What are the main barriers and opportunities for blue hydrogen deployment?

1 What is green hydrogen?

Green hydrogen is hydrogen that is produced from renewable energy sources, such as wind, solar, or hydro power, using electrolysis. Electrolysis is a process that splits water into hydrogen and oxygen using electricity. Green hydrogen is the most environmentally friendly type of hydrogen, as it does not emit any greenhouse gases or pollutants during its production or use. However, green hydrogen is also the most expensive and challenging type of hydrogen to produce, as it requires large amounts of renewable electricity, water, and electrolyzers.

2 What is blue hydrogen?

Blue hydrogen is hydrogen that is produced from natural gas or coal, using steam methane reforming (SMR) or gasification. SMR or gasification are processes that convert fossil fuels into hydrogen and carbon dioxide (CO2). Blue hydrogen is considered low-carbon hydrogen, as the CO2 emissions from its production are captured and stored underground or used for other purposes, such as enhanced oil recovery. Blue hydrogen is cheaper and more scalable than green hydrogen, as it uses existing infrastructure and abundant fossil fuels. However, blue hydrogen still has some environmental and technical risks, such as the possibility of CO2 leakage, the need for large storage sites, and the dependence on fossil fuels.

3 What is grey hydrogen?

Grey hydrogen is hydrogen that is produced from natural gas or coal, using SMR or gasification, without capturing or storing the CO2 emissions. Grey hydrogen is the most common and cheapest type of hydrogen, as it accounts for about 95% of the global hydrogen production. However, grey hydrogen is also the most polluting type of hydrogen, as it emits about 9-12 kg of CO2 per kg of hydrogen produced. Grey hydrogen contributes to global warming and air pollution, and undermines the potential of hydrogen as a clean energy carrier.

4 What are the main barriers for blue hydrogen deployment?

Blue hydrogen is limited in its deployment and competitiveness due to high capital and operating costs associated with CO2 capture, transport, and storage technologies. Additionally, there is regulatory and policy uncertainty that needs to be addressed in order for blue hydrogen to compete with other low-carbon alternatives. Lastly, social and public acceptance of blue hydrogen may be an issue, as some stakeholders and communities may perceive it as a continuation of the fossil fuel industry or have concerns about the safety and environmental impacts of CCS.

5 What are the main opportunities for blue hydrogen deployment?

Despite the barriers, blue hydrogen has several opportunities that could enhance its deployment and competitiveness. For instance, it can leverage existing infrastructure and supply chain of the natural gas and coal industries, which are well-established and widely distributed. Furthermore, blue hydrogen can produce large amounts of hydrogen at relatively low costs and with high reliability, as well as adjust its production according to the demand and availability of electricity and CO2 storage. Additionally, blue hydrogen can complement green hydrogen by providing a bridge solution that reduces CO2 emissions in the short term, while green hydrogen scales up and becomes more cost-effective in the long term. It can also integrate with green hydrogen by using renewable electricity for SMR or gasification, or by blending green and blue hydrogen in the same network.