What is “Clean Hydrogen”?
An insider’s guide to renewable hydrogen written by Energy Correspondent Jamie Zhao
In July 2020, Microsoft joined the CEO-led Hydrogen Council Coalition, co-chaired by Toyota Motor Group and Hyundai Motor Group, to demonstrate its commitment to the potential of renewable hydrogen in the search for effective clean energy sources. While this is not the first time hydrogen has become the center of discussions surrounding renewable energy — presidential nominee Joe Biden urged for research on renewable hydrogen in his clean energy plan — Microsoft’s entry into the Coalition is a significant step.
With so much talk, what exactly is clean hydrogen?
Hydrogen is an energy carrier produced from several sources. Presently, roughly 95% of worldwide hydrogen production comes from fossil fuels. The goal of renewable hydrogen is to abandon fossil fuels and move towards an electrolyzer that can split water into hydrogen and oxygen, therefore eliminating the pollution by-product of fossil fuels.
The International Renewable Energy Agency (IRENA) published Hydrogen: A Renewable Energy Perspective in September 2019, a paper that examines the potential of hydrogen fuel for “hard-to-decarbonize energy use” such as for aviation, trucks, and shipping. However, decarbonization depends on how hydrogen is produced in the first place. Current and future hydrogen sourcing are categorized into three categories:
- Grey hydrogen: fossil fuel-based
- Blue hydrogen: fossil fuel-based production with carbon capture and storage (CCS)
- Green hydrogen: electrolysis based production powered by renewable energy such as wind and solar
To further highlight the eventual significance of renewable hydrogen, Morgan Stanley analysts found that renewable hydrogen could be as cheap as traditional, fossil-fuel-derived hydrogen within the next two or three years. However, the bank’s projection is based on the unusually low cost of wind power. These analysts’ optimism for clean hydrogen comes from the EU’s $570 billion green stimulus package, introduced in July 2020, of which 19% was allocated for renewable hydrogen.
There is more to be studied about renewable hydrogen’s impact on clean energy. As other leading economies advance with clean hydrogen initiatives, the United States will inevitably join — whether that be in five years or fifteen.
