The UK policymaker is serious about meeting its carbon-neutral goals and since natural gas is a major contributor to carbon emissions, low carbon alternatives such as hydrogen are likely going to be its replacement in the coming years. Why is it important to have an alternative to gas boilers?
One of the major causes of global warming is the production of greenhouse gases through the burning of fossil fuels, like natural gas. These gases could not escape the atmosphere and instead remain trapped, causing the earth’s temperature to emerge. Hydrogen boilers’ response to this global climate emergency, in 2016, at the Accord on Climate Change in Paris, the UK policymaker, together with the world’s biggest economies agreed to tackle global warming by becoming carbon neutral by 2050.
On top of this, hydrogen could have a large and developing addressable market. In fact, about 45% of energy-related greenhouse gasses could be decarbonized. In addition, hydrogen could be worth up to approximately $11 trillion with direct and indirect infrastructure spend. (1) Bringing up the idea of sustainability and a carbon-free world? Well, hydrogen seems to be the emerging slope for reaching these global goals! Let’s drill down and see how these other sectors set the stage for achieving clean energy sources.
The world is looking up to hydrogen or rather green hydrogen when it comes to limiting global warming. It’s not as if hydrogen has not been used earlier, the world is already using almost 70 million tons of hydrogen annually, but it’s not carbon-free. Around 95% of the hydrogen produced today comes through fossil fuels, particularly through natural gas using the steam methane reforming process which releases carbon dioxide in the atmosphere. With the declining cost of renewables and electrolysis technology, the world is gearing up to improve the production of green hydrogen in the next 5 to 10 years. We could already see announcements of GW scale green hydrogen production plants in various European countries. One of the challenges at present facing the green hydrogen industry is instilling confidence among industry players and venture capitalists, who might be the movers of green hydrogen in the coming future. These people are not sure of the avenues where green hydrogen might be used in the future industrial process, transportation, heating and cooling, electricity generation, or others.
Since the green hydrogen value chain is still capital intensive, there is a requirement of off-takers who could guarantee the necessities of green hydrogen and reduce the risk for the people involved. Furthermore, these other industries claim that their patented zero-emissions hydrogen boiler system could help decarbonize the roughly $30 billion global commercial and industrial heating industry. (2) Implementation and utilization of hydrogen boiler systems could create a domino effect in reaching the main target of being carbon-neutral in the near future. Hang in there! Keep on crashing another block to recognize these flag bearers of green hydrogen!
The industry might play a vital role in providing initial momentum to green hydrogen production as it consumes over 90% of the hydrogen produced today, as commodities. Production of ammonia, methanol, and refining process requires a huge amount of hydrogen, and changing the hydrogen form from grey to green is the only way to decarbonize these processes. Industry users could remove the initial uncertainty about green hydrogen offtake if they could guarantee large-scale green hydrogen consumption at their production facilities. Hydrogen could be the deal-breaker for an eco-friendly environment! Getting enthralled with this subject? Run and hunt for additional insights here!
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