The Hydrogen Stream: US could get 13% industrial heat from hydrogen by 2050

Deloitte says blue and green hydrogen could supply 13% of US industrial process heat by 2050 with strong policy incentives, carbon pricing, and hydrogen supply targets as primary policy variables.

Deloitte and the World Wildlife Fund say that blue and green hydrogen could supply approximately 13% of US industrial process heat by 2050, underlying the central role of various incentives. “The value chain for green hydrogen is underdeveloped and not cost-competitive to meet short- and long-term demand projections without strong policy incentives,” the two organizations wrote in a report published by the Renewable Thermal Collaborative. The study identifies primary policy variables such as the US Inflation Reduction Act (IRA) incentives for hydrogen production, carbon pricing, and hydrogen supply targets, while energy costs are the primary market variable. As for existing gaps, a carbon tax, safety regulations, and further R&D grants could also aid the hydrogen economy if implemented. They said carbon taxes could encourage the use of hydrogen, unlike incentive programs such as the IRA, which focus on production.

Ohmium has secured $250 million in a Series C funding round. It said the funds will enable it to expand to 2 GW of annual manufacturing capacity and support projects in the United States, Europe, India, and the Middle East. The money will also support research and development programs to reduce the cost of green hydrogen production, said the manufacturer of proton exchange membrane (PEM) electrolyzer systems. 

Worley and Advisian will assess Xcel Energy’s natural gas system in the United States to determine the feasibility of injecting and blending hydrogen into its 36,000 miles of distribution pipeline and 2,200 miles of transmission pipeline. Once the assessment is finished in July, it will provide Xcel Energy with the data needed “to guide informed decisions on how to proceed with upgrades and adaptations to their midstream infrastructure,” said Worley.

BP, Gasunie, Nowega, NWO, Salzgitter, Thyssengas, and Uniper have signed a letter of intent to link their hydrogen projects in northwestern Germany. The alliance aims to connect Wilhelmshaven as a future site for hydrogen import and production with the industrial consumption centers in North Rhine-Westphalia and Lower Saxony. BP and Uniper are planning projects in Wilhelmshaven to import and produce hydrogen. Gasunie, Nowega, NWO, and Thyssengas, meanwhile, are working on modifying existing transport pipelines and on the construction of new H2 pipelines.

H-Tec Systems has started building a development site for PEM electrolyzer stacks in Hamburg. “In future, the H-Tec Systems Stack Manufacturing and Development Center will combine stack development, production, testing and service at one single location,” said the German company.Automated production will provide a potential total electrolysis capacity of up to 5 GW through PEM electrolysis stacks. The production line should be ready in 2024. Germany’s Federal Ministry of Education and Research (BMBF) funded the automated factory’s construction. The aim is to research processes to produce PEM electrolysis stacks and electrolyzers in Germany.

Hynion Sweden has secured a grant of SEK 61.4 million ($5,94 million) from the Swedish Energy Agency to build two more hydrogen refueling stations in Sweden. Hynion and Jönköping municipality have signed a lease agreement for an area of land in the logistics area of Torsvik, south of Jönköping. The hydrogen refueling station, which will be operational this year, will have a capacity of 1,500 kg of hydrogen per day. “Torsvik is Sweden’s fastest growing logistics area with a strategic location on the E4, between the capitals of Scandinavia and close to the continent. Several major players, such as IKEA, Elgiganten, DHL, and PostNord, have established warehouses here,” said the Swedish company. 

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