The Race Is On: Designing Tomorrow’s Green Hydrogen Infrastructure
The demand for hydrogen is rising, and the race is on to capitalize on this. But are companies’ infrastructure well-equipped to handle the demand?
Jumpstarting the Growth of the Green Hydrogen Economy
The global transition to renewable energy is driving an unprecedented surge in hydrogen demand. As the world moves towards a net-zero economy, technological advancements are driving down the costs of hydrogen infrastructure, much like the decline in costs previously seen in cleantech and battery technologies.
According to a report by the International Energy Agency (IEA):
Global hydrogen demand in 2023 reached more than
97 million tons (Mt)
Demand for low-emissions hydrogen in 2023 grew
almost 10%
Global hydrogen demand by the end of 2024 will reach almost
100 million tons (Mt)
So, it's no surprise to witness the emergence of national hydrogen strategies and roadmaps across the globe, with governments investing billions of dollars to speed up the transition to a hydrogen-based future. Research by BloombergNEF showed that funding for low-carbon hydrogen quadrupled to US$280 billion between 2021 and 2023.
The potential for hydrogen to become the next great energy source has never been greater. But why is now the right time to invest in — and develop — a green hydrogen supply chain? Let's explore some of the opportunities available.
Recognizing the Challenges of Green Hydrogen Production
Although the demand for hydrogen is steadily rising, there are still several fundamental challenges that must be solved before it can become a viable solution as the next great energy source:
- Infrastructure
There is a significant gap in the infrastructure required for hydrogen production, storage, distribution and utilization (such as pipelines, refueling stations and storage systems). - High production cost and scalability
While green hydrogen costs are decreasing, production is still more expensive than traditional fossil fuels and even some renewable energy sources. - Safety and storage
Hydrogen is highly flammable, and hydrogen storage and transportation present serious safety concerns. - Supply chain and raw material constraints
The production of green hydrogen relies on the availability of renewable energy and specific materials like platinum for electrolysis.
The short-term consequences of not capitalizing on green hydrogen include missed opportunities for investment, inefficient operations and loss of market share. The long-term consequences could be even more severe, including regulatory penalties and a diminished role in the future global energy landscape. It's crucial that companies act decisively to close this gap by harnessing cutting-edge technologies to build a resilient hydrogen supply chain.
The short-term consequences of not capitalizing on green hydrogen include missed opportunities for investment, inefficient operations and loss of market share. The long-term consequences could be even more severe, including regulatory penalties and a diminished role in the future global energy landscape. It's crucial that companies act decisively to close this gap by harnessing cutting-edge technologies to build a resilient hydrogen supply chain.
Design Tomorrow’s Hydrogen Value Chain With the Virtual Twin
How can the virtual twin help design tomorrow's energy systems — and lead the charge toward a clean hydrogen future? Get the in-depth story by downloading our ebook.
How the Virtual Twin Can Help Develop Tomorrow’s Hydrogen Supply Chain
By leveraging the virtual twin capabilities of the 3DEXPERIENCE® platform, companies can efficiently design, optimize and scale hydrogen solutions, ensuring the sustainability, safety and economic viability of the hydrogen value chain. Simulation-driven innovation empowers stakeholders to model complex systems, predict real-world outcomes and accelerate deployment, all while minimizing risk and maximizing investment returns.
Here are some examples of how the virtual twin capabilities integrated within the 3DEXPERIENCE platform can play a crucial role in augmenting the hydrogen supply chain:
- Virtual twins can be used to simulate an entire hydrogen production facility before even breaking ground. This allows companies to validate design choices, optimize system configurations and identify potential issues before construction begins.
- Virtual twins can be used to monitor the performance of a hydrogen facility in real time. By analyzing data from sensors and other sources, companies can identify inefficiencies, predict maintenance needs and optimize production processes.
- Virtual twins can help companies simulate different compliance scenarios, ensuring that projects meet all the specific requirements and reducing the risk of delays and fines.
The Fundamentals of Green Hydrogen Infrastructure and Production
In addition to the challenges mentioned in the preceding sections, other industry and regulatory challenges include:
- Integration with existing systems: Hydrogen must be integrated with current energy systems, which include electricity grids, natural gas networks and transport infrastructures.
- Regulatory and standardization gaps: Hydrogen markets are still evolving, and international regulations and standards for production, distribution and usage are not fully established.
- Market uncertainty: Despite significant government investments, there remains uncertainty around market demand, regulatory frameworks, and the competitiveness of hydrogen with other renewable energy solutions.
- Public perception and acceptance: Misconceptions about hydrogen safety, its costs, and its environmental impact could slow down adoption.
Green hydrogen is produced through electrolysis. Renewable electricity from energy sources such as solar or wind is used to electrolyze water. An electrochemical reaction splits water into its components of hydrogen and oxygen, emitting zero carbon dioxide in the process. Also known as zero-carbon hydrogen, it is by far the cleanest method of producing hydrogen.
Blue hydrogen is produced using natural gas, combined with steam from heated water. This combination results in hydrogen and carbon dioxide, which is captured and stored. Blue hydrogen is also known as low-carbon hydrogen due to carbon dioxide being a byproduct.
Pink hydrogen is also generated through electrolysis, but it is powered by nuclear energy. Nuclear-powered hydrogen is sometimes also referred to as purple hydrogen or red hydrogen.
Grey hydrogen is the most common form of hydrogen production. Hydrogen is produced from natural gas or methane, but the resulting greenhouse gases are not captured in the process. The non-capture of greenhouse gases is what separates hydrogen from blue hydrogen.
Green hydrogen is considered zero-carbon because it is produced through a process called electrolysis, which splits water into hydrogen and oxygen using renewable electricity from sources like solar or wind. This method emits no carbon dioxide or other greenhouse gases, making it a clean and sustainable energy source. Unlike other types of hydrogen production that rely on fossil fuels, green hydrogen's entire production cycle is free from carbon emissions, aligning with global goals for a net-zero economy.
Virtual twins enable companies to create digital replicas of hydrogen systems — such as production plants, storage facilities and distribution networks — to simulate real-world performance, optimize designs and predict outcomes.
This technology helps identify inefficiencies, reduce costs and ensure safety in the deployment of hydrogen infrastructure such as hydrogen refueling stations and hydrogen transportation pipelines. Virtual twins can also model the integration of hydrogen into existing energy systems, facilitating seamless transitions and scalable solutions for green hydrogen projects.
According to a report by the China Global Television Network (CGTN), the world's largest hydrogen producer (as of 2021) is China with an output of 33 Mt. By 2025, the country plans to produce up to 500,000 vehicles powered by hydrogen fuel cells.
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