The Role of Carbon Capture and Hydrogen in the Energy Transition

Abstract

Abstract Decarbonization is increasingly becoming the new agenda of governments and organizations worldwide. Key factors contribute to the scope and growth of clean hydrogen that include Blue Hydrogen with Carbon Capture with Utilization or Sequestration (CCUS) and Green Hydrogen. The US IRA provides tax credits for CCUS and Clean Hydrogen that will help kickstart decarbonization in the USA. For Blue Hydrogen, CCUS will play a vital role in decarbonization. It is an alternative utilizing available existing infrastructure with a lower investment rather making a full leap to 100% renewable energy for Green Hydrogen. Current Grey Hydrogen production is an intense carbon emitting process. Blue Hydrogen technology using CCUS will play a vital role in this decarbonization pathway as it leverages existing infrastructure with lower investment. For Green Hydrogen, growth factors include lower cost of renewable power due to improved technology, falling cost of systems integration due to increasing renewable power, improved efficiency of electrolyzer technologies, lower power consumption for green hydrogen, and the need to reduce greenhouse gas (GHG) emissions. Increased investment in renewable energy has increased the impetus for Green Hydrogen that in turn has increased demand-side flexibility. Electrolyzers are scaling up quickly, from megawatt (MW) to gigawatt (GW) scale as technology continues to evolve. Hydrogen producers will need to be diligent in acquiring electricity from low-GHG generators, otherwise electrolysis can exceed the emission levels of traditional hydrogen processes (Grey Hydrogen). Production of low-carbon hydrogen from fossil fuel sources and clean hydrogen from renewable resources is gaining substantial momentum with a large number of projects worldwide burgeoning during this decade, aptly described as the "Roaring Twenties for Hydrogen." Further acceleration of efforts is critical to ensure a significant share of clean hydrogen in the energy system in the coming decades. While the cost of hydrogen supply from renewables has come down and continues to fall, the urgency of GHG emission mitigation has increased. Many countries have begun to take action to decarbonize their economies, notably energy supply and demand. Ensuring a low-carbon, clean hydrogen supply is essential.