As the global race for sustainable energy solutions intensifies, hydrogen continues to solidify its position as a game-changer, however it has not all been smooth sailing. Over recent months, trials, developments and industry shifts have provided valuable lessons about the potential and trajectory of hydrogen. Here are five key takeaways:
1. Heavy-duty hydrogen vehicles perform as expected – mobile refueling bridges the gap
The trials of heavy-duty hydrogen-powered vehicles are progressing well, with performance largely meeting initial expectations. The trials such as those by Daimler Truck, Nikola, and Volvo demonstrate that hydrogen is capable of supporting use cases of heavy-duty vehicles effectively, from freight trucks, to municipal fleets such as waste collection and public transit. A critical insight has been the role of mobile hydrogen refueling solutions, which have bridged the gap during the ongoing rollout of bricks and mortar hydrogen refueling stations. Here at ANGI, we’ve seen first-hand that as hydrogen infrastructure continues to develop across North America and Europe, mobile refueling plays a vital transitional role, ensuring that trials and early adopters can move forward smoothly.
2. Realism sets in: Refining projections and softening hydrogen targets
As the hydrogen economy matures, we saw the International Energy Agency (IEA) refine their projections and adjust expectations accordingly. Political support for low-emission hydrogen is gaining momentum, but its implementation has been delayed due to uncertain demand forecasts, ambiguous regulatory frameworks, and insufficient infrastructure to deliver hydrogen to end-users, according to the IEA. Some businesses are softening their initial hydrogen targets, reflecting a more pragmatic approach based on the cost and availability of hydrogen. Over-optimism and inflated goals are certainly not unusual in the early stages of a new technology. We can cast our minds back to how long it took renewable energy to become competitive against coal or gas power - with the wind and solar industries going through cycles of boom and bust before cementing their position in the energy economy today. For hydrogen, recalibration is vital for long-term success, ensuring that companies align their hydrogen initiatives with scalable and achievable goals, which are in lock-step with regional decarbonization policies and regulation.
3. At the end of the rainbow is a growing focus on green hydrogen
The industry is undergoing a shift from placing hydrogen into discrete coloured buckets (according to production routes), to a focus on emissions intensity. The fact that hydrogen is a secondary energy carrier and needs to be produced means that it is inherently not all created equal. Even when the same production routes are employed, a gap in universal carbon reporting tools has resulted in added challenges and complexity. Naturally, hydrogen produced by renewable energy - so-called ‘green hydrogen’ - is recognized as the ultimate goal for zero-emission energy. This has led to a growing number of jurisdictions, such as California’s CARB and the EU’s latest RED III directive, mandating increasingly stringent rules aimed at accelerating green hydrogen production, as well as fully zero emissions initiatives. Whilst the intent is clear, the impact has in some cases been detrimental. Over the last year, a number of projects have been abandoned due to a lack of demand for ‘blue’ and ‘grey’ hydrogen as a result of evolving policy. For hydrogen to gain traction, it’s crucial that the industry recognizes the importance of an interim strategy, whereby hydrogen produced by more cost-effective alternative methods is seen as a stepping-stone to a net-zero future. Canada, for instance, is increasingly adopting a more pragmatic approach to hydrogen, and in their latest Hydrogen Strategy Progress Report, have reported a number of natural gas reforming with CCS (‘blue hydrogen’) facilities in development.
4. Innovative business models: Try before you buy
In a smart move, businesses in the logistics sector are dipping their toes into hydrogen mobility with smaller H2 powered utility vehicles like forklifts and yard trucks to better understand how the fuel and associated infrastructure will work for their use cases prior to investing in bigger vehicles. We are also seeing a rising trend in hydrogen vehicle adoption towards innovative business models that allow companies to trial hydrogen-powered vehicles before committing to full fleet conversions. This "try-before-you-buy" approach mitigates the capital expense risk associated with investing in hydrogen technology. These trials offer valuable insights for companies, helping them to assess operational fit, fuel efficiency, and total cost of ownership before making long-term investments.
5. A diverse market for hydrogen
Hydrogen is gaining traction across a broad range of sectors, from heavy industry to mobility and power generation. Aside from heavy duty trucking, heavy mobility sectors such as rail, aviation and buses, and manufacturing industries such as steel and chemicals, are starting to witness the potential of hydrogen as a clean energy source. Each of these applications has unique requirements, but collectively they are stimulating market demand and driving innovation. This growing diversity within the hydrogen economy will encourage infrastructure development, spur competition, drive production targets, and ultimately reduce costs across the board.
The road to a hydrogen-powered future is filled with both challenges and opportunities. However, as we learn more from real-world trials and innovations, it is clear that in a multi-energy future, hydrogen has a key role to play. With more than 40 years’ experience delivering cutting-edge alternative refueling technologies, ANGI is ready to support diverse business types - from long-haul logistics, to municipal fleets such as transit and waste management companies - on their journey to net-zero.