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05.09.2023

The process of using renewable electricity such as wind or solar power to split water and produce hydrogen in an environmentally responsible way—that’s the definition of the sustainable energy production technology that may be reaching a tipping point: green hydrogen. After decades of being considered a technology of the future, it’s finally becoming a reality, promising to become an important driver of a worldwide green energy transformation. In fact, many believe green hydrogen is emerging as one of the most interesting technologies to help countries and companies achieve net-zero goals.

In Europe and the U.S., the green hydrogen boom is exploding. Finland, for example, is becoming an influential leader in green hydrogen production as it works aggressively toward climate neutrality. In fact, Finland is expected to produce 10% of the European Union’s green hydrogen in 2030 while targeting carbon neutrality by 2035.

Green hydrogen initiatives are increasingly hitting the headlines. In the past year, major green hydrogen developments and investments have emerged worldwide:

• In January 2023, a Norwegian company announced a $4.3 billion investment in a steel plant with an integrated hydrogen production facility.

• Construction of Finland’s first green hydrogen plant also began early this year, backed by a $76 million private investment.

• In Spain, a Madrid-based company is developing the first green hydrogen supply chain between southern and northern Europe, anticipated to supply Northwest Europe with 6 million tons of green hydrogen by 2030.

• In the U.S., the government is investing heavily in clear hydrogen initiatives. And the states are getting into the act, too. New York, for instance, has entered into an agreement with nearby states and 40 hydrogen ecosystem partners to develop a regional hydrogen hub to accelerate green hydrogen energy innovation and investments.

But what’s bringing about this global green hydrogen boom? The main driver comes as no surprise—it’s the urgent need to eliminate harmful fossil fuels and carbon dioxide emissions for a more sustainable, environmentally responsible future. And there are several other factors as well, including:

• The price of green hydrogen becoming more competitive.

• The advanced development of the hydrogen ecosystem, with sectors on both the supply and demand side of the equation.

• The improved availability of green energy, thanks to sufficiently developed wind and solar energy plants, resulting in a grid frequency and storage market that can be more easily tapped.

• The enhanced efficiency of production and storage technologies.

How Green Hydrogen Technology Works

Green hydrogen technology is based on hydrogen generation, which uses electrical currents to separate hydrogen from the oxygen in water. So, what’s the difference between traditional hydrogen and green hydrogen production? To put it simply, if the energy used for generating hydrogen comes from renewable sources, such as wind or solar, green hydrogen is born. Unlike the traditional hydrogen generation process, green hydrogen production leverages green energy sources that don’t release harmful carbon dioxide emissions into the atmosphere.

How Green Hydrogen Can Reduce Fossil Fuel Dependence And Carbon Emissions

Years ago, hydrogen was seen only as a solution for the evolution of greener vehicles. As electric vehicles have gained more traction, hydrogen is increasingly being seen as a solution for other industries.

The demand for hydrogen continues to increase as its usage expands across industrial and manufacturing industries for a variety of purposes, including oil refining, steelmaking and cement production. However, as hydrogen’s popularity grows, the importance of green hydrogen can’t be overstated. Alarmingly, 98% of hydrogen is made from fossil fuels with no carbon dioxide emissions controls or regulations in place. But green hydrogen has the potential to change that—for good.

From commercial plant production smoke to gasoline and diesel-powered car exhaust fumes, green hydrogen production reduces or eliminates the need for fossil fuel energy sources that release large amounts of carbon dioxide into the air. In the data center industry, as storage systems develop hydrogen, it can be used instead of diesel-powered backup generators to energize future data centers. As a result, green hydrogen benefits abound, allowing governments and organizations to bolster national energy security, conserve fuel, reduce overall emissions and diversify transportation energy options from cars to expansive public transit systems.

Green hydrogen technology couldn’t have been introduced at a better time. The U.S. Energy Information Administration predicts global energy demand will increase by 47% by 2050. The only way to offset that demand in the form of oil and coal energy production is by adopting greener methods, such as green hydrogen.

And thanks to the technological breakthroughs that have essentially decarbonized the production of hydrogen, many companies are turning to carbon offsets that leverage green hydrogen to reduce their carbon footprint and meet aggressive ESG goals.

The process of generating green hydrogen comes with advantages. The International Energy Agency (IEA) states that green hydrogen saves approximately 830 million tons of carbon dioxide emitted annually compared to when the gas is produced using traditional fossil fuel methods. That’s equivalent to an entire year’s worth of emissions from the U.K. and Indonesia combined!

Just like with any new technology, there are some challenges to overcome as the green hydrogen boom takes hold. Some issues to consider include process efficiency and costs of production on a large scale, in addition to establishing long-term pressurized storage solutions. Challenges aside, green hydrogen is an exciting new technology that could help balance the much-needed large-scale production of green energy.

Develop A Strategy That Promotes Green Hydrogen

To ensure a sustainable future, organizations across every industry must do their part to establish a plan to reduce their carbon footprint. As you set out on your journey to climate neutral—or even carbon negative, there are many actions you can take to implement greener practices across your organization, such as optimizing your procurement and facilities for emissions and energy efficiency. And most importantly, commit to using 100% green energy, harnessing the natural resources around you like wind, solar and hydro to promote green hydrogen production, all while reducing fossil fuel emissions in a meaningful way.

This article was originally posted on Forbes Technology Council.