{"id":452632,"date":"2021-08-17T05:29:50","date_gmt":"2021-08-17T12:29:50","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=452632"},"modified":"2024-05-10T06:30:03","modified_gmt":"2024-05-10T13:30:03","slug":"green-hydrogen-prospects","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/green-hydrogen-prospects","title":{"rendered":"An Industry on the Verge: Green Hydrogen"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[455201,369792,1031],"tags":[161912,469281,1461],"department":[488822],"wherenext-category":[],"industry":[],"class_list":["post-452632","wherenext","type-wherenext","status-publish","format-standard","hentry","category-a-climate-of-change","category-location-intelligence","category-natural-resources","tag-energy","tag-renewable-energy","tag-sustainability","department-sustainability-risk"],"acf":{"short_description":"Hydrogen could help fuel the world economy. Green hydrogen is preferred, but costlier. Will energy companies make the math work? ","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"As <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/nexttech-tracking-progress-toward-net-zero-emissions\/\">net zero pledges<\/a> make their way to the top of corporate priority lists, industry leaders are setting their sights on clean-burning hydrogen as a new ally in the decarbonization quest. Today, hydrogen comprises just a small fraction of global energy use, but recent announcements suggest growth. The location technology already used in adjacent industries could accelerate the efficiency needed for hydrogen\u2019s ramp-up."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<strong>Article snapshot:<\/strong> Hydrogen could meet nearly a quarter of the world\u2019s energy needs by 2050, but producing green hydrogen will be costly if producers don\u2019t learn from energy industry peers.","snippet":""},{"acf_fc_layout":"content","content":"In June, the United States Department of Energy announced <a href=\"https:\/\/www.rechargenews.com\/energy-transition\/green-hydrogen-leads-off-us-energy-earthshots-in-all-hands-on-deck-technology-call\/2-1-1021584\">an ambitious goal<\/a> to expand the hydrogen industry within the next decade\u2014and clean it up, since 95 percent of today\u2019s hydrogen is produced from fossil fuels. (See the sidebar below for distinctions among gray, blue, and green hydrogen.) The announcement echoes similar action around the world, including recent initiatives from a <a href=\"https:\/\/www.pv-tech.org\/new-coalition-targets-25gw-of-renewables-based-hydrogen-production-by-2026\/\">European energy coalition,<\/a> the <a href=\"https:\/\/www.windpowermonthly.com\/article\/1720853\/green-hydrogen-unlock-chiles-wind-wealth\">Chilean government<\/a>, and <a href=\"https:\/\/asia.nikkei.com\/Spotlight\/Environment\/Japanese-tech-to-slash-green-hydrogen-costs-by-two-thirds\">Japanese engineers<\/a>.\r\n\r\nHydrogen\u2014typically converted to energy through fuel-cell technology\u2014could meet up to 24 percent of the world\u2019s energy needs by 2050, according to a 2020 <a href=\"https:\/\/data.bloomberglp.com\/professional\/sites\/24\/BNEF-Hydrogen-Economy-Outlook-Key-Messages-30-Mar-2020.pdf\">report from BloombergNEF<\/a>. \u00a0But there is much to be done. \u201cGreen\u201d hydrogen produced with renewable energy currently accounts for just 0.1 percent of global supply. And it\u2019s expensive, costing up to US$6 per kilogram versus $1\u20133 per kilogram for conventional hydrogen. To ramp up sustainable production processes, the energy industry needs to quickly make green hydrogen production more cost-efficient. Technologies such as virtual 3D models, analytics tools, and real-time dashboards\u2014all forms of <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\">location intelligence<\/a>\u2014can provide the insight energy companies need to reduce cost and increase production.\r\n<h3><strong>Lowering Hydrogen Costs Begins with Location<\/strong><\/h3>"},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<strong>Which Color Is Your Hydrogen?<\/strong>\r\n\r\nNot all hydrogen is created equal. While all hydrogen production can benefit from location intelligence, netzero advocates favor green hydrogen. Here\u2019s a look at <a href=\"https:\/\/www.forbes.com\/sites\/jimmagill\/2021\/02\/22\/blue-vs-green-hydrogen-which-will-the-market-choose\/?sh=62ca225c3878\">the varieties<\/a>:\r\n<ul>\r\n \t<li>Gray hydrogen: This production method is by far the most common today, deriving hydrogen from the burning of natural gas. This creates nine parts carbon dioxide for every one part of hydrogen.<\/li>\r\n \t<li>Blue hydrogen: Companies producing blue hydrogen also burn natural gas, but use carbon capture technology to mitigate carbon dioxide emissions. (A recent <a href=\"https:\/\/www.bp.com\/en\/global\/corporate\/news-and-insights\/press-releases\/bp-plans-uks-largest-hydrogen-project.html\">bp example<\/a>.)<\/li>\r\n \t<li>Green hydrogen: The most sustainable method of producing hydrogen, this process uses energy from wind, solar, or another renewable source to split water into hydrogen and oxygen, producing no carbon emissions.<\/li>\r\n<\/ul>\r\nThe hydrogen resulting from these processes is clean-burning and often used in fuel cells to produce energy.","snippet":""},{"acf_fc_layout":"content","content":"For hydrogen producers, the cost of going green is largely determined by one essential factor: a hydrogen plant\u2019s location. Green hydrogen can be expensive to produce through renewable energy if input costs are high, and can be expensive to store and transport. Energy companies entering the green hydrogen market must first understand location-based variables such as regional access to renewables, local demand for hydrogen, and nearby infrastructure for hydrogen transport (e.g., shipping versus pipelines).\r\n\r\nThese variables inform a series of decisions\u2014whether to convert existing plants or construct new ones, which type of renewable energy should power the electrolysis process that produces hydrogen, whether to store and distribute the hydrogen as a gas or a liquid.\r\n\r\nAs leaders in green hydrogen consider where and how to optimize costs, they can learn from energy companies that have relied on location technology for years. BP, for instance, uses a geographic information system (GIS) for everything from <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/bp-on-digital-transformation\/\">pipeline management to market research<\/a>. In renewables, Renewable Energy Systems and Norway\u2019s Equinor <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/advanced-analytics-fuel-renewable-energy\/\">use GIS for site selection<\/a> and other critical processes. Henrik Hagness, leading engineer for mapping at Equinor, says spatial intelligence is \u201cneeded throughout [the process], from business development and siting to moving ahead with a development project to efficiently maintaining and inspecting the energy assets when in operation.\u201d\r\n\r\nIn growing industries like green hydrogen, GIS-based smart maps and dashboards can provide <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/location-intelligence-and-corporate-security\/\">single pane of glass visualizations<\/a> that identify cost-effective options and point toward evidence-based next steps.\r\n<h3><strong>Bringing Data Together Drives Smarter Improvements <\/strong><\/h3>"},{"acf_fc_layout":"form","form_type":"aside","form_position":"Right","form_title":"THE ESRI BRIEF","form_desc":"A biweekly email connecting senior executives and business leaders with thought-provoking articles on location intelligence and critical technology trends.","form_button_label":"Sign up now","form_content":"https:\/\/go.pardot.com\/l\/82202\/2017-10-12\/jw1bmb","form_tag":"low-commitment-form\/sign-up-form"},{"acf_fc_layout":"content","content":"Once green hydrogen systems are in place, energy companies will need to stay agile, fine-tuning operations and applying efficient processes at scale. Reliable growth is best achieved by equipping executives with a <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/ceo-guide-to-location-intelligence\/\">decision support system<\/a>\u2014a holistic operating picture based on analytics that reveals patterns and outliers and models potential outcomes.\r\n\r\nFor green hydrogen producers, KPIs may include a plant\u2019s renewable energy consumption rates, local weather patterns, buyer demand, and equipment conditions. For executive-level decisions, these datasets are best viewed together, rather than siloed. For example, comparing weather patterns and buyer demand\u2014an analysis that <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/using-big-data-to-understand-weather-based-demand-and-optimize-sales\/\">natural gas operator ONEOK performs with GIS<\/a>\u2014enables more nuanced decisions about optimal times to run electrolysis.\r\n\r\nLocation analytics tools combine these pieces of information and identify key connections. Visualizing the data on map-based dashboards shows where even small operational adjustments will have the most impact. Green hydrogen companies may find inspiration in energy firms that have used decision-support technologies like GIS to integrate analytics and visualization and ensure that executives have access to complete, current information."},{"acf_fc_layout":"quote","image":452642,"text":"With more data readily available, energy companies can enhance transparency, speed up reporting processes, and take confident action based on the latest guidelines.","author_name":"","author_profession_organization":""},{"acf_fc_layout":"content","content":"<h3><strong>Looking Ahead with Real-Time Awareness <\/strong><\/h3>\r\nAs the green hydrogen industry expands, the demand for day-to-day operational efficiency will increase. Keeping track of equipment maintenance, clean energy certifications, and safety protocols will require a location-based view of assets and activities. For some hydrogen producers, <a href=\"https:\/\/www.esri.com\/en-us\/iot\/overview\">IoT sensors and real-time data<\/a> feeds will supply accurate and near-real-time information on those conditions and help avoid costly downtime.\r\n\r\nCombining that data with maps and dashboards for visualization, companies can even create <a href=\"https:\/\/www.esri.com\/en-us\/lg\/publications\/finding-business-value-in-the-digital-twin\">a digital twin<\/a>\u2014a virtual model of a facility or supply chain that links information to location, showing executives what\u2019s happening where at any moment.\r\n\r\nRecent announcements signal that world leaders will continue to prioritize green hydrogen and other clean energies in decarbonization efforts. Across the energy sector, technology that delivers intuitive access to operational information is already considered an essential business system. Leaders can turn to maps, dashboards, and digital twins populated by real-time data to efficiently manage the production of clean energy, and to see with greater clarity how their organization is realizing a sustainable future."}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Green Hydrogen: Drawing Energy from Industry Leaders<\/title>\n<meta name=\"description\" content=\"As governments look to jump-start the green hydrogen industry, producers will look for ways to corral costs. 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