Once it is clear that hydrogen is an ally, not a competitor, to electrification, a more nuanced debate is possible for where and how hydrogen can be used. For example, two sectors where the hydrogen either\/or binaries are transport and heating.<\/p>\n
In transport, though there are promising hydrogen offerings for heavy vehicles, light rail, and maritime as a route to decarbonisation, the future of light vehicles is heading towards electrification. For heat, the efficiency of electric heat pumps makes sense in many types of buildings, and government strategies to drive their deployment make sense \u2013 together with minimising heat losses via insulation. But to cope with the \u2018heating peaks\u2019 on the coldest winter\u2019s day, and to ease some of the retrofit challenges that heat pumps can bring in certain building types, hybrid electric-hydrogen heating systems, or even efficient pure hydrogen systems, have a role to play.<\/p>\n
![\"hydrogen\"](\"https:\/\/www.innovationnewsnetwork.com\/wp-content\/uploads\/2021\/08\/J-Slowe-7755-image-1-1024x576.jpg\")
These sectors aren\u2019t necessarily the near-term future for hydrogen though. While our analysis of where green hydrogen production developed in the last decade is deployed today shows that nearly half of demand is in transport applications, the current five-year pipeline of green hydrogen projects sees that shift radically to industry, which is set to account for two thirds of demand by 2025.<\/p>\n
Hydrogen can find use-cases in a variety of industrial processes. One category is in hard to decarbonise processes with high temperature requirements. Another is where hydrogen is required as a feedstock, such as in fertiliser production, which today rely on dirtier sources of hydrogen. With no real alternative to hydrogen in these hard-to-abate sectors, these use-cases will be especially beneficial if the UK government\u2019s focus on \u2018industrial hubs\u2019 comes to pass, allowing for major industries to be co-located with local hydrogen production, storage, and distribution.<\/p>\n
By moving beyond a false either\/or choice, we can get a clearer view of where hydrogen can be most useful, without demonising or aggrandising its potential. There is a huge role to play for both electrification and hydrogen to play in reaching net zero.<\/p>\n
What will the business of hydrogen look like?<\/h3>\nHaving a clear view of the role of hydrogen as a scalable energy storage medium, and established the areas of its demand in transport, heating, and industrials, it is obvious hydrogen has a foot firmly in the future of energy transition. The question which remains foggy is exactly how will the business of hydrogen develop?<\/p>\n
The success of the sector rests on the three aspects of its value chain: production, distribution, and demand. Like a stool, the hydrogen economy will only stand if it is adequately supported by all three of these legs. In the next years, the energy sector will need to integrate these solutions. When thinking of businesses of hydrogen, organisations that could offer solutions across the whole value chain and prioritise the demand of the consumer \u2013 bringing together public support designed to develop the sector \u2013 have potential to take a lead in the market.<\/p>\n
The Hyundai<\/a> hydrogen heavy goods vehicle service in Switzerland is a good example of such successful business models. With partnerships across the value chain \u2013 H2 Energy, Auto AG, Michelin, and GK Gr\u00fcnfelder<\/a> \u2013 Hyundai provides a holistic offering with their \u2018pay per use model\u2019, handling all three aspects from production to distribution, leaving the customer with a simple rental truck solution.<\/p>\n
Jon Slowe<\/strong>
\nDirector<\/strong>
\nDelta-EE<\/strong>
\n+44 (0)131 625 1011<\/strong>
\nTweet @delta_ee<\/strong>
\nwww.delta-ee.com<\/strong><\/a><\/p>\n
Please note, this article will also appear in the seventh edition of our\u00a0<\/em><\/strong>quarterly publication<\/strong><\/em><\/a>.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"