Hydrogen from Renewable Power

Technology Outlook for the Energy Transition

Asami MiketaIRENA Innovation and Technology Centre

World Energy Congress, Abu Dhabi, 11 September 2019

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Key messages

• Renewable sourced hydrogen (green-hydrogen) – the zero-carbon solution of the future

• A shift from automobile applications to “hard-to-decarbonize” sectors

• New opportunity to accelerate renewable power deployment

• Green-hydrogen production – ramping up fast in size and volume

• Export opportunities for renewable rich countries including the MENA region

Demand for RE power in the context of the Energy Transition

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For green hydrogen production: < 4 TW

PWhEJ Global electricity demand

For direct electrification of end-use sectors

About 49% of end-use electrification (including in the form of green hydrogen)

Hydrogen as the “missing link” towards decarbonization

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70% reduction

2018 emissions

2050 reference case

emissions

2050 mitigation

options

Renewable energy

Electrification with renewablesincluding RE-sourced hydrogen

Energy efficiencyOthers

Further decarbonization efforts needed

9.8 Gt

33 Gt33 Gt

Hydrogen demand in end-use sectors by 2050

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• Technical potential is significant

• Economic potential will depend on cost reductions and competition with other

emerging options, with estimates on the order of 10-100 EJ

35 EJ

22 EJ

11 EJ

9 EJ

19 EJ4 EJ

6 EJ

0.1 EJ 0.1 EJIndustry

Transport

Buildings

Power generation

Others

IRENA, 2019 (29 EJ)

Hydrogen Council, 2017(78 EJ)

Opportunities for hydrogen in the energy transition

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Decarbonising options (30 EJ)

Industry:Replace fossil-fuel produced hydrogenReplace fossil-fuel based feedstocks

Transport:FCEV – to complement BEVs in decarbonizing road transport

Gas grid:Take advantage of low electricity pricesProvide seasonal storage for hydrogen

Deep-Decarbonising options (> 30 EJ)

Transport:FC/E-fuels for rail, aviation, maritime sector

Power:Combined with seasonal storage

Buildings: Distributed stationary fuel-cell for heat and power generation

Electrolyzer will provide with short-term flexibility thus help manage the short-term fluctuations of VRE

Source of hydrogen – today and 2050

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Today: About 14 EJ hydrogen produced mainly from fossil source (including 40% by-product) - green and blue hydrogen production is negligible(Source: IEA 2019)

2050:Two-Third of hydrogen produced could come from green hydrogen

Demonstration projects with electrolysis – with increasingly bigger sizes (> 50 MW)

EJ

Fossil without CCS

Electrolysis

Green hydrogen:Electrolysiswith RE power

Non-RE sourced• Blue hydrogen:

fossil with CCS• Electrolysis with

non-RE power

Hydrogen production costs

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Key assumptions: Electrolyser (Alkaline)• Load factor: 4200 hours

(48%)

CCS cost at fossil fuel facilities• Coal gasification: 0.75

USD/kg H2 at 50 USD/t CO2• Steam reforming of natural

gas: 0.45 USD/kg H2 at 50 USD/t CO2

Hydrogen from renewables is close to competitiveness at best solar and wind regions.

20502020

• Compression and Storage (tanks, salt caverns)

• Liquefaction and storage• Ammonia production and

storage

Export opportunities for renewable rich counties

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Electricity Generation

(LCOE)Hydrogen

Production (LCOH)

ElectrolysisHandling and Storage costs

Shipping costsEnd-user (CIF)

cost

Transmission grid

Ways to leverage remote renewable energy sources 1) Relocate hydrogen production to close to the good RE source export hydrogen

2) Relocate energy intensive industrial production close to the good RE source export energy intensive commodities

Green hydrogen supply chain

Blue hydrogen

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Hydrogen Production

(LCOH)

Steam Methane Reforming + CCS

Coal Gasification + CCS

Key challenges:Lagged deployment of CCS – today less than 5 Mt is captured and stored sustainably Carbon leakage from CCS – from enhanced oil recovery process

Certification system and regulations for carbon free hydrogen supply are critical – for proper monitoring, reporting, and verification

Enhanced oil recovery

Geological formations

CCS options

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Key messages

• Renewable sourced hydrogen (green-hydrogen) – the zero-carbon solution of the future

• A shift from automobile applications to “hard-to-decarbonize” sectors

• New opportunity to accelerate renewable power deployment

• Green-hydrogen production – ramping up fast in size and volume

• Export opportunities for renewable rich countries including the MENA region

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Hydrogen applications in the industry sector

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Opportunities for decarbonizing industry with

hydrogen:

Replace fossil-fuel produced hydrogen

Replace fossil-fuel based feedstocks

Vast majority of hydrogen today is produced and used

on-site in industry (14EJ).

Hydrogen application to the natural gas grid

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Opportunities

Short-term: Replacing the natural

gas with hydrogen in the existing

natural gas grid, when electricity

price is cheaper

In the long-term: Provide seasonal

storage for solar and wind

Current standards limit potentials but they

could be revised.

Hydrogen tolerance of gas infrastructure components – Adapted from DVGW (2012)

Hydrogen applications in the transport sector

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Opportunities

Short-term: FCEVs to

complement

decarbonizationg road

transport

In the long-term: FC and

Synthetic fuels for rail,

maritime, and aviation

sector (economics is still

to be seen)