Government Interventions in a Hydrogen Supply Chain: a Bi-criteria, Game-theoretic Approach

Hydrogen farm concept: A Perspective for Turkey

Many countries have announced hydrogen promotion strategies to achieve net zero CO2 emissions around 2050. The cost of producing low-carbon (green and blue) hydrogen has been projected to fall considerably as production is scaled up, although more so for green hydrogen than for blue hydrogen. This article uses a global computable general equilibrium (CGE) model to explore whether the cost reduction of green and blue hydrogen production can mitigate the use of fossil fuels and related carbon emissions. The results show that cost reduction can raise low-carbon hydrogen consumption markedly in relative terms but marginally in absolute terms, resulting in a modest decrease in fossil fuel use and related carbon emissions. The cost reduction of low-carbon hydrogen slightly lowers the use of coal and gas but marginally increases the use of oil. If regional CO2 taxes are introduced the increase in green hydrogen production is considerably larger than in the case of low-carbon hydrogen cost reduction alone. However, if cost reduction in low-carbon hydrogen is introduced in addition to the CO2 tax the emissions from fossil fuels are only marginally reduced. Hence, synergy effects between the two measures on emissions are practically absent. A low-carbon hydrogen cost reduction alone is effective but insufficient to have a substantial climate impact. This study also calls for modeling development to capture special user preferences for low-carbon hydrogen related to climate mitigation when phasing in new energy carriers like hydrogen.

The renewable energy sector, particularly the solar PV generation, is to play a key role in the energy transition and decarbonization process and the green hydrogen production is a subsequent element of this decarbonization process as a clean energy carrier. When power output from these renewable installations exceeds the grid requirements, instead of stopping the energy generation, that power surplus can be used to produce hydrogen by electrolysis process. Despite being a technically simple process to produce via electrolysis, fuel cost and equipment are the two most significant economical elements to consider as part of the LCOH equation and act as economical boundary conditions. Combining an in-depth analysis while applying the financial modeling toolbox, this project has evaluated specific conditions for solar PV installations in Morocco and Saudi Arabia markets in terms of a techno-economic analysis for a potential investment for green hydrogen production in 2021 as well as near future projections in 2023 and 2025. The most potential application of green hydrogen production and usage is to decarbonize heavy industries (e.g., cement and steel) that cannot be electrified but this will require an extensive transport infrastructure with low-cost incidence for the green hydrogen to be an economically viable solution. Near future projects will require public funding in the form of grants or tax redemption to scale up to economical maturity. After carrying out a detailed financial modeling and a discounted cash flow valuation model, the resulting LCOH for Morocco is $3,2695/kg while Saudi is $1,5757/kg as of the end of 2021 with a projected reduction to reach $2,3678/kg and $1,4417/kg respectively in 2025, which means that by 2025 both countries will be below the $1,5-2,5/kg green hydrogen threshold, on a competitive level with fossil fuels, enabling both countries to grasp unique commercial opportunities to lead the implementation of a green business models towards a hydrogen economy, and eventually a net zero world. The paper will elaborate on the rational driving the need for green hydrogen, will elaborate on the geopolitical framework supporting this emerging business and dives in with the techno-economic analysis while creating a 2023-2025 look-ahead.

Hydrogen is a crucial energy carrier for the Clean Energy Sustainable Development Goals and the just transition to low/zero-carbon energy. As a top CO2-emitting country, hydrogen (especially green hydrogen) production in South Africa has gained momentum due to the availability of resources, such as solar energy, land, wind energy, platinum group metals (as catalysts for electrolysers), and water. However, the demand for green hydrogen in South Africa is insignificant, which implies that the majority of the production must be exported. Despite the positive developments, there are unclear matters, such as dependence on the national electricity grid for green hydrogen production and the cost of transporting it to Asian and European markets. Hence, this study aims to explore opportunities for economic expansion for sustainable production, transportation, storage, and utilisation of green hydrogen produced in South Africa. This paper uses a thematic literature review methodology. The key findings are that the available renewable energy sources, incentivizing the green economy, carbon taxation, and increasing the demand for green hydrogen in South Africa and Africa could decrease the cost of hydrogen from 3.54 to 1.40 €/kgH2 and thus stimulate its production, usage, and export. The appeal of green hydrogen lies in diversifying products to green hydrogen as an energy carrier, clean electricity, synthetic fuels, green ammonia and methanol, green fertilizers, and green steel production with the principal purpose of significant energy decarbonisation and economic and foreign earnings. These findings are expected to drive the African hydrogen revolution in agreement with the AU 2063 agenda.

PurposeHydrogen has enormous decarbonization potential in the transportation sector. Heavy vehicles, maritime transport, aviation and railways are exploring hydrogen as a decarbonization solution. Hydrogen is important as a future mobility and transportation solution because global regulations for emissions reduction are becoming increasingly stringent. The European Green Deal aims to reduce greenhouse gas (GHG) emissions by 90% by 2050 compared to 1990 levels, affecting the mobility industry. Hydrogen will play a crucial role in achieving climate goals, especially in public transport and mobility. A rigorous statistical study of global hydrogen production capacities becomes essential in the context of the enormous decarbonization potential that hydrogen holds for transportation. The study analyzes the evolution of global annual hydrogen production capacity for mobility from 2009 to 2022. Until 2015, the main technology used was alkaline water electrolysis, while in 2016, polymer electrolyte membrane (PEM) electrolyzer technology became dominant. Alkaline water electrolysis technology has a 22% higher production capacity compared to PEM technology. It has been observed that Asia has the largest operational hydrogen production capacity at 43.3%, followed by Europe at 26.8%, the USA at 26.2%, Africa at 3.5% and Australia at 0.3%. The countries with the highest operational hydrogen production capacity for mobility are China at 41.7%, the USA at 25.7% and Germany at 7.4%.Design/methodology/approachThe study involved the analysis of data related to hydrogen production systems for use in mobility, conducted over an extended period from 2011 to 2022. It represents a detailed look at the evolution of this vital technology for the future of global sustainable mobility. Hydrogen production has seen significant development in recent years, driven by increasing awareness of the adverse impact of GHG emissions on the environment and the need for cleaner and more efficient solutions for transportation. In the study, we analyzed the evolution of hydrogen production capacity in each country, also tracking its development over time. Additionally, we investigated continental-level capacity, providing a comprehensive overview of progress and global potential in hydrogen production.FindingsGreen hydrogen represents a promising solution for decarbonizing the transportation industry. Its production using renewable energy sources such as solar and wind power can significantly reduce carbon emissions. Green hydrogen can be used in fuel cell vehicles to power zero-emission cars and transportation, contributing to the fight against climate change and the creation of a sustainable future for our mobility. The analysis highlighted that the development of hydrogen production capacities is highly dynamic. During the period from 2009 to 2015, the hydrogen production for mobility was approximately 1,570 cubic meters per hour (m3 H2/h). However, what becomes evident from the analysis is the impressive growth in hydrogen production capacity in this area. Between 2016 and 2020, production capacity increased significantly, reaching approximately 6,240 m3 H2/h, which represents roughly a fourfold increase compared to the previous period.Originality/valueA crucial factor that has spurred this growth is the increasing commitment to reducing carbon emissions and other pollutants from the transportation industry. The potential of hydrogen production systems has been recognized as a viable alternative due to their capacity to generate environmentally friendly hydrogen, commonly referred to as green hydrogen, through the utilization of renewable energy sources such as solar or wind power. Over recent years, researchers have made significant advancements in the field of hydrogen generation, specifically in the areas of water electrolysis and natural gas reforming. These approaches have played a crucial role in improving the efficiency of both green and gray hydrogen production. Green hydrogen is considered one of the most environmentally friendly energy sources because the carbon emissions associated with its production are minimal or even nonexistent.

The transition to sustainable energy is vital for reducing carbon emissions and mitigating climate change. This study provides a quantitative analysis to forecast the viability timeline of green hydrogen as an alternative to conventional fossil fuels for captive industrial power generation in India, aiming to reduce Scope 1 emissions and support net-zero targets. Green hydrogen, produced via electrolysis using renewable energy, offers a zero-emission substitute to natural gas. However, high production costs, infrastructure limitations, and technological challenges hinder widespread adoption. This research applies Value Web and techno-economic analyses to evaluate current and projected costs of green hydrogen, technological advancements, and infrastructure scalability. Using data from industry reports, policy documents, and academic studies, the paper models cost-reduction scenarios in green hydrogen production and electrolysis efficiency. It determines the Levelised Cost of Green Hydrogen (LCOH) and assesses transport costs to industrial sites. Further, it examines onsite captive power generation to calculate the Levelised Cost of Electricity (LCOE) from green hydrogen, comparing it to grid electricity over time. Sensitivity analyses explore the effects of carbon tax and discount rate changes on green hydrogen’s competitiveness. Findings indicate that green hydrogen could reach cost parity with grid power for industrial use by 2032 without policy incentives. With favourable government policies and sustained technological progress, this parity could be achieved earlier. The study highlights the strategic role of green hydrogen in India’s energy transition, emphasizing the importance of investment in renewable energy infrastructure and supportive policies. It offers valuable insights for policymakers, industry leaders, and researchers into the challenges and opportunities of adopting green hydrogen for industrial power, contributing to national and global climate goals. Major Findings: Green hydrogen for 24x7 captive power generation in India could become viable by 2032, particularly in coastal states, like Gujarat, Maharashtra, and Tamil Nadu, that are rich in renewable energy. A carbon tax of $100/ton CO₂ could accelerate adoption by another couple of years, with financing and discount rates playing a crucial role in cost competitiveness. Government incentives like import duty waivers and Production-Linked Incentives (PLI) can further boost market adoption of Green Hydrogen. While Green Hydrogen competes with natural gas, advancements in carbon capture technologies could enable carbon-neutral power generation from natural gas. The choice between Green Hydrogen and carbon capture investments will depend on market dynamics and natural gas availability.

Addressing climate change and navigating the energy transition are more urgent than ever. Several researchers agree that renewable energy adoption and industrial decarbonization are essential pathways forward. As sectors like transportation and heating become increasingly electrified, energy demand is expected to rise, necessitating innovative solutions. Green and blue hydrogen, touted as potential game changers, hold promise in this transition but require advanced electrolysis technologies, sustainable materials, high-pressure storage systems, and optimized system designs for energy efficiency, safety, and scalability to enable large-scale implementation. This study discusses the critical aspects of offshore green hydrogen production, focusing on key findings related to production methods, electrolyzer technologies, and their associated challenges. Key findings highlight that the levelized cost of hydrogen is significantly influenced by the cost of electricity from offshore wind farms, capital expenditure on electrolyzers, and the logistics of offshore platforms, pipelines, and storage. Hydrogen storage advancements, including metal hydrides and chemical carriers, are vital for realizing green hydrogen’s potential as an energy vector. Additionally, the industrial-scale production of green hydrogen through electrolysis powered by offshore wind offers promising pathways for decarbonizing energy systems. The study also emphasizes the critical role of collaboration between local and international policy stakeholders, industrial partnerships, and institutional support in shaping a favorable future for hydrogen in the global energy transition.

According to Malaysia's National Energy Transition Roadmap, hydrogen is a critical component of the country's energy transition. However, there is a scarcity of hydrogen studies for Peninsular Malaysian states, which limits discussions on green hydrogen production. This study employs a Monte Carlo model to assess the economic and technical factors influencing the success of green hydrogen in Peninsular Malaysia. The study focuses on three target years: 2023, 2030, and 2050, representing various stages of technological development and market adoption. The levelized cost of hydrogen (LCOH) of a 1-MW Proton Exchange Membrane (PEM) electrolyzer system ranges from $5.39 to $10.97 per kg in 2023, highlighting early-stage challenges and uncertainties. A 6-MW PEM electrolyzer system could achieve an LCOH of $3.50 to $4.72 per kg by 2030, indicating better prospects. Because of technological advancements and cost reductions, a 20-MW PEM electrolyzer system could achieve an LCOH of $3.12 to $3.64 per kg in 2050. The findings indicate that the northern regions of Peninsular Malaysia have consistently low LCOH values due to favorable geographical conditions. Due to minor variations in solar capacity factors, uncertainty distributions in LCOH remain stable across different regions. Some states may face increased uncertainty, emphasizing the need for additional policy support mechanisms to mitigate risks associated with green hydrogen investments. The sensitivity analysis shows that key cost drivers are shifting, with early-stage electrolyzer investments dominating in 2023 and electricity prices becoming more important in 2030 and 2050. Future research could focus on optimizing green hydrogen systems for areas with underdeveloped green hydrogen industries. This study contributes to informed discussions about green hydrogen production by emphasizing the importance of tailored strategies that consider local conditions and highlighting the role of Peninsular Malaysia in the energy transition.

High-pressure PEM water electrolyser: A review on challenges and mitigation strategies towards green and low-cost hydrogen production

The Philippines is exploring different alternative sources of energy to make the country less dependent on imported fossil fuels and to reduce significantly the country's CO2 emissions. Given the abundance of renewable energy potential in the country, green hydrogen from renewables is a promising fuel because it can be utilized as an energy carrier and can provide a source of clean and sustainable energy with no emissions. This paper aims to review the prospects and challenges for the potential use of green hydrogen in several production and utilization pathways in the Philippines. The study identified green hydrogen production routes from available renewable energy sources in the country, including geothermal, hydropower, wind, solar, biomass, and ocean. Opportunities for several utilization pathways include transportation, industry, utility, and energy storage. From the analysis, this study proposes a roadmap for a green hydrogen economy in the country by 2050, divided into three phases: I–green hydrogen as industrial feedstock, II–green hydrogen as fuel cell technology, and III–commercialization of green hydrogen. On the other hand, the analysis identified several challenges, including technical, economic, and social aspects, as well as the corresponding policy implications for the realization of a green hydrogen economy that can be applied in the Philippines and other developing countries.

Hydrogen from renewables: Is it always green? The Italian scenario

Green and blue hydrogen are two types of hydrogen generated from renewable energy sources and fossil fuels, respectively. Green hydrogen is created by splitting water molecules into oxygen and hydrogen using renewable energy sources such as wind, solar or nuclear power in a process known as electrolysis. Blue hydrogen, on the other hand, is produced by reforming natural gas and capturing and storing the resulting carbon emissions. The production of both green and blue hydrogen has implications for the environment, and a life cycle assessment (LCA) can be used to evaluate the environmental impacts of hydrogen production and use. An LCA considers the entire life cycle of a product, from raw material extraction to end-of-life disposal and assesses the potential environmental impacts at each stage. The LCA of green hydrogen production generally shows a lower environmental impact compared to blue hydrogen production. This is because green hydrogen production does not emit any carbon emissions during the process, whereas blue hydrogen production still results in the emission of carbon dioxide. However, the environmental impact of green hydrogen production can vary depending on the source of the renewable energy used for electrolysis.

The production of the most abundant chemical element in the atmosphere, hydrogen, particularly green hydrogen (i.e. hydrogen in its cleanest and most sustainable form), is quickly becoming a priority for nations worldwide. This interest is mainly attributed to, among other factors, its potential to serve as a cornerstone of the global energy transition to low-carbon economies. Green hydrogen possesses the potential to decarbonize the so-called “hard-to-abate,” sectors i.e., energy-intensive sectors, such as heavy industries, iron and steel production, and transportation - including aviation and shipping, among other economic sectors.The growing focus on the adoption of green hydrogen as a viable decarbonization pathway must be viewed against the backdrop of global commitments and international imperatives to address the adverse effects of climate change. Such commitments emanate from instruments such as the Paris Agreement of 2015 and obligations towards meeting the United Nation's Sustainable Development Goals (SDGs). Further, the “Just Energy Transition" journey towards decarbonization must also be contextualized within different jurisdictions, in line with their situations and context-specific goals, geographic locations, and policy frameworks.Much like other nations worldwide, the South African regulatory framework for hydrogen is still emerging, as it is presently dominated by soft law instruments such as roadmaps, strategies and guiding documents, as opposed to binding and enforceable hard law instruments. For example, the South African Hydrogen Society Roadmap of 2022, the Integrated Resource Plan, the Integrated Energy Plan, and the Renewable Energy Policy, among other significant policy documents, highlight the fundamental role that green hydrogen would play in South Africa’s energy transition. Whilst other legal and policy documents may apply to the hydrogen value chain, such as the various safety requirements in the Occupational Health and Safety Act, 1996, there is a lacuna of hydrogen-specific hard law regulation, including, importantly, regulations regarding certification (which will need to be aligned internationally).In light of the above, this paper discusses the potential of green hydrogen in the context of South Africa and explores the current position in the country. It further canvasses emerging developments within the hydrogen space. This analysis aims to identify gaps or lacunas in the law, risks, and challenges for South Africa’s hydrogen economy. The article proceeds to provide recommendations for a policy and regulatory regime for hydrogen in Southern Africa. It draws on examples from countries and regions such as the European Union (EU), which are further along in terms of regulating hydrogen, but contextualizing this discussion within the African, and specifically Southern African context. This budding industry provides an opportunity to learn from past energy mistakes and create an appropriate regulatory and policy framework that works and benefits Africa.

Harnessing solar energy and green hydrogen – the energy transition

Background: This study explores the energy relations between Germany and Brazil within the context of the ongoing energy transition. It underscores the importance of international cooperation during this period of rapid climate change and discusses the mutual benefits for both countries resulting from the commercialization of green hydrogen. Materials and Methods: The research adopted a qualitative approach, essential for an in-depth exploration of the strategic relations between Germany and Brazil. The methodology consisted of a literature review, which involved consulting sources categorized into three main groups: (1) global warming and energy transition, (2) the green hydrogen context, and (3) energy relations between Germany and Brazil. Results: The findings highlight the strategic efforts of both countries to strengthen energy relations in the field of green hydrogen. This cooperation reflects a win-win dynamic, with significant mutual benefits in advancing the energy transition and fostering sustainable development. Conclusion: The study concludes that the strategic energy partnership between Germany and Brazil has evolved significantly, from nuclear cooperation in the 20th century to a current focus on green hydrogen production. This partnership represents a key example of international collaboration addressing global energy challenges.