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The Future of Energy
Green Hydrogen and Renewable Integration for Sustainable Power Systems

Capgemini
Feb 1, 2024

Executive Summary

This whitepaper explores the critical role of green hydrogen and integration of renewable energy in shaping sustainable power systems. As the global demand for hydrogen rises, driven by its unique properties, the transition to cleaner energy landscapes becomes imperative. The paper examines the potential of green hydrogen as a versatile and clean-energy carrier, detailing production methods, storage capabilities, and applications. Additionally, it delves into challenges and opportunities associated with seamlessly integrating renewable energy into existing power grids.

Key findings highlight green hydrogen’s promise, economic benefits, and challenges. The paper emphasizes the importance of overcoming obstacles such as infrastructure investments and policy alignment. Furthermore, it underscores the economic resilience and global energy security fostered by the green hydrogen sector through international collaboration and trade.

The challenges of renewable energy integration, including variability and grid management, are explored. Smart-grid technologies are identified as solutions, supported by case studies from Denmark, Germany, California, and India, illustrating successful integration strategies.

The paper reveals green hydrogen as a strategic solution to the intermittency of renewables, ensuring grid stability, decarbonizing sectors, and contributing to global greenhouse gas (GHG) reduction. Synergies between green hydrogen and renewables offer benefits in reduced emissions, enhanced grid stability, improved energy security, and economic growth.

Anticipated advancements in emerging technologies, energy storage, and market trends are outlined. These include innovations in electrolysis, novel storage solutions, extended-duration storage, enhanced grid integration, and potential disruptions from breakthrough technologies.

A comprehensive call to action is presented, urging support for policies and initiatives, investment in research and development (R&D), public education, and collaboration to create a sustainable energy future.

In conclusion, the integration of green hydrogen and renewables holds immense promise for a sustainable and resilient energy future. Collective action, investment, and policy support are essential for realizing the full potential of these technologies and ushering in a new era of clean, efficient, and equitable energy systems.

Introduction

In 2022, global hydrogen usage rose by nearly 3%, reaching 95 Mt. The growth was widespread, except in Europe, where industrial activity was impacted by a surge in natural gas prices. Despite the increase, it’s not attributed to successful policy efforts but rather reflects broader global energy trends. The majority of demand persists in industry and refining, with less than 0.1% from new applications in heavy industry, transport, or power generation. Low-emission hydrogen adoption is slow, accounting for just 0.7% of total demand, leading to over 900 Mt of CO2 emissions. Ammonia production shows promise in the industry, while refining lags behind.

This surge in demand is driven by hydrogen’s unique properties, including its role in desulfurizing petroleum products, synthesizing ammonia, and serving as a crucial reagent in various industrial processes. As the world shifts towards sustainable energy solutions, hydrogen, particularly in its decarbonized form, emerges as a key player in the transition to a cleaner and more efficient energy landscape.

Against the backdrop of the urgent global commitment to tackle climate change, exemplified by events such as COP 28 (the 28th meeting of the Conference of the Parties), this paper explores the transformative potential of integrating green hydrogen and renewable energy sources.

Against the backdrop of the Paris Climate Agreement and the commitment of over 100 countries and numerous companies to achieve net zero by 2050, the imperative for transitioning to sustainable power systems has never been more critical. Traditional energy sources contribute significantly to carbon emissions, necessitating a paradigm shift towards cleaner alternatives. Hydrogen, with its high-energy density and the potential for decarbonization in its production and usage, stands out as a pivotal element in achieving global sustainability goals. Understanding the importance of this transition requires a comprehensive exploration of hydrogen’s role in decarbonizing various sectors and its potential to reshape the energy landscape.
 
The imperative for transitioning to sustainable power systems is underscored by global commitments, as witnessed in events like COP 28, where nations unite to tackle climate change. This aligns seamlessly with our exploration of green hydrogen and renewables as key players in achieving these collective goals.

Green hydrogen, produced through methods such as electrolysis using renewable energy sources, holds immense promise as a versatile and clean-energy carrier. With three-to-four times the energy content per unit of mass compared to fossil fuels, green hydrogen presents an attractive option for diverse applications, ranging from industrial processes to powering various modes of transportation. This section will provide a holistic overview of green hydrogen, covering its production technologies, storage capabilities, and transportation infrastructure. By exploring its advantages, including its potential to address challenges in range, performance, and refuelling time, we can understand why green hydrogen is positioned as a key enabler in the future energy mix.
 
In the subsequent sections of this whitepaper, we will delve deeper into the production technologies of green hydrogen, its integration with renewable energy sources, and the outlook. By examining these aspects, we aim to provide a comprehensive understanding of how green hydrogen, coupled with renewable energy integration, can contribute to the development of sustainable power systems and play a pivotal role in achieving global decarbonization goals.

Here are the methods for producing hydrogen, along with organic process equations and case studies:
Method: Natural gas (methane) is reacted with high-temperature steam to produce hydrogen and carbon monoxide.
Organic Process Equation: CH4 + H2O -> CO + 3H2
Case Study: Large-scale steam methane reforming plants demonstrate the efficiency and applicability of this method for producing hydrogen on an industrial scale. These plants showcase the use of steam methane reforming in industrial settings, especially in facilities with access to natural gas resources.

o   Electrolysis of Water:
Method: Electricity is used to split water into hydrogen and oxygen.
Organic Process Equation: Anode (oxidation): 2H2O(l) -> O2(g) + 4H+(aq) + 4e-; Cathode (reduction): 4H2O(l) + 4e- -> 2H2(g) + 4OH-(aq); Overall reaction: 2H2O(l) -> 2H2(g) + O2(g)
Case Study: Large-scale electrolysis plants integrated with renewable energy facilities demonstrate the feasibility of this method for industrial hydrogen production, especially when powered by renewable energy sources such as solar or wind.

o   Biomass Gasification:
Method
: Biomass is converted into a gaseous mixture of hydrogen, carbon monoxide, and carbon dioxide through a gasification process.
Organic Process Equation: CxHyOz + H2O -> CO + H2
Case Study: Utilization of waste biomass from agricultural and forestry activities to produce hydrogen through gasification technology. This approach offers a sustainable and renewable source of hydrogen while addressing waste management and environmental concerns.

o   Thermochemical Water Splitting:
Method
: High temperatures and chemical reactions are used to split water into hydrogen and oxygen.
Organic Process Equation: Complex series of reactions involving the release of oxygen and the production of hydrogen.
Case Study: Research and development efforts in thermochemical water splitting demonstrate the potential for this method to provide a clean and sustainable source of hydrogen for various applications.

o   Solar Water Splitting:
Method
: Sunlight is used to directly split water into hydrogen and oxygen.
Organic Process Equation: Complex series of light-driven reactions leading to the production of hydrogen and oxygen.
Case Study: Advancements in photoelectrochemical cells and photocatalysts for solar water splitting showcase the potential of this method for sustainable hydrogen production.
 
Each method offers a unique approach to producing hydrogen, with applications in various industrial, energy, and environmental sectors.

Embracing Green Hydrogen: A Catalyst for Global Energy Transition and Economic Resilience

In the pursuit of a sustainable future, the role of green hydrogen has emerged as a pivotal force in reshaping the global energy landscape. As nations strive to reduce carbon emissions and transition away from fossil fuels, green hydrogen has taken centre stage as a clean and versatile energy carrier.

Green hydrogen is produced through the process of electrolysis, where renewable energy sources, such as solar or wind power, are harnessed to split water into hydrogen and oxygen. Unlike conventional methods that rely on natural gas, green hydrogen production emits zero GHGs, making it a cornerstone in the fight against climate change.

One of the primary drivers behind the importance of green hydrogen is its potential to decarbonize sectors traditionally hard to electrify. Industries such as heavy manufacturing, aviation, and shipping, which heavily depend on fossil fuels, can seamlessly transition to green hydrogen, significantly reducing their carbon footprint. This versatility positions green hydrogen as a key enabler of a comprehensive and effective global energy transition.

Economically, the green hydrogen sector has the potential to spark a wave of innovation and job creation. Investments in R&D, infrastructure development, and the scaling up of production facilities contribute to the growth of a new, sustainable industry. As economies evolve, the green hydrogen sector not only diversifies the energy mix but also fosters a robust and resilient economic foundation.

Furthermore, the global green hydrogen market opens avenues for international collaboration and trade. Countries with abundant renewable resources can become major exporters of green hydrogen, fostering economic partnerships and driving global energy security. This not only accelerates the transition to a low-carbon future but also promotes geopolitical stability through shared energy goals.

However, the widespread adoption of green hydrogen is not without challenges. Initial infrastructure investments, technological advancements, and policy frameworks must align to accelerate the deployment of green hydrogen technologies. Governments, industries, and research institutions must collaborate to create an enabling environment that encourages innovation, reduces production costs, and facilitates the integration of green hydrogen into existing energy systems.

In conclusion, the importance of green hydrogen in the global energy transition cannot be overstated. Beyond its environmental benefits, green hydrogen stands as a catalyst for economic growth, job creation, and international cooperation. As nations strive to meet ambitious climate targets, the embrace of green hydrogen paves the way for a sustainable and prosperous future. The economic benefits of embracing green hydrogen extend beyond borders, resonating with the global commitment made at COP 28 towards net zero by 2050. The green hydrogen sector becomes a crucial contributor to these ambitious international climate targets.

Renewable Energy Integration

The increasing penetration of renewable energy sources (RES) like solar and wind power into the grid presents significant challenges and opportunities. These challenges include:
 

  • Variability and Intermittency: RES output fluctuates depending on weather conditions, making it difficult to maintain grid stability and balance supply and demand.
  • Transmission and Distribution Upgrades: The existing grid infrastructure may not be adequate to handle the increased flow of electricity from distributed RES.
  • Grid Management: Integrating large amounts of RES requires advanced grid management technologies and strategies to ensure grid stability and reliability.
  • Policy and Regulatory Barriers: One of the persistent challenges in renewable energy integration lies in policy and regulatory barriers. Discussions at COP 28 emphasize the need for international cooperation to address these hurdles, aligning with the exploration of seamlessly integrating renewables into existing power grids.

Several smart grid technologies can help overcome these challenges and facilitate the integration of renewable energy:

  • Smart Inverters: These devices can control the output of renewable energy sources and provide grid support services like voltage and frequency regulation.
  • Energy Storage: Batteries and other storage technologies can store excess renewable energy and discharge it when needed, balancing supply and demand.
  • Demand Response: Consumers can adjust their energy consumption in response to real-time grid conditions, reducing peak demand and improving grid efficiency.
  • Microgrids: These are self-contained power systems that can operate independently or in conjunction with the grid, providing additional flexibility and resilience.
  • Artificial Intelligence (AI) and Machine Learning (ML): These technologies can be used to analyse grid data, predict future energy generation and consumption, and optimize grid operations.

  • Denmark: Denmark has achieved a world-leading share of wind energy in its electricity mix, exceeding 40% in 2020. This success is attributed to a combination of factors including supportive government policies, significant investments in grid infrastructure, and advanced smart grid technologies.
  • Germany: Germany has also made significant progress in integrating renewable energy, with solar and wind accounting for over 40% of its electricity generation in 2021. The country has implemented ambitious renewable-energy targets and invested heavily in distributed energy resources and grid modernization.
  • California: California has set ambitious goals to achieve 100% renewable energy by 2045. The state is focusing on a combination of RES including solar, wind, geothermal, and hydropower, along with energy storage and smart grid technologies.
  • India: India has rapidly expanded its renewable energy capacity in recent years, with solar power now exceeding the capacity of coal power.
  • Orkney Islands, Scotland: The Orkney Islands in Scotland have become a hub for renewable energy and hydrogen production. The European Marine Energy Centre (EMEC) on the islands has been involved in several projects integrating RES, such as wind and tidal power, with hydrogen production. These projects aim to demonstrate the feasibility of using surplus renewable energy to produce hydrogen through electrolysis, which can then be stored and used for various applications including transportation and heating.
  • Haeolma Island, South Korea: Haeolma Island in South Korea is home to a successful renewable hydrogen energy integration project. The island has implemented a microgrid system combining solar and wind power generation with hydrogen production and storage. Excess renewable energy is used to produce hydrogen through electrolysis and the stored hydrogen powers fuel cells for electricity generation and provide clean energy to the island’s residents.
  • HyDeploy, United Kingdom: The HyDeploy project in the UK is focused on integrating renewable hydrogen into the existing natural gas network. The project aims to demonstrate the feasibility of blending low-carbon hydrogen with natural gas for heating and cooking in residential and commercial buildings. This initiative showcases the potential for using renewable hydrogen as a sustainable alternative to traditional natural gas, contributing to decarbonizing the gas grid.
  • Fukushima, Japan: In Fukushima, Japan, efforts have been made to develop a sustainable hydrogen society following the 2011 nuclear disaster. The Fukushima Hydrogen Energy Research Field (FH2R) is a large-scale renewable hydrogen production facility utilizing solar power to produce green hydrogen through electrolysis. The project aims to promote the use of renewable hydrogen as an energy carrier and contribute to the region’s recovery and transition to clean energy.

Unveiling Synergies: Green Hydrogen’s Integral Role in Reinforcing Renewable Energy

The global energy landscape is on the verge of a monumental transformation, marking a significant departure from conventional methods of energy generation and consumption. Renewable energy sources, notably solar and wind power, are rapidly gaining favour as the go-to alternatives to traditional fossil fuels. Nevertheless, a formidable challenge hinders the seamless integration of renewables—their inherent intermittency and variability.

The irregular patterns of energy production from renewable sources create uncertainty and pose a challenge to establishing a consistent and reliable energy supply. This obstacle has impeded the full-scale adoption of renewables into mainstream energy grids, preventing them from completely displacing conventional fossil fuel-based systems. Amid this intricate challenge, green hydrogen emerges as a promising solution.

Green hydrogen, generated through electrolysis powered by renewable energy, addresses the Achilles’ heel of renewables—their intermittency. By harnessing surplus energy during periods of abundance, green hydrogen production becomes a strategic means of energy storage. Through the electrolysis process, renewable energy from sources like the sun or wind is utilized to split water into hydrogen and oxygen. The resulting green hydrogen can be stored and deployed during times when renewable energy production is low, effectively bridging the gap between energy supply and demand.

This innovative approach not only mitigates the challenge of intermittency but also unlocks the full potential of RES. Green hydrogen acts as a versatile energy carrier that can be stored, transported, and utilized on-demand, providing a reliable and flexible complement to intermittent renewables. As the world endeavours to achieve a sustainable and resilient energy future, the integration of green hydrogen emerges as a transformative solution, facilitating a harmonious coexistence between renewable and traditional energy systems. In the narrative of energy evolution, green hydrogen stands as a catalyst, propelling us towards a future where the variability of renewables becomes an opportunity for innovation and progress rather than an obstacle.

Green hydrogen stands as a formidable solution to the challenges of intermittency and variability associated with RES, offering a robust storage medium. Surplus renewable energy can be utilized for electrolysis, splitting water into hydrogen and oxygen. This hydrogen is then stored, serving as a reliable and flexible source of clean energy that can be later used to generate electricity when demand arises.

Beyond its storage capabilities, green hydrogen plays a pivotal role in ensuring grid stability. The inherent fluctuations in renewable energy output can disrupt the equilibrium of the grid, but green hydrogen can swiftly adjust its production to provide balancing power, thus, maintaining grid stability and preventing potential blackouts. As we delve into the synergies between green hydrogen and renewables, it becomes apparent that these solutions align harmoniously with the discussions at COP 28, where global leaders seek strategies for grid stability and decarbonization. Green hydrogen emerges as a transformative solution contributing to shared international goals.

Moreover, green hydrogen possesses the transformative potential to decarbonize challenging sectors like transportation, industry, and heavy-duty vehicles. These sectors, notorious for contributing significantly to global greenhouse gas emissions, are often resistant to decarbonization through existing technologies. Green hydrogen emerges as a clean fuel alternative, making substantial contributions to achieving ambitious net-zero emissions targets.

The synergies between green hydrogen and renewables offer a myriad of substantial benefits:

  • Reduced GHG Emissions: Green hydrogen contributes to widespread decarbonization, fostering a cleaner and healthier environment across diverse sectors.
  • Enhanced Grid Stability: As an essential balancing power, green hydrogen ensures reliability and resilience of a grid, mitigating the impacts of renewable energy fluctuations.
  • Improved Energy Security: By diminishing reliance on fossil fuels, green hydrogen promotes energy independence and reduces vulnerability to geopolitical instability.
  • Economic Growth: The development of green hydrogen technologies stimulates economic growth, creating employment opportunities and fostering economic activity.

To summarise, the integration of green hydrogen with renewable energy represents a pivotal step towards a sustainable and secure energy future. With its multifaceted contributions to storage, grid stability, and decarbonization, green hydrogen propels us towards a world powered by clean renewable energy—an advancement that benefits both the planet and its inhabitants.

Future Landscape: Green Hydrogen and Renewables

The trajectory of energy is poised for a paradigm shift through the seamless integration of green hydrogen and RES. This symbiotic relationship holds the key to a sustainable energy future, with a spectrum of exciting advancements emerging on the horizon.

  • Advancements in Electrolysis: Pioneering electrolysis technologies, such as high-temperature solid oxide electrolysis, are surfacing and promising heightened efficiency and potential cost reductions.
  • Innovations in Hydrogen Storage: Novel storage solutions like metal hydrides and organic liquid carriers are under exploration, addressing storage challenges and ensuring a reliable hydrogen supply.
  • Diversification of Hydrogen Sources: Research is expanding beyond solar and wind to include hydrogen production from biomass and ocean energy, broadening the scope of the renewable energy portfolio.

  • Extended Duration Storage:  Beyond traditional batteries, technologies like pumped-hydro storage and hydrogen-based storage are anticipated to provide long-term energy storage solutions.
  • Enhanced Grid Integration: Smarter grid technologies and AI-powered solutions are expected to facilitate the seamless integration of diverse energy sources and storage systems.
  • Decentralized Energy Paradigm: Microgrids and community energy systems are poised to empower local communities in generating and managing their renewable energy.

  • Rapid Cost Reduction: As technology matures and economies of scale come into play, the cost of green hydrogen production and storage is projected to witness a substantial decline.
  • Policy Support: Crucial government policies and incentives are expected to stimulate green hydrogen development and expedite market adoption.
  • Disruptive Technologies: Breakthroughs in other clean energy technologies, such as advanced solar cells or fusion power, have the potential to reshape the energy landscape.

  • The future landscape will likely involve international collaboration and trade in green hydrogen. Countries with abundant renewable resources may export green hydrogen to regions with high demand for clean energy, fostering global partnerships and contributing to the establishment of a global green hydrogen market.

  • Green hydrogen will be used in power-to-gas applications to store excess renewable energy. Excess renewable electricity generated during periods of high production can be converted into green hydrogen through electrolysis and stored for later use in fuel cells or power generation, effectively balancing the supply and demand of renewable energy.

  • The future landscape will witness the development of a robust infrastructure for the storage, transportation, and distribution of renewable hydrogen. This includes the establishment of hydrogen refuelling stations for fuel cell vehicles, hydrogen pipelines for industrial use, and hydrogen storage facilities to ensure a reliable supply of green hydrogen.

  • Green hydrogen will play a pivotal role in decarbonizing industrial processes and transportation. Industries that require high-temperature heat, such as steel and cement production, can utilize green hydrogen as a clean fuel source. Additionally, green hydrogen can be used to power fuel cell vehicles, heavy-duty transport, and maritime vessels, reducing carbon emissions in the transportation sector.

While challenges persist, the future of green hydrogen and renewables is undeniably promising. Through sustained research, development, and investment, we can forge a path towards a clean, sustainable, and equitable energy future for generations to come. Anticipated advancements in emerging technologies and market trends align with the global vision set forth at COP 28. The international policies discussed on such forums are integral to driving rapid cost reduction and supporting the development of green hydrogen and renewable energy technologies.

Call to Action:

  • Support policies and initiatives fostering green hydrogen and renewable energy development.
  • Invest in the R&D of innovative technologies within this field.
  • Educate and engage the public about the myriad benefits of green hydrogen and renewables.
  • Collaborate to create a more sustainable energy future that benefits all.

As we conclude, our call to action extends beyond individual efforts. COP 28 discussions underscore the need for global cooperation and policy alignment. We urge nations to collaborate, invest, and implement strategies to accelerate the development and adoption of green hydrogen and renewable energy technologies, ensuring a sustainable and equitable energy future for all.

Contributors

Bragadesh Damodaran

Vice President ET&U Industry Platform Capgemini

Prof (Dr.) A. S. K. Sinha

Director Rajiv Gandhi Institute of Petroleum Technology (RGIPT)

Dr Shrawan Kumar Trivedi

Assistant Professor Rajiv Gandhi Institute of Petroleum Technology (RGIPT)

Dr Debashish Jena

Assistant Professor Rajiv Gandhi Institute of Petroleum Technology (RGIPT)

Dr Divyesh Arora

Manager, SME Hydrogen & Energy TransitionET&U Industry Platform Capgemini