The transition to a clean energy future hinges on our ability to decarbonize the most stubborn sectors of the economy—the so-called “hard-to-abate” (HTA) industries. These industries, which include heavy manufacturing, long-distance transportation, and high-grade heating, have long resisted electrification and other straightforward emissions-reduction strategies. However, the promise of clean hydrogen may finally offer a solution to this intractable challenge.
Emissions Reduction Opportunities
Hydrogen, when produced using renewable energy or fossil fuels with carbon capture, can serve as a versatile energy carrier to help mitigate emissions in HTA sectors. In heavy industry, clean hydrogen can replace fossil fuels as a feedstock for processes like steel and cement production. In transportation, hydrogen-powered vehicles can reduce dependence on petroleum while improving local air quality. And in the power sector, hydrogen’s capacity for long-term energy storage can facilitate the integration of variable renewable sources like solar and wind.
The benefits of clean hydrogen are significant. Researchers estimate that widespread adoption in China’s HTA sectors could save $1.72 trillion in investment costs and avoid a 0.13% loss in GDP compared to a scenario without it. Globally, clean hydrogen could play a key role in reducing emissions from sectors that currently account for over 30% of annual CO2 output.
Technological Advancements
The hydrogen economy is gaining momentum, with substantial progress in production, storage, and end-use technologies. On the supply side, alkaline and proton exchange membrane electrolyzers are commercially available, while solid oxide electrolyzers are approaching commercialization. Meanwhile, innovations in hydrogen transportation and storage, such as pipelines, shipping, and underground caverns, are unlocking new distribution possibilities.
However, the demand-side technologies—including fuel cells, high-temperature furnaces, and hydrogen-based direct reduced iron processes—still require further development and demonstration. Governments and industry are stepping up efforts to showcase these applications, recognizing that unlocking the full potential of clean hydrogen hinges on driving down costs and scaling up adoption in HTA sectors.
Hard-to-Abate Sectors
The potential of clean hydrogen is particularly compelling in three key HTA sectors:
Heavy Industry: The production of steel, cement, chemicals, and other materials relies heavily on fossil fuels, making it challenging to decarbonize. Clean hydrogen can replace carbon-intensive feedstocks and provide high-grade process heat.
Transportation: Electrifying passenger vehicles is progressing well, but long-haul trucks, ships, and aircraft are harder to decarbonize. Hydrogen-powered vehicles and hydrogen-derived fuels offer a promising solution for these modes of transportation.
Energy Storage: The variability of renewable energy sources like wind and solar necessitates flexible storage options. Hydrogen can be used to store energy over extended periods, helping to balance the grid and unlock greater renewable penetration.
Hydrogen Production Methods
To realize the full potential of clean hydrogen, it must be produced using low-emission techniques. Two main pathways exist:
Renewable Hydrogen
Also known as green hydrogen, this is produced by splitting water molecules using renewable electricity, typically from solar or wind power. As renewable energy costs continue to decline, green hydrogen is becoming an increasingly cost-effective option.
Fossil-Fuel-Based Hydrogen
Blue hydrogen is produced from natural gas or coal, with the associated carbon emissions captured and stored. This approach leverages existing infrastructure while mitigating environmental impact.
Hybrid approaches, such as turquoise hydrogen produced via methane pyrolysis, are also emerging as potential solutions, blending the advantages of both renewable and fossil-fuel-based pathways.
Hydrogen Infrastructure
The widespread adoption of clean hydrogen will require significant investments in storage, transportation, and refueling infrastructure. Pipelines are the most efficient mode of hydrogen transport for distances up to 3,000 km, with Europe leading the way in developing a European Hydrogen Backbone. For longer-range transport, hydrogen shipping and hydrogen-based fuels like ammonia are gaining traction.
Underground storage in salt caverns and depleted gas fields is another crucial component, enabling the flexible balancing of supply and demand. Governments and industry are collaborating on research and demonstration projects to assess the viability of various storage options.
Policy and Regulation
Governments around the world are increasingly recognizing the importance of clean hydrogen in achieving their decarbonization goals. Over 30 countries have now released national hydrogen strategies, setting ambitious targets for production and deployment. However, the pace of policy action has been uneven, with a particular need to stimulate demand through mechanisms like carbon pricing, mandates, and public procurement requirements.
International collaboration will also be crucial, as the success of the clean hydrogen transition depends on the harmonization of regulations, certification schemes, and trade frameworks. Initiatives like the International Partnership for Hydrogen and Fuel Cells in the Economy are working to establish common standards and facilitate cross-border cooperation.
Environmental Implications
The environmental benefits of clean hydrogen are clear, but its full sustainability depends on careful lifecycle assessment and responsible waste management. Policymakers and industry must work together to ensure that clean hydrogen production and use adhere to strict environmental, social, and governance (ESG) criteria.
Societal Acceptance
For clean hydrogen to succeed, it must also win over the public. Addressing safety concerns, fostering public awareness, and developing a skilled workforce will be essential. Proactive engagement with local communities and robust workforce training programs can help build trust and support for this transformative technology.
The path to a decarbonized future is complex, but clean hydrogen holds immense promise as a solution for the most intractable emissions sources. By harnessing innovation, policy, and international collaboration, Europe and the global community can unlock the full potential of this versatile energy carrier and accelerate the transition to a sustainable, prosperous tomorrow. To learn more, visit europeanfutureenergyforum.com.
