These are the promises and dangers of hydrogen, hailed as the world’s next clean energy source.

News that a huge hydrogen project could be built in Newfoundland to supply clean fuel to Germany and other parts of Europe cut off from Russian gas has added a new urgency to Canada’s nascent technology to cut carbon emissions.

Prime Minister Justin Trudeau and German Chancellor Olaf Scholz will sign a green power purchase agreement next week in Stephenville, NL, where a proposed plant will use up to 164 wind turbines to produce hydrogen and ammonia for export.

Ottawa is betting heavily on hydrogen to power much of this country’s, and the world’s, transition away from fossil fuels, whether through hydrogen fuel cell trucking, hydrogen-powered industry or generating electricity from hydrogen.

Canada is among the top 10 producers of hydrogen in the world today, with global demand projected to increase 10-fold by 2050. Projections show that hydrogen will provide 24% of global energy demand, and 30% of Canada, at that time. .

Canada has the water and cheap renewable electricity to be a world leader in hydrogen production, but hydrogen-using technologies are still very much on the drawing board.

“Hydrogen is a zero-emissions energy source that represents both a significant economic opportunity for Canada and an important tool for reducing emissions throughout the Canadian economy. Canada has a head start in the growing global market,” said Federal Environment Minister Steven Guilbeault.

This is what’s at play:

Why are people excited about hydrogen as an alternative fuel?

Hydrogen is a powerful fuel that can power heavy machinery and energy-intensive industries, some of the hardest parts of the economy to decarbonise.

Unlike fossil fuels, it does not produce greenhouse gas emissions when burned. With modifications, hydrogen can use existing natural gas infrastructure, including pipelines, holding tanks, liquefaction plants, and ships.

the technical limitations for the use of natural gas infrastructure, however, will reduce the world’s ability to quickly switch fuels. Eventually, hydrogen will need its own pipelines, tanks, ships, and terminals.

Hydrogen grey, blue and green

Not all hydrogen is created equal. Most of today’s hydrogen is called “gray” because it uses methane (natural gas) to react with water in a production process called “steam reforming.” While inexpensive, this process produces emissions from combustion and methane leakage and is only cleaner than producing hydrogen from coal (“black” and “brown” hydrogen).

“Blue” hydrogen is gray hydrogen whose emissions are captured and stored permanently, mostly underground. This production technique holds promise for the Canadian oil industry, which can use hydrogen made from natural gas to reduce its carbon footprint. But environmental groups say blue hydrogen isn’t as clean as advertised.

“Even at its best, blue hydrogen does not capture all emissions and there is no guarantee that it will remain captured forever,” said Jack Gibbons, president of the Ontario Clean Air Alliance.

An academic study found that emissions from blue hydrogen production are only 9 to 12 percent lower than those from gray hydrogen.

“They looked at the worst case scenario,” said Jan Gorski, an oil and gas analyst at the Pembina Institute. “Blue hydrogen can be emissions intensive if done poorly. But it has the potential to be low carbon if done right.”

Green hydrogen, the kind that will be made at the proposed plant in Newfoundland, uses renewable energy to split water molecules into hydrogen and oxygen through a process called electrolysis. It produces no greenhouse gas emissions and currently accounts for less than 0.1 percent of global hydrogen production, primarily due to its higher cost… but as the price of renewables has come down, so has made the price of green hydrogen.

The Canada Advantage

Because it takes 10 liters of water to produce one kilogram of hydrogen, Canada’s vast freshwater reserves and mostly clean electricity grid mean there is a huge opportunity in adopting hydrogen as the clean fuel of the future.

“It makes a lot of sense,” said Mark Zacharias, CEO of Clean Energy Canada. “Many countries have renewable energy. Water is Canada’s advantage.”

The proximity of the east coast to Europe and the direct access of the west coast to Asia means there is potential to develop hydrogen production on both coasts, he said.

It is still a technology of the future

Unlike the low-carbon technologies available now, such as electric cars and heat pumps, many of hydrogen’s end uses are still on the drawing board.

The federal government’s hydrogen strategy, unveiled in 2020, highlights the roles that hydrogen can play in energy-intensive industries that are difficult to decarbonize, such as steel and cement production. Other uses include the use of hydrogen as a fuel for long-distance trucks, the conversion of electricity generation plants to natural gas to burn hydrogen, and the blending of hydrogen with natural gas for residential heating.

Apart from a small number of hydrogen fuel cell powered city buses (approximately 2,000 worldwide), none of these applications are in widespread use today.

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