Low-cost electricity from renewable energy is revolutionizing the promise of green hydrogen production as an affordable, flexible feedstock and fuel to decarbonize large-scale industrial value chains. Green hydrogen offers a solution for sectors that struggle to decarbonize through electrification alone, such as steel, chemicals and heavy transport. It also has the potential to transform electric and gas grids.
As a result of government funding and regulation, the business case to adopt green hydrogen will continue to improve.
Green hydrogen, also commonly referred to as clean hydrogen, is produced from renewable energies (i.e., solar and wind), as opposed to black or gray hydrogen obtained from fossil fuels. Pink hydrogen is produced with nuclear energy. As a zero-carbon fuel, green hydrogen has many sustainable applications and is a key solution for industries looking to accelerate their Net Zero transition.
Incentives and investment have driven down the cost of renewable energy, but the production of electrolyzers—the key capital equipment needed to generate green hydrogen—has not yet achieved economies of scale. Government incentives and private sector commitments to decarbonize are driving increased electrolyzer production, setting the stage for a massive reduction in the cost of this critical input.
But the production of hydrogen is only half the battle. Transport, storage and safety regulations remain key issues that need to be addressed for deployment to scale.
To accelerate a transition, policymakers are regulating carbon and targeting billions in support towards green and other low-carbon hydrogen. As a result, the business case for integrating low carbon hydrogen into industrial operations is expected to continue to improve for the foreseeable future.
Falling costs for green hydrogen will open opportunities to expand into new applications, especially heavy-duty trucking, off-grid power generation, and many other applications in sectors like mining. In the future it will also expand into household and industrial heat, stationary power generation, and long-term electricity storage applications. The business viability of these applications depends on the long-term outlook for costs, the interplay between market size, regulation, voluntary Net Zero commitments and other decarbonization drivers. Successfully understanding and navigating these challenges can mean the difference between a prescient investment and a reckless one.
Our hydrogen experts help you understand the dynamics of the fast-evolving marketplace. We guide your hydrogen ventures end-to-end, from initial consideration to implementation.
Low-carbon hydrogen adoption will unfold over decades. To ensure business success, we help our partners identify a strategic target, calculate lifecycle costs, conduct market analyses, navigate policy and gain access to available government support.
We conduct rigorous technical assessments, informed by a detailed analysis of your site conditions and technology options. These assessments are complemented by comprehensive financial modeling, including forecasted capital and operating expenses, along with related market risks.
We design your optimal configuration of green hydrogen production systems to reach the lowest total cost of ownership, including both capital and operating expenditures. By integrating all of a project’s key building blocks, our approach lets us test and assess scenarios to perfect parameters to ensure success.
As a global leader in end-to-end decarbonization services, operating in 70 countries worldwide, we draw on deep market experience and our connection to ENGIE to manage operations. From access to renewable energy developers and researchers to shared insights, we provide you with operational improvements in green hydrogen facilities that deliver bottom-line gains.
With more than two decades of technical experience in hydrogen research and operations, our expertise includes generation, transmission and distribution, power-to-hydrogen, compression, storage and transport. Our experts also bring experience from policy setting to inform a robust approach to low carbon hydrogen markets.
ENGIE Impact will work in tandem with ENGIE Group to support the South African Hydrogen Valley project by identifying tangible project opportunities to build hydrogen hubs in this key economic and transport corridor.
With the potential to fit into both legacy energy value chains as well as to pioneer new lines of business, green hydrogen’s promise has few parallels in the global race to Net Zero. Yet, for now, the low-carbon hydrogen sector remains more nascent. Navigating the path from pilot to commercial success will require mastering technical, market and operational complexities unique to green hydrogen. ENGIE Impact stands ready as an expert partner, able to map out end-to-end strategies, from identifying and evaluating market opportunities to optimizing ongoing operations, all as part of a wider commitment to achieving sustainable transformation.
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