Video | Why the steel industry is hesitant on hydrogen
Why Hydrogen?
Hydrogen is the ultimate climate change mitigation solution.
The world’s governments are adopting legislated net zero targets, and how these targets can be met has become their focus. There is also an urgent need for energy storage solutions, as the energy mix includes an increasing share of renewables.
Hydrogen tackles renewables intermittency by converting clean energy to hydrogen gas that is usable and storable. Hydrogen replaces fossil fuels, improves air quality, and reduces CO2 emissions. This is how hydrogen enables the world to achieve its climate change mitigation ambitions.
Green hydrogen is made by electrolysis: the manufacturing process powered by renewable energy. As costs of renewable energy fall so to does the cost of electrolysis.
2022 has seen an exponential increase of developments in the hydrogen sector.
Accelerated by Russia’s invasion of Ukraine and the subsequent surge in energy prices, countries and companies across the world have brought forward plans to produce, store, transport and consume clean hydrogen.
Green hydrogen has been cheaper than liquefied natural gas delivered by tanker in much of Europe this year, providing a clear signal to hydrogen investors.
In the U.K the government has opened applications for the £240 million Net Zero Hydrogen Fund, published the Hydrogen Investor Roadmap, and set out details for the Hydrogen Business Model and Low Carbon Hydrogen Standard.
The government have reaffirmed its vision for the UK to be a hydrogen-based economy – as set out in the Hydrogen Strategy published in August 2021. This is a major next step in delivering the government’s ambition to have 1GW of electrolytic hydrogen in operation or construction by the end of 2025 – which could produce enough hydrogen to fuel up to 45,000 buses per year.
The northern hemisphere is also rapidly waking up to the realities of climate change after heatwaves and droughts ripped across Europe and North America this summer, bolstering the case for increased investment in zero-carbon hydrogen.
Research continues to point to rapidly declining costs for producing hydrogen. Economies of scale will help push down the price of hydrogen electrolyses to $340/kW by 2030.
