The Rise of Hydrogen as a Power Generation Fuel
Key Ideas
  • Energy economists question the efficiency and cost-effectiveness of producing electrolytic hydrogen for power generation due to energy losses and various factors.
  • Debate arises on whether renewable power should be used directly to meet electric demand instead of converting it into hydrogen and re-electrifying it.
  • Governments and utilities worldwide are increasingly focusing on establishing hydrogen as a future generation fuel source over the coming decades.
Hydrogen is gaining prominence as a fuel for power plants as governments aim to adopt cleaner energy sources to complement intermittent renewables like wind and solar. However, energy economists are skeptical about the efficiency of producing electrolytic hydrogen for power generation, citing energy losses and cost factors. There is a debate on whether it is more beneficial to utilize renewable power directly to address the growing electricity demand during the transition phase, rather than converting it into hydrogen and then re-electrifying it through fuel cells or turbines. Despite the skepticism, a rising number of governments and utilities are intensifying their efforts to promote hydrogen as a viable generation fuel in the energy landscape for the next few decades.
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