Green Hydrogen
One that we will hear much more about in the coming period: Green Hydrogen
Green hydrogen is produced through the electrolysis of water and only using electricity from renewable energy sources. In this process, there is no carbon dioxide release, regardless of what technology is used during the electrolysis process, as the electricity used is supplied from 100% renewable sources. Thus, the production and final use of green hydrogen does not cause any carbon emissions to the atmosphere. This makes it an environmentally friendly energy source. With these properties, green hydrogen is an important energy source for a sustainable and low-carbon future.
Renewable Energy 2023 Report
First, let's look at the summary of the report "Renewable Energy 2023":
– Major Changes in Renewable Capacity Increase in 2023: In 2023, global renewable capacity plug-ins became about 510 gigawatts (GW) with China's rapid growth in the solar power PV market, up almost 50%. This is the fastest growth rate in the last decade. Global solar PV accounted for two-thirds of renewable capacity increases worldwide.
– Realization of COP28 Goal Depends on Policy Practices: Dubai COP28 At the climate change conference, more than 130 national governments agreed to work together towards increasing global renewable energy capacity by a factor of 3 by 2030. Under current policies and market conditions, global renewable capacity is expected to reach 7,300 GW by 2028. However, that projected increase remains below the target of 3 times the capacity. ()
– Transformation in Global Energy Mixture: Renewable energy is expected to increase more in the next 5 years than the increased capacity since the establishment of a commercial renewable power plant. Renewable energy is projected to be the largest source of energy in electricity generation, surpassing coal by 2025.
– China, World Power in Renewable Energy: China will account for about 60% of the new renewable energy capacity, which will be operational globally by 2028. China will make wind and solar PV investments in 2023, its national targets, six years in advance this year.
– Important Players in the U.S., EU, India and Brazil Solar and Wind Energy: The United States, the EU, India and Brazil will double their growth in solar PV and land wind in the coming years.
– Solar PV Prices at Record Drop: In 2023, spot prices for solar PV modules fell by 50% year-on-year, with production capacity tripled to 2021 levels.
– Wind and Solar PV Now Cheaper than Fossil Fueled Plants: In 2023, 96% of the newly installed solar PV and land wind capacity has lower production costs than new coal and natural gas plants.
– Renewable Energy Integration and Infrastructure Challenges: The rapid distribution of renewable energies leads to significant changes in power systems, especially for high VRE (Variable Renewable Energy) shares.
– Hydrogen Plans and Applications Not Covering: Between 2023 and 2028, the portion of renewable energy capacity allocated for hydrogen production is expected to increase by 45 GW. This represents only 7% of announced projects of renewable energy capacity focused on hydrogen production. The main reason for this low rate is the slowdown of the investment process of planned projects with increased production costs.
The summary of sections of the report "Renewable Energy 2023" on green hydrogen is as follows:
– Use of Renewable Capacity for Hydrogen Production: Between 2023 and 2028, hydrogen-based energy production is expected to increase by 45 GW. This accounts for only about 7% of the total project capacity announced. Significant investments are projected in this area, especially in China, Saudi Arabia and the United States. This points to the potential of renewable energy sources for hydrogen generation.
– Conflict between Plans and Applications: Slow progress is observed in most of the projects for hydrogen production from renewable energy sources. In areas outside China, future forecasts have been lowered due to uncertainties and challenges related to implementing planned projects. This is due to factors such as the relative scarcity of buyers and the negative effects of high costs on production. This shows that there are significant barriers to the development of the green hydrogen market, and this area is not yet ripe.
– International Hydrogen Market Development Uncertainty: Uncertainties exist for the global trade and marketing of hydrogen. Especially in countries with limited domestic market demand, there is considerable uncertainty about how the international hydrogen market will be shaped. This creates challenges for both manufacturers and potential users to determine strategies for the future.
– Renewable Energy Capacity and Hydrogen Production: The realization of projects announced for the production of green hydrogen requires that existing and planned renewable energy sources be directed towards further hydrogen production. In the process, China is leading, while development in other countries is progressing more slowly. This is an indication of how policy and investment environments in different countries can impact innovation and growth in this area.
To read the full report click here
