Participants discuss around a hydrogen engine at the Innovation Agora of the CERAWeek in Houston, Texas, the United States, on March 7, 2023. Huge crowds gathered around listening to experts debate on hydrogen, as if this new form of energy were a rock star at the week-long global energy forum CERAWeek ending Friday in Houston. (Photo by Chen Chen/Xinhua)
by Shangyou Nie
HOUSTON, March 10 (Xinhua) -- Huge crowds gathered around listening to experts debate on hydrogen, as if this new form of energy were a rock star at the week-long global energy forum CERAWeek ending Friday in Houston of the U.S. state of Texas.
"It definitely feels like another shale revolution in the making," said Roman Kramarchuk, head of Future Energy Analytics for S&P Global, during an exclusive interview with Xinhua at the conference.
More than 80 sessions were devoted to hydrogen at the influential 2023 CERAWeek, and many sessions drew standing-room-only crowds.
One of the big reasons for the enthusiasm is the passing of the Inflation Reduction Act (IRA) last year in the United States, according to Kramarchuk, which has introduced significant financial incentives for companies to produce hydrogen, among other "carrots" to draw investments into renewable industries and carbon capture storage and sequestration (CCUS).
According to the International Energy Agency (IEA), global hydrogen demand reached 94 million tonnes in 2021, approximately equivalent to about 2.5 percent of the global energy consumption.
In comparison, hydrogen remains a small contributor as compared to fossil fuels, wind, solar and nuclear energy, but the potential of hydrogen is seen as very big especially with major financial incentives from the governments, experts said.
Also according to the IEA, China is the current world leader of hydrogen, producing 28 million tons in 2021, followed by the United States of 12 million tons, the Middle East of 11 million tons, and Europe and India, with 8 million tons each.
By 2030, global hydrogen demand will range between 115 million tonnes to 130 million tonnes, data from the IEA shows.
Currently, however, more than 99 percent of the world's hydrogen is called "grey hydrogen," since it is mainly produced by using fossil fuels such as natural gas without applying other emission-reduction technologies.
Another type is "blue hydrogen," which is produced from fossil fuels, with carbon emissions reduced with CCUS technology.
The so-called "green hydrogen" is produced by electrolysis, which uses electricity to split water into hydrogen and oxygen. In 2021, water electrolysis contributed to only around 0.1 percent of global hydrogen production, according to the IEA.
Incentives such as the IRA are seen as a game changer for the low emissions hydrogen including blue and green types, though some industry leaders see the "hydrogen color rainbow" scheme as "confusing."
Darren Woods, chairman and chief executive officer of ExxonMobil, noted that life cycle carbon emission intensity assessment should be applied instead, during his one-to-one dialogue with Daniel Yergin, CERAWeek chair and vice president of S&P Global.
Many hydrocarbon hubs were proposed and discussed at the conference, including those in the Gulf Coast of Texas, the Northeastern U.S., and multiple sites in Europe.
Mark Hutchinson, CEO of Fortescue Future Industries (FFI), one of Australia's minerals companies, saw significant potential for collaboration to produce hydrogen. He told Xinhua that his company "would love to work with Chinese companies" to deliver low emissions hydrogen at scale.
Andy Marsh, president and CEO of Plug Power, one of the leaders in hydrogen, said that his company is currently working with South Korean companies.
Meanwhile, Singapore "is working with Australia and Indonesia on hydrogen potential," said Cindy Lim, CEO of Kepple Infrastructure Holdings.
Low emissions hydrogen should embark from where energy can be produced cheaply to start with, as the biggest cost for hydrogen production is electricity, experts said.
Together with China, the United States, Australia, and the Middle East are among the promising areas, according to Kramarchuk.
Government incentives such as the IRA are designed to address the high cost of producing hydrogen. Similar measures need to be in place to encourage demand growth acceleration, many conference attendees commented.
However, a series of uncertainties lie ahead as attention is being paid to exploring the hydrogen future.
Though there is "a tremendous buzz" about how important hydrogen will be during the forum, Fred Krupp, president of U.S.-based non-profit group Environmental Defense Fund (EDF), seems less optimistic.
He told Xinhua in an interview that though hydrogen is essential for certain applications, when hydrogen leaks into the atmosphere, it becomes "a very powerful greenhouse gas like methane."
Lack of details from regulatory framework and available infrastructure to deliver hydrogen to end energy users are also seen as the major hurdles for the emerging hydrogen industry development.
More than 7,000 participants including policymakers, industry leaders, company executives, investors and researchers from over 80 countries and regions around the world attended the five-day forum, according to organizer S&P Global. ■
Participants attend a session at the Innovation Agora of the CERAWeek in Houston, Texas, the United States, on March 7, 2023. Huge crowds gathered around listening to experts debate on hydrogen, as if this new form of energy were a rock star at the week-long global energy forum CERAWeek ending Friday in Houston. (Photo by Chen Chen/Xinhua)
A hydrogen engine is displayed at the Innovation Agora of the CERAWeek in Houston, Texas, the United States, on March 7, 2023. Huge crowds gathered around listening to experts debate on hydrogen, as if this new form of energy were a rock star at the week-long global energy forum CERAWeek ending Friday in Houston. (Photo by Chen Chen/Xinhua)
Participants attend a session at the Innovation Agora of the CERAWeek in Houston, Texas, the United States, on March 7, 2023. Huge crowds gathered around listening to experts debate on hydrogen, as if this new form of energy were a rock star at the week-long global energy forum CERAWeek ending Friday in Houston. (Photo by Chen Chen/Xinhua)
Delegates attend the session "Emerging Technologies for Net Zero" during the CERAWeek in Houston, Texas, the United States, on March 7, 2023. Huge crowds gathered around listening to experts debate on hydrogen, as if this new form of energy were a rock star at the week-long global energy forum CERAWeek ending Friday in Houston. (Photo by Chen Chen/Xinhua)