electrolysis still remains relatively high. Because the market for this energy is small, it isn't profitable for many companies.
Nevertheless, the benefits outweigh the costs. It is still possible to produce green hydrogen in large quantities, but it is costly and there is currently a shortage of big electrolyzers.
Cost of storing green hydrogen
In the United States, a hypothetical 100% wind and solar energy system would require 200GW of LDES and 80,000GWh of storage capacity. That would require 200 times less power and 83 times more energy storage than what is required today.
The cost of storing green hydrogen in caverns may be as low as 10 cents per pound or even less than the cost of vanadium redox flow batteries.
Green hydrogen is significantly more expensive than blue or grey hydrogen but is cost competitive with these other forms of low-carbon fuel. With the aggressive deployment of electrolyzers and rapid scale-up, green hydrogen could be cheaper than other low-carbon fuels by 2030.
Even in current locations, costs have decreased by over 50% from 2000 to 2009 and could be competitive with blue hydrogen before 2040. With continued progress in electrolyzer technology, green hydrogen could be as cheap as blue or grey hydrogen before 2040.
The government is already underpricing blue hydrogen in its net zero modeling. However, recent drops in electricity prices suggest that green hydrogen will become cost-competitive with fossil fuels by 2030.
Hydrogen is used extensively in industry and is a viable alternative to fossil fuels. Its low cost and many possible uses mean that storing green hydrogen will be cheaper than fossil fuels within a decade. This technology is already in use in the manufacturing and transportation sectors, but the next step will be storing it in tanks.
Despite its low price, the initial investment required to develop an industrial hydrogen supply chain will be high. The investment will be required to install storage capacity and develop new infrastructure.
It will take decades to install and operate a hydrogen-fueled power plant. However, there are several sectors that are scaling ahead of policy implementation, including oil and gas refineries. RMI is part of the Green Hydrogen Catapult coalition and has an existing hydrogen storage facility.
Despite its cost, green hydrogen will be an effective solution to achieving climatic goals. It will require a huge investment, but it is possible to store green hydrogen at a relatively low cost. In addition, the cost of energy is falling dramatically.
The future of hydrogen is bright. With a growing demand for energy and rising costs, storing green hydrogen will become cost-effective. While the technology isn't perfect, it's a great starting point.
Cost of transporting green hydrogen
With falling costs of renewable power and improving electrolyzer technologies, the cost of transporting green hydrogen could be well below $2 per kilogram in several locations in five years.
Cost-competitive green hydrogen can help the world meet its goal of 1.5 degrees Celsius of global warming. The report, Fueling the Transition: Cost-Competitive Green Hydrogen in the Next Five Years, analyzes the cost reduction opportunity and the enabling tools needed to make green hydrogen commercially available.
The first stage of the green hydrogen journey starts in Germany, where the company's show truck, a Hyundai, is already a fleet customer. The roadshow goes through Hamburg and Berlin and reaches more than 250 companies in a few days.
By the time the show truck arrives at its last destination in Berlin, Hellenthal has already built up an ecosystem for green hydrogen in commercial vehicle mobility. It has also attracted big stationary customers.
However, the cost of green hydrogen remains a major hurdle for the industry.
According to the International Renewable Energy Agency, it will cost c.$3/kg to transport green hydrogen in the United States. This cost is determined by the cost of renewable electricity. The cheapest hydrogen is produced in countries that have excellent renewable energy resources.
The cost of green hydrogen production depends on the size of the electrolysis system used. A ten-megawatt electrolysis plant can produce less hydrogen per hour than a gas reforming facility, while the largest one is able to produce more than a million kilograms per hour.
In a hydrogen-dominated world, Germany will continue to be a net importer of energy. While India has made progress in the production of green hydrogen, Germany is likely to remain a net importer of hydrogen, despite the fact that it is the cheapest place in the world to produce it.
But as it focuses on manufacturing green hydrogen, the costs of transportation are not as low. However, the overall cost of green hydrogen will be significantly lower in Europe.
While it is costly to produce green hydrogen, the technology is already cheaper than fossil fuels, and the manufacturing costs of electrolyzers are also falling. Similarly, government policies to accelerate green hydrogen deployment can spur adoption and drive cost competitiveness.
These policies can reduce the overall subsidy needs for green hydrogen, and they can accelerate the process until the cost of transporting green hydrogen becomes competitive with fossil fuels. So, the future of hydrogen is bright and it will soon be more affordable than ever.
Cost of storing green ammonia
The cost of producing and storing green ammonia is considerably higher than normal ammonia. Currently, the cost of green ammonia is about $500 per metric ton, a two to three-fold increase over normal ammonia.
However, green ammonia is more flexible, multi-purpose, and offers an extensive range of applications. Its cost is the most significant barrier to its adoption, which means that a large amount of investment is needed to build a green ammonia production plant.
The production of green ammonia is also possible thanks to its energy storage properties. It can be stored in large tanks under modest pressure and temperatures of -33degC. This makes it an excellent solution for energy storage in sectors such as agriculture and other hard-to-decarbonize industries.
Green ammonia can also be stored globally, as it is extremely flexible in terms of transport and storage. As long as there is sufficient investment in storage facilities, green ammonia is a viable energy storage option.
While green ammonia is more expensive than gas, it is more energy-dense than compressed hydrogen.
This makes it an attractive carbon-free energy carrier. However, the cost of producing and storing green ammonia is expected to increase dramatically in the coming years. Nevertheless, as the demand for green ammonia increases, so will the price.
Green Hydrogen Storage Methods
The effective storage of green hydrogen is pivotal to unlocking its full potential as a clean and versatile energy carrier. As such, a spectrum of innovative storage methods has emerged, each offering unique advantages and technical nuances tailored to address the multifaceted requirements of different applications and scenarios. These methods stand as cornerstones in bolstering the integration of green hydrogen into our energy landscape.
Compressed Hydrogen Gas
This time-tested method entails the compression of hydrogen gas to elevated pressures, rendering it more compact for storage. To achieve this, sturdy and resilient storage vessels are employed, often constructed from advanced materials capable of withstanding the pressures involved. While this method ensures efficient storage, there exist considerations related to safety, as the high pressures demand stringent engineering and safety protocols to avert potential hazards.
Liquid Hydrogen
The cryogenic storage of hydrogen as a liquid involves chilling it to exceptionally low temperatures. This approach yields a notably high energy density, making it particularly well-suited for applications necessitating concentrated energy storage. However, the implementation of cryogenic storage necessitates specialized equipment capable of maintaining the required low temperatures, adding an additional layer of complexity to the storage infrastructure.
Hydrides
Green hydrogen can be stored in a chemically bound form as solid hydrides, wherein hydrogen atoms combine with specific materials. This approach offers the advantage of safe and reversible storage, enabling the release of hydrogen as needed without undue hazards. It also provides a potential solution for applications requiring compact storage with controlled release, such as portable devices or specific industrial processes.
Underground Storage
Leveraging existing geological formations, such as salt caverns or depleted oil and gas reservoirs, presents a large-scale storage avenue for green hydrogen. These underground cavities offer cavernous spaces capable of accommodating substantial hydrogen volumes. By repurposing these formations, the potential for significant hydrogen storage capacity is unlocked, contributing to enhanced energy system flexibility and resilience.
Economic Viability and Future Outlook
The ascent of green hydrogen into prominence extends its transformative reach across an array of industrial sectors, underpinning a pivotal shift towards sustainability and environmental responsibility. The myriad applications of green hydrogen, stretching across diverse sectors, embody its profound potential to reshape entire industries, mitigate carbon emissions, and fortify our trajectory toward a more sustainable future.
Green Hydrogen's Cross-Sector Impacts
The resonance of green hydrogen resonates vibrantly within pivotal sectors such as transportation, chemical production, steel manufacturing, and energy storage. In the realm of transportation, it emerges as a beacon of hope, offering a carbon-free alternative through fuel cell vehicles that reduce tailpipe emissions to mere water vapor. In the crucible of chemical production, green hydrogen stands as a catalyst for innovation, offering a cleaner feedstock to revolutionize the synthesis of essential products while curbing the carbon footprint.
Similarly, steel manufacturing, historically energy-intensive and emissions-laden, finds a transformative solution in green hydrogen, capable of replacing traditional fossil fuel-based processes. Furthermore, as energy storage remains a paramount concern, green hydrogen's unique capacity to store energy effectively for prolonged periods promises a dynamic solution for balancing intermittent renewable sources, enhancing grid resilience.
Government Policies as Catalysts
The realization of green hydrogen's potential hinges significantly on the role of government policies. Supportive frameworks, encompassing policies, subsidies, and innovative carbon pricing mechanisms, will act as catalysts, propelling the transition toward widespread adoption. These instruments not only incentivize investments but also empower businesses to embrace the green hydrogen paradigm, effectively fostering a more sustainable energy ecosystem.
Synergistic Collaborations and Research
Navigating the intricate path toward the optimization of green hydrogen requires collective endeavors. Collaborative partnerships between governments, industries, and research institutions stand as indispensable keystones for driving forward breakthrough technologies and mitigating the cost barriers associated with nascent innovations. The synthesis of knowledge, resources, and expertise is essential to engineer more efficient production methods, scalable storage solutions, and cutting-edge applications, effectively fueling the progression of green hydrogen into mainstream viability.
Wrapping Things Up
In the grand tapestry of our energy future, the narrative of green hydrogen unfolds as a beacon of hope and a canvas of transformative possibilities. As I delve into the intricate nuances of its production, storage, and applications, I am inspired by the profound shifts it promises across sectors that touch our lives every day. The potential to revolutionize transportation, catalyze cleaner industrial processes, and enhance energy storage truly envisions a world where our energy needs are harmonized with the planet's well-being.
Peering into the horizon, the fusion of innovative technologies, visionary government policies, and collaborative research efforts offers a glimpse of a sustainable tomorrow. It becomes evident that while there are challenges to surmount, the march toward a cleaner energy landscape is relentless. The promise of more affordable green hydrogen, capable of competing with fossil fuels, kindles optimism for a future where carbon emissions are curtailed and our planet thrives.
