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Home > Overcoming Transportation Costs: A Challenge for Hydrogen’s Potential

Overcoming Transportation Costs: A Challenge for Hydrogen’s Potential

2023-07-04

Hydrogen has gained significant attention for its potential in reducing environmental impact and achieving net-zero goals. However, the transportation of hydrogen poses a major challenge to the expansion of the industry.

 

The U.S. Department of Energy acknowledges several key challenges in hydrogen transportation, including cost reduction, energy efficiency improvement, hydrogen purity maintenance, and minimizing leakage.

 

Despite the growing excitement surrounding hydrogen, there are undeniable obstacles to overcome. Currently, the majority of hydrogen production relies on fossil fuels, which contradicts the goal of achieving net-zero emissions. Additionally, the production costs of green hydrogen, produced from renewable sources, need to be reduced for widespread adoption.

 

Transporting hydrogen is another complex issue. Murray Douglas, head of hydrogen research at Wood Mackenzie, highlights the difficulty of moving hydrogen compared to natural gas due to technical and engineering challenges. The Department of Energy also emphasizes the need for research to analyze the trade-offs between hydrogen production and delivery options.

 

One important consideration is the location of production facilities. Green hydrogen production facilities are often located in areas abundant with renewable energy sources but far from the end-users. Establishing dedicated pipelines or exporting hydrogen as ammonia are two potential solutions, with the latter already an established technology and industry.

 

Efficient delivery systems are crucial for the success of hydrogen as a global commodity. Jorgo Chatzimarkakis, CEO of industry association Hydrogen Europe, emphasizes the importance of an efficient delivery system and the need for certification to ensure the sourcing of renewable energy.

 

Despite the challenges, partnerships and programs related to the supply and distribution of green hydrogen are emerging. Companies like Greenergy, Octopus Hydrogen, and Enertrag have already started green hydrogen delivery initiatives. Cooperation between companies and regions, such as the collaboration between Cepsa and the Port of Rotterdam, aims to establish green hydrogen corridors.

 

While the technology and knowledge for hydrogen production and transportation exist, the cost remains a sticking point. Lowering production costs would make transportation costs more manageable. However, experts like Murray Douglas suggest that there may not be a magical cost reduction technology for transportation, and the focus should be on overall cost reduction.

 

In conclusion, transportation costs present a significant challenge for the realization of hydrogens potential. Overcoming these challenges will require a combination of cost reduction, efficient delivery systems, and partnerships among industry stakeholders.

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