The 1990s marked the era of wind power, followed by the 2000s, which were dominated by solar energy, and then the 2010s ushered in the age of batteries.
As we step into the 2020s, the next phase of the energy revolution is unfolding, and it revolves around hydrogen.
Almost every week brings news of groundbreaking hydrogen projects and advancements.
Hydrogen, the tiniest molecule in existence, holds immense potential as a clean fuel to steer the global energy transition. This gas can be used in engines or fuel cells to power vehicles, generate electricity, and provide heat.
Moreover, it serves as a building block for various chemical products, including ammonia (a vital component in fertilizers) and methanol (used in plastic production).
The beauty of hydrogen is its capacity to be stored indefinitely in tanks and rock salt storage, making it a promising candidate for long-term energy storage.
One of hydrogen's pivotal attributes is its ability to replace fossil fuels entirely without releasing harmful carbon dioxide.
Hydrogen stands as a zero-carbon energy source, akin to electricity, but with distinctive advantages for decarbonizing challenging sectors such as heavy industry, long-distance transportation, or seasonal energy storage.
Many decarbonization scenarios foresee hydrogen as a critical element in achieving net-zero emissions by the mid-21st century.
For instance, the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) project that hydrogen will account for 12-13% of final energy demand by 2050, a significant leap from its nearly negligible presence today.
The hydrogen energy sector has evolved into a major industry. However, there are three primary characteristics of the current hydrogen energy market that signal a transformative shift on the horizon.
Presently, hydrogen production predominantly relies on unabated fossil fuels, it is primarily used as a feedstock.
To unlock hydrogen's full potential in the clean energy landscape, each link in the value chain must undergo a massive overhaul.
Production must transition to cleaner feedstocks, and consumption must diversify into new industries. Hydrogen and its derivatives might evolve into energy commodities for international trade.
Nevertheless, there is ongoing debate regarding the path to clean hydrogen growth, particularly in terms of how to produce hydrogen and the industries where it should be applied.
On the production front, two primary methods for clean hydrogen generation are "green" hydrogen, produced from renewable electricity, and "blue" hydrogen, derived from natural gas with carbon capture technology.
Furthermore, green hydrogen shows the greatest potential for cost reduction. Many forecasts now suggest that green hydrogen will become more cost-effective than blue and "gray" hydrogen (produced from unabated fossil fuels) before the decade concludes.
