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Decarbonizing the Industry with Green Hydrogen

Cigdem Tuc Altaf1, Orcun Demir2, Tuluhan Olcayto Colak3, Emine Karagöz3, Mehmet Kurt3, Nurdan Demirci Sankir1,3† and Mehmet Sankir1,3*

1Department of Materials Science and Nanotechnology Engineering, TOBB University of Economics and Technology, Sogutozu, Ankara, Turkey

2Political Science and International Relations, TOBB University of Economics and Technology, Sogutozu, Ankara, Turkey

3Micro and Nanotechnology Graduate Program, TOBB University of Economics and Technology, Sogutozu, Ankara, Turkey

Abstract

Perseverance to reduce global greenhouse gas emissions and backward economic and ecological issues of excessive use of carbon-based fuels is more preponderant than any other environmental-related policies. In this respect, hydrogen (H2) appears to be a revolutionary in decarbonizing the common and energy-intensive industrial applications along with its use in transportation. Nations agree to explore a diverse range of innovations to integrate green H2 into the common industrial plants. Energy-intensive industrial sectors emitting large amounts of carbon dioxide (CO2) annually need widespread analysis and investigations to reform the adaptation to carbon-neutral resources. This chapter plunges into these energy-intensive, yet crucial for human needs, applications such as ammonia (NH3), iron/steel, cement, and oil refining. These sectors can be assisted with green H2 as an energy source with its high energy density and as a potential carbon-neutral feedstock for the chemical industry.

Keywords: Hydrogen energy, green hydrogen, climate change, hydrogen economy, industrial decarbonizaiton, H2 strategies

1.1 Introduction

In the gradual transition of the fossil-intensive energy landscape toward a green structure, renewable energy sources (RES) face challenges, particularly in two aspects compared to fossil sources. First, there is an intermittency problem with RES in response to the demand for an uninterrupted energy supply. Despite recent improvements in fields such as storage and smart grid technologies, this issue remains a significant shortcoming. The second challenge is that power generation for hard-to-electrify sectors, which involve processes with very high-temperature combustion, can only be achieved using fossil sources. In this respect, H2 has become a complementary source of future projections with its potential to fill the gap in the thermal and renewable power generation mix [1]. Therefore, H2 appears to be a problem solver in decarbonizing hard-to-electrify sectors and storing electricity generated from renewables. Additionally, it is a candidate that could replace fossil sources in chemical production and long-haul transportation [2].

There is a global H2 initiative inflation, although, in current economic and technological conditions, H2 is still a niche that is not cheap. Since the 1970s, the H2 economy has been seen as an initiative with significant breakthrough potential. Although this interest has continued since the early 2000s, problems related to some technological components (such as detonability) and the high cost of economic infrastructure such as storage have created a deflation in governments’ initiatives on H2. According to the IEA, global government spending on H2 investments reduced by 35% between 2008 and 2018 [3]. However, the idea that the time had come for the real acceleration of H2 became increasingly commonplace. Striving greenhouse gas emissions reduction universally against the challenges of climate change, which is a much more driving factor than past technological and economic initiatives, is today’s impetus to increase H2 deployment. As a matter of fact, many companies have made a splash with serious investments in addition to the national strategy plans of the countries. According to the World Energy Council [4], twelve governments and the EU published national H2 strategies in 2021, while according to the IEA Global H2 Review, this number reached 41 by 2023 [5].

Each national plan has different priorities within countries’ own technological and logistical capacity projections. Countries are exploring a diverse range of policy instruments and innovative measures to incorporate H2 into their energy systems. In other words, future expectations for H2 are not just technological and economic. How countries allocate these developments within the framework of their national goals also fills the issue with political question marks. Forecasts regarding imports and exports and expectations for the realization of green H2 potential are new puzzle pieces of the energy landscape. In addition, transportation as well as production of H2 contain new opportunities and challenge potentials in parallel with global political developments.

van Renssen argues that developments in the global H2 market may lead to new political parties and competition and reshape geopolitical relations and alliances [2]. The risk that may lead the system to a conflictual orientation was emphasized, despite the differentiation of actors in a structure like the oil age. Although serious targets continue to spread globally, this study carries the possibility of securitizing the turmoil regarding H2, as it is still in its infancy in terms of technology and economy. Moreover, its global share is predicted to be around 25% even in the most ambitious target [6]. In that regard, authors, who are concerned about problems similar to the political consequences of oil in the H2 structure, recommend that institutionalization be done through international governance mechanisms [2].

Scott and Powells, on the other hand, question the inclusion of H2 in daily practices at the individual level and open up space for further studies in terms of social sciences with justifications such as heating, poverty, and place attachments [7]. In addition, Sadik-Zada [1] claims that global developments and national plans for H2 will widen the inequality between the global north and south. The author shows that developing countries do not have a comparative advantage in realizing their high potential due to their lack of access to finance to realize electrolysis and infrastructure investments for H2, which are not very cheap at present [1]. According to the research, as the measure of renewables in the energy flock increases and a strong natural gas pipeline structure is established, the economic and technological developments of countries will also provide a political comparative advantage.

Pflugmann and de Blasio [8] predict that if H2 settles at scale, it will have a shape similar to today’s global natural gas structure. According to them, countries will play roles in the H2 landscape that will be formed within the framework of potential infrastructure and resource equipment. In this context, they argue that the future substantiality of geopolitically reserves-poor countries in Europe and Southeast Asia will not differ from current realities [8]. In general, it seems that political perspectives beyond economic and technological developments contain opportunities and risks regarding what national plans will bring. In this respect, it is necessary to focus on the national strategy road maps of countries with critical roles. The sectoral distributions of these road maps, especially within the framework of countries’ import and export orientations, also present their preferences in the versatile deployment areas of H2.

1.2 Intersections of National H2 Strategies

H2 investments gained momentum after 2020, as the number of countries announcing their national strategies increased and RES costs decreased. This increase accelerated as national road maps set targets before the increase as of 2020. Japan was the first country to institutionalize the H2 target (Figure 1.1).

Japan’s “Basic H2 Strategy” is based on two key areas where it faces challenges. The first is the fragility caused by import dependence on fossil fuels, especially in the East. The second is their commitment to greenhouse gasses. Japan does not deny the share of H2 in reducing greenhouse gas emissions, which it has promised to reduce by 26% by 2030 and 80% by 2050, by meeting its demand [9]. In this context, Japan has announced a commitment of $1.5 billion to improve its distribution infrastructure and produce green H2. Thus, H2 also has an important place in attempts to reduce import dependency in economic and technological targets. Japan predicts that H2, as an energy storage medium, will help stabilize fluctuations in energy costs caused by its own imports. In June 2023, Japan reaffirmed its dedication to utilizing H2 and NH3 in the power sector through a revision of its 2017 strategy. In the 6th Strategic Energy Plan [9], Japan emphasizes that H2 and NH3 will contribute 1% to electricity production by 2030. In this context, capacity auctions started as of October 2023 [10]. In January 2022, the first liquefied H2 shipment was made from Japan to Australia. Thus, Japan became a pioneer in the field of transportation [11]. In addition, the United States is currently investing heavily in fuel-cell vehicles. “Road Map to a US H2 Economy” (2020) highlights the potential for H2 to competitively meet 14% of US energy demand by 2050 and millions of new jobs will be created. However, although this road...