Today, no discussion of sustainable energy and climate goals is complete without consideration of hydrogen, the latest buzzword, and its different forms with varying environmental costs and efficacies. They come in a variety of colours, from grey to blue to green to turquoise to pink, and each calls for a particular infrastructure and technical advancement.
Europe has been a global leader in establishing the clean energy debate because the protracted conflict in Ukraine has increased its desire for energy security. However, the transition to sustainable energy sources will necessitate a geostrategic redefinition and new supply chains that are reliable and not just economical. The interest that Europe has in Ukraine, which is tipped to become the continent’s hydrogen hub by 2050, is also clarified in some ways.
It also draws attention to India, as New Delhi recently unveiled a green hydrogen strategy that aims to turn the nation into a net exporter of green hydrogen by 2030.
The European Union (EU) has pledged €3 billion from its Innovation Fund to be invested globally for the development of clean hydrogen in the middle of the conflict in Ukraine. The route to Europe’s shift to renewable energy will pass through dependable connections like New Delhi as a result of growing cooperation between India and European partners intending to assist the former in setting up clean hydrogen infrastructure.
How do these aspirations compare to reality? And for what must countries be ready?
What makes hydrogen such a significant deal?
The enormous utility of hydrogen is due to the fact that, in contrast to other conventional fossil fuels, the burning of green and/or blue hydrogen does not result in significant carbon dioxide emissions (CO2). It also generates a lot of energy at the same time.
Additionally, the most energy-effective hydrogen variety in the spectrum is constantly being sought after. Currently, coal gasification and steam methane reforming (SMR) of natural gas provide the majority of the “grey” hydrogen. However, there is a more environmentally friendly method of making hydrogen, and that is via electrolyzing water. This method generates power from renewable, clean sources like water, wind, or sunlight.
Green hydrogen is the preferred option for all. It was not cost-effective until recently. However, due to rising electrolyser efficiency and falling cost of renewable energy sources, along with government subsidies, the industrial production of green hydrogen has increased.
The “blue” hydrogen is an additional participant in the energy game. Making hydrogen from fossil fuels like coal or natural gas while minimising greenhouse gas emissions is a completely other process.
GHG emissions can be effectively decreased to zero. However, research on the environmental risks of blue hydrogen is inconsistent, as is the case with most newly developed technology.
The fuel problems with blue hydrogen might have an answer in the turquoise hydrogen. It doesn’t need the same amount of CCUS that blue hydrogen does (carbon capture, utilisation, and storage). But manufacturing this hydrogen variety is too far in the future to be practical now.
Research on pink hydrogen, which can be produced using nuclear energy-powered electrolysis, is even more futuristic. France is a significant player in Europe who can lead the way in producing pink hydrogen.
Changing hydrogen routes in the EU
In many ways, 2019 was a coming-of-age year for the EU. The European Green Deal, which has set the challenging goal of making Europe carbon neutral by 2050, was also unveiled by the EU commission, along with China’s designation as a systemic opponent and a sharpening of its focus on the Indo-Pacific engagement. The challenge is maintaining the desired economic growth, which is sluggish due to the global recession, while still accomplishing the intended aim.
This significant paper was followed in 2020 by the release of the EU Hydrogen Strategy, which presented a more accurate picture of regional energy consumption trends and needs. In order to phase out fossil fuels while concurrently increasing hydrogen share to 14% by 2050, it was built with a “phased” strategy.
From 2020 to 2050, the strategy is generally divided into three phases. The EU is concentrating on installing at least 6 GW of renewable hydrogen electrolysers and producing up to 1 million tonnes of renewable hydrogen during the first phase, which runs from 2020 to 2024. The EU will concentrate on integrating hydrogen into its integrated energy system in the second phase, which runs from 2025 to 2030 and intends to increase production by 10 times. For the third phase, the bloc has even more ambitious goals: by 2050, renewable hydrogen will be used in all major industries.
What will be the source of all the green hydrogen, and how ecologically friendly is it?
While the EU has long needed to build a market for hydrogen, its most recent texts provide more clarity regarding the function of blue and green hydrogen within the bloc’s regulatory framework for energy. While blue hydrogen is also encouraged, the paper indicates that the EU would support the use of green hydrogen as well — at least until 2030 to examine the effectiveness and viability of both. Green hydrogen is undoubtedly preferred.
This has been a positive development for EU markets as earlier uncertainty around the legal foundations for blue and green hydrogen slowed the construction of infrastructure. The EU has a plan of action for developing clean hydrogen by 2050 that calls for investments totaling about €500 billion.
Challenges to come
There are challenges along the path to green hydrogen. Water in abundant supply, a clean energy source, and other preparations must be made for electrolysis. The fuel expenses, which make up close to 50 to 70 percent of the total cost of production, provide the biggest obstacle to producing hydrogen that is environmentally friendly.
Europe will need to relocate its rising hydrogen production outside of the continent in light of this. Green hydrogen production will need reliable supply chains that are economical and have efficient transport routes, just like oil and gas.
Large nations like Germany estimate more realistically that future green hydrogen production may be more affordable outside of the nation. Berlin committed €2 billion for hydrogen projects in Ukraine in its 2020 National Hydrogen Strategy.
When it comes to liquefied natural gas (LNG) deposits, the Middle East and North Africa (MENA) region is rich in resources. However, the countries’ ability to construct green hydrogen infrastructure is limited by a lack of adequate water supplies.
India is classified as a region with “limited renewable resources” but “partially high infrastructure potential.” Therefore, even though it cannot genuinely lead hydrogen export as New Delhi hopes, it can nevertheless play a significant part in creating the infrastructure that the EU will need in the future.
Production of green hydrogen creates greater opportunities for collaboration amongst dependable partners. Dependencies, no matter how cost-effective, can be disastrous, as the Ukraine war has demonstrated. The potential of hydrogen and its contribution to Europe’s energy security will result in an intersection of numerous demands for foreign and security policy as well as technological advancements. India can jump on board because it has its own strategies for achieving climate goals.
There is little doubt that renewable energy production is the way of the future for the world’s energy demands. The norms of engagement and rivalry will be established by those leading the change right now, revolving around hydrogen, the element that is found in the cosmos in the greatest abundance.
