The global energy landscape is undergoing a remarkable transformation as nations strive to curtail greenhouse gas emissions and alleviate the repercussions of climate change. In this endeavour, renewable energy sources have ascended as a beacon of hope, offering the promise of sustainable and clean power. Consequently, green hydrogen, produced through the electrolysis of water using renewable energy, has emerged as a viable clean fuel option, poised to decarbonise a myriad of sectors, including transportation, industry, and heating.

The Paris Agreement under the UNFCCC has emphasised on the global commitment to limit temperature rise to 1.5°C and atmospheric carbon dioxide (CO2) concentrations to 450 parts per million (ppm). The Agreement calls for concerted global efforts towards rapid, economy-wide decarbonisation. To help meet the ambitious goal of the Paris Agreement, as reiterated at COP 28, there is a clear need to decarbonise energy usage in hard-to-abate sectors. These sectors include steel, cement, chemicals (including fertiliser), long-haul road transport, maritime shipping, and aviation, where direct electrification can play only a limited role in reducing emissions. Consequently, clean chemical feedstocks or fuels like green hydrogen become exceedingly crucial for these sectors.

In 2023, the global demand for hydrogen stood at 97 million metric tonnes (MMT), driven predominantly by petroleum refining and the production of chemicals such as ammonia (for fertiliser use) and methanol . During the same year, the global production of low-carbon hydrogen for industrial use stood at a modest 1 MMT, representing a mere 1% of the total hydrogen produced . However, as the push to decarbonise the industries intensify, the global demand for green hydrogen and its myriad applications is anticipated to burgeon over the next two decades. In the Net Zero scenario of International Energy Agency (IEA), it is projected that demand for hydrogen will surpass 150 MMT by 2030  . Governments across the globe have thus far pledged policy support amounting to approximately USD 100 billion to foster the production of low-carbon hydrogen . It is thus imperative for nations to ensure that the hydrogen produced is derived from clean or renewable energy sources, thereby aiding in meeting this burgeoning demand in a sustainable manner.
 

Figure 1: Hydrogen demand by country, 2023

[1] Global Hydrogen Review 2024, IEA.

[2] Global Hydrogen Review 2024, IEA.

[3] Global Hydrogen Review 2024, IEA.

[4] Global Hydrogen Review 2024, IEA.

[5] Aqualyzer｜Large-scale alkaline water electrolyzer for hydrogen from renewable energy｜ASAHI KASEI CORPORATION

[6] Electrolysis: a Norwegian success story | Nel Hydrogen

[7] Global Hydrogen Review 2024

Overview

Some interesting facts about green hydrogen:

1. Green hydrogen is the hydrogen produced when water is electrolysed using renewable energy, thereby eliminating the carbon emission content form hydrogen production process.
2. Green hydrogen can also be produced using gasification of biomass or agricultural wastes. Some commonly available agricultural residues are rice straws, wheat straws, corn cobs, cocoa pod husk (CPH) etc. Though some CO2 is emitted through this route, this hydrogen production pathway is generally considered “green” since the CO2 emitted during the production process was extracted from the air by the plants during its growth phase.
3. Hydrogen, when combusted in oxygen, produces only water vapour as the byproduct, which is devoid of any carbon emission.
4. Green hydrogen has been in existence for quite a long time. About a hundred years ago in 1923, Asahi Kasei used hydroelectricity to power alkaline electrolysers to produce green hydrogen, which was subsequently used to create green ammonia . Around the similar time period, Norsk Hydro in Norway developed an electrolyser plant in 1927, also powered by hydroelectricity, to produce green hydrogen and subsequently green ammonia for fertilisers . 

Usage

1. Global hydrogen demand was 97 MMTPA in 2023.
2. China has the highest global demand of 29%, followed by North America (16%), Middle East (14%), India (9%), Europe (8%) and rest of the world (24%) [refer to Figure 1 ]
3. Hydrogen demand is mostly concentrated in oil refining and industrial sector (particularly fertilisers to produce ammonia). However, in 2030, emerging use cases like long distance transportation, long duration energy storage, power generation may also contribute significantly towards the demand.

Role Of Hydrogen

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Petrol Refining

Industries

Transport

Building

Power