Hydrogen is expected to play an important role in the decarbonisation effort to keep global warming at 1.5 degrees. Net-zero models foresee its share in final energy consumption ranging between 3-20% by 2050. For hydrogen technologies to fulfil this role, sizeable investments need to be made to reduce production costs and improve end-use applications.
The rapid expansion of renewable energy generation capacity is key to clean the global energy matrix, and ensuring that hydrogen use does not rely on the same fossil fuels expected to be phased out.
Investment in hydrogen applications needs to be carefully prioritised to focus the limited existing resources in promising technologies that don’t undermine global electrification and other alternative technologies. While most applications are not yet cost-effective compared to current alternatives, investment is needed to reduce production and end-use costs, increase learning, and avoid carbon lock-in that can ultimately undermine decarbonisation efforts.
To identify the most promising investment opportunities for the region, and specifically for the focus countries of Argentina, Brazil, and Peru, this report has analysed different hydrogen applications across the value chain based on three main dimensions: technology competitiveness, temporality of the investment, and regional considerations.
Water-related Challenges:
Hydrogen’s versatility is evident in its diverse applications, from internal combustion engines and fuel cells to blending with natural gas in current infrastructure. This integration into the national gas grid reduces carbon emissions and lessens the need for separate hydrogen distribution and storage networks. This comprehensive approach aligns with sustainable energy goals and complements initiatives like silent power generators, turnkey projects, and efforts to lower carbon intensity across various systems.
Renewable Energy Generation and Storage Challenges:
The growth of variable renewables like wind and solar power presents a new challenge: storage. Hydrogen is a promising solution as it can store renewable energy domestically and globally. This helps balance demand and supply fluctuations while fostering a more sustainable energy infrastructure. This shift is driving interest with a focus on hydrogen-based generators, green hydrogen companies, and advancements in hydrogen storage technology.
Hydrogen Safety Solutions:
Hydrogen is flammable when mixed with air, even in small amounts.
Here are some other safety precautions for hydrogen:
Avoid contact with skin, eyes, and clothing.
Store and use away from heat, open flames, sparks, and other ignition sources.
Don’t use empty containers, as they can be hazardous.
Hydrogen safety solutions include:
Storage tanks: Choose the right storage tanks for compressed hydrogen, and select a good location to set them up
Ventilation: Ensure adequate ventilation and leak detection
Gas detectors: Use gas detectors and flame arrestors
Insulation and grounding: Use insulation and grounding to minimize risk
Conclusion
Hydrogen is expected to play an important role in the decarbonisation effort to keep global warming at 1.5 degrees. Net-zero models foresee its share in final energy consumption ranging between 3-20% by 2050. For hydrogen technologies to fulfil this role, sizeable investments need to be made to reduce production costs and improve end-use applications.
Green Power International is committed to navigating the energy transition and advocating sustainable solutions. Join us in exploring the potential of a hydrogen-powered future, addressing greenhouse gas emissions, and collaborating with green hydrogen companies.
