{"id":10738,"date":"2023-03-08T10:00:00","date_gmt":"2023-03-08T15:00:00","guid":{"rendered":"https:\/\/www.plugpower.com\/?p=10738"},"modified":"2024-08-01T09:27:56","modified_gmt":"2024-08-01T13:27:56","slug":"green-hydrogen-101-unlocking-the-potential","status":"publish","type":"post","link":"https:\/\/www.plugpower.com\/green-hydrogen-101-unlocking-the-potential\/","title":{"rendered":"Green Hydrogen 101: Unlocking the Potential of This Renewable Energy Source"},"content":{"rendered":"\n
\"Green<\/figure>\n\n\n\n

Green hydrogen has become increasingly vital in plans to cut greenhouse gas emissions and improve air quality, which is why global leaders have turned to Plug for green hydrogen solutions. Here\u2019s everything you need to know about the clean energy source.<\/p>\n\n\n\n

A<\/strong>: Introduction to Green Hydrogen and its Potential as a Renewable Energy Source<\/strong><\/h2>\n\n\n\n

You can\u2019t talk about the A to Z of green hydrogen without answering the question: What is green hydrogen?<\/p>\n\n\n\n

Green hydrogen is produced from electrolyzers using renewable energy sources to provide the required power. It differs from other hydrogen colors \u2014 such as blue, pink, and gray \u2014 because it is the only one that doesn\u2019t use either fossil fuels or nuclear power.<\/p>\n\n\n\n

\"Hydrogen<\/figure>\n\n\n\n

Taking a step back to the basics of hydrogen<\/a>, the chemical compound is one of 118 known elements and sits as among \u201cthe most abundant element in the universe,\u201d according to the U.S. Energy Information Administration, at roughly 75% of the universe makeup.<\/p>\n\n\n\n

While green hydrogen and hydrogen at-large today consists of a microscopic fraction<\/a> of the global energy mix, Goldman Sachs predicts that by 2050, that number will jump to 25% and have a market segment worth \u00a0$10 trillion.<\/p>\n\n\n\n

B: Benefits of Green Hydrogen and its Ability to Reduce Greenhouse Gas Emissions<\/strong><\/h2>\n\n\n\n

Compared to its other-colored counterparts, green hydrogen provides a major greenhouse gas reduction benefit because its energy input is not an emitter and its output is benign: water.<\/p>\n\n\n\n

\"Hydrogen<\/figure>\n\n\n\n

Dr. Emanuele Taibi, Head of the Power Sector Transformation Strategies, International Renewable Energy Agency (IRENA), told<\/a> the World Economic Forum that green hydrogen will be crucial \u201cto reach net zero emissions, in particular for industry, shipping and aviation.”<\/p>\n\n\n\n

In addition, Plug CEO Andy Marsh told Congress<\/a> in July 2022 that hydrogen may be the only viable pathway to reduce emissions for difficult-to-decarbonize sectors, such as rail and long-haul truck transportation, marine vessels, steel, cement, and ammonia.\u201d<\/p>\n\n\n\n

C: Current Challenges and Barriers to the Widespread Green Hydrogen Adoption<\/strong><\/h2>\n\n\n\n

Think of green hydrogen as many thought of solar 15 years ago: a potential electricity production game-changer, but in its nascent stage, it is still capital-intensive. Because of that, like solar, some investors view it as cost-prohibitive.<\/p>\n\n\n\n

A central challenge of that cost prohibition cited<\/a> by the World Economic Forum is \u201cgridlock\u201d among \u201cpolicymakers and off-takers [that] must be resolved to kick-start initial [green hydrogen] projects and to promote the development of [the] sector.\u201d<\/p>\n\n\n\n

Five fundamental things causing<\/a> that gridlock, according to a 2021 IRENA report, include: high production costs, lack of dedicated infrastructure, energy loss throughout the supply chain, lack of value recognition among stakeholders, and a need to ensure sustainability.<\/p>\n\n\n\n

Plug is working \u2013 with good success – to educate global leaders on the need to invest in green hydrogen, while building an ecosystem providing cost-effective solutions to businesses.<\/p>\n\n\n\n

D: Different Methods for Producing Green Hydrogen, Including Electrolysis and Biomethane Reform<\/strong><\/h2>\n\n\n\n

Three primary green hydrogen production methods<\/a> exist, including water electrolysis, biomethane reforming, and thermal conversion via biomass gasification.<\/p>\n\n\n\n

Water electrolysis, the most common form of green hydrogen, uses clean energy sources such as wind and solar as its electricity current to split water into oxygen and hydrogen in producing hydrogen. The gold standard of producing the fuel, electrolyzed hydrogen is used in fuel cells<\/a> as well as many other industrial processes. <\/p>\n\n\n\n

Green hydrogen via biomethane reform, by contrast, utilizes biogas (energy from biological methane-based waste, such as cow manure, also called jackpot party casino game renewable natural gas) as the energy current for green hydrogen production. It is a cousin to steam-methane reforming, which instead utilizes a natural gas feedstock. Biomass gasification<\/a>, by contrast, utilizes plant-based biomaterials and other biowastes to create what is also sometimes called biohydrogen<\/a> through the thermal conversion process.<\/p>\n\n\n\n

\"Plug<\/figure>\n\n\n\n

E: Economic Considerations in Cost of Producing and Distributing Green Hydrogen<\/strong><\/h2>\n\n\n\n

There are some walls in need of climbing before green hydrogen achieves its full market potential.<\/p>\n\n\n\n

Few of these are technical, beyond the broader market need to continue scaling the renewable energy resources that would create green hydrogen to begin with. Most, instead, center around the cost of bringing green hydrogen to market and also the related importance of linking together renewable energy production sites with green hydrogen ones (see more on that later).<\/p>\n\n\n\n

In July 2022 congressional testimony<\/a>, Marsh called for \u201ca vastly more expansive [hydrogen pipeline] system\u2026akin to that of the more than 2 million miles of natural gas pipeline in the United States\u201d as a means of scaling the U.S. green hydrogen industry. That compares to the 1,600 miles of hydrogen pipelines existing today.<\/p>\n\n\n\n

F: The Future of Green Hydrogen: Advancements in Technology and Increased Investment<\/strong><\/h2>\n\n\n\n

Technologies for optimizing green hydrogen are advancing rapidly<\/a>.<\/p>\n\n\n\n

In 2016, the number of patents for green hydrogen had just barely surpassed those gained by fossil fuel-based hydrogen producers. The number of green hydrogen patents, four years later, was double those of their fossil fuel-based counterparts. On a related note, electrolyzer sales \u2014 at 200 megawatts in 2020 \u2014 doubled to 458 megawatts in 2021, according to BloombergNEF research<\/a>.<\/p>\n\n\n\n

With vast technological advances taking place, green hydrogen now needs public and private sector investments to bring it from an emerging technology to climate change mitigation kingmaker.<\/p>\n\n\n\n

The United Nations Industrial Development Organization (UNIDO) concludes<\/a> that $15 trillion in investment from government and financiers would create a hydrogen energy overhaul. And most of that must come from private financiers, UNIDO concludes.<\/p>\n\n\n\n

Investments can go much further than ever before today because, as the World Bank recently concluded<\/a>, \u201cfalling renewable energy prices\u2014coupled with the dwindling cost of electrolyzers and increased efficiency due to technology improvements\u2014have increased the commercial viability of green hydrogen production.\u201d<\/p>\n\n\n\n

G: Green Hydrogen Government Policies and Initiatives<\/strong><\/h2>\n\n\n\n

Governments worldwide have increasingly created policies to grow green hydrogen<\/a>.<\/p>\n\n\n\n

Some 26 countries have such policies in place, according to a 2022 International Energy Agency report<\/a>. In Plug\u2019s home country, green hydrogen hit a home run with the passage of the Infrastructure Investment and Jobs Act<\/a> and the Inflation Reduction Act<\/a> in 2021 and 2022, respectively.<\/p>\n\n\n\n

Beyond national hydrogen strategies and policies, IRENA has also recommended<\/a> that the green hydrogen industry create a “guarantee-of-origin” system certifying that the hydrogen is in fact green, as well as more policies in place to ensure that green hydrogen can “level the playing field with fossil fuels.”<\/p>\n\n\n\n

H: Green Hydrogen Applications in Transportation, Power Generation and Beyond<\/strong><\/h2>\n\n\n\n

Green hydrogen applications<\/a> run aplenty. At Plug alone, our hydrogen applications fuel forklifts, vans, microgrids, wireless networks, railroad radio base stations and signal locations, and more.<\/p>\n\n\n\n

\"Hydrogen<\/figure>\n\n\n\n

Beyond green hydrogen for mobility and stationary power generation, UNIDO has cited it as crucial<\/a> for cutting greenhouse gas emissions for \u201chard-to-abate sectors such as steel, cement and the chemical industry, which cannot readily be electrified,\u201d noting it sits as \u201cthe only way we have to decarbonize these sectors.\u201d<\/p>\n\n\n\n

I: How Green Hydrogen Impacts the Environment and Air Quality<\/strong><\/h2>\n\n\n\n

In a July 2022 study<\/a> published in the International Journal of Hydrogen Energy<\/em>, researchers concluded that “Only green hydrogen with electricity from wind, PV and hydro has truly low emissions.”<\/p>\n\n\n\n

Further, no matter the hydrogen color, fuel cells eliminate co-pollutants<\/a> seen within fossil fuel production. This also provides a big win for frontline communities facing air jackpot party casino reviews quality impacts from incumbent technologies.<\/p>\n\n\n\n

Marsh discussed this in July 2022 congressional testimony<\/a>, stating that \u201cThe hydrogen economy can help ensure that disadvantaged communities are prioritized in the clean energy transition. Environmental justice is a fundamental tenet within Plug\u2019s overall strategy.\u201d<\/p>\n\n\n\n

J: Green Hydrogen Industry Job Opportunities<\/strong><\/h2>\n\n\n\n

An employment boom could come alongside the ongoing rise of the green hydrogen economy.<\/p>\n\n\n\n

The Hydrogen Council concluded that worldwide, a hydrogen economy could manifest<\/a> \u201c30 million jobs by 2050, and a $2.5 trillion annual revenue boost to economies worldwide.\u201d And in the U.S., a 2021 McKinsey & Company study<\/a> estimated that by 2030, an ascendant hydrogen boom could yield 700,000 jobs.<\/p>\n\n\n\n

Plug has played a major role here, creating thousands of jobs in recent years at green hydrogen production facilities within its headquarters state of New York and multiple other states. Plug currently employs over 1,400 people in New York and nearly 3,000 in the U.S., with an expectation of creating over 4,000 jobs globally<\/a> by the end of 2023.<\/p>\n\n\n\n

\"Plug<\/figure>\n\n\n\n

K: Key Green Hydrogen Industry Players<\/strong><\/h2>\n\n\n\n

While Plug has emerged as an industry leader in the hydrogen space, it is joined by many peers as the sector burgeons. Plug sits alongside companies such as FuelCell Energy, Bloom Energy, Ballard Power Systems, Adani Green Energy, Air Products and Chemicals, Linde, Air Liquide and other companies aiming to scale green hydrogen.<\/p>\n\n\n\n

The market research firm IDTechEx predicts<\/a> the green hydrogen water electrolyzer market to grow to a $120 billion valuation by 2033. Business press has taken note<\/a> of electrolyzers going in a direction today akin to wind turbines and solar panels during their early days of rapid market expansion, a tide lifting all boats across the industry.<\/p>\n\n\n\n

L: Lessons Learned from Existing Green Hydrogen Projects<\/strong><\/h2>\n\n\n\n

Lessons learned on existing green hydrogen projects so far have ranged from construction guidance, power and water supply allotment, technology licensing, land use, regulatory issues, and more.<\/p>\n\n\n\n

The law firm Shearman & Sterling, in a 2021 presentation<\/a> touching on all of these issues pertaining to a green hydrogen project advanced by its client, pointed to the first mover\u2019s advantage in stating that \u201cDevelopers need to move quickly to secure market share and ensure equipment supply.\u201d<\/p>\n\n\n\n

The firm also noted that while co-locating green hydrogen production sites next to renewable energy production sites has face-value logistical benefits, \u201cThe best renewable energy sites may not be conveniently located near other essential project infrastructure such as transmission infrastructure, roads and ports.\u201d<\/p>\n\n\n\n

In short, a number of logistical questions remain in mapping out the successful growth of a rising green hydrogen market.<\/p>\n\n\n\n

\"Renewable<\/figure>\n\n\n\n

M: Using Green Hydrogen Alongside Other Renewable Energy Sources<\/strong><\/h2>\n\n\n\n

Co-location of green hydrogen production sites next to renewable energy production sites is seen by many as a way to solve the transportation logistics costs issues currently inhibiting industry growth. The approach has taken flight<\/a> recently in Spain, which houses a solar farm next to Europe\u2019s largest green hydrogen facility for industrial use.<\/p>\n\n\n\n

One industry CEO told the solar trade publication PV Magazine<\/em> in a May 2021 article<\/a> that while this logistical set-up could benefit green hydrogen\u2019s growth, the contrary also stands true because \u201chydrogen\u2026ultimately offers the opportunity for power producers to monetize their green electrons on a much wider range of local and export markets than if they were in the form of electricity.\u201d <\/p>\n\n\n\n

N: The Role of Green Hydrogen in Achieving Net-Zero Emissions<\/strong><\/h2>\n\n\n\n

Numerous stakeholders view green hydrogen as fundamentally important for the global consensus goal of achieving net zero emissions by 2050.<\/p>\n\n\n\n

A jointly written report<\/a> by the Hydrogen Council and McKinsey & Company published in November 2021 concluded that \u201cclean hydrogen (both renewable and low carbon) offers the only long-term, scalable, and cost-effective option\u201d toward that goal. And in its 2022 \u201cUpdated Roadmap to Net Zero Emissions by 2050\u201d report<\/a>, the International Energy Agency concluded that to hit net zero, green hydrogen will have to increase output by a multiple of 300 compared to the present.<\/p>\n\n\n\n

O: Opportunities for Collaboration and Partnerships in the Green Hydrogen Industry<\/strong><\/h2>\n\n\n\n

Scaling green hydrogen will necessitate cross-industry collaboration, as well as industry-government collaborations. In pursuit of the goal, the Green Hydrogen Coalition has formed a nonprofit created in 2019 with a goal of<\/a> \u201cbuilding top-down momentum for scalable green hydrogen projects that leverage multi-sector opportunities to simultaneously scale supply and demand.\u201d<\/p>\n\n\n\n

Plug also has numerous green hydrogen collaborations with companies such as Amazon, Walmart, Renault, Microsoft, and others. Plug\u2019s partnerships<\/a> assist peers in achieving sustainability goals, meeting regulatory mandates, and increasing workplace productivity.<\/p>\n\n\n\n

P: Potential Obstacles to Green Hydrogen\u2019s Growth<\/strong><\/h2>\n\n\n\n

One of the biggest obstacles for green hydrogen, at the moment, is access to reliable and affordable renewable energy inputs. That is changing rapidly, however.<\/p>\n\n\n\n

According to a 2020 report<\/a> by BloombergNEF<\/em>, \u201crenewable hydrogen could be produced\u2026[at prices] equivalent to gas priced at $6-12\/MMBtu, making it competitive with current natural gas prices in Brazil, China, India, Germany and Scandinavia on an energy-equivalent basis, and cheaper than producing hydrogen from natural gas or coal with carbon capture and storage.\u201d<\/p>\n\n\n\n

\"Hydrogen-Powered<\/figure>\n\n\n\n

Q: Green Hydrogen Questions and Misconceptions<\/strong><\/h2>\n\n\n\n

Some reports and news stories have highlighted risks of hydrogen leakage from infrastructure as of late and associated climate impacts<\/a>. In reality, leaks from hydrogen infrastructure have been incredibly rare<\/a>. In service to safety, Plug maintains active membership within the Center for Hydrogen Safety.<\/p>\n\n\n\n

And as the Rocky Mountain Institute has pointed out<\/a>, such leakage is far less likely than for natural gas infrastructure where it has become an endemic issue. That\u2019s because of the \u201cnewer infrastructure and the carry-over of lessons learned in detection and monitoring technology, all of which will drive down leakage across hydrogen\u2019s supply chain.\u201d<\/p>\n\n\n\n

R: The Potential for Green Hydrogen to Replace Fossil Fuels<\/strong><\/h2>\n\n\n\n

The International Monetary Fund (IMF) has concluded<\/a> that green hydrogen “has immense potential as a clean fuel for the global energy transition” in sectors ranging from mobility, electricity, heating, and as a feedstock for other chemical products like ammonia and methanol.<\/p>\n\n\n\n

Goldman Sachs further elucidates that hydrogen has inherent chemical properties making it advantageous to deploy over fossil fuels, as well. These include its global abundance, energy density (highest energy content per unit of mass as the lightest element), and zero greenhouse gas emissions production footprint.<\/p>\n\n\n\n

Amazon has taken notice<\/a> of hydrogen\u2019s ability to replace fossil fuels. The company signed a partnership with Plug in August 2022 aimed at helping Amazon decarbonize its operations under its goal to achieve net-zero carbon emissions by 2040.<\/p>\n\n\n\n

S: Storage\u2019s Role in the Green Hydrogen Ecosystem<\/strong><\/h2>\n\n\n\n

With a boom in green hydrogen could come an accompanying one: a need to streamline all of that energy. With that goal in mind, the 2021 Infrastructure Investment and Jobs Act ushered in $7 billion in federal dollars to build six to ten such hubs via a program called the Regional Clean Hydrogen Hubs, or H2Hubs.<\/p>\n\n\n\n

One of those planned hydrogen hubs, Advanced Clean Energy Storage<\/a> in Utah, received a $504.4 million loan guarantee<\/a> from the U.S. Department of Energy in June 2022. In the EU, a similar green hydrogen pilot project got off the ground in 2021 called the Hydrogen Pilot Storage for Large Ecosystem Replication<\/a> (HyPSTER), funded under the EU’s Clean Hydrogen Partnership. Both projects serve as firsts-of-kind in their jurisdictions and could create major precedents for scaling hydrogen storage hubs elsewhere.<\/p>\n\n\n\n

Plug, with the support<\/a> of U.S. Senator Charles Schumer, aims to create another hub under the program in New York State in the years ahead.<\/p>\n\n\n\n

\"Hydrogen<\/figure>\n\n\n\n

T: Types of Green Hydrogen and Their Uses<\/strong><\/h2>\n\n\n\n

As explained in D, the feedstock of green hydrogen determines the production method, with three main types existing today: water electrolysis, biomethane reforming, and biomass gasification.<\/p>\n\n\n\n

Water electrolysis, the most common form of green hydrogen, is primarily used for longer-term energy outputs where consistent flows are needed. An example of this is the International Space Station, in which water electrolysis’s more indefinite and jackpot party casino slots efficient attributes would obviously hold high value.<\/p>\n\n\n\n

Green hydrogen via biomethane reform, has a wider array of potential uses ranging from stationary, mobility, buildings, and other uses allowing for the dynamic ability to shut power on and off. The International Energy Agency depicts such use cases below.<\/p>\n\n\n\n

The third green hydrogen formation type, thermal conversion via biomass gasification, is still in early stages of development. But an Indian research team recently discovered a potentially carbon-negative method of developing what it calls syngas via the thermal conversion green hydrogen production process.<\/p>\n\n\n\n

\u201cThe process consists of two steps. In the first step, biomass is converted into syngas \u2013 a hydrogen-rich fuel gas mixture \u2013 in a novel reactor using oxygen and steam,\u201d explains a press release<\/a> on the government-funded lab study\u2019s results announced in July 2022. \u201cIn the second step, pure hydrogen is generated from syngas using an indigenously developed low-pressure gas separation unit.\u201d<\/p>\n\n\n\n

U: Green Hydrogen\u2019s Potential Use in Urban Areas<\/strong><\/h2>\n\n\n\n

Due to its multi-function usage potential, the notion and reality of hydrogen cities<\/a> have arisen globally. Energy Cities, an association of European cities representing over 1,000 municipalities in 30 different countries, sees green hydrogen as having a place in five key areas<\/a> on the continent: heavy industry, energy storage, boats, trains, and buses.<\/p>\n\n\n\n

While not green hydrogen exclusive, the South Korean government has incentivized six municipalities as part of its Hydrogen City Creation Project<\/a>. Under the project, cross-functional assets of those societies would be powered by hydrogen, joining three other already existing model cities.<\/p>\n\n\n\n

Similarly, a 2022 study<\/a> showed that the hydrogen city model is also possible in Turkey\u2019s capital city Istanbul, which has a population of over 15 million. The study concludes that the model laid out could cut greenhouse gas emissions in the city by 90%.<\/p>\n\n\n\n

V: The Value of Green Hydrogen in Global Geopolitics<\/strong><\/h2>\n\n\n\n

Hydrogen\u2019s status as the most prolific compound in the universe ensures that<\/a>, \u201cNo one country can use the supply of green hydrogen as a geopolitical negotiating tool\u201d because \u201cHydrogen is everywhere,\u201d a Bank of America analyst recently surmised.<\/p>\n\n\n\n

This chemical abundance has become all the more crucial amidst global geopolitical strife arising with Russia\u2019s invasion of Ukraine and the ongoing war, with green hydrogen getting a boost<\/a> in light of global natural gas market instability.<\/p>\n\n\n\n

An October 2022 report<\/a> by the nonprofit Carbon Tracker concluded that the war has spawned $70 billion in investments in green hydrogen since it began in March 2022. Marsh addressed the role green hydrogen could play in light of the launch of the war in the video below, as well.<\/p>\n\n\n\n

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