Green hydrogen: the sustainable energy carrier of the future
Hydrogen is a promising energy carrier for the energy transition. But not all hydrogen is equally sustainable. Green hydrogen is the most sustainable form of hydrogen, because it is produced using electricity from solar and wind power. We can use green hydrogen as fuel for aviation and shipping, as a feedstock for industry, and as a storage medium for surplus renewable energy.
Green hydrogen in brief:
- Green hydrogen is produced by electrolysis of water using renewable electricity.
- Green hydrogen is a sustainable and climate-neutral energy carrier.
- Green hydrogen can store surplus renewable electricity for later use.
- Green hydrogen still faces challenges, such as storage and cost.
- Green hydrogen is indispensable for the success of the energy transition.
How is green hydrogen produced?
Green hydrogen is produced by electrolysis of water. This is a process in which water (H2O) is split into hydrogen (H2) and oxygen (O2) using electricity. The electricity used for this process must come from sustainable sources, such as solar and wind. Only then can we speak of green hydrogen.Industry currently runs on grey hydrogen
Hydrogen is already widely used in industry, mainly as a feedstock in the chemical industry and in refineries for desulphurising petroleum. This hydrogen is currently mainly produced from natural gas and is therefore called grey hydrogen. This process releases CO2. Hydrogen production can be made relatively cheaply ‘clean’ by capturing that CO2 and storing it underground. The result is called blue hydrogen. Green hydrogen is more expensive, but aimed at a cleaner future full of solar and wind energy.The different types of hydrogen at a glance:
- Grey hydrogen – Hydrogen produced from fossil fuels, usually natural gas. The production process emits CO2
- Blue hydrogen – Hydrogen produced from fossil fuels, in which the CO22
- Green hydrogen – Hydrogen produced using renewable electricity. Green hydrogen is fully climate-neutral.
- White hydrogen – Hydrogen found naturally in the earth, formed by natural processes.
Grey, blue, and green hydrogen are all energy carriers, intended to store energy for later use. White hydrogen is naturally occurring and is therefore an energy source.
Cost price of green hydrogen hampers scaling
The production of grey hydrogen costs about €1.50 to €2.50 per kilogram of H2. Green hydrogen, due to high electricity costs, is five times more expensive. As a result, demand for green hydrogen is low. There are no obligations to use green hydrogen, nor subsidies to reduce the high production costs. Interest is slowly growing, partly due to the requirements of the new climate law.Climate law increases demand for green hydrogen
In the Paris Climate Agreement, it was agreed that the EU will emit 55 percent less CO2 by 2030. In the Netherlands, the climate targets are set out in the Climate Act. By 2030, fuel suppliers must prove with certificates that part of their fuel is produced using green hydrogen. For the chemical industry, 42% of their hydrogen use must be green. This affects the demand for green hydrogen. To meet this demand, we need to produce more green hydrogen.From grey to green requires innovation and investment
To achieve cost-efficient and reliable green hydrogen production in the Netherlands, the following is needed:
- More renewable electricity from solar and wind to produce green hydrogen. This requires approximately a doubling of the current supply of wind and solar power.
- More electrolysers to convert water and electricity into green hydrogen. This calls for large-scale and serial production of electrolysers.
- Sufficient infrastructure and storage for transporting and delivering green hydrogen to customers. This means adapting and expanding existing gas pipelines and salt caverns for transporting and storing green hydrogen.
- Sufficient demand for green hydrogen. This requires the greening and innovation of processes and technologies that currently use grey hydrogen or fossil fuels, and cannot be electrified, such as aviation, shipping, steel production, chemical industry, and flexible electricity generation.
- Clear and stable regulation and stimulation. Financial and fiscal incentives are needed to make green hydrogen competitive with grey hydrogen or other energy carriers. This requires subsidies, tax benefits, or CO2 levies to reduce the price difference between green and grey hydrogen, and to support investments in green hydrogen projects.
- International trade. To make an international market for green hydrogen work, clear pricing mechanisms are needed. For example, agreement on how the costs of transport and conversion are included in the price of green hydrogen. This can be complicated as it is a relatively new field and there are no widely accepted standards yet.
Eneco makes substantial investments in green hydrogen
At Eneco, we find it important to leave a livable planet for future generations. Our One Planet plan is our promise to be climate neutral by 2035. In addition to direct electrification, we are therefore also investing heavily in green hydrogen. We participate in the green hydrogen consortium NortH2. Eneco is also working on the development of other green hydrogen projects. The aim is to have a green hydrogen portfolio of 1.5 to 2 GW. This is roughly comparable to the output of 75 to 100 wind turbines of 20 MW each.Most of the projects focus on producing green hydrogen for industrial customers. In addition, green hydrogen is important for CO2-free flexible electricity generation (for the weeks with shortages of sun and wind).
