As the global community intensifies its efforts to combat climate change and transition to sustainable energy sources, hydrogen is emerging as a promising solution. Following a successful hydrogen session in March, the Global Federation of Competitiveness Councils (GFCC) hosted a follow-up Q&A session on June 13th to allow the GFCC community to pose questions to experts in the field. The GFCC extends its gratitude to the session’s experts, Prof. Richard J Parker, Ms. Lori Schmidt, Mr. Justin Riemer, Prof. David Rooney, Ts. Mohamad Azreen Firdaus Bin Abd Aziz, and Prof. Petros Sofronis, for their valuable insights.
This blog, based on the expert session, explores various case studies and perspectives on hydrogen development, highlighting initiatives from Singapore, the United States, Malaysia, UK, and Canada. Additionally, it discusses the critical role of incentives, economic measures, and technological innovations in fostering a resilient, low-carbon future powered by hydrogen.
Singapore’s Advancing Hydrogen Economy
Singapore is strategically focusing on the decarbonization of its shipping industry and the broader leveraging of hydrogen technologies. The research institute ASTAR is collaborating with ExxonMobil and Nanyang Technological University to conduct pivotal research on blue hydrogen production through methane pyrolysis to reduce carbon emissions associated with hydrogen production. In line with the Aerospace Technology Institute’s Hydrogen Capability Network report, Singapore also recognizes the critical need for the development of a comprehensive hydrogen infrastructure to support the widespread adoption of this clean energy source.
While Singapore was initially slower to embrace the carbon agenda, it has now made impressive strides. The importance of selecting the appropriate energy mix for Singapore, including carbon capture and hydrogen, especially for thermal energy, cannot be overstated. Decarbonizing carbon-intensive industries like cement, steel, and glass while exploring sustainable alternatives like wood also remains a priority. In 2021 Singapore launched its Low Carbon Energy Research (LCER) program which has, so far, committed S$185m to carbon capture and hydrogen technologies. As Singapore moves forward, the focus on research, infrastructure development, and strategic partnerships will drive the transition to a sustainable and decarbonized energy system.
The Midwestern Hydrogen Hub: A Case Study in the United States
The Midwestern Hydrogen Hub initiative is a collaborative effort among a large number of industries, major universities (including GFCC member University of Illinois), and national laboratories to establish a robust hydrogen economy in the United States. As one of seven regional hubs that are part of the Department of Energy’s Regional Clean Hydrogen Hubs Program (H2Hubs), the midwestern hub aims to leverage the diverse industrial and academic strengths of the Midwest to create a sustainable and economically viable hydrogen infrastructure. It stands out for its innovative use of different hydrogen production technologies, including pink hydrogen (produced using nuclear reactors) and blue hydrogen (produced using autothermal reforming with carbon capture and storage).
Hydrogen Economy Development in Malaysia
Malaysia’s role in the global transition to the hydrogen economy is growing, making it a significant player in this development. This program is led by a strategic partnership involving Ministries like Ministry of Science, Technology, and Innovation (MOSTI), government bodies, research organizations, industry stakeholders, and Government Link Companies (GLCs). The objective is to create a complete hydrogen value chain covering production, storage, transportation, and usage in various sectors for potential market opportunities.
Sarawak’s advantageous position in Eastern Malaysia as a hub for hydrogen production and distribution is enhanced through strategic project partnerships with local and global allies via utilization of renewable energy sources such as from hydroelectric power. A few stakeholders are also carrying out different initiatives targeting various parts of the value chain as part of the hydrogen economy agenda laid out in national strategic documents.
As an important part of ecosystem development, PETRONAS, through its subsidiary Lestari H2GaaS, partners with SEDC Energy to create a joint venture for the Sarawak Electrolyzer Assembly-Distribution Facility (SEA-DF), contributing to Malaysia’s hydrogen strategy by enhancing local technology capabilities and strengthening the local value chain. Tenaga Nasional Berhad (TNB), the national utility company, is also working towards reducing carbon emissions in the power generation industry by exploring the usage of hydrogen as a fuel. In the future, Malaysia may speed up the initiatives by establishing a demand-driven program to foster collaboration, showcase local technology prospects, and boost the adoption of hydrogen economy.
Canada’s Blue Hydrogen
Alberta is leveraging its abundant natural gas resources and geological formations to become a pivotal hub for blue hydrogen production in Canada. The province is home to the world’s first net-zero full-scale hydrogen production facility by Air Products, nearing completion with a $1.6 billion investment. Additionally, Dow has announced a net-zero petrochemical complex with a $10 billion investment, focusing on capturing carbon from hydrogen production.
On the demand side, Alberta’s commitment to clean energy also extends to transportation, with initiatives like hydrogen-powered freight trains by CPKC and hydrogen buses, partially funded through the Emissions Reduction Alberta (ERA) program. Notably, hydrogen buses have outperformed electric buses in Alberta’s harsh climate. These efforts showcase the practical applications of hydrogen in reducing carbon emissions and improving energy efficiency across various sectors.
Hydrogen holds promise for various applications. However, significant economic and regulatory hurdles persist. For instance, the widespread adoption of hydrogen-powered passenger vehicles is hindered by the need for a vast new refueling infrastructure. Similarly, regulatory restrictions on acceptable hydrogen levels pose challenges for its use in home heating. These examples underscore the dual challenges facing the hydrogen economy: high production costs for low-carbon hydrogen and substantial infrastructure and regulatory barriers on the demand side.
Recommendations from the GFCC Community for Advancing the Hydrogen
As experts converge on the future of hydrogen, several key recommendations emerge to accelerate its adoption and efficacy:
Firstly, place-based innovation and innovation clusters can leverage existing technology assets, connect projects, and optimize the deployment of hydrogen infrastructure while fostering regional innovation. Identifying local demand drivers and integrating hydrogen technologies into existing infrastructures are key to maximizing both economic and environmental benefits.
Secondly, establishing off-take agreements is crucial for unlocking the profitability of hydrogen ventures and ensuring a smooth transition to a hydrogen-based energy system. Engaging with potential off-takers and converting their interest into formal agreements sends positive signals to the market and provides the financial assurance needed to monetize hydrogen projects.
Thirdly, strategic subsidies and pricing mechanisms are essential to bridge the economic gap between green hydrogen and traditional fossil fuels. The United States’ Inflation Reduction Act, with its $3 per kilogram subsidy for green hydrogen production, aims to make it more economically competitive. As production scales up and technology advances, the cost of green hydrogen is expected to decrease further, potentially reaching as low as $1 per kilogram (DOE Hydrogen Shot). This would position green hydrogen as a viable alternative to conventional energy sources.
Furthermore, carbon taxation is a tool that should be considered to internalize the environmental costs of carbon emissions, effectively making polluting activities more expensive. By assigning a true economic cost to carbon emissions, carbon taxes incentivize businesses and industries to reduce their carbon footprint and adopt cleaner energy solutions, creating a level playing field for hydrogen and other low-carbon alternatives.
To drive down the costs associated with hydrogen production, increased research funding is essential. Investing in advanced technologies, such as improved electrolysis processes and efficient catalytic converters, will be pivotal in making hydrogen more economically competitive.
Re-emphasizing nuclear energy as a foundational source of zero-carbon baseload power is a viable solution. Countries like France and Finland exemplify the role of nuclear energy in complementing intermittent renewable sources, ensuring energy security while reducing greenhouse gas emissions. Surplus nuclear energy, when renewable energy is plentiful, can be used to create green Hydrogen.
Lastly, collaboration between governments, private sector entities, and research institutions is indispensable for scaling up hydrogen infrastructure and fostering market maturity. Public policies must incentivize private investment in hydrogen technologies while facilitating regulatory frameworks that support innovation and deployment. This partnership approach is crucial for developing robust supply chains, enhancing distribution networks, and integrating hydrogen into various sectors, ultimately paving the way for a cleaner and more sustainable energy future.
Sustainable Energy Perspectives Going Forward
Countries are taking unique paths toward a cleaner energy future, offering valuable lessons for the global community. Finland focuses on making hydrogen economically viable through low strike prices. Japan’s strong regulatory framework supports hydrogen integration across sectors. Canada leverages abundant natural resources while phasing out coal power. The U.S. invests in regional hydrogen hubs involving diverse hydrogen production methods and end-users. Ultimately, the most successful approaches will likely combine regulatory frameworks, technological innovations, and strategic investments, demonstrating that collaborative solutions and diverse perspectives are crucial for achieving a sustainable energy future.
Comments