Image source: Roland Berger
We still hear a lot of debate about whether or not clean hydrogen is a viable low-carbon alternative for various transport, heat and energy storage applications. Although for some industries, it seems to be apparent that renewable energy and battery storage may not be enough to reach the increasingly ambitious net-zero goals due to technological and financial limitations.
Key to getting to grips with the potential and the challenges for using hydrogen is an understanding of the hydrogen value chain: linking producers, transportation/storage and hydrogen users/applications in a sustainable eco-system.
Hydrogen producers need to know that there will be adequate demand from users to be able to sell their hydrogen. Users need reliable, affordable hydrogen. Their respective business cases require this to work, and the available methods for connecting hydrogen producers with users are not as simple as connecting wind and PV producers with users of electricity via an existing extensive grid.
Creating viable business models will require a combination of complete hydrogen value chains, clear regulatory frameworks and a hydrogen trading system, amongst other things, as we will explore in future articles.
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