Hydrogen Industry Overview - Introduction

Let's set the scene. It's just after the Big Bang, well, 400,000 years after, the rapidly expanding universe is finally starting to cool down and stabilize. Enter one electron and one proton. Noticing that, indeed, opposites do attract, a union is formed, the universe's very first atom, hydrogen. More hydrogens soon follow, and they cluster together to form stars, the biggest of which then turn into an exploding supernova, spreading atomic stardust across the cosmos. And the rest is, well, history. Today, hydrogen is still by far the most abundant atom in the universe, accounting for 80% of all matter. So, wouldn't it be great if we could use hydrogen, for practical purposes, say, as a clean fuel alternative? Okay, you can see where we're going That's exactly the point. Hydrogen is seen by many as a sustainable energy solution of the future. The molecular bond in dihydrogen gas, or H2, which we'll just call hydrogen from here on out, stores energy. Just like with carbon-based fossil fuels, this stored energy can be released via a reaction like combustion. The big difference, of course, is that a hydrogen molecule doesn't contain any carbon, and its combustion, therefore, doesn't release any greenhouse gases. The issue, however, is that the vast majority of hydrogen atoms are tied up in other molecules, like in water, H2O, or hydrocarbons. And these, unlike H2, are not attractive, emissions-free fuels. H2 itself is a less common molecule, and not readily available to be captured or extracted. For this reason, it will not likely provide a good replacement for primary energy sources, like fossil fuels. Instead, H2 is seen as a way to store energy, for example, energy from surplus electricity. And that stored energy can then be applied to a number of use cases, like hydrogen-powered cars, machines, and trucks. And indeed, hydrogen cars like the Honda Clarity or Toyota Mirai are on the road in several markets. As the world transitions to lower-emissions energy solutions, the universe's oldest atom might just be having a new renaissance. According to the Hydrogen Council, an industry consortium, more than 350 large-scale hydrogen infrastructure projects are underway globally. Of course, hydrogen technologies are not without drawbacks or critics. For example, the molecule is particularly difficult to contain and transport. Another concern is safety. While hydrogen is non-toxic, it can explode and combust. Memories of the Hindenburg still haunt the sector. Plus, hydrogen will need to outcompete other energy storage technologies, like batteries. This is a fast-changing landscape, and the future of hydrogen solutions certainly remains to be seen. In this primer, we cover the ins and outs of this dynamic industry, including the ways hydrogen is produced, stored, and distributed. We'll also cover the key players in the market, the economics, and the key trends to expect.