The Advent of Hydrogen & Hydrogen Carriers
Methanol & Ammonia as fuels of the future
CLEAN HYDROGEN IS THE FUEL OF THE FUTURE
In a Decarbonized World by 2050, Hydrogen Demand is expected to Grow up to 10-fold, Supported by Drop in Production Costs and Regulatory Push to Address Climate Change
EU to invest >€1tn by 2030 to reduce GHG emissions by 55% EU has committed €37bn of funding to promote Green H2 in Southern Mediterranean (including Egypt and Algeria) between 2021- 2027
US announced $2tn Climate Change Bill investing in clean energies and GHG emissions reduction of 51% by 2030
Japan aims to build a “hydrogen society” by 2030 and achieve carbon neutrality by 2050
. India's government to require refiners and fertilizers to use green hydrogen from 2023, paving the way for a major acceleration in the nation's hydrogen economy
- Grey H2: produced via fossil fuels such as natural gas. Blue H2: natural gas is split into H2 and CO2 either by Steam Methane Reforming or Auto Thermal Reforming; CO2 is captured and stored (Carbon Capture Storage or CCS). Green H2 : produced by splitting water by electrolysis which uses power from renewable energy sources such as wind and solar. Biomass can also be used to produce green H2. This produces only hydrogen and oxygen, with no negative CO2 impact.
- Optimal green refers to green ammonia produced using wind/solar energy in the Middle East
Source: Hydrogen Council, McKinsey
Ammonia and Methanol are the only hydrogen carriers capable of decarbonizing our key sectors. Ammonia and methanol form ~50% of grey hydrogen use and are key products in achieving a green hydrogen economy.
Ammonia and Methanol have a pivotal role in the Global Road-to-Zero Challenge.
UNDERSTANDING THE MOST EFFICIENT HYDROGEN CARRIER
With the Advent of the Hydrogen economy, it is critical to clearly understand which of the established hydrogen carriers is the most sustainable and cost-competitive energy carrier. The following compares Methanol, Ammonia, Baseline Gaseous Hydrogen (GH2) and two-way carries like Methyl-cyclohexane/toluene (MCH). These make-up the current list of best long-distance transmitters of Hydrogen.
LEVELIZED COST OF H2 DISTRIBUTED TO END_USER
Large methanol scenario is competitive with the baseline GH2 scenario:
- Slightly cheaper combined production and decomposition cost ($0.30 $/kg-H2), offset by 0.33 $/kg-H2higher transmission cost
As a carrier, ammonia is more expensive than methanol:
- $0.81 $/kg-H2 higher combined production and decomposition cost, 0.69 $/kg-H2higher transmission cost
Centralized MCH production scenario slightly more expensive than ammonia:
- 0.71 $/kg-H2cheaper production and decomposition cost < 0.87 $/kg-H2higher transmission cost
REFERENCES:
H2@Scale: Outlook of Hydrogen Carriers at Different Scales
D.D. Papadias, J-K Peng, and R.K. Ahluwalia
US Department of Energy Hydrogen Carriers Workshop: Novel Pathways for Optimized Hydrogen Transport & Stationary Storage