Currently, most of the hydrogen consumed is produced through the process of ‘steaming’ which converts methane into H2 and Co2. In order to become an integral part of the energy system of the future with a carbon neutral characteristic, hydrogen needs to be produced by the environmentally friendly process of electrolysis which converts electricity into H2 and O2. The process, however, is relatively inefficient as a significant amount of power is lost during production and conversion. The growth in generation capacity of renewables could provide a solution to this problem. Currently, the intermittent nature of wind and solar power sometimes leads to a waste of power. Especially during moments of excessive production hydrogen could be the solution. Redundant electricity could be absorbed to produce H2 and store it for moments when prices are favorable enough to convert it back into power. Hydrogen can also be used to power fuel cell electric vehicles or FCEV. Japanese automakers such as Toyota are betting on FCEVs instead of battery cell powered EVs to become the future of the automobile industry. Batteries, however, have two advantages: charging doesn’t require additional infrastructure as the existing electricity grid is used, and prices have dropped significantly. Due to the continued decreasing costs of batteries, EVs are increasingly able to compete with traditional automobiles with internal combustion engines.
Oil Price 13th April 2019 read more »