Hydrogen as a renewable energy is still immature.  It can play multiple important roles in the energy transition to Net Zero:

  • As a fuel for difficult-to-electrify mainly gas-fired high temperature industrial processes and some types of transportation.
  • As an energy carrier for transporting renewable energy from sources of supply to distant sources of demand.
  • As energy storage – as an alternative to batteries, for example.

The extent of future penetration of hydrogen in these roles has been, and still is, a hotly debated topic.  Factors impacting uptake include:

  • The ‘Levelised cost’ of different ‘colours’ of hydrogen when compared to other energies; particularly electricity and gas.
  • The need for a ‘levelling of the playing field’ regarding the impact of GHG emissions compared to gas, through carbon taxation.
  • The lack of a global trading marketplace for hydrogen.
  • The challenges of hydrogen storage & transportation – volume/ density, economics; health & safety and the lack of regulatory standardisation.
  • Hydrogen production capacity being currently focussed in industrial zones where oil and gas processing/ refining predominate.
  • Investments in hydrogen innovations have been skewed towards hydrogen production, followed by the demand side and lastly, transportation.  The transportation issues remain very challenging.
  • A want of clear energy policies towards hydrogen on the part of legislators.