The Central Role of Hydrogen in Driving COP from Words to Action

The 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) concluded in Dubai in December 2023, leaving behind a legacy of bold commitments and a heightened focus on hydrogen as a key player in the global transition to net zero. COP28 had a practical focus, prioritizing action over rhetoric. As a result, there was a strong emphasis on the use of hydrogen technology to accelerate the energy transition in various scenarios. H2 technology is seen as the key to reducing carbon emissions in hard-to-decarbonize industries and in transportation.

In the wake of COP28, where nations united to accelerate the global energy transition, different organizations stand at the forefront, championing clean hydrogen as a pivotal solution. The COP28 Declaration of Intent on the Mutual Recognition of Certification Schemes for Renewable and Low-Carbon Hydrogen and Hydrogen Derivatives, endorsed by 38 countries, highlights the international commitment to harnessing clean hydrogen’s potential for global decarbonization.

The Joint Agreement on the Responsible Deployment of Renewables-Based Hydrogen, backed by 59 endorsements, sets the stage for prioritizing hydrogen over fossil fuels. This agreement defines the necessary rules and regulations for the manufacturing, application, and trade of hydrogen and attempts to make sure that the adoption of renewables-based hydrogen technologies is carried out in a way that adequately prioritizes the planned and careful development of its installation. At COP28 there was controversy with critiques directed at a rival declaration endorsed by multiple countries. This competing endorsement has been accused of lacking clarity on “clean” hydrogen thresholds, potentially underreporting greenhouse gases from gas-based production.

Despite these contrasting approaches, a key fact emerges: energy companies across the board see hydrogen as a bridge fuel. Hydrogen is a crucial tool in the transition towards a future with zero emissions as its versatility strengthens its role as a bridge fuel. It can be used in sectors like heavy industry and long-distance transportation where electrification is not always feasible.

Additionally, hydrogen offers long-term energy storage capabilities,  acting as a perfect complement to the intermittent nature of renewable energy sources like solar and wind. Hydrogen-fueled backup power provides a reliable source of energy to complement intermittent renewables and limited battery storage for as long as fuel is available.  While the debate on the “cleanliness” of certain production methods continues, the focus on hydrogen signifies a collective effort. The energy sector is united in its pursuit of a cleaner future, with net-zero emissions as the ultimate goal.  The specific path taken to achieve this goal might differ, but the focus on hydrogen as a bridge fuel underscores the commitment to a sustainable energy future.

Hydrogen at the Forefront:

The increased focus on hydrogen at COP28 and on the climate strategies of a wider and more diverse group of nations around the globe has had significant impact on the future of the hydrogen economy. COP28 witnessed a significant shift in the global conversation surrounding hydrogen.

Several key initiatives were launched at COP28, signaling a more decisive and collective recognition of hydrogen’s potential to decarbonize hard-to-abate sectors like heavy industry, shipping, and aviation. These initiatives are expected to have a profound impact on the future of the hydrogen economy:

• Europe: The European Union (EU) announced a €2 billion investment plan to develop a hydrogen infrastructure network across the continent. This network will connect production hubs with industrial centers and refueling stations, facilitating the adoption of hydrogen-powered trucks and buses.
• Asia: Japan and South Korea signed a memorandum of understanding (MoU) to collaborate on the research, development, and deployment of hydrogen fuel cell technology for ships. This collaboration aims to establish a clean shipping corridor between the two countries and promote the wider adoption of hydrogen-powered vessels.
• North America: The United States Department of Energy (DOE) launched a new green hydrogen loan guarantee program. This program will provide financial support to projects that produce clean hydrogen from renewable energy sources. This initiative will certainly have a strong and positive impact on the development of a domestic green hydrogen industry in the US.

During COP28, there was a proposition to double global hydrogen production from 95 million to 180 million tons per year (Mtpa) by 2030. This ambitious proposal raises concerns about its environmental impact. Hydrogen Insight suggests that achieving such a significant increase is “near impossible” and would likely lead to a rise in fossil fuel-based hydrogen production, exacerbating emissions. Currently, nearly all hydrogen production globally – 99 per cent – relies on fossil fuels, contributing over 900 million tonnes (Mt) of CO2 emissions in 2022.

However the International Energy Agency (IEA) takes a more optimistic view on the role of hydrogen in the clean energy transition. Their Global Hydrogen Review 2023 highlights the rapid expansion of low-emission hydrogen projects, with announced production capacity potentially reaching 38 million tons (Mt) by   2030, although challenges remain.

Grey hydrogen, produced using non-renewable sources of energy, is critical for the transition to a renewable energy future as a bridge fuel, one that will ultimately be replaced by green hydrogen produced using renewable sources, such as wind and solar power. The IEA acknowledges the current dominance in the hydrogen economy of fossil-fuel-based (grey) hydrogen production. However, they argue that focusing solely on the current state overlooks the potential for significant future growth in low-emission (blue and green) hydrogen production. Their view is that scaling up the entire hydrogen economy, including infrastructure and skills development, creates a foundation for the future transition to clean hydrogen.   Expanding the overall use of hydrogen across various sectors like industry and transport creates a larger market that works to justify investments in production and infrastructure. With falling costs of renewable energy and advancements in electrolysis technology, green hydrogen production is expected to become more cost-competitive over time. As this happens, green hydrogen can gradually replace grey hydrogen altogether as we cross the bridge towards a clean hydrogen future.

As the hydrogen economy expands, prices for hydrogen production and storage will decrease, making it more accessible and affordable for the masses. Moreover, the gradual replacement of grey hydrogen, which is an “intermediary solution”, with green hydrogen will ensure that the process of hydrogen production becomes even more sustainable.

The current price of hydrogen remains high compared to traditional fossil fuels, requiring continued government incentives and technological advancements to achieve cost competitiveness. Moreover, going forward safety concerns around hydrogen storage and transportation need to be addressed through more robust regulations and safety protocols.

Steps required to reduce the price of green hydrogen to be competitive with other fuels:

• Policy and infrastructure support: Governments can implement production tax credits, carbon pricing schemes, and invest in renewable energy infrastructure to bring down production costs.

Economies of scale: As production scales up, the cost of electrolyzers used to produce green hydrogen and other green hydrogen manufacturing technologies will naturally decrease.

Steps required to address hydrogen safety concerns:

• Hydrogen is highly flammable and can be explosive under certain conditions. It is crucial to minimize safety hazards related to the use of hydrogen as a fuel, as it begins to play a greater role in meeting popular energy needs. To ensure safety in handling, operating, and using hydrogen and hydrogen systems, the Department of Energy (DOE) is working on developing and implementing practices and procedures. The DOE is collaborating with domestic and international organizations to identify gaps in the standards development process. They aim to create and promote the adoption of model building codes and equipment standards for hydrogen systems in commercial, residential, and transportation applications.

Steps required to standardize regulations:

• A lack of uniformity in regulations across different countries hinders large-scale hydrogen deployment. International collaboration involving multilateral agreements on safety standards and trade rules can facilitate a global hydrogen market.

Incentives and Funding:
Financial support is crucial to accelerate research & development and pilot projects related to hydrogen technologies.

• Public-private partnerships: Collaboration between governments and private investors can unlock the necessary funds for large-scale hydrogen projects.
• Green hydrogen investment funds: Dedicated funds can be established to channel investments towards green hydrogen development.

Beyond these core challenges, training programs are needed to develop a skilled workforce across the hydrogen value chain. Also, educating the public about the benefits of hydrogen can address any lingering concerns and build support.

Key themes likely to emerge in COP29:

• Accelerating the transition to renewable energy: Green hydrogen, produced from renewable sources, can play a crucial role in decarbonizing sectors like heavy industry, transportation, and heating.
• Enhancing climate finance: Investments in hydrogen research, development, and infrastructure are essential to meet climate targets.
• Strengthening international cooperation: Collaboration on regulations, trade, and technology sharing is vital for a successful global hydrogen economy.

As we look ahead to COP29, it is clear that hydrogen will play an even more central role in our efforts to reduce greenhouse gas emissions and transition to a sustainable future. Hydrogen offers a clean and versatile alternative to fossil fuels, with the ability to store excess renewable energy and power fuel cells for zero-emission vehicles and other use cases. By addressing the challenges outlined above, hydrogen can be positioned as a key enabler in achieving the ambitious goals expected at COP29.

In our climate-conscious world, we at GenCell Energy aim to act as a catalyst for change, aligning with COP28’s call for sustained reductions in greenhouse gas emissions. GenCell is committed to tracking and reducing lifecycle emissions in our own production facilities, as well as to encouraging our suppliers and customers to do the same in alignment with COP objectives to achieve near-zero emissions by 2030. Through our innovative Hydrogen2Power™ technologies, our solutions constitute pioneering hydrogen energy offtakers. For the most part, in the initial stage of deployment our customers rely on grey hydrogen to fuel our equipment. They are dedicated to employing hydrogen standards and hydrogen safety best practices, building up technical skills to install, operate and maintain the fuel cells. As the projects move forward and green hydrogen becomes more available and less costly, we envision that our customers will transition to zero-emission fuel to achieve more ambitious sustainability targets. In alignment with our GreenFSG vision, GenCell is hard at work developing innovative, zero-emission hydrogen production and storage technologies that will complement our hydrogen-fueled fuel cell power generation equipment to enable the broad expansion of economical, self-contained, circular economies delivering sustainable, long-duration power at any location where grid power is instable or not available – fully eliminating the need for fuel transport. We are confident that in alignment with COP28 hydrogen strategies, GenCell’s GreenFSG solutions will make a significant contribution to the transition to a green energy future in which hydrogen will play a central role in decarbonizing hard-to-abate sectors and in greening the transportation sector, whether through incorporation of hydrogen to reinforce charging facilities for BEVs or through hydrogen-fueled trucks, trains and other modes of transport.

Investing in hydrogen infrastructure and technologies now will not only help us combat climate change but also create new economic opportunities and jobs in the green energy sector. By prioritizing hydrogen at COP29, world leaders can accelerate the transition to a low-carbon economy and secure a cleaner, greener future for generations to come. We are running out of time and hydrogen is a key contributor to accelerating the transition to a clean energy future; we look forward to COP29 steering innovative clean technologies that overcome the challenges facing traditional hydrogen production and driving scale-up of the hydrogen economy.

Conclusion:

At COP28, hydrogen was prioritized as a significant topic of discussion, signaling its unique role in the transition to sustainable energy. COP28 agreement signals have  indicated that hydrogen will take on an even more central role at COP29, underscoring its increasing prominence in global efforts to combat climate change. The forthcoming COP29 Conference will expand the emphasis on renewables and nuclear power seen at COP28 in Dubai, the agenda will focus on the completion of the initial enhanced transparency framework and the establishment of a new collective quantified goal on finance. Applying transparency and financial targets to the discussions on hydrogen would certainly reinforce their impact on the energy transition, enabling a more pragmatic approach to resolving pricing, regulatory and tax issues to maximize the contribution of hydrogen technologies in achieving global climate goals.