by Qi Chen (Lee Enterprises Consulting/Biofuels Digest) ... Hydrogen has been produced at the industrial scale for many decades in diverse applications, see Figure 1. Traditional applications are mainly in chemical manufacturing and oil refining, with some lower volumes in synthetic liquid hydrocarbon fuels in certain geographic regions. In the chemical industry, hydrogen serves as a fundamental feedstock, contributing to the synthesis of vital chemicals such as ammonia and methanol. In oil refineries, hydrogen plays a pivotal role in upgrading crude oil fractions, elevating the quality of refined products by increasing their hydrogen content with the so-called hydroprocessing technologies. Synthetic liquid hydrocarbon fuels are produced at industrial scale in South Africa, China, and the Middle East. The former two countries use coal as the feedstock for producing liquid fuel, while in the latter region natural gas feed is used. In both cases, fossil fuels are converted to a mixture of hydrogen and carbon monoxide called synthesis gas or “syngas.”
More recent applications are found in the metallurgic industry, where hydrogen has been used to reduce minerals to metal, e.g., iron in direct iron reduction or DIR process technology. This would reduce the carbon emission of the metals industry, which is considered a difficult-to-decarbonize sector. In the transportation and automotive landscape, the rise of hydrogen-powered fuel cells offers a cleaner alternative to conventional internal combustion engines. This is championed as an important route to decarbonize the mobility sector, at least in some regions like Japan and Korea. In yet another major application, hydrogen is used for heat and power generation to replace fossil fuels. Because this application uses hydrogen directly, the potential volume of consumption can be huge, if widely adopted.
Global hydrogen consumption is just below 100 million tons in 2023, with the traditional application contributing the bulk. The annual growth in 2022 amounts to a modest 3 %. The forecast for future consumption sees that the new applications will increase significantly while the traditional uses stay stable, see Figure 2. Although the momentum for hydrogen consumption is tremendous, a substantial volume increase in uptake in new applications is yet to be materialized.
Figure 1 Applications of hydrogen. Courtesy US EIA, Ref 1
Nevertheless, it is the consensus today that hydrogen has the potential to revolutionize energy consumption patterns during the current energy transition period. The adaptability of hydrogen therefore positions it as a key player in the global pursuit of a low-carbon economy.
Figure 2 Hydrogen consumption by sector, Ref 2
Production Routes and Technologies
Although hydrogen is the most abundant atom, hydrogen gas does not exist in nature. It must be generated from a source containing hydrogen atoms, usually water and/or hydrocarbons. Traditionally, two dominant routes have been followed for the production of hydrogen at an industrial scale, steam methane reforming (SMR) and partial oxidation (POX) of fossil fuels, gas, oil, and coal. Autothermal reforming is a combination of reforming and POX, which has become more popular recently because of its potential for pre-combustion CO2 capture in the process.
...
Recently, biomass and solid wastes such as MSW have been used as fuels to produce hydrogen. This is an interesting route. However, because of the limitations of the availability of the fuels, it can only contribute to global hydrogen production to a limited extent. Researchers produce small amounts of hydrogen by pyrolysis of CH4 with pure carbon as the by-product. At the moment, various other innovative routes are being experimented with.
...
Challenges and Future Prospects
The cost of large-scale hydrogen production remains a significant challenge, particularly for green hydrogen produced by electrolysis. In 2020, the cost of hydrogen from renewable electrolysis ranged from $3 to $6 per kilogram. As a reference, SMR gray hydrogen can be produced at a $2/kg levelized cost. Green hydrogen is expected to undergo a substantial cost reduction. Projections indicate a potential 50% reduction in the cost of green hydrogen by 2030, further propelling its competitiveness in the global energy landscape. Economies of scale, speedy deployment, technological advancements, and supportive policies are essential to reduce production costs and increase competitiveness.
Infrastructure development is another critical challenge. The existing infrastructure along the hydrogen value chain for feedstock, production, storage, and transportation is predominantly designed for conventional methods, necessitating substantial investments to accommodate the evolving landscape of green hydrogen growth. The integration into existing industrial processes and the development of a comprehensive hydrogen infrastructure along the complete value chain are crucial strategies.
The utilization of hydrogen in conventional industrial processes, such as metal and cement industries, is a key factor in shaping the future landscape of large-scale hydrogen production.
Although green hydrogen by electrolysis will grow exponentially, blue hydrogen production by SMR or POX combined with carbon capture and storage will stay competitive and be applied to a large extent. Continued innovations in materials and catalysts will improve efficiency further. Advanced catalysts can enhance reaction rates, increase selectivity, and reduce energy requirements. The projection is that the blue hydrogen will still share one-third of the lower-emission hydrogen, with the rest coming from electrolysis by 2030.
Conclusions
Industrial large-scale hydrogen production is a key enabler of the global transition towards a low-carbon and sustainable energy future. It represents a multifaceted challenge and opportunity. Addressing challenges related to cost, infrastructure, industrial adaptation, and technology advancements is essential to unlock the full potential of hydrogen as a clean energy carrier. The ongoing evolution of production feedstocks and technologies, coupled with strategic investments and supportive policies, will play a decisive role in shaping the trajectory in future years. As hydrogen solidifies its role in the global push toward a sustainable and low-carbon future, continued R&D, speedy deployment, and investments will be paramount. Collaboration between governments, industries, and research institutions is essential for overcoming challenges and realizing the vision of hydrogen as a cornerstone of the future energy landscape.
...
Ref 1: Applications of hydrogen. https://www.eia.gov/energyexplained/hydrogen/production-of-hydrogen.php
Ref 2: Hydrogen consumption by sector. https://www.greentechlead.com/renewable-energy/global-hydrogen-landscape-revealed-in-ieas-2023-global-hydrogen-review-44026
Ref 3: IEA report on Shell and AP CCS projects. https://ieaghg.org/exco_docs/2017-02.pdf
Ref 4: Green hydrogen capacity 2023. https://joint-research-centre.ec.europa.eu/jrc-news-and-updates/water-electrolysis-and-hydrogen-growing-deployment-prospects-europe-and-beyond-2023-11-24_en#:~:text=Beyond%20Europe%2C%20estimations%20of%20global,are%20growing%20year%20after%20year.
Ref 5: Hydrogen production capacity by technology. https://iea.blob.core.windows.net/assets/ecdfc3bb-d212-4a4c-9ff7-6ce5b1e19cef/GlobalHydrogenReview2023.pdf
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