Hydrogen's Place for a Greener Future

Hydrogen has been increasingly looked at as a viable energy means as the world focuses on attempting to introduce alternative fuels into the energy mix. The DOE estimates that by 2050, the current American hydrogen market will be 11x larger than its current size (10 MMT/yr). As of now, around 96% of all hydrogen production in the States comes from steam methane reforming, a carbon “gray” methodology. However, increasing effort has been spent to find greener methods of producing hydrogen - one of which is electrolysis, the splitting of water into its respective hydrogen and oxygen components through the use of wind and solar powered energy.

Despite electrolysis being greener, steam methane reforming is by far the more economic of the two. For comparison, steam methane reforming is estimated to cost around $0.4/kg while electrolysis can cost above $1.2/kg (excluding CAPEX). The increased prevalence of ZEVs (zero-emission vehicles), as well as the increased adoption of hydrogen into steel and oil refining manufacturing processes all, provide valuable opportunities for higher hydrogen demand.

An interesting proposition that has been tested in Germany is the blending of hydrogen with natural gas for carbon emission reduction. Several problems arise with the use of hydrogen in natural gas pipelines, including safety risks, pipeline embrittlement, and its overall economic viability in comparison to gas. However, efforts like these to develop and optimize hydrogen production and consumption pathways may well be the ones that will change the energy landscape.