According to International Energy Agency (IEA), hydrogen power is the biggest innovative opportunity to reduce carbon dioxide emissions by 2050. The Inflation Reduction Act 2022 is likely to invest approximately $369 billion in climate policies. This industry will be worth about $140 billion by 2030 and will likely scale up to $750 billion till 2050.
Hydrogen power can further boost the production of solar and wind power in the energy market. To produce hydrogen, you need a certain power source. If the energy comes from a renewable source for hydrogen production, it is known as green hydrogen.
The hydrogen based fuel can power airports, ships, and vehicles. Currently, 7,500 vehicles and 25,000 material handling units are using hydrogen fuel as a power source. Recently, a drone manufacturing company has launched hydrogen power drones for commercial and defense use. This fuel is also providing energy to industries like chemical, food, and aerospace. Currently, hydrogen power is quite expensive, but its price is likely to fall by 2025.
According to the U.S. Department of Energy, approximately 90% of hydrogen production in the U.S. Involves the use of fossil fuels. Globally, around 76% of hydrogen production is done through nonrenewable resources. The cost of producing hydrogen through wind is $5.96 per kilogram, while using solar the cost is approximately $8.00 per kg.
The Future of Hydrogen Power:
The Department of Energy is likely to invest $750 million in the production of clean hydrogen fuel. Nuclear energy, renewables, and natural gas can also help to achieve the production of hydrogen with net zero emissions.
In order to manufacture clean hydrogen safely, it is essential to meet the guidelines of the Compressed Gas Association (CGA). Solar and wind facilities that supply energy to hydrogen production companies can work alongside CGA to ensure the quality of hydrogen. CGA has safety standards for production, transportation, storage, and use. Implementation of safety guidelines is crucial for the hydrogen industry because any mishap can drag the entire facility decades back.
