Hydrogen fuel emerges as a pivotal alternative energy source in 2024, propelled by rising production and innovative projects, despite political uncertainties.
Hydrogen fuel is carving a substantial niche as an alternative source of energy in 2024, propelled by rising production and innovative consumption projects. This surge comes despite potential uncertainties brought on by a new administration led by Donald Trump, which has sparked a wider exploration of hydrogen’s viability as an energy source.
Kyle Hayes, a partner and co-chair of the hydrogen practice at Foley & Lardner, a New York-based law firm, noted in an interview with pv Magazine USA that there remains a strong optimism within the hydrogen sector. “There is uncertainty in the hydrogen space, but we’re seeing continued optimism since hydrogen is ultimately supported by oil and gas,” Hayes stated. He conveyed confidence that tax incentives instituted during the Biden administration to foster hydrogen development are likely to persist, as these incentives also serve the fossil fuel industry, predominantly found in Republican-leaning states.
In 2023, the International Energy Agency (IEA) reported global hydrogen production reaching 97 million metric tons per annum (Mtpa), with less than 1% derived from low-carbon sources. However, the outlook for hydrogen is improving, with projections indicating that by 2030, the production of low-emission hydrogen could soar to 38 Mtpa if all proposed projects progress as planned.
Market research firm Wood Mackenzie provided further insight, revealing that blue hydrogen—which is produced from natural gas with carbon dioxide emissions captured in the process—will dominate new hydrogen projects reaching final investment decisions in the United States. Their projections suggest that U.S. blue hydrogen production could reach 1.5 Mtpa by 2025, outpacing other nations.
Conversely, the report anticipates a decline in the growth of green hydrogen, generated from water through electrolysis powered by renewable energy. This projected downturn is attributed to blue projects’ enhanced attractiveness owing to existing natural gas infrastructure. Nevertheless, prospects for green hydrogen are improving, particularly due to the rising competitiveness of Chinese electrolyzer manufacturers, which could lead to more economically viable production methods.
Monica Trilho, a research analyst at Wood Mackenzie, expressed the firm’s outlook on green hydrogen efforts, stating, “Despite the challenges, we anticipate the continued push of giga-scale green hydrogen projects.” Emerging economies, particularly in South America, the Middle East, India, and China, are expected to spearhead these initiatives, benefiting from low-cost renewable energy and supportive governmental policies. Ecolectro, a hydrogen startup based in New York, reported that the global green hydrogen market was valued at approximately $7 billion in 2023, projecting a robust annual growth rate of 41.6% over the next decade.
Significant developments in green hydrogen production are also being noted in Europe and North America. For instance, HydrogenPro, a Norwegian manufacturer of electrolyzers, has signed a strategic agreement with Germany’s J. Heinr. Kramer Group to advance projects focused on hydrogen production facilities ranging from 5 to 50 megawatts across Germany, Austria, and the Benelux countries.
In the United States, Avina Clean Hydrogen, headquartered in New Jersey, recently commenced construction on a facility in Vernon, California, aimed at producing green hydrogen intended for hydrogen-powered trucks that transport goods from the Port of Long Beach. This facility is anticipated to generate up to 4 metric tons of compressed hydrogen daily.
The consumption of hydrogen is also gaining traction, exemplified by California-based ECL, which opened its first facility in Mountain View in June 2024, utilising hydrogen fuel cells alongside battery storage. In September, ECL announced plans for a 1 gigawatt facility near Houston, which will source hydrogen from on-site gas pipelines and has an anticipated operational phase set for summer 2025.
In a broader industry context, various sectors—including aviation, energy supply, and even liquor distillation—are investing in hydrogen projects initiated in 2024 that are expected to elevate hydrogen demand. Researchers are also exploring potential vast reserves of natural hydrogen, trapped underground, which might deliver significant boosts to the hydrogen economy if reliable extraction methods are developed.
In summary, the diverse trajectories within the hydrogen market reflect a growing commitment to exploring and expanding hydrogen as an alternative energy source in coming years, even amid fluctuating political landscapes.
Source: Noah Wire Services
- https://www.weforum.org/stories/2024/01/green-hydrogen-the-last-mile-in-the-net-zero-journey/ – Corroborates the potential of green hydrogen as a viable alternative to fossil fuels, its reliance on renewable energy, and the need for reduced production costs to achieve widespread adoption.
- https://www.plugpower.com/blog/the-rise-of-green-hydrogen-stats-trends-and-future-projections/ – Supports the transformative potential of green hydrogen across various sectors, including transportation, industrial processes, and energy storage, and highlights the importance of reducing production costs and expanding infrastructure.
- https://www.altenergymag.com/story/2024/09/a-close-analysis-of-hydrogen-adoption-and-innovation-in-2024/43154/ – Provides insights into the global green hydrogen market, including its valuation, growth projections, and the role of emerging economies and technological advancements in its development.
- https://www.altenergymag.com/story/2024/09/a-close-analysis-of-hydrogen-adoption-and-innovation-in-2024/43154/ – Details the dominance of blue hydrogen projects in the U.S. and the anticipated growth of green hydrogen projects, particularly in regions with low-cost renewable energy and supportive policies.
- https://www.plugpower.com/blog/the-rise-of-green-hydrogen-stats-trends-and-future-projections/ – Highlights the role of companies like Plug Power in advancing green hydrogen infrastructure and technology, including the development of hydrogen storage tanks and large-scale electrolyzer projects.
- https://www.weforum.org/stories/2024/01/green-hydrogen-the-last-mile-in-the-net-zero-journey/ – Discusses the importance of reducing the cost of green hydrogen production to make it economically viable, particularly in countries like India which are heavily dependent on energy imports.
- https://www.altenergymag.com/story/2024/09/a-close-analysis-of-hydrogen-adoption-and-innovation-in-2024/43154/ – Mentions the strategic agreements and new facilities being constructed for green hydrogen production, such as the projects by HydrogenPro and Avina Clean Hydrogen.
- https://www.plugpower.com/blog/the-rise-of-green-hydrogen-stats-trends-and-future-projections/ – Explains the use of green hydrogen in various sectors, including heavy-duty transportation, industrial processes, and energy storage, and its potential to reduce carbon footprints.
- https://www.weforum.org/stories/2024/01/green-hydrogen-the-last-mile-in-the-net-zero-journey/ – Highlights the benefits of green hydrogen for energy security, air quality, and food security, especially in emerging economies.
- https://www.altenergymag.com/story/2024/09/a-close-analysis-of-hydrogen-adoption-and-innovation-in-2024/43154/ – Discusses the broader industry context, including investments in hydrogen projects across various sectors such as aviation, energy supply, and liquor distillation.
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