In recent years, clean hydrogen has emerged as a game-changing contender in the international energy arena. This new type of alternative energy, with its emissions-free combustion that produces only water, is emerging as the preferred choice for those concerned about both their financial returns and the planet’s well-being.
Harnessing the Universe’s Most Abundant Element
Hydrogen, the most abundant element in the universe, is not new to the energy industry. What’s new is the way we use it.
Traditionally, most hydrogen is derived from fossil fuels, particularly natural gas, in a process that releases significant carbon emissions.
Clean hydrogen, however, is produced by splitting water molecules using renewable energy in a process known as electrolysis.
This “green” hydrogen is carbon-free, making it a perfect fit for global sustainability efforts.
Hydrogen’s Potential: Reshaping the Decarbonization Cost Curve
The path to net zero carbon is predicted to follow two paths: abatement, reducing greenhouse gas (GHG) emissions, and sequestration, removing carbon from the atmosphere. Despite numerous low-cost decarbonization opportunities, the abatement cost curve steepens dramatically beyond 50% decarbonization. Approximately 25% of global anthropogenic GHG emissions currently cannot be abated at costs below US$1,000/ton CO2eq, highlighting the need for technological innovation. Hydrogen is recognized as a leading technology that could significantly reshape the decarbonization cost curve, moving beyond 45% decarbonization, with applications in transportation, buildings, power generation, and industry.
A New Market
on the Horizon
Giants such as Toyota, Shell and Airbus are already investing billions in hydrogen fuel technology. A recent report by the Hydrogen Council predicts that by 2050, hydrogen could meet nearly a quarter
of the world’s energy needs, create
30 million jobs worldwide, and generate
a market worth a staggering $2.5 trillion.
The Hydrogen Boom
Hydrogen can be used across multiple sectors, including transportation, power generation, industrial applications and even home heating. It can be easily stored and transported, allowing it to serve as a backup for renewable energy sources such as solar and wind, and to be exported to regions without their own renewable resources. In addition, many governments have ambitious plans for clean hydrogen, supported by a combination of policy initiatives, tax incentives, and public and private funding. These range from the European Union’s ambitious hydrogen strategy, which targets 40 GW of renewable hydrogen electrolysers by 2030, to China’s inclusion of hydrogen fuel
in its New Energy Vehicle initiative. The hydrogen ecosystem in the mobility sector is currently being established in Switzerland as well. Hydrogen, and in particular green hydrogen, is one of the most important climate-friendly energy sources in the industrial and mobility sectors and is a central component of the decarbonisation strategies of the Swiss Confederation.
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