Unlocking the Potential of Hydrogen: A Clean Energy Revolution
Key Ideas
  • Hydrogen shows promise in decarbonising aviation and hard-to-abate sectors like steel and cement manufacturing by providing a clean energy alternative.
  • The hydrogen-ammonia nexus presents an opportunity to reduce agriculture's carbon footprint by using hydrogen to produce ammonia.
  • World leaders are investing in hydrogen policies and incentives, such as the US's tax credit of up to $3 per kg of clean hydrogen, to drive investment and production.
  • Challenges facing clean hydrogen include regulatory fragmentation, physical properties like flammability, and cost barriers compared to traditional fossil fuel hydrogen.
In March 2023, a small plane powered by hydrogen took a significant flight in Washington, demonstrating the potential of hydrogen in decarbonising aviation and other fossil fuel-dependent industries. The hydrogen-ammonia nexus also highlights a path to reducing agriculture's carbon footprint. Shipping and transportation sectors are looking into hydrogen and ammonia as clean fuel alternatives. Governments worldwide, such as the US and Asian countries like Japan and South Korea, are implementing policies and incentives to promote clean hydrogen production. The Middle East aims to become a major producer of clean hydrogen and ammonia for Asian markets. However, challenges like regulatory fragmentation and cost barriers hinder the widespread adoption of clean hydrogen. Despite these obstacles, advancements in carbon capture technology and renewable energy can make clean hydrogen more economically viable. Government intervention through subsidies and carbon pricing could further accelerate the transition to clean energy.
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