Transforming how the gas is produced is key to global ambitions to achieve net zero emissions
email rounding up the latestThe combustible gas plays a vital role in a wide range of industrial processes. Most dramatically deployed as a rocket fuel, hydrogen is more typically used to produce ammonia, a crucial ingredient in fertiliser, and to remove sulphur in oil refining. Around 80 per cent of the gas produced is used in this way. Other applications include manufacturing plastics, explosives, textiles, pesticides and dyes.
Ambitions for transforming hydrogen into a clean fuel and chemical stock will depend on the rapid building out of electrolysers, though. They separate water — a compound of hydrogen and oxygen — into its constituent elements. And ensuring that the electrical power used in the separation is derived from renewable sources, rather than fossil fuels, will be essential to adopting truly “green” hydrogen.
The legislation provides a long-term subsidy that will drive down supply costs compared with “grey” hydrogen derived from natural gas, meaning “investors could generate very healthy returns and rapidly scale up production in the US market”, Mbuk says. EU policymakers are keen to make Europe a hub for green hydrogen technology and production. In May, the trading bloc declared its ambition to produce 10mn tonnes and import a further 10mn tonnes of renewable hydrogen each year by 2030.
Mbuk welcomes these commitments but notes that work needs to be done to ensure the electricity supplied for electrolysing water is genuinely derived from renewable or low-carbon sources.
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