Clean Hydrogen

Hydrogen has long been used to generate energy. Most hydrogen comes from coal and natural gas, through a process that generates CO2 and other greenhouse gases. Clean hydrogen, on the other hand, refers to hydrogen produced using methods with low or zero carbon emissions. When produced cleanly, hydrogen can act as an alternative to fossil fuels and be an effective means for achieving decarbonization.

Hydrogen has been classified using a color system based on how it is created. Black, brown, and grey hydrogen are produced from coal or natural gas, which leaves byproducts such as CO2 and CO and contribute to greenhouse gas emissions. Clean hydrogen, on the other hand, includes “green hydrogen,” “blue hydrogen,” "turquoise hydrogen,” and “pink hydrogen.” Green hydrogen is produced by using electrolysis to split water molecules using renewable energy. Blue hydrogen is generated from natural gas using carbon capture and storage (CCS) technology to capture and store the CO2 byproducts. Turquoise hydrogen is similar to blue hydrogen but produces solid carbon rather than CO2 as a byproduct. Pink hydrogen is similar to green hydrogen but is powered by nuclear energy.

Clean hydrogen has a variety of uses, including as a fuel, energy carrier, and bridge to clean electricity. It can be used in fuel cells (to produce electricity, heat, and water), as fuel to power mobility applications (such as shipping, trucking, and aviation), for energy storage, and to decarbonize certain industrial processes such as steel and aluminum production.

There are also some challenges relating to the use of hydrogen energy -- the biggest being the costs of production and storage. The main technology for producing green hydrogen, electrolysis, is still relatively expensive. In addition, hydrogen requires specific kinds of tanks and a strict environment for it to best store, which also have high costs. The lack of infrastructure (such as power plants and vehicles) also makes the widespread use of hydrogen fuel more difficult.

In recent years, there has been a growing focus on clean hydrogen globally. For instance, the U.S. National Clean Hydrogen Energy Strategy and Roadmap was released by the Biden Administration in June 2023 to promote more production and usage of clean hydrogen energy. While Europe remains the most popular region for new clean hydrogen projects, Inflation Reduction Act incentives have resulted in a boom of clean hydrogen projects in the United States. In June 2023, Saudi Arabia closed on a $8.4 billion investment in the world’s largest clean hydrogen project. Additionally, Australia has allocated $1.35 billion in its 2023-2024 budget to help accelerate such projects. According to a report issued by Deloitte, the clean hydrogen market is expected to be bigger than the natural gas trade by 2030 and grow to $1.4 trillion annually by 2050.

Articles for further reading:

Biden-Harris Administration to Jumpstart Clean Hydrogen Economy with New Initiative to Provide Market Certainty And Unlock Private Investment

Clean Energy 101: The Colors of Hydrogen

Hydrogen Reality Check: All “Clean Hydrogen” Is Not Equally Clean

The Future of Hydrogen

Hydrogen Projects in the US