As the strained U.S. electric grid labors under the soaring demand for renewable energy, green hydrogen is ramping up and stepping into the investor spotlight.
Producing green hydrogen is pretty straightforward at a glance.
At face value, the growing industry touts itself as a fossil fuel-free path toward cleaner energy. However, enthusiasts must overcome significant hurdles to make this dream a reality.
In the industry, “green” hydrogen distinguishes itself from other forms of hydrogen energy such as “blue” or “gray” in that it doesn’t require natural gas or other fossil fuels to break water molecules and produce energy.
“Green hydrogen is produced through a process called electrolysis. ... The advantage over gray hydrogen is that it doesn’t release any carbon emissions during the production phase,” Martina Lofqvist, senior business development manager for Destinus, told The Epoch Times.
In its innovation of hypersonic aviation, Destinus has big plans for green hydrogen fuel, Lofqvist said.
“We plan to use liquid hydrogen, which is a cryogenic fuel, meaning that it needs to be stored at extremely low temperatures,” she said.
Lofqvist noted that, due to temperature requirements, keeping the hydrogen at subzero temperatures is an expensive challenge, although airports and hydrogen producers are collaborating to ensure that the infrastructure will become more cost-effective in time.
But for the moment, the price tag is a major setback for production everywhere.
“Green hydrogen is more expensive than alternative production techniques such as gray hydrogen that comes from fossil fuels,” Lofqvist said. “This is primarily due to the costs of renewable energy.”
Compared to its fossil fuel-derived rivals, green hydrogen is roughly three times more expensive. That equals higher electric bills for those on the receiving end. However, with a byproduct of only “pure water,” supporters point to drastically reduced carbon emissions as the payout.
Some energy insiders assert it will take years for green hydrogen to reach a high enough production output to make it a truly price-competitive option, in spite of the drastic spike in fossil fuel prices this year.
In July, the price of green hydrogen skyrocketed, topping out at nearly $17 per kilogram. That’s almost three times higher than other recent price comparisons. By contrast, it averaged about $6 per kilogram in April.
Infrastructure Challenges
Like most aspiring game changers, there are many “somedays” and forecasted dates sewn into the rhetoric surrounding green hydrogen. Phrases such as “By 2030, prices could drop” and “By 2050, the costs should be even lower” echo throughout the industry.Regardless, some renewable advocates aren’t convinced. Naysayers within the green community claim that using renewable energy to produce hydrogen is 20 percent to 40 percent less efficient than using a source such as wind or solar directly.
That’s a critical linchpin for the industry. Green hydrogen requires a lot of electricity to meet U.S. energy demands.
One analysis showed an efficient electrolysis system requires 39 kilowatt-hours (kWh) of electricity to produce one kilogram of hydrogen. Yet, the majority of devices currently in operation are much less efficient. A more realistic figure is 48 kWh to make one kilogram of hydrogen.
So, additional strain on the existing grid could result in more blackouts and energy usage alerts during peak hours and seasonal temperature swings. Critics of the green hydrogen movement have also cited concerns about volatility, transmission, and storage capacity.
In the United States, about 96 percent of existing gas transmission pipelines are steel. Hydrogen passage could damage the metal through what’s known as “embrittlement,” causing the pipes to crack.
The takeaway: Nearly all of the current transmission pipelines in the United States are structurally unsafe for transporting high volumes of hydrogen. The industry would need either a costly overhaul or entirely new transportation lines.
Along that same thread, there’s also an increased storage puzzle to solve.
“There are a few ways to store hydrogen, but the most common is using high-pressure tanks,” green energy advocate Adam Roper told The Epoch Times. “These tanks can be expensive and difficult to maintain, which makes them impractical for many applications.”
Roper is passionate about renewable energy and sustainability. Having also worked in the “green” sector, he says that storage is a hurdle for green hydrogen development.
“Another option is to store hydrogen in underground caverns, but this can be difficult to scale up,” he said.
“While often thought of as the most promising method due to its scalability, it has its own challenges. ... It’s unclear how long the storage would be safe and secure.”
Roper also noted that, in the event of a leak, public safety would be at risk.
The Office of Energy Efficiency and Renewable Energy stated that applicable codes and standards for hydrogen storage systems and interface technologies “have not been established.”
Further, the office noted that hydrogen presents two main safety concerns: combustion and exposure burns. With a lower ignition point than either natural gas or gasoline, the office stated that “adequate ventilation and leak detection are important elements in the design of safe hydrogen systems.”
Some industry experts, however, remain undaunted and insist that “green” is still the future of hydrogen.
“Hydrogen is easy to store, which allows it to be used, subsequently, for other purposes and at times other than immediately after production,” Cody Bateman, founder and CEO of GenH2, a hydrogen infrastructure company, told The Epoch Times.
Bateman says hydrogen offers a key advantage over other energy storage technologies—such as lithium-ion batteries—because adding capacity is relatively cheap.
The Next Big Boom?
Infrastructure debates aside, the train appears to have left the station. Expanded green hydrogen production is already sparking the interest of some very big investors.Currently, the United States is the world’s second-largest producer and consumer of hydrogen energy, accounting for 13 percent of total demand. Subsequently, industry promoters are aiming to make the country a superpower for future green hydrogen production.
Wasting no time, financiers unveiled plans in March for the world’s largest green hydrogen plant. Green Hydrogen International, the world’s leading developer in the field, announced in a statement that it plans to build a 60-gigawatt facility near the Piedras Pintas salt dome in Texas. The station would be capable of producing 2.5 billion kilograms of green hydrogen annually.
Corporate chemical giant Linde announced plans on Sept. 8 to install a 35-megawatt proton exchange membrane electrolyzer. The new facility would produce green hydrogen in Niagara Falls, New York.
The United States currently produces 10 million metric tons of the world’s estimated 87 million ton demand for hydrogen energy.
