Hydrogen is receiving a lot of attention because of the benefits that it can bring to the whole energy system. Hydrogen is a clean fuel and can be transformed into electricity through fuel cells. It can play a great role in transport, power sectors, residential, commercial, and industry sectors.
There are also varied ways to produce hydrogen that make the hydrogen economy even more interesting and, at the same time, challenging. The world's interest in the hydrogen economy has accelerated in recent years. The year 2018 marked a very impressive year through historical developments, such as Hydrogen Ministerial Meeting, that was the first ministerial meeting on this subject in October 2018.
Hydrogen will gain shares in the global energy system due to the varied benefits that it has to offer. The advantages include but are not limited to: net zero emission, the varied application range in most end-use sectors (including electrification in high-grade industrial heat or in heavy transport) and in off-grid or distributed generation, and increased energy security.
Natural gas can contribute significantly to hydrogen production when carbon capturing measures are employed, especially pre-combustion capturing. Blue hydrogen, by definition, includes carbon capturing and promises a very economical way to meet hydrogen demand.
The EEFD has developed a dedicated scenario named the Hydrogen Scenario to assess the impact of the hydrogen economy on the total energy system, specifically on the natural gas supply chain. Within the framework of the Hydrogen Scenario, several assumptions are imposed on energy-consuming sectors like transport, industry, commercial, residential, etc.
The results of the Hydrogen Scenario suggest that natural gas can maintain its position in hydrogen production provided that CCS measures are employed. The results show natural gas can contribute to around 47% of hydrogen production compared with 26% for electricity from renewable energies. CCS is an inevitable part of these results, so moving to blue hydrogen presents an important opportunity for gas producer and exporter countries to remain competitive in hydrogen production in lieu of climate concerns.
Hydrogen production and export can be financially lucrative for gas exporting countries; they are considered crucial to the GECF technology roadmap.