Green hydrogen has the potential to become a “game changer" in the power industry as it becomes more popular with several countries starting to consider a hydrogen-based economy.
Hydrogen currently accounts for only 0.2% of the electricity generation, based on International Energy Agency (IEA) data.
“A change is highly possible in the near future, as the mixing of ammonia can decrease the impact of carbon in existing conventional coal-fired power plants, hydrogen gas turbines, and combined-cycle gas turbines (CCGT),” Sneha Susan Elias, Power Analyst at GlobalData said.
“When it comes to long-term and large-scale energy storage, hydrogen (in the form of compressed gas, ammonia [NH3], or synthetic methane) has a role to play in balancing seasonal variations in electricity supply and demand from renewable energy sources.”
GlobalData noted the European Union (EU), and India are only amongst the economies that have started to consider hydrogen
In particular, the EU has set a target of 6 gigawatts of renewable hydrogen electrolyzer capacity by 2024, and 40GW by 2030; whilst India targets to have a 5-million tonne green hydrogen production by 2030.
Producing hydrogen remains expensive, but GlobalData noted that with the momentum built along the entire value chain, cost reduction is being fast-tracked.
The consulting firm added that hydrogen could play a critical role in sectors, like transportation, buildings, and power generation.
“With global leaders in the energy industry in search of solutions that will help them to achieve decarbonization or enhance energy security, hydrogen is on track to becoming an energy vector and its use is gathering momentum,” Elias also said.