Dr. Nyangon co-authored A New Paper on Hydrogen Energy Costs, Incentives, and Innovations
Dr. Nyangon and Ayesha Darekar co-authored a new paper titled "Advancements in Hydrogen Energy Systems: A Review of Levelized Costs, Financial Incentives, and Technological Innovations". This comprehensive review delves into the pivotal role of hydrogen energy systems (HES) in mitigating global carbon dioxide (CO2) emissions, particularly across transportation, power generation, and industrial sectors.
Figure: Global hydrogen-production cost curve, 2050. Global hydrogen flows showing hydrogen trade as a key enabler for efficient decarbonization. Source: Hydrogen Council, McKinsey & Company.
The paper highlights the transformative potential of hydrogen energy by 2030, predicting significant impacts on CO2 reduction and energy demand across various sectors. In the realm of electricity and power generation, hydrogen could slash CO2 emissions by 50–100 million tons annually, necessitating 10–20 million tons of hydrogen and an investment of $50–100 billion. This underscores hydrogen's critical role in stabilizing the power grid. In the heating sector, hydrogen is poised to contribute to CO2 abatement of 30–50 million tons.
A key focus of the paper is the levelized cost of hydrogen (LCOH) production, which varies based on production methods, efficiency, and infrastructure. While steam methane reforming remains cost-effective, its environmental impact is significantly higher compared to electrolysis. As production scales up globally, the life-cycle cost of hydrogen production is expected to decrease. Currently, costs range from $1–3 per kg for fossil-based sources to $3.4–7.5 per kg for electrolysis using low-emission electricity. Notably, these costs are projected to drop further, especially for electrolytic hydrogen in regions with abundant solar energy.
Despite the promising technical feasibility of decarbonization through hydrogen, high production costs present challenges. The paper emphasizes the necessity of comprehensive policy and financial support mechanisms to facilitate a systematic transition to a hydrogen economy. This includes incentives, subsidies, tax measures, and funding for research and development of pilot projects.
Additionally, the paper explores hydrogen's role in advanced storage technologies such as hydrides and Japan's ENE-FARM solution for residential energy. The authors underscore the importance of strategic investments across the hydrogen value chain to enhance HES competitiveness, reduce LCOH, and advance the learning rates of hydrogen production technologies.
This paper represents a significant contribution to the field of sustainable energy, providing valuable insights into the economic viability and technological innovations of hydrogen energy systems. Dr. Nyangon and Ayesha Darekar's work offers a roadmap for policymakers, researchers, and industry stakeholders aiming to harness the full potential of hydrogen as a cornerstone of a sustainable energy future.