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Green Hydrogen: Europe’s Clean Energy Future

Europe aims for 25 million tonnes of green hydrogen by 2040 to tackle climate change.

Koen van Greevenbroek, Johannes Schmidt, Marianne Zeyringer, Alexander Horsch

― 8 min read


Europe's Hydrogen Europe's Hydrogen Ambition future. Setting targets for a cleaner energy
Table of Contents

Green Hydrogen is a clean fuel made from renewable Energy sources, and it's gaining a lot of attention in Europe. The European Union (EU) has set a goal to produce 10 million tonnes of green hydrogen by 2030. However, plans for future production targets beyond that are more like a mystery novel – lots of potential but not enough clarity.

Why is this important? Well, green hydrogen can help reduce carbon Emissions and fight climate change. It's like switching from a gas-guzzling car to a fuel-efficient one, but on a much larger scale.

The Competition

Green hydrogen isn't the only option on the table for reducing emissions. It has to compete with other methods like Carbon Capture and storage, Biomass, and importing fuels from other countries. However, there's a lot of uncertainty about which method will be the cheapest and most effective in the long run.

Nevertheless, some experts believe Europe could aim for 25 million tonnes of green hydrogen production by 2040 without much risk. This target seems ambitious but realistic if you consider various possible scenarios.

The Importance of Setting Targets

Setting clear targets is crucial. It helps businesses decide where to invest their money. If companies know what the goals are, they're more likely to dive in and help make those goals a reality. A solid commitment to green hydrogen means less reliance on methods like carbon capture and imports. This could strengthen Europe's approach to combat climate change.

As Europe works toward reducing emissions to net zero by 2050, the role of hydrogen as a clean energy source becomes even more important.

The Case for 25 Million Tonnes

The EU has no targets for hydrogen production after 2030. But if they set a target of 25 million tonnes by 2040, this would lead to energy systems that are almost as cost-effective as the best possible solutions. In most scenarios examined, the costs would only be slightly higher, within 10%. This is not too shabby!

If Europe sticks to this goal, it can reduce its dependence on carbon capture technology, which has more uncertainty surrounding it. The aim is to create a more stable climate strategy.

Various Roles for Hydrogen

Green hydrogen is expected to be used in several ways, which highlights its importance:

  1. Fuel for Transportation: It can replace traditional fuels in cars, buses, and trucks.
  2. Feedstock in Industry: Industries can use it to produce synthetic fuels.
  3. Heat Source: It can be used for heating purposes.

In each of these roles, green hydrogen competes with fossil fuels.

Biomass: The Wild Card

Biomass, which includes organic materials, could also play a role in the energy scene. However, experts' estimates of its availability vary widely. While some studies estimate a stable supply, others suggest it might not be enough. This gives biomass a bit of a wild card status.

On the other hand, carbon capture and importing fuels present much more uncertainty. Right now, global markets for green fuel imports like hydrogen and ammonia are limited. This makes their future availability unpredictable, which isn’t great for planning.

Fossil Fuels and Carbon Capture

The future of fossil fuels and carbon capture technology remains a hot topic. While the EU has set a target for carbon dioxide (CO2) storage through the Net Zero Industry Act, there's still debate about how much capacity will be needed in the coming decades.

Some studies suggest that the actual capacity could vary widely, which is like trying to hit a moving target while blindfolded. The future role of carbon capture is also unclear. It relies on technology that isn’t yet proven at a large scale and involves using fossil fuels that are becoming scarcer.

This uncertainty leads to a wide range of projections for the amount of green hydrogen Europe could produce by 2050. Some studies suggest an ambitious number, while others remain conservative.

The Challenge of Estimates

A look at earlier studies shows a broad range of estimates for green hydrogen production. Some studies predict up to 160 million tonnes, while others are more cautious, pegging the number closer to zero. This variation poses a big challenge for planning.

While some systems could exist without green hydrogen, the pathways that rely solely on carbon capture require significant CO2 storage, which is limited. This makes reliance on carbon capture risky.

A Pathway to Stability

The present situation calls for some level of commitment. Even if green hydrogen doesn't take off in the future, it would help stabilize EU climate targets by potentially reducing reliance on carbon capture systems.

Clear goals for green hydrogen could help minimize the risks associated with relying on carbon capture and imports. Having specific targets in place could provide a cushion against uncertainties and surprises, like a safety net made of very strong fabric rather than relying only on a tightrope.

The Model and Its Assumptions

To study the future of green hydrogen and its production, researchers used a model called PyPSA-Eur. This model helps to analyze what might happen over the next few decades in terms of energy transition.

The researchers looked at various scenarios that considered factors like carbon capture, biomass availability, the influx of green fuel imports, and the cost of producing hydrogen through electrolysis (a method to separate hydrogen from water using electricity).

The model includes the energy sectors of electricity, gas, heating, transportation, and industry, allowing for a comprehensive look at how these elements interact.

Pathways and Their Implications

The research highlighted several potential pathways for green hydrogen production. Some led to a cost-optimal outcome, while others varied depending on the exact settings of parameters.

The pathways showed a difference of up to 3,400 terawatt-hours in emissions-free electricity generation. These varied pathways all depended on how much green hydrogen production was maximized or minimized.

Interestingly, aiming for the maximum production of green hydrogen led to an increase in natural gas use. In this scenario, natural gas substitutes for other fossil fuel needs, all while maintaining CO2 limits.

Future Energy Flows

The energy flows and how they change dramatically in different scenarios were a surprising find. Depending on the emphasis on green hydrogen production, there could be major shifts in how Europe uses different energy sources.

For instance, the study found that increasing the production of green hydrogen could lead to unusual outcomes, such as an uptick in natural gas use. It appears that doing one thing to reduce emissions sometimes creates another problem elsewhere.

Sensitivity to Inputs

The pathways for green hydrogen were sensitive to changes in parameters. Different scenarios led to vastly different levels of hydrogen production. Some suggested a maximum level of 59 million tonnes by 2050, while others were closer to zero.

This sensitivity highlights the importance of careful planning. If different technologies or decisions change, the outcome could vary significantly.

The Robust Corridor

Out of all the explored scenarios, researchers discovered "robust corridors" for green hydrogen production. These corridors show feasible production levels and the conditions under which they work best.

For example, a target of 25 million tonnes for 2040 appeared feasible across a majority of scenarios. Achieving this target would ensure total costs remain reasonable compared to the best-case scenarios.

The Need for Diversification

The intertwined future of green hydrogen production and other energy sources creates a space where more than one solution might be viable. This underscores the importance of exploring all options in the energy landscape.

Having a diversified approach could help address uncertainties. After all, relying solely on one way of doing things can lead to chaos if that method doesn't pan out.

Relying on Fossil Fuels

The long-term use of fossil fuels, even if combined with carbon capture, is viewed as unsustainable. Fossil fuel reserves won’t last forever, much like the snacks in a poorly stocked pantry.

Moreover, the capacity for carbon storage is limited. If too much CO2 is captured over time, space will run out. That could lead to a situation where the only options left are to cut back on emissions or simply run out of space to store carbon.

The Challenges Ahead

While Europe has ambitions for green hydrogen, challenges remain. For one, there’s uncertainty about how quickly carbon capture and green fuel imports can scale up. This is crucial for setting the most effective targets for green hydrogen production.

Another challenge is the difficulty in scaling up production. There are risks related to the technology, costs, and the potential for leaks that could harm the environment.

Conclusion

In summary, Europe is at a crossroads with green hydrogen production. Setting clear targets like 25 million tonnes by 2040 could alleviate investment uncertainty and help work toward climate goals.

The future of energy is complex, with many moving parts. But one thing is certain: the journey to a greener future is worth taking, if for no other reason than to ensure we leave the planet in better shape for the next generation. After all, who wouldn’t want to inherit a cleaner, healthier world?

Original Source

Title: Little to lose: the case for a robust European green hydrogen strategy

Abstract: The EU targets 10 Mt of green hydrogen production by 2030, but has not committed to targets for 2040. Green hydrogen competes with carbon capture and storage, biomass and imports in reaching emissions reductions; earlier studies have demonstrated the great uncertainty in future cost-optimal development of green hydrogen. In spite of this, we show that Europe risks little by setting green hydrogen production targets at around 25 Mt by 2040. Employing an extensive scenario analysis combined with novel near-optimal techniques, we find that this target results in systems that are within 10% of cost-optimal in most considered scenarios. Setting concrete targets is important in order to resolve significant uncertainty which hampers investments. Targeting green hydrogen reduces the dependence on carbon capture and storage and green fuel imports, making for a more robust European climate strategy.

Authors: Koen van Greevenbroek, Johannes Schmidt, Marianne Zeyringer, Alexander Horsch

Last Update: 2024-12-10 00:00:00

Language: English

Source URL: https://arxiv.org/abs/2412.07464

Source PDF: https://arxiv.org/pdf/2412.07464

Licence: https://creativecommons.org/licenses/by/4.0/

Changes: This summary was created with assistance from AI and may have inaccuracies. For accurate information, please refer to the original source documents linked here.

Thank you to arxiv for use of its open access interoperability.

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