Summary
- Green hydrogen stakeholders faced challenges with high costs and lack of demand last year
- The cost of green hydrogen remains around $5.00 per kilogram, making it less competitive than conventional hydrogen
- Government subsidies may not be a feasible solution to address the cost issue
- Researchers are working on reducing the amount of iridium needed for efficient electrolysis systems
- The US government, through programs like the Regional Clean Hydrogen Hubs, is supporting the development of green hydrogen projects
Article
Green hydrogen stakeholders are facing challenges as costs remain high and buyers are hesitant to invest. The cost of green hydrogen at $5.00 per kilogram is uncompetitive compared to conventional hydrogen at $1.00/kg. Government subsidies could help but are not a realistic solution according to a study from the Potsdam Institute for Climate Research. The high cost of the iridium oxide catalyst used in electrolysis systems is another obstacle, with research efforts focused on reducing the amount of iridium needed for efficient electrolysis.
Research is ongoing to find ways to reduce the cost of iridium in electrolysis systems, with some projects showing promising results in reducing the amount of iridium needed. Additionally, efforts are being made to develop catalysts that do not require iridium at all. Despite these advancements, the commercial market for green hydrogen still faces challenges, as seen with electrolysis projects losing stakeholders due to cost issues. However, key nations like the US are moving forward with plans to establish green hydrogen hubs and valleys to support the development of a green hydrogen economy.
In the US, the Biden administration has launched the Regional Clean Hydrogen Hubs program with a focus on diversifying the hydrogen supply chain using biomass and water electrolysis. Projects like Plug Power’s electrolysis facility in Texas, funded through a $1.66 billion loan guarantee, demonstrate the commitment to green hydrogen production in the country. The use of green hydrogen in heavy-duty applications like fuel cell trucks is gaining traction, with states like Washington, Oregon, and California investing in hydrogen fuel cell trucks to decarbonize freight corridors.
While the road to a green hydrogen economy may be challenging, stakeholders are making progress in reducing costs and increasing efficiency. Efforts like the development of low-iridium electrolysis systems and alternative catalysts show promise for lowering the cost of green hydrogen production. With ongoing research and support from government initiatives, the green hydrogen economy of the future may become a reality, offering a clean and sustainable energy solution for various industries. As the world transitions towards a low-carbon future, green hydrogen is poised to play a crucial role in reducing emissions and fostering a more sustainable energy landscape.
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