Zero-carbon sources now account for more than 40 percent of global energy generation capacity, according to a BNEF analysis released this week. Green hydrogen could be the missing piece to total dominance for the renewable energy sector.
Global Shift to Zero-Carbon Energy:
Zero-carbon energy sources now account for over 40% of global energy generation capacity.
In 2023, 91% of new power capacity came from solar and wind, while only 6% came from fossil fuels.
Top Countries in Renewable Energy Deployment:
China leads globally in renewable energy deployment, followed by the U.S., Brazil, Canada, and India.
These top five countries accounted for 60% of the world's renewable energy generation last year.
Green Hydrogen as a Solution:
Green hydrogen, produced from renewable resources like wind and solar, offers a solution for clean energy development.
It can be used for long-duration energy storage and transported via rail, truck, pipeline, or ship.
U.S. Renewable Energy Investments:
The U.S. ranked second in new renewable energy investments in the first half of 2024.
The U.S. faces challenges such as political resistance, local objections, gaps in the electricity transmission network, and grid connection bottlenecks.
Legislative Support for Hydrogen Development:
The 2022 Inflation Reduction Act and the 2021 Bipartisan Infrastructure Law have both spurred new renewable energy investments.
The Bipartisan Infrastructure Law designates $7 billion for the Regional Clean Hydrogen Hubs program, supporting hydrogen production from various energy resources.
Development of Regional Clean Hydrogen Hubs:
Seven regional hubs have been selected by the U.S. Department of Energy for potential funding, with three progressing to the funding award stage.
These hubs include:
Pacific Northwest Hydrogen Association: Focuses on cutting electrolysis costs and supplying green hydrogen for heavy-duty freight and other uses.
Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) in California: Plans to produce hydrogen from biomass and water electrolysis for various applications.
Appalachian Regional Clean Hydrogen Hub (ARCH2): Focuses exclusively on natural gas with carbon capture.
Diverse Approaches Across Other Hubs:
Other hubs under negotiation use a mix of renewable and nuclear energy for hydrogen production, including:
Mid-Atlantic Clean Hydrogen Hub: Leverages renewable and nuclear energy with access to offshore wind areas.
Gulf Coast Hydrogen Hub in Texas: Uses both water electrolysis and natural gas with carbon capture.
Heartland Hub (Minnesota, North Dakota, South Dakota): Focuses on decarbonizing fertilizer production.
Midwest Hydrogen Hub (Illinois, Indian, Michigan): Aims to decarbonize industries such as steel, glass, power generation, and transportation.
Future Prospects and Policy Support:
The effectiveness of the Regional Clean Hydrogen Hubs program and the Inflation Reduction Act depends on consistent support from political leaders and the public.
New financing tools are being introduced to support renewable energy and energy storage projects.