Can the government create a green hydrogen fuel industry?
By
Steve Goreham
February 13, 2024 6:00 am
World leaders promote hydrogen as a possible low-emissions fuel for transportation and industry, and several nations have announced hundreds of billions of dollars in subsidies to support the development and supply of hydrogen. But will governments be able to create a new green hydrogen fuel industry?
When hydrogen burns, the only combustion product is water vapor. Net zero advocates, such as the International Energy Agency, propose that green hydrogen be used as fuel in place of natural gas and coal in industry and transportation. But the problems with existing hydrogen technology are many.
For all practical purposes, a hydrogen fuel industry does not exist today. Ninety-five million tons of hydrogen is produced annually by steam methane reforming using natural gas or by coal gasification methods. But the vast majority of hydrogen is not used as fuel. It is used on-site as feedstock for industrial processes.
Chemical and refining industries, for example, use hydrogen to generate ammonia or methanol. The steel industry uses hydrogen as a reducing agent to produce direct reduced iron. Hydrogen feedstock made from natural gas or coal is inexpensive, with a cost as low as $1 per kilogram.
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