As per to the World Energy Council, the low-carbon hydrogen is not “cost-competitive with alternative energy providers in most applications and regions,” and the situation is not likely to improve until “substantial support to bridge the price gap” is provided. The report was created in partnership with PwC and the US government. Electric Power Research Institute – raised the question of where financing for such assistance would come from and noted the sector’s rising reputation and potential benefits.
The London-based energy organization stated in a release accompanying a briefing that “political and environmental drivers” were “sending promising signals to the market and stimulating increased interest” and that several pilot projects were being conceived, completed, or operated around the world. Hydrogen, dubbed a “versatile energy carrier” by International Energy Agency, has a wide range of applications and can be used in industries and transportation.
It can be made in a variety of ways. Electrolysis is one way, which involves breaking water into hydrogen and oxygen using an electric current. Some terms it renewable or green hydrogen if the electricity utilized in the process originates from a renewable source like wind or solar. The vast bulk of hydrogen production relies on green hydrogen, and fossil fuels are costly to create. However, attempts are being made to reduce prices.
The US Department of Energy has announced the commencement of its Energy Earthshots Initiative. The first goal is to lower the cost of “clean” hydrogen below $1 per kilogram (2.2 lbs) within a decade. As per the DOE, renewable hydrogen costs roughly $5 per kilogram now. According to the World Energy Council, some countries are “continuing to develop bilateral partnerships to assist form global hydrogen supply chains and secure clean hydrogen supply,” according to the World Energy Council. “With the effective legislation and technologies to allow hydrogen scale-up, some predictions suggest it could be cost sustainable with other solutions as soon as 2030,” it added.
The industry appears to be facing a slew of difficulties that it must solve to develop. According to the WEC analysis, the hydrogen economy is experiencing a “chicken and egg conundrum” in terms of supply and demand. Both completely lack “reliable volumes from others to help create the value chain,” it claimed.
There’s also a discussion regarding the advantages of employing colors to distinguish between different production methods – such as brown, gray, blue, and pink, to mention a few. “Colour has been used to simplify the debate about the carbon footprint of hydrogen generation,” according to the WEC report, “but it has become more complicated with no widely approved colors for certain technologies and some dispute as to which color matches which source.” “As it could jeopardize prematurely rejecting some technical approaches that could be more costly and carbon effective,” the discussion over color needed to be clarified, according to the report.