Green Hydrogen

Landscape and Technology

Abhijeet Gaikwad
Summary:
The worldwide hydrogen sector is currently experiencing a substantial shift, primarily
motivated by the pressing need to eliminate carbon emissions from various businesses and
mitigate the impact of greenhouse gases. Hydrogen, widely recognised as the environmentally
friendly energy carrier of the future, is increasingly being acknowledged as a flexible and
sustainable option. Nations globally are making significant investments in the development of
hydrogen production, storage, and distribution infrastructure to fully exploit its potential.
Dominantly nations have put forward the strategies to replace grey hydrogen used in
refineries, fertilizer’s and steel industries by green hydrogen. From Europe's ambitious
hydrogen policy to Asia's significant role in increasing production, the momentum is growing.
The advancements in electrolyser technology, along with the incorporation of renewable
energy, are reducing expenses and enhancing the competitiveness of green hydrogen. In
order to achieve a sustainable and low-carbon future, it is imperative for governments,
companies, and academia to collaborate as the globe transitions to a hydrogen economy.
The objective of this article is to assess the global and national hydrogen landscape, the
support mechanisms available for hydrogen industry and technologies involves in Green
Hydrogen sector.

Figure 1: Top to bottom approach Green Hydrogen Ecosystem

This article is divided into four sections as shown in the above figure.
 The first section delves into global hydrogen landscape which highlights the current
hydrogen demand and future demand projections as world transits towards net zero
economy.
 The second section focuses on India’s current hydrogen demand, hydrogen
consumption points and dives into National Green Hydrogen Missions (NGHM).
 The third section provides insight about necessary support mechanisms which are
needed to drive up the demand for green hydrogen and how support mechanisms
can help to reduce the cost of hydrogen technology and subsequently the cost of
hydrogen production.
 The last section explores the available technologies in green hydrogen production
and storage.
Contents
1 Global hydrogen landscape:............................................................................. 5
1.1 Major global green hydrogen tender list ............................................................... 7
2 India’s Hydrogen Landscape ............................................................................ 8
2.1.1 National Green Hydrogen Mission ................................................................. 8
2.1.2 Existing tenders on green hydrogen in India .................................................. 9
3 Green Hydrogen Market Development: .......................................................... 10
3.1 Mechanisms that can enable green hydrogen market:....................................... 10
3.1.1 Feed-in-Tariff ............................................................................................... 10
3.1.2 Effect of FIT on biogas industry in UK .......................................................... 11
3.1.3 Effect of FIT on Solar PV industry in India ................................................... 11
3.1.4 Contract for Difference (CfD) ....................................................................... 12
3.1.5 Requirements for implementing CfD mechanism: ........................................ 13
3.1.6 Effect of CfD on price reduction ................................................................... 14
3.1.7 Demand Side support mechanisms: ............................................................ 14
4 Hydrogen production and storage technologies: ......................................... 15
4.1 Emissions from hydrogen production via different routes ................................... 17
4.2 Green Hydrogen production .............................................................................. 17
4.3 Electrolyser Technology .................................................................................... 19
4.3.1 Balance of Plant: ......................................................................................... 20
4.3.2 Comparison of electrolyser technologies ..................................................... 21
4.4 Storage.............................................................................................................. 21
4.4.1 Comparison of Hydrogen Storage:............................................................... 22
5 Sgurr Energy’s Scope ..................................................................................... 23
Table 1: Abbreviation used in this paper

Abbreviation Meaning

MMT Million Metric Tons

DRI Direct Reduced Iron

H2 Hydrogen

IEA International Energy Agency

NZE Net Zero Emissions

NGHM National Green Hydrogen Mission

FIT Feed-in Tariff

LCOE Levelised Cost of Energy

LCOH Levelised Cost of Hydrogen

CfD Contract for Difference

GVW Gross Vehicle Weight

TSO Transmission System Operator

DSO Distribution System Operator

RFNBO Renewable Fuels of Non-Biological Origin

CCS Carbon Capture and Storage

SECI Solar Energy Association of India

SMR Steam Methane Reforming

PEM Proton Exchange Membrane

AEM Anion Exchange Membrane
SOEL Solid Oxide Electrolyser

TRL Technology readiness level

BOP Balance of plant

1 Global hydrogen landscape:
This section explains current global hydrogen demand, where is this hydrogen being used i.e.
application sectors and region wise share of hydrogen use. Furthermore, it contains some
major tenders in green hydrogen across the globe.
Global cumulative hydrogen demand in 2022 was 95 million metric tons (MMT) refer Figure 2.
Industrial H2 demand accounted for 53MMT of hydrogen in 2022, of the 53MMT of hydrogen
used in industry in 2022, about 60% was for ammonia production, 30% for methanol and 10%
for direct reduced iron (DRI) in the iron and steel industry. Hydrogen use in refining reached
more than 41MMT in 2022.
Global H2 demand 2022 (MMT) Industrial H2 demand 2022 (MMT)

100
95 5.3,
10%
75

15.9,
50 30% 31.8,
53 60%
41
25

0
Refining Industry Total Ammonia Methanol DRI Steel

Figure 2: Current global H2 demand in MMT

In 2022, the hydrogen demand in industry increased significantly compared with 2021, driven
by rising global demand for ammonia, methanol and for steel making. China remains the main
consumer of hydrogen, with 29% of global H2 demand, followed by the North America (17%),
Middle East (13%), India (9%) and Europe (8%) as shown in the Figure 3. The region wise
sectorial global demand of hydrogen is shown in Figure 4.

Hydrogen use by region 2022

China
8%
North America
9%
29%
Middle East
13%
India
17%
Europe

Figure 3: Hydrogen use by region 2022

The Figure 4 shows the region wise sectorial global hydrogen demand in 2022.
 Global Hydrogen Demand 2022 (MMT)
30

25
9
20

15

10 10
18.6 2.3
2.5 4.6
5
7.4
5.3 4.8 4.2
0
China Middle East North America India Europe

Industrial Refinery

Figure 4: Global hydrogen demand by region in 20221

According to International Energy Agency (IEA), the oil demand will reduce in 2030, as the
world transits towards net zero economy. IEA projects the hydrogen demand in refinery to be
35MT by 2030. In the net zero emission (NZE) Scenario 2030, hydrogen use in industry is
projected to be 70MMT. Transport, domestic heating and industrial using H2 boilers, use of H2
in gas turbine will further increase the H2 demand of about 40-50MMT by 2030. The Figure 5
shows the sector wise projection of hydrogen in 2030.

Projected H2 demand in 2030 (MMT)

180
153
150

120

90
70
60
35 40
30
8
0
Refinery Industry Transport Power, syngas & Total
other
Projected H2 demand 2030

Figure 5: H2 demand projections 2030 in MMT

The hydrogen demand is projected to grow significantly. This will open new avenues and
opportunities for business to cater.

1 International Energy Agency (IEA) - Global Hydrogen Review

1.1 Major global green hydrogen tender list
This section contains the large hydrogen tenders which have significant importance regarding
hydrogen market development initiatives across the globe.

 The European Commission held the first round of the "European Hydrogen Bank"
auction on November 23, 2023 with a maximum price of EUR4.50 (USD4.91)/kg. The
approved projects will receive subsidies for a decade, alongside revenue from
hydrogen sales. The European Hydrogen Bank is a project aimed at facilitating
renewable hydrogen generation and imports inside the EU. It intends to unlock private
investment in the EU and third countries by tackling investment obstacles, reducing
the funding gap, and connecting future renewable hydrogen supply to consumers,
thereby contributing to the EU's target of 20MMT of hydrogen in the energy mix by
2030. The pilot auction for renewable hydrogen production in Europe attracted 132
bids from projects located in 17 European countries, representing a total planned
electrolyser capacity of 8.5GW. The first auction under the European Hydrogen Bank
mechanism came in significantly below expectations, with the seven successful
projects bidding at 37-48euro cents/kg (40-51USDcents/kg) for a total of 1.5GW of
electrolysis. Seven winners receive 720EUR million for 1.58MMT over 10 years, well
below Eur4.50/kg price ceiling set for debut auction. The support structure is based on
the well-established contract for difference (CfD) model.
 German steel producer Stahl-Holding-Saar (SHS) has launched a tender to buy up to
50,000Tons of locally produced renewable hydrogen for its Dillinger and Saarstahl
plants in Saarland2.
 The UK government launched its first electrolytic hydrogen allocation round (HAR1) in
July 2022, and has selected 11 projects which represent 125MW of capacity with a
weighted average strike price of £241/MWh. As anticipated, HAR2 has also been
launched with support available for up to 875MW of low carbon hydrogen projects3.
 The Dutch government plans to hold an auction in 2024 to allocate 1EUR billion in
subsidies for green hydrogen projects. This ambitious goal is part of their plan to reach
8GW of green hydrogen production capacity by 20324.

2 SPGlobal - Energy Transition

3 Hydrogen Insights - UK Policy
4 Hydrogen Insights - Nederland to hold 1 BL Auction
2 India’s Hydrogen Landscape
This section explains current hydrogen demand in India, where is this hydrogen being used
i.e. application sectors and National Green hydrogen mission.
Demand for hydrogen today is at around 6MMT per annum, coming solely from industry
sectors, such as fertilizers (3.4MMT), refineries (2.5MMT), and methanol (0.05MMT) as shown
in the Figure 6. This can increase to around 28MMT by 2050, driven by cost reductions in key
technologies such as electrolysers, fuel cells, and compressed hydrogen storage, as well as
the growing interest to decarbonize the energy system.
Demand will continue to be largely focused in industry sectors, either expanding in existing
sectors, such as fertilizers and refineries, or growing into new sectors, such as steel. Hydrogen
is expected to play important role in the transport sector in heavy-duty and long-distance
segments, as batteries increases the Gross Vehicle Weight (GVW) of heavy duty vehicles
significantly.

Current Hydrogen demand 2022 (MMT) - India

7
5.95
6

4 3.4
3 2.5

1
0.05
0
Fertiliser Refinery Methanol Total

Figure 6: Current hydrogen demand in India 2022

Hydrogen has a wide range of applications across various sectors, including energy,
transportation, industry, and more. Hydrogen is currently being consumed in refineries,
fertilizer’s and process industries at large scale; it is predominantly produced from natural gas
via process a called “steam methane reforming” which emits large quantities of CO2
emissions. This hydrogen produced from natural gas is called grey hydrogen.

2.1.1 National Green Hydrogen Mission

India has launched the National Green Hydrogen Mission (NGHM) with an outlay of 19,744INR
crores (2.3USD billions) with a target of 5MMT production capacity of Green Hydrogen per
annum alongside adding renewable energy capacity of about 125GW (gigawatt) in India by
2030. It aims to entail over 800,000INR crores of total investments and generate six lakh jobs.
This may lead to a cumulative reduction in fossil fuel imports by over 100,000INR crores and
an abatement of nearly 50MMT of annual greenhouse gas emissions. The figure 7 below
shows the allocation of funds in nation green hydrogen mission.
 Figure 7: Allocation of Green Hydrogen Mission Fund
Objective of NGHM is to make India the Global Hub for production, usage and export of Green
Hydrogen and its derivatives. This mission will lead to significant decarbonisation of the
economy, reduced dependence on fossil fuel imports, and enable India to assume technology
and market leadership in Green Hydrogen.

2.1.2 Existing tenders on green hydrogen in India

 Gas Authority of India Limited (GAIL) has floated an open tender in Dec 2021 to set
up 4.3Ton per day (TPD) Green Hydrogen production unit, based on principle of
electrolysis of water using PEM at GAIL Vijaipur site for its refinery application.
 Gujarat Industries Power Company Ltd. (GIPCL) has floated Invitation for
Expression of Interest (EOI) for setting up 5 & 10MW electrolyser based Green
Hydrogen Project along with associated facilities in April 2022 for surrounding
refineries, fertilisers and chemical industries.
 Hindustan Petroleum Corporation Ltd. (HPCL) issued notice inviting tender (nit) for
supply of electrolyser system for green hydrogen production at Hindustan Petroleum
Corporation Limited at Visakh refinery in the state of Andhra Pradesh dated Oct 2021.
 The Solar Energy Association of India (SECI) issued the tender of Green Hydrogen
Produced in India. The tender is for selection of Green Hydrogen Producers for setting
up Production Facilities for Green Hydrogen in India under the Strategic Interventions
for Green Hydrogen Transition (SIGHT) Scheme (Mode-1-Tranche-I), and has been
awarded on 9th January, 2024 to 10 companies for a total capacity of 0.4MMT per
annum.
 The SECI issued one more tender for selection of Electrolyser Manufacturers (EM) for
setting up Manufacturing Capacities for Electrolysers in India under SIGHT Scheme
(Tranche-I), and has been awarded on 12th January, 2024 to 8 companies for a total
capacity of 1.5GW per annum.
3 Green Hydrogen Market Development:
This section explains the need of support mechanism for hydrogen industry, what are the
available support mechanism and explains the working of major mechanisms.
Currently there are more than 1000projects5 announced worldwide for green hydrogen and
this represents a total of 38MMT per year. However, because of market uncertainty, high
technological prices, and a multitude of additional challenges, only a limited number of projects
have reached final investment choices.
At this stage of the hydrogen market's development, it is crucial for investors and legislators
to back efforts that aim to reduce technology costs and accelerate the industry's learning
process. In order to establish a market, it is necessary to have a well-functioning supply and
demand infrastructure. Support mechanisms are essential tools that can significantly drive
market development. For instance, the implementation of feed-in-tariff policies played a crucial
role in facilitating the widespread adoption of solar photovoltaic (PV) technology in Germany
and the UK. Similarly, the use of contract for difference mechanisms was pivotal in the
successful deployment of wind energy technology in the UK.
3.1 Mechanisms that can enable green hydrogen market:

3.1.1 Feed-in-Tariff
A feed-in tariff (FIT) is a policy designed to support the development of renewable energy
sources by providing a guaranteed, above-market price for producers. FITs usually involve
long-term contracts, from 15 to 20 years.
Similar to feed-in schemes for renewable energy, green hydrogen producers can receive a
remuneration either through a fixed feed-in tariff (FIT) or through a feed-in premium (FIP).
Referring to the Levelised Cost of Energy (LCOE) approach commonly used for FIT, the
remuneration level can be determined by the Levelised Cost of Hydrogen (LCOH).
 To incentivize the early adoption of green hydrogen, a feed-in-tariff mechanism can be
implemented in the gas grid until the production costs of hydrogen are on par with
natural gas prices.
 The expenses associated with maintaining this mechanism should be allocated among
gas consumers.
 Implementing a legislative framework will allow hydrogen producers to inject hydrogen
into the natural gas system for the purpose of mixing.
 The individuals will have the right to a 20-year contract to purchase hydrogen at a price
that guarantees a satisfactory profit on their investment.
 The off-taker can either be a Transmission System Operator (TSO) for large-scale,
high-pressure bulk hydrogen or a Distribution System Operator (DSO) for small-scale,
medium-pressure hydrogen. The DSO and TSO have the ability to transfer the
marginal cost, which represents the difference between the local hydrogen tariff and
the market price for hydrogen, to a hydrogen clearing pool, specifically a designated
fund.

5 IEA Global Hydrogen Review 2023

3.1.2 Effect of FIT on biogas industry in UK
The UK implemented FIT in 2010. The scheme had many technologies covered including
biogas. As it can be seen in Figure 8, since 2010, the installation of biogas plants has
increased in UK. Furthermore, UK has implemented additional mechanisms to support biogas
industry which includes Renewable Heat Incentive (RHI) since 2011, and Green Gas Support
Scheme (GGSS) since 2021. Total number of biogas plants increased from 50 in 20116 to
723 in 2023 due to various support mechanisms7.

Figure 8: Number of biogas plants by feedstock in UK

3.1.3 Effect of FIT on Solar PV industry in India

Since the implementation of FIT in 2010, solar PV industry has grown significantly in India.
From 2.82MW in 2009 to 37,627MW in 2020 the growth of solar industry is a good example
of effect of government support to develop a market. Refer Figure 9 below to understand the
effect of FIT government support in solar PV industry development in India.

6 Gov.UK - Anaerobic digestion action plan

7 HRS - can UK meet its AD targets
 Solar Installed Capacity (MW)

37,627
40000

35000

28,181
30000

21,651
25000

20000

12,289
15000

6,763
10000

3,744
2,632
1,684
5000
932
36
12
3

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Figure 9: Solar installed capacity in MW

3.1.4 Contract for Difference (CfD)

Contract for Difference is a mechanism that provides financial support to low-carbon
renewable energy and hydrogen projects. It aims to incentivize the production of low-carbon
hydrogen by offering a guaranteed price for the hydrogen produced. It is a financial instrument
that mitigates the risk associated with the price volatility of a specific asset (e.g., hydrogen or
electricity). A bilateral agreement is established between a buyer (typically a government or a
major consumer) and a seller (typically a hydrogen producer). Contracts for Difference give
recipients a top-up subsidy that represents the difference in cost between the green option
and the existing polluting option.
A CfD involves a consumer or a government agreeing to purchase hydrogen at a fixed price
for a specified period of time, regardless of the market price. Hydrogen producers’ benefit from
a steady stream of revenue, which facilitates the acquisition of financing necessary for their
operational activities and the purchaser obtains a dependable provision of hydrogen at a
consistent cost, thereby enabling them to reduce their ecological impact and fulfil their
sustainability goals.
The government will set a reference price for hydrogen, and generators will receive an extra
payment if the market price drops below the reference price. The reference price will be that of
natural gas (NG). Conversely, when the market price is higher than the reference price,
companies are obligated to compensate the government for the difference.
How the price will be set?
Strike Price: It is often found through a competitive bidding mechanism, such as a tender or
auction when producers compete against each other to determine the minimum set price that
allows them to proceed with their individual projects. Therefore, these fixed prices are typically
referred to as the ‘strike price’ (the price at which the auction was won).
Reference price: Reference price will be the price of natural gas.
e.g. Assume 5 producers submitted their bids in the auction.
Table 2: H2-CfD bids (conceptualised for illustration)

Producer Bid (USD $/kg)

A 11
B 8
C 5
D 5.8
E 7

The strike price here is assumed8 to be 7.36USD $/kg which represent the average price of
the bids submitted. The reference price is the price of natural gas and it is variable.

Contract for Difference (CfD) Mechanism

10
9 Producer pay the government 9
9
8 8 8
7.36

7.36

7.36
7.36

7.36

7.36

7.36

7.36

7.36

7.36

7.36

7.36
8
7 7 7
7
$/kg

6 6
6
5 Government pay the producer
5
4
4

Natural gas price $/kg Strike price $/kg

Figure 10: Working of CfD Mechanism

As shown in the Figure 10, when the natural gas price is above strike price the difference is
paid by producer to the government and when the natural gas price is below the strike price
government pays the difference to producer. The CfD seeks to reduce the price disparity by
offering financial support to hydrogen producers with lower carbon emissions, so enhancing
their competitiveness and promoting wider adoption

3.1.5 Requirements for implementing CfD mechanism:

 The hydrogen generated by qualifying projects must have a carbon intensity ranging
from 2 to 4kilogrammes of CO2 per kilogramme of hydrogen.
 Projects must have the capacity to generate a minimum of few thousand metric tonnes
of hydrogen per year. The minimal capacity requirement ensures that the CfD
programme only provides funding to larger projects that have a significant impact on
the hydrogen market.

8 The method used here to calculate the strike price is for illustration purpose.
  Projects must have a minimum operational lifespan of 15 years. The project's long-
term commitment demonstrates its viability and fosters sustainable development.
 Projects are required to have offtake agreements with customers for a minimum of
seventy percent of the hydrogen they produce. This ensures a demand for the
hydrogen generated, reducing the risk for project creators.

3.1.6 Effect of CfD on price reduction

Since the implementation of CfD mechanism in the UK, the strike prices for offshore wind has
reduced significantly; that means the cost to develop offshore wind farms have reduced
drastically. This is because governments support to develop the industry led to competitive
bidding auctions which made developers to bid with lowest cost to win the government support
for projects. As shown in the Figure 11 the strike prices of offshore wind auctions have reduced
significantly and this led the government to spend less on supporting the new industry
development.

UK offshore wind strike prices in GB pound (£/MWh)

160 150

140
119.89
120
100
74.75
80
60
39.65
40
20
0
2014 2015 2017 2019

UK offshore wind strike prices in £/MWh

Figure 11: Effect of CfD in offshore wind industry in UK

3.1.7 Demand Side support mechanisms:

Many countries across the globe are going to place mandatory targets regarding the demand
for hydrogen in transportation and industry, as well as synthetic fuel mandates in aviation. For
example, The EU has implemented the FuelEU Maritime rule with the aim of increasing the
proportion of renewable and low-carbon fuels in the fuel composition of international maritime
transport inside the EU. The FuelEU Maritime initiative encompasses the potential
implementation of a 2% renewable fuel of non-biological origin (RFNBO) target in maritime
fuels beginning in 2034 to support the uptake of the renewable fuels.

In 2021, India declared its intention to implement quotas for steel, fertilisers, and refining.
Although these quotas were ultimately excluded from the National Green Hydrogen Mission,
they continue to be deliberated upon and may be implemented in the near future. The
consultation on a consumption rebate scheme scheduled to commence in 2025 has been
initiated in New Zealand, while the United States has declared a 1USD billion initiative to
promote the demand for low-emission hydrogen, the specifics of which are expected to be
disclosed later this year.
4 Hydrogen production and storage technologies:
There are several existing hydrogen production technologies, and new ones are in
development stage. The new technologies aim to achieve zero or minimal emissions during
production processes. Colours are used by industry to differentiate between carbon-intensive
(grey and black/brown) and clean (green, blue, turquoise, and pink) hydrogen technologies
refer Figure 12.

Figure 12: Colour scheme for hydrogen production

The
Table 3 provides the types of hydrogen produced from various technologies and it describes
the significance of the colour.
Table 3: Types of Hydrogen and its description
Type of Hydrogen Description

 Hydrogen originating in a process of coal gasification is

called black (from black coal) or brown (from brown
coal) hydrogen. Coal gasification involves conversion of
coal from its solid state into gaseous form.
 The process disintegrates coal into its chemical
Brown/Black Hydrogen:
constituents, which includes methane gas. The coal
then reacts with oxygen and steam under high
temperature and pressure, which results in the
formation of syngas, a blend of hydrogen, carbon
dioxide, and carbon monoxide.

 Grey hydrogen refers to hydrogen produced from fossil

fuels, using the most commonly applied concept of gas
reforming.
 In this process, natural gas and steam at high
temperature and pressure are converted to hydrogen
Grey Hydrogen
and carbon dioxide through a catalytic chemical
reaction, which is endothermic and uses steam at 700
°C to 1000 °C. Since a large amount of carbon dioxide
is emitted during the production process, it is referred to
as “grey".

 Using the steam methane reforming or auto thermal

reforming process that mixes natural gas with very hot
steam and catalysts and produces H2 and CO2.
Blue Hydrogen
 This CO2 can be then captured and stored
underground by CCUS to make the process carbon-
neutral, and the resulting H2 is called blue hydrogen

 Turquoise hydrogen production uses a modified

pathway when compared with blue hydrogen
production.
 A pyrolyser splits the natural gas feedstock to produce
hydrogen and solid carbon without any need for carbon
Turquoise Hydrogen
emission abatement.
 The turquoise colour fits in between the green and the
blue colours because even though natural gas is used
as the raw material, the low carbon intensity of the
process makes it an attractive option

 Green hydrogen is the hydrogen produced without

greenhouse gas emissions.
 It is made through the electrolysis of water using
Green Hydrogen renewable energy sources such as solar or wind power.
 Electrolysis entails an electrochemical reaction to split
water into oxygen and hydrogen, releasing no carbon-
dioxide in the process.

 Like green hydrogen, it is generated through

Pink Hydrogen electrolysis of water but using nuclear energy as a
power source.
4.1 Emissions from hydrogen production via different routes9
Today, Natural gas is the main source of hydrogen production globally, accounting for 62% of
production. The direct emissions of hydrogen production from natural gas without carbon
capture and storage (CCS) using steam methane reforming (SMR) are around 11kg CO 2-
eq/kg H2. Applying CCS to the various direct CO2 sources at the SMR hydrogen plant can
reduce the direct emissions to 1.5-6.2kg CO2-eq/kg H2 (capture rate 93%). Hydrogen
production from coal gasification without CCS results in total emissions of 22-26kg CO2-eq/kg
H2. Applying CCS with a total capture rate of 93% reduces the emissions intensity of the coal
pathway to 2.6-6.3 kg CO2-eq/kg H2. Figure 13 below shows the emission intensity of various
H2 production pathways.

Emissions intensity of different hydrogen production routes

(kg CO2 /kg H2)
30
26
25

20

15
11
10
6.3 6.2
4.7
5
0 0
0
Coal Coal NG SMR NG SMR with Biomass Solar Wind
gasification gasification with CCS gasification electrolysis Electrolysis
CCS

Figure 13: Emissions intensity of different hydrogen production

4.2 Green Hydrogen production
Hydrogen, when produced from clean sources such as solar, wind, and hydro etc., is called
green and it is a critical enabler of the global transition to sustainable energy and a vital
component of achieving net-zero emissions economies. Renewable hydrogen is obtained
through the process of electrolysis where electricity is used to split water into its components
– oxygen and hydrogen. Electrolysis occurs in a device called an electrolyser, which splits
water. The Figure 14 represents simple diagram of green hydrogen production.

9 IEA (international energy agency) – Global Hydrogen Review 2023

 Figure 14: Green Hydrogen simple schematic diagram10
This energy source has merits and demerits that we must be aware of. Following are some
of its most important merits:
 100 % sustainable: green hydrogen does not emit polluting gases either during
combustion or during production.
 Storable: hydrogen is easy to store, which allows it to be used subsequently for other
purposes and at times other than immediately after its production.
 Versatile: green hydrogen can be transformed into electricity or synthetic gas and
used for commercial, industrial or mobility purposes.
However, green hydrogen also has some demerits;
 High cost: energy from renewable sources, which are key to generating green
hydrogen through electrolysis, is more expensive to generate, which in turn makes
hydrogen more expensive to obtain.
 High energy consumption: the production of hydrogen in general and green
hydrogen in particular requires more energy than other fuels.
 Safety issues: hydrogen is a highly volatile and flammable element and extensive
safety measures are therefore required to prevent leakage and explosions.
 Low volumetric density: hydrogen gas at atmospheric pressure has very low energy
density compared to other fuels.

10 Source – Witty Images

4.3 Electrolyser Technology
Hydrogen from renewable power has a potential to highly contribute to the global energy
decarbonisation. Renewable hydrogen is obtained through the process of electrolysis where
electricity is used to split water into its components – oxygen and hydrogen. Electrolysers can
be classified on the basis of electrolyte used as alkaline if potassium hydroxide is used and
PEM if a solid polymer membrane is used as electrolyte. Although promising, solid oxide and
anion exchange membrane (AEM) technologies are still in their early stages of development.
The Table 4 summarises the characterisation of electrolyser technologies.
Table 4: Characterisation of electrolyser technologies

Parameter Alkaline PEM AEM Solid Oxide

Operating Temp 70-90 °C 50-80 °C 40-60 °C 700-850 °C

Operating
1-30 bar < 70 bar <35 bar 1 bar
pressure

DVB polymer
Solid polymer support with Yttria
KOH / NaOH
Electrolyte electrolyte (1 mol/L) stabilized
(5-7 mol/L)
(PFSA) Zirconia (YSZ)
KOH / NaOH

Solid
Separator Asbestos/Zirfon/Ni Nafion Fumatech electrolyte
YSZ

Nickel coated
Electrode/Catalyst
perforated Iridium oxide Nickel Ni / YSZ
(Hydrogen side)
stainless steel

Perovskites
Nickel coated
Electrode/Catalyst Platinum Nickel or (LSCF, LSM)
perforated
(Oxygen side) carbon NiFeCo alloys (La,Sr,Co,FE)
stainless steel
(La,Sr,Mn)

Titanium Nickel
Gas Diffusion Nickel
Nickel mesh mesh/carbon foam/carbon
layer mesh/foam
cloth cloth

Nominal current
0.2–0.8 A/cm2 1–2 A/cm2 0.2–2 A/cm2 0.3–1 A/cm2
density

Voltage range 1.4–3 V 1.4–2.0 V 1.4–2.5 V 1.0–1.5 V

Efficiency 50%–78% 50%–83% 57%–59% 89%

50,000–
Lifetime (stack) 60,000 h >30,000 h 20,000 h
80,000 h

Small scale
Commercial
Mature Commercial demonstration Demonstration
Status
1 MW
 Capex 10 MW
500 - 1000 700 - 1400 1500-2500 >2300
[US$/kWe]
The Figure 15 below shows the key equipment needed for green hydrogen projects,which
include renewable energy plant. It may be solar PV, wind or hydro. Then electctrolsyer which
produced hydrogen from electricity and water, and then produced hydrogen is stored in
storage.

Figure 15: Basic Schematic of Electrolyser System

4.3.1 Balance of Plant:

The balance of plant (BoP) for an electrolyser system refers to all the components and
systems necessary for the operation of the electrolyser that are not directly part of the
electrolyser stack itself and is represented in block diagram in Figure 16.

Figure 16: Typical Electrolyser balance of plant (BoP) diagram

For an electrolyser system used for hydrogen production, the balance of plant typically
includes components such as:
 Power Supply: Often an external component providing the necessary electrical power
for the electrolysis process. This can include transformers, rectifiers, and other power
electronics.
 Water Treatment System: To provide high-quality water for the electrolysis process,
which is crucial for efficiency and longevity of the electrolyser.
 Gas Treatment System: For purification and drying of the hydrogen and oxygen gases
produced by the electrolyser, ensuring they meet the required purity standards. It
includes pressure regulation, control and monitoring system.
The balance of plant is critical for the efficient and safe operation of an electrolyser system,
and its design can significantly impact the overall performance and cost-effectiveness of
hydrogen production.

4.3.2 Comparison of electrolyser technologies

 For water electrolysis, there are four main technologies available: Alkaline water
electrolysis (AEL), proton exchange membrane (or polymer electrolyte membrane)
electrolysis (PEMEL), Anion Exchange Membrane (AEM) and solid oxide electrolysis
(SOEL). Among them proton exchange membrane (PEM) and alkaline electrolyser
technologies are currently commercially available and are above Technology
Readiness Level (TRL) 7.
 PEM water electrolysis has great advantages such as compact design, high current
density (above 2A/cm2), high efficiency, fast response, and small footprint. In addition,
it can be operated at low temperatures (20–80 degrees Celsius) to produce ultra-pure
hydrogen and oxygen, which have a significant economic value. However, platinum
group metals (PGMs) like platinum, iridium, and ruthenium as catalysts make PEM
electrolysis the most expensive electrolysis method because of initial capital
expenditure (CAPEX).
 Alkaline technologies are likely to be used in projects that have fewer electricity price
restrictions, little space limitations, and low renewable variabilities, such as large, GW-
scale industrial projects connected to hydropower. On the other hand, PEM
technologies are better suited for projects with high renewable variability and limited
space, such as offshore projects.
4.4 Storage
Hydrogen storage is a key enabling technology for the advancement of hydrogen and fuel cell
technologies in applications including stationary power, portable power, and transportation.
Hydrogen can be stored physically as either a gas or a liquid. Hydrogen has a high energy per
unit mass content of 120.1MJ/kg. However, its low density at environment temperature yields
an extremely low energy density (0.01MJ/L). As a result, larger volumes of hydrogen must be
required to meet the same energy demands as other fuels.
Hydrogen storage can be divided according to whether it is based on physical or material
storage. Under physical storage, it is stored as a gas or liquid as a pure molecular compound
with no significant physical or chemical bonding to other materials.
The most suitable storage vessel will be determined by the application of the storage, the
volume to be stored, the time required for storage, the required discharge rate, the
geographical availability of different options and whether the storage is small-scale or large-
scale. For large-scale storage, the energy density issue and filling time are not
constraints, whereas for small-scale storage, the energy density issue and charging times are
crucial. The purity of the hydrogen is an additional important factor, as a high purity of
hydrogen is of utmost importance for its use in fuel cells, whilst for burning purposes, purity
will not be a critical point. The Figure 17 below shows various types of hydrogen storage and
table 5 consists the comparison of these storage technologies.
 Figure 17: types of Hydrogen Storage11

4.4.1 Comparison of Hydrogen Storage:

Table 5: Comparison of hydrogen storage types

Types of Hydrogen Volumetric energy Advantages Drawbacks

Storage density

High pressure can

High efficiency,
cause safety issues,
Gas Hydrogen 25-30 kg/m3 convenient, mature
Heat management
technology.
required

Costly, Large
High liquid density
consume of energy
Liquid 50 kg/m3 and storage
and time, low
efficiency
temperature

High safety, high Absorbing

purity of hydrogen, impurities, Low
good reversible hydrogen storage
Metal hydrides 50-175 kg.m3
cycle performance, capacity owed to the
large volume of weight of metallic
hydrogen density hydrides

Compressed gas storage is mature, easy to handle and install and highly efficient among other
storage technologies for green hydrogen plants. Hydrogen can also be stored underground
i.e. in salt caverns or gas depleted caverns however, this type of storage is restricted to fewer
locations and suitable for large scale hydrogen storage.

11 Science Direct - https://doi.org/10.1016/B978-0-12-818487-5.00010-8

5 Sgurr Energy’s Scope

Service Description

 Our consultancy specializes in providing comprehensive prefeasibility

and feasibility reports for Green Hydrogen projects. Leveraging our
expertise in renewable energy, we offer tailored solutions to meet your
specific needs, ensuring the viability and success of your Green
Hydrogen initiatives.
 Resource Assessment: Thorough analysis of renewable energy
potential (solar, wind, etc.) for hydrogen production, considering local
climatic conditions and available land.
 Economic Feasibility: Indicative High Level Financial modelling to
Pre-feasibility assess the economic viability of the project, including capital
Analysis expenditure, operational costs, and revenue projections.
 Demand and Application Assessment: Analysis of consumption
points for hydrogen and evaluating its suitability to various application.

 Technology Evaluation: In-depth review of electrolysis technologies

to determine the most suitable option based on efficiency, scalability,
and cost-effectiveness.
 Plant Design: Customized plant design considering the selected
technology, local conditions, and project requirements, ensuring
optimal performance and efficiency.
 Performance Modelling: Come up with a digital twin or a
representative mathematical model of hydrogen equipment to align
with application requirements and precisely optimize the CAPEX and
Detailed revenue streams.
feasibility  Hourly yield assessments: These are generated in parallel with the
Analysis solar and wind generation profiles, to understand the efficiency of
hydrogen technology (Electrolyser, Storage and Fuel cells) integration
with solar/wind power plants.
 Economic Analysis: Financial modelling to assess the economic
feasibility of the project, including cost estimations, revenue
projections, and financial indicators (LCOE, LCOH etc.)
 Risk Analysis: Identification of potential risks associated with the
project, including supply chain disruptions, and technology risks.
 Layouts and Schematics: Develop feasibility stage layouts, process
flow diagrams, BIM designs, electrical schematics and interconnection
diagrams etc.