H2Tech - Q2 2021 - 4

EDITORIAL COMMENT
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Creating pathways for sustainable
H2 production and use
In creating pathways for sustainable hydrogen, technology strategies and government subsidies for low-carbon H2 production and
use are of paramount importance. In the case of fossil-produced
(gray and blue) H2 , carbon-capture methods are necessary retrofits
or design elements of the methane reforming and coal gasification
processes to reduce CO2 emissions.
In the case of electrolyzer-produced (green) H2 , the use of
renewable electricity to power the process makes it inherently
A. BLUME,
low-carbon and free of direct emissions. However, when the total
Editor-in-Chief
carbon emissions associated with the construction of renewable
energy facilities and H2 transportation and storage are taken into account, even green
H2 can be said to have a small carbon footprint. The concept of " sustainability " must be
carefully defined, and projects to produce " carbon-neutral " energy must consider relevant associated emissions sources, to calculate the true carbon footprint of clean energy.
H2 is anticipated to play a growing role in decarbonizing a range of sectors where it
is difficult to reduce CO2 emissions: long-haul and heavy road transport, marine shipping, aviation, and the production of chemicals, plastics, cement, iron and steel. At
present, blue H2 is the cheapest option for decarbonizing heat in heavy industry, but
this may not be the case for long.
Much research is ongoing to make green H2 a more affordable option, and technology breakthroughs are happening at a rapid pace. Fast development of electrolyzer supply chains are reducing prices for the equipment to 30%-50% lower than expected, and
renewable energy costs have been revised 15% lower over the short term. These and
other factors will combine to bring the cost of green H2 production from around $4/
kg-$5.50/kg at present to an estimated $1.50/kg by 2050, with green H2 becoming
cheaper than gray H2 (at $1.59/kg) in optimal locations by 2030 (FIG. 1). Adding a carbon tax to gray H2 production would bring green H2 to price parity by 2030.
Momentum is building for the H2 economy. More than 30 countries now have a national H2 strategy and funding in place, and more than 380 active and operating carbonneutral and low-carbon H2 production and use projects are in development or operation
around the world. By 2030, an estimated 6.7 MMtpy of H2 production capacity will be
in operation-two-thirds of which have been announced over the past year alone.

PUBLISHER
Catherine Watkins
Catherine.Watkins@H2-Tech.com

EDITORIAL
Editor-in-Chief
Adrienne Blume
Managing Editor
Lee Nichols
Technical Editor
Sumedha Sharma
Digital Editor
Anthresia McWashington

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6
2019 average location
5

H2 production cost, $/kg

2020
4

-62%

Average location
Optimal location
Renewable
Low-carbon
Gray

President/CEO
John Royall
CFO
Alan Millis
Vice President, Upstream and Midstream
Andy McDowell
Vice President, Finance and Operations
Pamela Harvey
Vice President, Production
Sheryl Stone
Vice President, Downstream
Catherine Watkins

2020
2030
2040
2050
Year
Key assumptions
- Natural gas price: $2.6-$6.8/MMBtu - Levelized cost of energy (LCOE): $25-$73/MWh (2020), $13-$37/MWh (2030), $7-$25/MWh (2050)

FIG. 1. Projected H2 production costs by production pathway. Source: Hydrogen Council.

Q2 2021 | H2-Tech.com

Other Gulf Energy Information titles include:
Hydrocarbon Processing ®, Gas Processing & LNG,
World Oil ®, Petroleum Economist ©,
Pipeline & Gas Journal and Underground Construction.

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H2Tech - Q2 2021

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