Nidhi ChaturvediIn the last two years, the world has seen a considerable surge instated and planned national hydrogen initiatives. According to the International Energy Agency’s (IEA) most recent Global Hydrogen Review, 17 governments have released hydrogen strategies, over 20 governments have publicly stated their intent to develop strategies, and numerous enterprises are exploring hydrogen commercial potential. Consider some high-level instances of governments developing worldwide strategies for hydrogen economy expansion.
United States of America
The DOE unveiled Hydrogen Energy Earth shot in June 2021, an ambitious program to halve the cost of renewable hydrogen by 2030. The US government anticipates that this will result in a fivefold rise in demand for clean hydrogen. NREL’s previous economic analysis outlines extensive possibilities for extending the US hydrogen market’s size and doubling or perhaps tripling present demand. Expanding new hydrogen production options is crucial to ensuring an adequate supply of hydrogen in the United States in the coming years.
Expansion strategies for hydrogen infrastructure are making significant strides. The DOE has formed H2USA, a public-private partnership including federal agencies, automakers, hydrogen suppliers, fuel cell companies, and national laboratories to advance hydrogen infrastructure and provide new transportation energy options for hydrogen users in the United States. GenH2 is one of the US companies investing in infrastructure solutions to accelerate the growth of the hydrogen economy in the United States and around the world.
EU
Hydrogen interest has risen significantly in recent years, with the establishment of the EU Hydrogen Strategy and the European Clean Hydrogen Alliance serving as significant milestones. The policy places a premium on hydrogen’s use in industry and heavy transport, as well as its role in balancing the integration of variable renewables (most notably offshore wind in the northwest and solar photovoltaic (PV) in the south). To carry out the strategy, the Alliance brings together industry, national and local government, civil society, and other stakeholders. The European Commission took a huge step forward in adopting low-carbon hydrogen technologies with recommendations to amend directives and rules revealed in the FIT for 55 packages in July 2021. These suggestions will codify many targets for the use of hydrogen and hydrogen-based fuels in industry and transportation, as well as for the development of necessary infrastructure.
The European Union has made significant strides in the adoption of hydrogen technologies. The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) has been instrumental in supporting research, innovation, and demonstration through its initiatives. Over 140 MW of electrolysis capacity for dedicated hydrogen generation has been added, representing more than 40% of global capacity. Government efforts have generated momentum for increased deployment.
Japan
Japan is one of the countries that has been leading the charge for hydrogen technology adoption. It was the first government to release a hydrogen strategy in 2017 and has been driving worldwide cooperation through its annual Hydrogen Energy Ministerial meetings since 2018. The government views hydrogen technologies as viable possibilities for decarbonizing substantial segments of its energy and manufacturing sectors, as well as enhancing energy security.
Although Japan has not yet published details of its plans to meet Prime Minister Suga’s 2050 climate target (October 2020), hydrogen is likely to play a significant role in the programme. The government’s Green Growth Strategy, which takes effect in June 2021, contains an aim of increasing hydrogen consumption to 3 million tonnes by 2030. To help achieve this goal, the government launched a JPY 700 billion (USD 6.6 billion) public investment plan to establish hydrogen supply networks.
Canada
The Canadian government has already established a variety of clean energy support initiatives to facilitate the creation of hydrogen business cases. Natural Resources Canada launched the Clean Fuels Fund in June 2021, allocating CAD 1.5 billion (USD 1.1 billion) to assist private investors with upfront capital expenses associated with the development of new clean fuel production capacity, including financing for at least ten hydrogen projects. Additionally, the Net zero Accelerator initiative will invest up to CAD 8 billion (USD 6.0 billion) in projects that reduce domestic GHG emissions, such as decarbonization of large industrial emitters, fuel switching to hydrogen in industrial processes, and the development of carbon capture, utilisation, and storage (CCUS) capacity for hydrogen production in heavy industries that already use hydrogen.
The world’s largest PEM electrolysis plant, located at Bécancour, began operations in January 2021. The facility, which includes a 20 MW electrolyser powered by hydropower, more than doubled the site’s potential for hydrogen production. Nearly 100 MW of electrolysis projects are now in various stages of construction; if all are completed, total installed electrolysis capacity for dedicated hydrogen generation might reach approximately 120 MW. According to the Announced Pledges Scenario, electrolysis capacity in Canada will exceed 4 GW by 2030, 40 times the current capacity under development.
By investing in and strategically expanding the hydrogen economy, these countries can achieve the objective of a cleaner energy global ecosystem. We at EnergyDais are strategically positioned to be a leader in assisting in the achievement of those aims.
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