What is Green Hydrogen?

Hydrogen that is produced from renewable energy sources is called Green Hydrogen. It has gained much importance in the global world and it is believed that the fuel can play a major role in decarbonizing sectors of the economy that are hard-to-electrify like aviation, long-haul trucking, and heavy manufacturing.

How is Green Hydrogen formed?

Green Hydrogen is produced if renewable energy is used to produce electricity for the electrolysis of water. In this case, the hydrogen is produced without any harmful emissions.

Distribution of green hydrogen

Hydrogen can be distributed in liquefied or compressed form or through a pipeline. Compressed or liquefied distribution can be done by both land and sea. The entire value chain is green starting from the production to the distribution of hydrogen.

Pricing of Green Hydrogen

In October 2020, a report published by Capgemini named “Net Zero 2020”. The report had declaration that at nearly €6 per kg, green hydrogen is not competitive today with fossil energies.

Another such report named “the Renewable Hydrogen Coalition” on green hydrogen showed the price estimate for green hydrogen to be €6/kg.

Green Hydrogen and the EU

Recent publications by European Commission and declarations by the various EU Member States like Germany, green hydrogen is now prominent contrary to its position in the starting of the year.

EU and the Member States require a good understanding of the current green hydrogen prices, their present stand, and future trajectory in order to develop a green hydrogen policy.

Green, grey and blue hydrogen

The Grey hydrogen is formed through fossil fuels such as coal and oil that emit CO2 into the air as they combust. Blue hydrogen is also produced in the same way but carbon capture technologies prevent the release of C02 in its case.

Blue and blue hydrogen are produced using natural gas which attracts zero taxes.

However, the price of green hydrogen includes taxes and levies imposed on the feedstock which is almost double/quadruple the original price of the feedstock (renewable electricity). So, the comparison between Green and blue, grey hydrogen is irrational.