Hydrogen is hailed as the fuel of the future. A gas unmatched in its universal abundance and in its ability to capture the imagination and interest of both energy and world leaders, who are looking to transform their energy portfolios as they transition to a net-zero economy.
The President of the European Union, Ursula von der Leyen, views hydrogen as key to unlocking a climate-neutral economy, as the EU embarks on its transition from conventional energy sources. Which, in recent weeks, has become increasingly more urgent due to its reliance on Russian oil and gas.
We have seen a rainbow of nomenclature around the various colors of hydrogen. But of the spectrum, green hydrogen has grabbed the attention of the world.
Why is this?
Green hydrogen represents both a bounty of potential we must explore and challenge we must overcome.
Green hydrogen projects are impacting the markets of mobility, industrial heating, energy storage, power generation, steel manufacturing, and chemical feedstock. Projects range from current day demonstration plants to proposed projects involving tens of gigawatts of renewable power planned over the next 10 to 20 years.
But how financeable is it?
Government incentives are spurring market growth. Here in the U.S., we’re seeing funding for hydrogen hubs and potential Production Tax Credits. And there is no end to global corporations willing to invest in the future of energy.
But these incentives and investments are just a catalyst for the technical advancements that will further drive down the cost of green hydrogen. Expansion of electrolyzer manufacturing capacity will thrive with the initial influx of funding. New technologies in electrolyzers, fuel cells, prime mover capability and design, and energy storage will provide further cost savings over a longer period.
In addition, the project landscape is changing. Optimizing project design is now more important than ever to deliver scalability and to support the developers trying to prove and grow this market. The green hydrogen projects of the near future will be complex and multifaceted, like the gas itself, featuring elements including different renewable energy generation sources, energy storage, transmission and distribution, process plant, pipeline, water treatment, and even marine terminals.
The scale and ambition of green hydrogen has sparked the imagination of the world, and at Wood we’re working to bring the vision to life.
Click below if you’re interested in finding out how we’re unlocking the full potential of hydrogen.