A brand new report presents an summary of the hydrogen worth chain, together with an appraisal of various manufacturing strategies, distribution and the place the authors consider it will likely be used. Market initelligence agency IDTechX writes

Decarbonization efforts have gained momentum globally lately. Renewable power, electrification, and battery storage are main options. Nonetheless, some sectors stay troublesome to decarbonize utilizing such strategies, together with heavy business, heating, and sure transport sectors, comparable to aviation and transport. Hydrogen presents a promising answer for these difficult sectors. Its potential as a gas, power service, and chemical feedstock has led to many governments formulating nationwide hydrogen methods. Consequently, corporations are seizing market alternatives, supplying a spread of providers, merchandise, and applied sciences. The burgeoning hydrogen market is drawing consideration from stakeholders globally.

A cohesive worth chain is important for realizing hydrogen’s potential, encompassing low-carbon hydrogen manufacturing, storage, and distribution infrastructure, which align with end-user demand. Analogous to the oil & fuel sector, the hydrogen worth chain contains upstream (manufacturing), midstream (storage & transport), and downstream (end-use) segments. Every phase poses distinctive technical and socio-economic challenges. The report “Hydrogen Economic system 2023-2033: Manufacturing, Storage, Distribution & Purposes” analyzes many of those points.

(Above) Overview of the long run hydrogen worth chain. Supply: IDTechEx. CLICK TO ENLARGE.

Hydrogen financial system: Standing vs ambition
At the moment, over 98% of worldwide hydrogen originates from fossil fuel-based gray and black hydrogen, produced utilizing steam methane reforming and coal gasification. These strategies considerably contribute to CO2 emissions. In response, quite a few corporations are pioneering low-carbon hydrogen manufacturing strategies, specializing in blue hydrogen (pure fuel reforming with CO2 seize) or inexperienced hydrogen (water electrolysis utilizing renewable power).

The power transition necessitates new low-carbon hydrogen amenities. Consequently, governments are establishing definitive manufacturing targets for upcoming years. For example, the UK targets 10GW of low-carbon hydrogen by 2030 (2.5 million tonnes of blue H2 yearly, 5GW inexperienced H2), whereas the US goals for 10 million tonnes yearly. A number of different nations even have formidable manufacturing aims. Nonetheless, the tempo of recent manufacturing website undertaking announcement and growth lags behind these targets as a result of excessive prices of manufacturing (particularly for inexperienced H2), lack of supporting renewable and CCUS infrastructure, lengthy lead occasions to creating ultimate funding choices, in addition to challenges in securing financing and allowing. Coupled with an inadequate midstream storage and distribution community, there may be an immense alternative for growth and innovation in each expertise and infrastructure throughout the worth chain.

Blue hydrogen manufacturing applied sciences
At the moment, blue hydrogen, derived from pure fuel, is probably the most cost-effective low-carbon hydrogen manufacturing methodology, having an estimated levelized value of hydrogen (LCOH) of round US$2-4/kg H2. Compared, inexperienced hydrogen has a a lot greater LCOH at US$4-10/kg H2, relying on the manufacturing methodology and regional elements like renewable power availability. Thus, blue hydrogen is seen as a transitional answer till inexperienced hydrogen turns into commercially viable.

A number of applied sciences can produce blue hydrogen. Essentially the most prevalent is steam methane reforming (SMR). Different scalable strategies utilizing methane have emerged, such because the partial oxidation (POX) course of, which transforms waste hydrocarbon feedstocks into priceless syngas and is utilized in some refineries globally. One other notable methodology is autothermal reforming (ATR), a hybrid of SMR and POX.

ATR is favored for its power effectivity and compatibility with carbon seize applied sciences, essential for cost-efficient blue hydrogen manufacturing. Noteworthy tasks using ATR embrace Air Merchandise’ Web-Zero Hydrogen Power Advanced in Alberta, leveraging Topsoe’s SynCOR expertise. IDTechEx anticipates SMR, POX, and ATR to guide the blue hydrogen sector within the coming decade, with ATR probably dominating new manufacturing capability by 2034. Extra on such matters, in addition to novel reforming applied sciences, comparable to methane pyrolysis and electrified SMR, is obtainable in IDTechEx’s “Blue Hydrogen Manufacturing & Markets 2023-2033: Applied sciences, Forecasts, Gamers” report.

Inexperienced hydrogen manufacturing applied sciences
Inexperienced hydrogen, produced by water electrolysis powered by renewable power, is garnering vital curiosity. A number of applied sciences exist for its manufacturing. Essentially the most established is the alkaline water electrolyzer (AWE), which makes use of a potassium hydroxide (KOH) alkaline electrolyte. Benefiting from inexpensive development and catalytic supplies like nickel and metal, AWE boasts decrease capital prices than its counterparts. Nonetheless, its dynamic operability is poor, and its effectivity is low underneath atmospheric strain. Therefore, pressurized AWEs have emerged available on the market, with most gamers supplying such programs.

The proton trade membrane electrolyzer (PEMEL) is the most well-liked expertise as it could actually combine extraordinarily nicely with renewables and observe their profile, ramping manufacturing up or down inside minutes. This expertise has a distinct construct and working precept to the AWE, utilizing polymer membranes, primarily Nafion, because the electrolyte. The draw back is its dependency on platinum group metallic (PGM) electrocatalysts, notably iridium oxide on the anode – iridium is a pricey and scarce mineral. Consequently, minimizing PGM use and creating different catalysts is a key business focus.

Different applied sciences embrace the strong oxide electrolyzer (SOEL), using a ceramic electrolyte, and the anion trade membrane electrolyzer (AEMEL), which goals to merge some great benefits of AWE and PEMEL. Nonetheless, IDTechEx predicts AWE and PEMEL will lead the market within the coming decade resulting from their established presence. Reducing electrolyzer plant prices (CAPEX/OPEX), working large-scale vegetation, and increasing electrolyzer manufacturing capability is important for the long run. Nonetheless, entry to inexpensive renewable electrical energy will in the end decide inexperienced hydrogen’s success. Extra on such matters, in addition to detailed evaluation of the electrolyzer market and gamers, is obtainable in IDTechEx’s “Inexperienced Hydrogen Manufacturing: Electrolyzer Markets 2023-2033” report.