Recently, BIS Research conducted an extensive webinar on ‘Green Hydrogen and Green Fuels – The Future of Energy’ that witnessed several bright minds from the industry come together to discuss the future of green hydrogen and its impact on the overall fuel market. 

The panel in the webinar consisted of:

•    Ómar Sigurbjörnsson, director of sales and marketing at Carbon Recycling International
•    Dr. Christopher Papile, OEM and EPC lead at Catalyte 
•    Sydney Lobo, freelance consultant at Catalyte
•    Kaustubh Kamble, Sr. Research Analyst at BIS Research

A lot of insightful discussion happened during the entire session which generated a lot of curiosity among the attendees. In this article, we have covered all the critical questions that were raised by the webinar attendees and the responses provided by the panelists. 

Q1) In the construction equipment industry, there is a lack of a hydrogen refueling network and potential competition from electric machines (excavators). Will it hurt the long-term prospects of the global hydrogen fuel cell machine market? 

Answer: BIS Research does not think that the potential competition from electric machines (excavators) will hurt the global hydrogen fuel cell market's long-term prospects, specifically for the construction and heavy equipment industry. The key reason is that several structural issues limit attempts to increase battery capacity when hydrogen fuel cells are compared to lithium battery technologies. On the other hand, hydrogen fuel cells are easier to expand, making them a logical solution for excavators. Further several excavator manufacturers, such as JCB, SANY, and Hyundai Construction Equipment, are already testing or planning to invest in hydrogen-powered construction machinery.

Q2) Since technologies such as anion-exchange membrane (AEM) and solid oxide electrolyzer are currently being used at a smaller scale for producing green hydrogen, what would be the key improvement areas for these technologies for their adoption rates to increase?

Answer: AEM and solid oxide electrolyzer are infant technologies compared to alkaline electrolyzer and proton exchange membrane electrolyzer, leaving ample space for further research and development.

The most important part of the AEM electrolyzer is the AEM stack, where the water-splitting reaction takes place. The single cell is separated into two half parts by anion exchange membrane. Each half-part consists of a gas diffusion layer (GDL), electrode, and bipolar plate. Similar to the traditional alkaline electrolyzer, the first part of the AEM electrolyzer allows hydrogen and oxygen to be produced under 35 bar and 1 bar pressure levels. The other half part of the cell prevents produced oxygen from passing over the high-pressure half part. Thus, AEM must efficiently allow hydroxide anions to migrate from the cathode to the anode and ensure that high-purity hydrogen is produced. In other words, AEM separates the two compartments and prevents the crossover of products and reagents. Hence, AEM must be: (i) mechanically stable; (ii) thermally stable; (iii) chemically stable; (iv) ionically conductive; (v) electrochemically stable, and to make it more useful for today’s applications, it also needs to be low cost, easy to process and produced by sustainable processes.

Several technology providers and research institutions are engaged in developing advanced AEM technology to enhance the efficiency of the overall process. For instance, in September 2022, the Korean Institute of Materials Science (KIMS) succeeded in developing non-precious metal-based high-efficiency and durable anion exchange membrane water electrolysis technology. Further, Honeywell International Inc. also developed a new catalyst-coated membrane (CCM) technology in March 2022 for the production of green hydrogen. Honeywell is focusing on CCM technology to be used in the anion exchange membrane and proton exchange membrane (PEM).

An area where a solid oxide electrolyzer is commonly thought to need further improvement is its vulnerability to degradation from high operating temperatures. The comparatively high cost and complicated fabrication are also substantial issues that must be considered.

Q3) What economic factors can make a location feasible for processing the concerned technologies? We see that in Iceland, for example, there is a strategic scenario that complements the production of methanol with hydrogen produced using renewable electricity, as electricity costs are considerably lower.

Answer: Electricity cost is the key consideration to make the process feasible, and hence Iceland is a good choice. However, the advantage of producing methanol from green hydrogen is that it is a globally traded commodity with a well-established global distribution network. This allows for locating the production facilities where the cost of making green hydrogen is most economical; often, this is in areas far away from main markets. With the declining price of electricity production from renewable energy sources such as wind and solar, it is feasible to produce e-methanol not only in Iceland but also in many places worldwide. 

Q4) What companies would undertake strategic actions or developments to decrease the costs of green hydrogen in the upcoming decade? 

Answer: In today's scenario, the best possible solution for companies to minimize the cost of green hydrogen production will be commercializing green hydrogen. Speeding up every possible commercialization project will help manufacturers to reduce operating costs. Further, the developments in production technologies are expected to lower the cost burden in upcoming years. 

Q5) Currently, green methanol is majorly being used as a fuel; what would be the emerging application areas of green methanol in the upcoming years?

Answer: Green methanol would be utilized as a source of feedstock to manufacture a variety of chemicals, such as formaldehyde and acetic acid, which are further used in foams, adhesives, solvents, plywood subfloors, washer fluid, windshields, etc. In recent years, it has also been increasingly utilized in ethylene and propylene.
Green methanol is increasingly used in growing industry sectors, including construction, electronics, paints, and others. Green methanol is used to manufacture construction materials such as adhesives, paint, and plywood for the building and construction industry.

Direct methanol fuel cells (DMFCs) are beneficial due to their low temperature and atmospheric pressure operations, which allow them to be miniaturized to an exceptional degree. Combined with the relatively easy and safe storage and handling of methanol, DMFCs may open the possibility of fuel cell-powered electronic devices such as laptops, computers, and mobile phones.

Q6) In some parts of the world, water is scarce. As green hydrogen production is estimated to increase, what technologies apart from desalination will be available to sustain this demand? 

Answer: BIS Research analyzed that to produce a kilogram of hydrogen, 9 kg of water is consumed. This is a concern with respect to the use of water and the scarcity of freshwater. Generating around 2.3 Gt of hydrogen requires about 20.5 Gt or 20.5 billion cubic meters of freshwater per year. This is only 1.5 ppm of freshwater available on Earth. In many applications, hydrogen must be combusted through fuel cells, which convert hydrogen gas into water and electricity. As most of the water will be recovered, it will not generally return to the original water bodies and be treated as consumed. Additionally, in the coming years, most green hydrogen will be produced based on renewable energy sources such as wind and solar. 

Q7) When you mentioned that Rolls Royce recently tested hydrogen-based aircraft, is it liquid or gaseous? 

Answer: The aviation industry is looking toward utilizing several sustainable aviation fuels (SAFs) to minimize the carbon footprint. Recently Rolls Royce and easyJet performed a ground test for green hydrogen in the aero engine. However, this is a pilot project, and Rolls Royce has not yet shared this information, but liquid hydrogen is still not used in airports.

Q8) Liquified and gaseous forms of green H2 and coproduct storage and transportation are still the most prominent challenges due to the lack of dedicated infrastructure since they incur huge costs, which is very important for export markets such as Japan, South Korea, the Middle East, and Europe. How can this affect the price of green H2 ($/kg), and how can the LCoH/LCoX cost be cut down by the end of this decade? 

Answer: We agree that storage and transportation are key challenges in the green H2 economy. There are specific options that the industry is looking at, which are listed as follows -

1)    Pipeline: The construction of new dedicated hydrogen pipelines and the repurposing of existing natural gas pipelines are two options that can be used. However, repurposing pipelines is considered an effective hydrogen transport alternative.

2)    Shipping: For very long-distance (around 3,000 km), the cost of transportation through shipping is economical. Currently, possible technology for hydrogen transport is not available; thereby, hydrogen can be transferred with the conversion of hydrogen into its derivatives, such as ammonia, along with other options, such as liquid hydrogen and liquid organic hydrogen carriers (LOHCs). In liquid hydrogen, there will be more energy losses due to strong cooling and compression requirements. A LOHC has a low conversion cost; however, transporting this via shipping consumes more fuel. Ammonia is already traded internationally, but its conversion back to nitrogen and hydrogen is not efficient, and also, it has not been tested for industrial scale.

3)    Trucks: For last-mile delivery, trucking is a viable solution, owing to the availability of established infrastructure. Hydrogen can be transported either in compressed gas containers or in the form of LCoH.

The levelized cost of hydrogen (LCoH) and levelized cost of end product (LCoX) for hydrogen are based on various parameters, such as distance of transportation, diameter of pipes, and compression cost. Transportation costs can be reduced by repurposing existing natural gas pipelines, geopolitical feasibility, and technological developments, among others.

Q9) Which electrolyzer technology is better and more economical, whether PEM or alkaline? Do you think developers need some subsidy or production-based incentive for green H2 and related applications, namely, green ammonia/steel/methanol/fertilizer/cement, such as the one introduced by the U.S. through the Inflation Reduction Act (IRA) that gives a production tax credit of up to $3/kg for matching the parity with other alternative fuels?

Answer: Currently, there are different technologies in the market; for instance, PEM and alkaline technologies. Alkaline technology is better for mega projects. The main benefit of this technology is its liquid electrocatalyst. It negates the requirement for costly metal materials. Either way, we can look into the incentive for green H2 and related applications; subsidiaries can promote the production till a certain period. Adopting and commercializing all these alternative fuels are required to lower costs. For all this, the only solutions are speeding up the commercialization of products and technological developments and the implementation of policies, along with encouraging the end users to adopt innovative technologies.

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