Although “blue” hydrogen is now cheaper than “green” hydrogen, this should change by 2030. Blue hydrogen is produced from natural gas and is supported by carbon capture and storage (a technology which struggles to be economically viable). Green hydrogen is created by utilizing renewable energy to create hydrogen from water.
“BloombergNEF predicts renewable hydrogen to be cheaper by 2030 in all simulated nations, even those with cheap gas (like the United States) and expensive renewable electricity (like Japan and South Korea).”
Oil and gas firms want to earn a profit while simultaneously seeming ecologically friendly. They are pushing into the blue hydrogen space, but if they don’t act swiftly, they risk having assets stranded. BNEF is raising the stakes by designating 2030 as the deadline. Can they construct a facility and make it profitable in 8 years? According to Cleantechnica.com, the wise thing to do would be to make it simple to switch plants from blue to green when technology (particularly electrolyzer prices) becomes more affordable to install.
“In 16 of the 28 nations BNEF modeled, ‘gray’ hydrogen produced from fossil fuels without CCS might cost more than green hydrogen by 2030.” The hydrogen market will undergo a seismic change as a result of this.”
According to an IRENA research, Australia is best positioned to profit on this change owing to its enormous renewable energy resources.
The world’s first tanker of liquefied grey hydrogen was delivered from Victoria to Japan just this week. The hydrogen was generated from liquefied brown coal, so it was the worst type of grey. Although the ecologically conscience groaned as Australian Minister for Energy and Emissions Reduction, Angus Taylor wished the tanker well, we must recognize that this may be evidence that we can move hydrogen regardless of its source, Cleantechnica.com comments. If the ship can continue its journey, there is some good news here.
There are many difficulties to tackle as we transition to a green economy, but when each one is solved, the future looks more and more sustainable for Earth’s residents and more and more lucrative for industry’s titans.