Why Hydrogen, Why Now? Because Climate, Economy And Finance Say So

Hydrogen energy is seeing unprecedented support. Not only from long-time enthusiasts like Japan and Korea, but from upstarts like Australia and Chile. Germany has just announced a plan to spend €7bn on hydrogen as part of an economic stimulus package. The IEA - born in the oil crises - is publicly suggesting we need more hydrogen in the energy system, and the World Economic Forum helped seed the Hydrogen Council, now 81 hydrogen-supporting members including oil and gas companies and carmakers, trading companies and banks. European Commission Vice President Frans Timmermans sees hydrogen as essential to Europe’s Green Deal.

Why hydrogen? Simply, it can do things electrons cannot. As a molecule, it can be used as a convertible ‘currency’ between renewable energy, chemical feedstock, transport fuel, residential and industrial heat. It is an excellent clean energy store for long periods and large energy needs. It sits alongside and in partnership with electricity as a consummate carbon-free energy vector.

Hydrogen has enormous promise, but needs to be scaled up dramatically to have an impact. Its detractors dismiss it as inefficient and difficult to handle. Battery vehicles seem to be conquering transport, while wind and solar feed our grids. All of the signals scream ‘hype cycle’. Or do they? Three powerful drivers seem to be combining to push hydrogen forward.

Firstly, the concept of ‘net zero’ carbon emissions is gaining pace. National governments and energy companies alike are proclaiming it their goal. And models show that without hydrogen, net zero is almost impossible to achieve. Hydrogen is needed to help decarbonise heat, and shipping, and long-haul trucking, and fertiliser, and heavy industries like steel.

Secondly, our energy and transport systems are on the brink of upheaval, bringing dramatic economic pain. The growth of renewables is accelerating, cost is dropping, vehicles are becoming electric and maybe autonomous. Traditional industries are facing existential threats, and hundreds of thousands of discarded jobs. Hydrogen can help them reinvent themselves, create employment and drive economic growth, while still meeting the climate imperative.