May-2022

Hydrogen pathways for a clean energy future

Methane pyrolysis is an emerging, eco-friendly alternative for clean H2 production that can be flexibly deployed across global natural gas networks

Gary Schubak
Ekona Power Inc.

Article Summary

Addressing global climate change might be the largest and most important collective endeavour the world has ever faced. Climate change refers to long-term shifts in global temperatures and weather patterns, principally driven by changes in the atmosphere. These shifts may be natural, occurring over long periods of time. However, for the past two centuries, global climate change has been accelerated by human activities, primarily the burning of fossil fuels, such as coal, oil, and gas. Combustion of fossil fuels produces heat-trapping gases, like carbon dioxide (CO2), that collect in the atmosphere and lead to a general warming of the planet. Reducing these 'greenhouse gases' or GHG emissions is the key priority for constructing a sustainable and clean energy future.

The first climate action milestone was reached in Paris on 12 December 2015, when over 190 countries adopted the first legally binding agreement to curb GHG emissions. This landmark treaty, known as The Paris Agreement or COP21, united all nations with a common goal to limit global warming to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels. Achieving these goals requires a significant reduction in GHG emissions worldwide.

COP26, the most recent United Nations climate change conference to date, was held in Scotland from 31 October to 13 November 2021. The assembly placed even greater urgency on reducing GHG emissions, as well as ending coal power and fossil fuel subsidies. Renewed calls for action emphasise the need to scale the adoption of green and renewable energy technologies for electricity generation, electrify energy services where it makes sense, capture and sequester CO2 from existing fossil fuel-driven processes, and adopt hydrogen as an energy carrier to decarbonise many tough-to-decarbonise segments of the global economy. In addition, the launch of the First Movers Coalition at COP26 is bringing the collective purchasing power of global companies to drive market demand for these low-carbon technology solutions.

Countries ranked among the top 10 GHG emitters account for over a quarter (26%) of global GHG emissions. These include China, the US, India, the Russian Federation, Japan, and Canada. Among these top emitters, only Japan, Canada, and the EU have legally binding net-zero commitments. 

Canada’s net-zero plan
The Canadian Net-Zero Emissions Accountability Act became law on 29 June 2021. With a legislated commitment to achieve net-zero emissions by 2050, the Canadian government is beholden to ensure transparency and accountability in all efforts to deliver on its targets. The Act establishes a legally binding process to set five-year national emissions-reduction targets, as well as develop credible, science-based emissions-reduction plans to achieve each target. It includes the 2030 Emissions Reduction Plan, a roadmap for how Canada can achieve GHG emissions reductions of 40-45% below 2005 levels by 2030. Taking into consideration the best available science, the 2030 Emissions Reduction Plan includes new measures and strategies across all sectors of the economy. 

Transitioning away from fossil fuels
Fossil fuels make up more than 80% of the global energy sector. To reach net zero by 2050, huge declines in the use of coal, oil, and gas will be essential. Like all countries committed to mitigating climate change, Canada must transition away from burning fossil fuels and releasing CO2 into the atmosphere. 

A growing number of renewable energy alternatives have surfaced in recent years. Scientists committed to finding ways to reduce emissions of CO2 and other warming agents are at the forefront of these developing technologies, such as solar, wind, hydroelectric, ocean energy, geothermal, biomass, and hydrogen. 

In the search for renewable, resilient energy carriers, hydrogen is making headway as a reliable and cost-effective solution in many market applications. Hydrogen, however, is not an energy source; it must be produced from available energy and feedstock resources, and its own production must be clean in order for it to affect GHG reductions. Building clean hydrogen production pathways that utilise abundant and low-cost hydrocarbon resources and leverage existing infrastructure is a key enabler to transforming the oil and gas industry into a clean hydrogen industry and accelerating positive GHG emissions abatement. 

Hydrogen market and decarbonisation
The hydrogen market is large. Today's global demand is approximately 70 million tonnes of hydrogen per year, and the total annual market value is estimated at $180 billion (US). Most of this hydrogen is used to serve 'over-the-fence', large-scale industrial applications, primarily as an industry feedstock for petroleum refineries, upgraders, and ammonia production.

Global hydrogen demand is expected to grow significantly over the next decades. Forecasts project that global hydrogen demand will exceed 500 Mt-H2/year by 2050. Growth will primarily be driven in new applications, where hydrogen can act as an energy currency to decarbonise tough-to-decarbonise markets, such as heavy-duty transportation, industrial heating, power generation, and natural gas decarbonisation.

Methods of hydrogen production 
Hydrogen is not an energy source. Hydrogen, like electricity, is an energy currency that can be used as a carrier for conducting energy transactions, such as heat and power generation, or as a feedstock for industrial processes, like ammonia production. And like electricity, hydrogen must be produced from available energy and feedstock resources. So the production of hydrogen is a key consideration for its role in the evolving energy system and its potential impact on mitigating GHG emissions. 

The numerous techniques for hydrogen production are often described in terms of colours, which are really no more than nicknames used to describe the production process. These techniques are principally differentiated by the material feedstock and energy source used. Regardless of colour designation, the most important criteria that distinguish hydrogen production pathways are GHG emissions intensity (i.e., how much CO2 is emitted during the hydrogen production process) and production cost. A brief description of each pathway is provided below, along with their unique attributes that describe cost and emissions:

Black/brown hydrogen
Black or brown hydrogen is produced from the gasification of coal. The colour refers to the type of coal used in the process, bituminous (black) and lignite (brown) coal. Gasification of coal is largely used in Asia, where coal is a lower cost and preferred feedstock to natural gas. Nevertheless, coal gasification is the most GHG-intensive of hydrogen production pathways and a technique not largely used in North America.