As the world grapples with growing concerns about climate change and the quest for sustainable energy, an innovative playbook of solutions combining solar, wind, geothermal, hydroelectric, nuclear, hydrogen and carbon capture is emerging with powerful and scalable alternatives to play a critical role in reducing our carbon footprint and transitioning to a cleaner energy future.
At GreenH Electrolysis, we are passionate about climate change and provide innovative solutions to tackle pressing environmental challenges.
When we refer to green hydrogen, we’re talking about hydrogen produced without any pollutant emissions, making it a truly sustainable energy vector or carrier.
Hydrogen is versatile and truly completes the sustainable solutions landscape as fuel for mobility, as a feedstock in hard-to-abate industries, and as a storage medium for intermittent renewable energy sources.
Read on to explore the rise of green hydrogen, its associated costs and applications, and the potential it holds for our future.
Understanding Green Hydrogen
Green hydrogen is created by splitting water into hydrogen and oxygen, using electricity from renewable sources like wind or solar power. This process, known as electrolysis, produces hydrogen without carbon emissions, referred to as the term “green hydrogen” or “renewable hydrogen”.
While the technical know-how of hydrogen as industrial feedstock has been around for decades, the urgent need to combat climate change and reduce greenhouse gas emissions has brought green hydrogen back into focus, on a broader sense, as an energy carrier. Countries and companies globally are now investing actively in green hydrogen technologies and infrastructure, recognizing its potential to transform the energy sector.
Game-Changing Electrolyser Technologies in the Green Hydrogen Market
Electrolysers are the devices that produce green hydrogen by splitting water into hydrogen and oxygen using electricity. Today, electrolysers based on different technologies are available for deployment at a scale ranging from few kW to several MWs depending on the requirement. Here’s how the various types of electrolyser technologies are transforming the market:
Alkaline Electrolysers
Alkaline electrolysers are the oldest commercially available electrolysis technology, known for their cost-effectiveness. They use a 30-40% potassium hydroxide (KOH) solution as an electrolyte. These are the most deployed electrolysers to date and have reached a level of technological maturity that makes it most attractive in terms of initial capex requirement.
Their wide adoption and relatively low costs are driving significant advancements in hydrogen production. While efficient, this technology can cause component corrosion over time, leading to potential contamination from fine particles. Hydrogen purity in this process ranges from 99.5 to 99.9998%. (Source)
The footprint of Alkaline electrolysers is quite large at 5-10 m2 / MW and also offers the lowest efficiency in the long term.
PEM (Polymer Electrolyte Membrane) Electrolysers
PEM electrolysers are known for their high efficiency and ability to operate at higher current densities compared to alkaline electrolysers. This technology uses a solid polymer electrolyte and is suitable for applications requiring quick responses to fluctuations in renewable energy sources. PEM electrolysers are advancing rapidly, offering more compact and efficient solutions for hydrogen production. Hydrogen purity in this technology ranges from 99.9 to 99.9999%. (Source)
PEM Electrolyser footprint is significantly lower at 3-6 m2/ MW making it amenable to modularized solutions.
SOEC (Solid Oxide Electrolyser Cell) Electrolysers
SOEC technology operates at high temperatures, utilizing a solid oxide electrolyte to achieve higher efficiency in hydrogen production. By leveraging heat, SOEC electrolysers reduce electrical energy requirements, making them a promising option for integrating with industrial processes and waste heat recovery systems. Their development is crucial for achieving high-efficiency hydrogen production.
SOEC technology is unique as it can also operate in reverse mode as a solid oxide fuel cell, enabling energy storage applications.
Although this technology is expensive at the current stage of development & deployment, but given its high efficiency and very low dependence on rare earth materials, it has the potential to become a cost-effective solution in due course of time.
AEM (Anion Exchange Membrane) Electrolysers
AEM electrolysers are an emerging technology that combines the benefits of both alkaline and PEM electrolysers. They use an anion exchange membrane as the electrolyte, which allows for higher operational efficiency and lower costs. This technology is gaining attention for its potential to offer a balance between performance and affordability in green hydrogen production.
Each of these electrolyser technologies is contributing to the growth and evolution of the market, making green hydrogen more accessible and commercially viable.
The Cost of Green Hydrogen
Currently, the production cost of green hydrogen in India stands at approximately INR 300 (US$3.60) per kilogram. The majority of this cost (50-70%) is for round-the-clock renewable electricity, with the remaining 30-50% for electrolysers investment cost (CapEx).
According to a report by the Institute for Energy Economics and Financial Analysis, the levelised cost of green hydrogen in India could drop by up to 40%. This reduction would be supported by incentives, low-cost renewable electricity, waivers on Inter-State Transmission System or ISTS open access, distribution and transmission charges, and a reduced GST (Goods and Services Tax) rate of 5% for hydrogen.
Factors affecting the cost:
Electricity Costs:
- Price of renewable energy (wind and solar)
- Choice between direct connection or grid-supplied power
- Regional differences and capacity factors
Electrolyser Costs:
- Type of electrolyser (alkaline, PEM, SOEC, AEM)
- Technology performance and future improvements
- Variability in projected costs
Capital Costs:
- Financing through equity and debt
- Additional costs due to offtake and technology risks
Regulatory Requirements:
- Alignment with renewable energy usage regulations
- Future impacts of hourly matching requirements for grid-connected PPAs
Note: (Power Purchase Agreement, a long-term contractual agreement between a buyer and a seller to purchase and sell the project’s energy at a fixed price, the energy being a renewable asset that is connected to the grid.)
Applications of Green Hydrogen
Green hydrogen is gaining recognition for its versatility and potential to decarbonize multiple sectors. Here are key applications where green hydrogen is making a significant impact:
1) Transportation:
Green hydrogen is a promising fuel for Road, Rail, Air, and Water modes of transport, producing zero greenhouse gas emissions.
Hydrogen Fuel Cell Vehicles (FCVs): FCVs convert green hydrogen into electricity to power electric motors, offering long ranges and quick refuelling. Companies like Toyota, Honda, and Hyundai have introduced hydrogen FCVs. These FCVs only produce water vapour as tail-end emissions.
Hydrogen-based Internal Combustion Engines (ICEs): Several automotive companies have demonstrated successful internal combustion engines based on hydrogen. Vehicles incorporating hydrogen-based ICEs promise to be cheaper than FCVs and battery-operated electric vehicles as well. This intermittent solution also allows an option that does not require a huge ICE-based industry to be decommissioned threatening existing investment and employment in these sectors. (Source)
Public Transport: Many cities are adopting green hydrogen-powered buses, which emit only water vapour and are quieter than diesel buses, being able to handle any kind of route and condition (hilly route, whole-day route, low and high temperatures). Hydrogen trains are also being developed for clean rail transportation, substituting diesel-driven lines.
Hydrogen Stations: Fueling stations for hydrogen vehicles are becoming more popular, making it easier for the public to refuel hydrogen-powered cars.
2) Industrial Processes:
Green hydrogen helps reducing emissions in traditionally heavy-polluting sectors.
Refining: Used to remove impurities from crude oil in processes like hydrocracking and hydrotreating. Green hydrogen can significantly lower the carbon footprint of refineries.
Ammonia Production: It can replace traditional production methods in ammonia production, a major contributor to greenhouse gas emissions, making the fertilizer industry more sustainable.
Steel Production: It serves as a clean and efficient reducing agent and as a fuel in iron and steel production, reducing emissions and promoting sustainability in this vital industry.
3) Power Generation:
It is essential for renewable energy storage and enhancing power generation.
Grid Balancing: It provides a flexible and reliable power source to manage sudden demand surges and balance fluctuations in renewable energy output. By storing excess energy generated during peak renewable production and releasing it during times of high demand, green hydrogen ensures a consistent and dependable energy supply, addressing the variability of solar and wind power systems.
Power Plants: Hydrogen combustion in gas turbines generates electricity, providing a dependable and low-emission power source. This technology enables power plants to produce electricity with minimal environmental impact.
4) Residential and Commercial projects:
Green hydrogen use in domestic settings as a fuel and heat source is being promoted by various small scale innovation projects.
Hydrogen Boilers: These boilers work like traditional gas boilers but burn hydrogen to produce central heating and hot water. They emit only water vapor, making them an eco-friendly option for residential and commercial heating.
The Future of Green Hydrogen
Green hydrogen has a bright future ahead, driven by several factors:
Policy Support and Investments: Most governments across the world have recognized the promise of green hydrogen and are developing policies to attract investment in its production. For instance, launched on January 4, 2023, the National Green Hydrogen Mission has an allocated budget of INR 197,440 million through FY 2029-30. This initiative aims to support India’s objective of becoming self-reliant in clean energy and to inspire the global transition to clean energy. A key goal of the mission is to achieve an annual production of 5 million metric tonnes (MMT) of green hydrogen by FY 2029-30, reinforcing India’s commitment to clean energy leadership.
Technology: Significant advancements in electrolyser technology are driving progress in the green hydrogen sector. Innovations in electrolyser design and efficiency, enhance the production process, leading to greater accessibility and reduced costs for green hydrogen.
Collaboration: National collaboration for large-scale green hydrogen deployment is fait-accompli. Companies are entering into alliances and partnerships to share knowledge, technologies, and resources. This cooperation at the global level will help shape a robust green hydrogen economy.
Decarbonization Goals: Growing pressure to address climate change and meet global carbon reduction targets is driving countries and companies to accelerate their transition to cleaner energy solutions. Green hydrogen, with its ability to significantly lower emissions across multiple sectors, has emerged as a key strategy for achieving decarbonisation goals.
Eco-system of Green Hydrogen: In India, the green hydrogen market is gaining depth, with gradual progress being made. Emerging technologies, new companies, and government support are driving innovation and contributing to cost reductions, making green hydrogen increasingly commercially viable.
Challenges and Considerations
Though there exist huge possibilities for green hydrogen, several challenges must be overcome:
Scale-up: Production of green hydrogen needs to get ramped up at a massive level to meet global demand. This involves billions of dollars of investment in building infrastructure and developing technology. When considering only the renewable energy capacity to power electrolysis processes, it would mean expanding by folds.
Storage and Distribution: Effective storage and distribution of hydrogen will play a major role in the enhanced use of this fuel. Hydrogen is highly flammable, and therefore, greater precautions are taken. As such, safe and more cost-effective storage and transportation pathways in the marketplace should be developed.
Solid, Promising Regulatory Frameworks: The establishment of robust, enabling regulatory frameworks is a key condition for the development of the green hydrogen sector. These cover standards related to handling and certification procedures, as well as incentives entailing adoption.
Public Perception and Acceptance: For the successful execution of green hydrogen technologies, public awareness and acceptance are needed. Raising public awareness about the benefits of green hydrogen will aid in its diffusion.
Conclusion
Hydrogen is the first element in the periodic table and the building block of the very universe. The industrial revolution has already concretised the contribution of hydrogen in the key processes in the value chain.
Green hydrogen brings the opportunity to make these processes sustainable and amenable to the goal of a cleaner climate. As technology advances and costs decrease, green hydrogen offers a promising path for decarbonizing industrial processes, transportation, power generation, and heating. Embracing green hydrogen can enhance operational efficiency, meet regulatory requirements, and strengthen the resilience of your energy systems.
By integrating green hydrogen, industries not only contribute to mitigating climate change but also position themselves as leaders in the transition to a sustainable, low-carbon economy. Investing in green hydrogen today is a strategic move towards a cleaner, more innovative future.