Hydrogen's New Wave: Powering the Future of Global Energy and Maritime Strategy

The emergence of hydrogen as a significant player in the global market signals a potential shift in the energy dynamics, similar to the changes that occurred during the 20th century when oil became a dominant force in global politics. As with oil, the rise of hydrogen will redefine global trade patterns and power structures. Its ability to be produced from a variety of resources allows it to reduce reliance on certain geo-strategically supply routes and sensitive chokepoints and its production from various resources democratizes energy potential.

In addition to energy supply, hydrogen also plays a significant role in addressing the global issue of climate change. It is a key component of the response to this issue, as it can help industrial sectors and economies decarbonize their operations. As environmental policy discussions intensify, the ability of hydrogen to help facilitate significant reductions in carbon emissions is becoming an important factor. The race for supremacy in the hydrogen market has the potential to create a new era of international diplomacy and economic strategies. Advanced economies such as China, Japan, and Europe are already investing heavily in their research and development programs to establish a competitive advantage in the hydrogen market. These investments are aimed at securing a portion of the multi-trillion dollar market that could be created by mid-century by implementing hydrogen technologies.

Production of Hydrogen:

Hydrogen is also being widely used in port and shipping operations, which could help reduce the emissions of maritime vessels and align them with international regulations. The geographic distribution of this material and the establishment of new infrastructure for global trade could significantly change the maritime landscape. There are various classifications of hydrogen, which are often referred to as the fuel of the future. It can be categorized into three main types: gray, blue, and green. These three play a significant role in the energy sector.

Green Hydrogen: In order to produce green hydrogen, a process known as electrolysis involves splitting water into oxygen and hydrogen using electricity from renewable sources such as solar, wind, and hydroelectric power. This process does not involve the use of fossil fuels, and it has minimal impact on the environment. Currently, the widespread use of green hydrogen is hindered by its high production costs and need for additional renewable energy. Some of the world's leading nations that are currently investing in the development of green hydrogen include Japan, Australia, and Germany.

Blue Hydrogen: Natural gas is used to produce blue hydrogen through various processes, such as autothermal reforming and steam methane reforming. These technologies can help capture and reuse the carbon dioxide emissions instead of releasing them into the atmosphere. Compared to gray hydrogen, this process has a lower environmental impact. Through the use of natural gas infrastructure, blue hydrogen can be used as a transitional technology. Countries, such as Canada and the UK, are currently investing in blue hydrogen in order to maintain their energy security while transitioning to low-carbon systems.

Grey Hydrogen: Although gray hydrogen is widely used and is produced through the use of natural gas (through SMR), it doesn't capture the carbon dioxide emissions. This makes it the least sustainable type of hydrogen. Despite its cost-effectiveness, grey hydrogen is expected to lose its role as a viable alternative to blue and green hydrogen in the future due to the increasing pressure to reduce carbon emissions.

Several regions and countries are leading the way in the development of the hydrogen economy by implementing policies and investments that are aimed at increasing the production of clean hydrogen. For instance, the European Union has launched the Hydrogen Strategy, which aims to increase the number of clean hydrogen production facilities. Similarly, China and South Korea are investing heavily in the development of infrastructure and technologies for the production of hydrogen. The various initiatives undertaken by different countries and regions to integrate hydrogen into the energy matrix demonstrate their commitment to making the transition to a more sustainable energy future. The use of green hydrogen, which is also known to reduce greenhouse gas emissions, aligns with the global decarbonization goals.

Geopolitical Implications:

The use of hydrogen as a component of the energy matrix is expected to have a significant impact on global geopolitical dynamics. As countries start relying on it to meet their energy requirements, its influence on security and global dependencies will grow, leading to a shift in the global relationship.

Altering Energy Dependencies: Countries that are heavily dependent on imported gas and oil can diversify their energy supply by utilizing hydrogen. Unlike petroleum products, which are mainly concentrated in certain regions, this resource can be produced using different sources such as water, wind, and natural gas. This energy independence can be achieved through the availability of resources such as water, wind, and natural gas. For instance, countries in Middle East and North Africa (MENA) region can potentially produce green hydrogen by converting their solar energy into electricity.

Enhancing Energy Security: Nations can enhance their energy security by diversifying their energy supply and lowering their dependence on volatile fossil fuel markets. This can help them avoid unexpected shocks and geopolitical tensions. With its ability to store energy, hydrogen can be utilized for energy reserves when renewable sources of energy are low. This provides a reliable and predictable supply of energy, which is less vulnerable to geopolitical shifts.

Redefining Geopolitical Alliances: New partnerships and alliances are expected to emerge as the global hydrogen economy shifts toward green production. These can be based on the exchange of technologies, infrastructure development, and production of hydrogen. For example, the partnership between the European Union and North African nations for the production of green hydrogen could strengthen political and economic ties. As Asian powerhouses, South Korea and Japan are investing in the development of new technologies and forming partnerships with countries that have significant renewable resources to ensure a steady supply of clean hydrogen.

As countries and regions invest in the development of hydrogen production facilities, they can position themselves to benefit from the new energy trend.

Economic Implications:

New industries and markets can be created by the hydrogen industry. It is a versatile energy carrier that can be used in different applications, such as industrial processes and transportation. Its ability to be used in multiple applications allows it to develop various technological innovations, such as transportation and industrial processes. This allows it to develop various technological solutions, such as fuel cell designs and advanced storage systems. Investments in these technologies can help countries develop a competitive advantage in the low-carbon economy and become global leaders in the energy technology export industry. The hydrogen industry is predicted to create thousands of jobs across the supply chain. These include positions in manufacturing, engineering, and systems design. As the industry grows, the need for skilled workers will also increase, creating an environment that is conducive to learning and training.

The cost of production of green hydrogen is one of the major factors that hinders its adoption. This is mainly due to the high costs of renewable energy and electrolyzers. In order to make green hydrogen more competitive, investors need to continuously invest in the development of new technologies that can lower the electrolyzer's cost.

In order to establish a successful hydrogen economy, investments are required in the construction of various infrastructure, such as pipelines and fueling stations. The scale of these projects requires a huge amount of capital investment. Private and public sectors are starting to realize the importance of investing in the infrastructure development of hydrogen plants. For instance, the EU has allocated substantial funds for projects related to the green transition. The organization's goal is to establish a network of refueling stations across the 27 member states.

Maritime Security and Environmental Considerations:

Unlike marine diesel and heavy oil, which contribute to global air pollution and greenhouse gas emissions, hydrogen offers a more eco-friendly alternative. As a fuel for ships, hydrogen can help cut down on the greenhouse gas emissions of the shipping industry. It supports the efforts of international organizations such as the IMO to reduce the shipping industry's emissions by half by 2050.

In port operations, the usage of hydrogen fuel cells can help provide a more eco-friendly alternative to diesel by powering various equipment such as forklifts and cranes. In addition to reducing carbon emissions and local pollutants such as NOx and paerticulate matter, thus the adoption of fuel cells can also improve the air quality in the surrounding areas. Some of the prominent ports that are currently implementing the use of fuel cells include Los Angeles, Rotterdam, and Antwerp. These facilities are setting an example for other cities around the world.

Since hydrogen is a strategic asset, the security of its supply chains is of utmost importance. It involves the transportation, storage, production, and distribution of hydrogen. These supply chains are prone to being disrupted, especially in regions that are politically sensitive. This could affect the global hydrogen supply. Besides maintaining physical routes, securing the supply chains also involves ensuring that their sources are reliable and stable. For countries that rely on imported hydrogen, developing their own domestic capabilities can help mitigate the risks of supply disruptions and geopolitical tensions.

International Cooperation and Policy Frameworks:

A vital factor in accelerating the spread of hydrogen infrastructures and technologies is international collaboration. One example is The Hydrogen Council, a global CEO-led initiative which brings together leading companies from different sectors such as transport, energy, and investment.

IPHE (International Partnership for Hydrogen and Fuel Cells in the Economy) is another example of an international partnership. It accelerates the shift to more energy-efficient and clean systems powered by hydrogen. Through these collaborations, investors can leverage their collective resources to develop new hydrogen technologies.

In Europe, various organizations such as the Clean Hydrogen Alliance are working together to expand the hydrogen value chain. They are also supporting the implementation of ambitious climate targets. Another example is the European Green Hydrogen Center, which is a collaboration between European governments and private sector organizations. On the other hand, Japan has been able to establish a supply chain for hydrogen through partnerships with other countries such as Australia. This demonstrates the importance of global collaboration in securing a stable supply of this substance.

The International Maritime Organization is a vital organization that helps set global standards for the utilization of hydrogen in ships. Its guidelines and regulations ensure that vessels can safely and effectively use hydrogen. In addition, they help minimize environmental impact and promote sustainable business practices. IMO is also working on developing regulations that will help ensure the safety and security of the shipping industry when it comes to the use of hydrogen fuel. One of these is the International Code of Shipping for Ships Using Gases and Other Low-Flashpoint Fuels. This international standard will help ensure that vessels are equipped with the necessary equipment and procedures to handle and store hydrogen. IMO is more inclined towards reducing the greenhouse gas emissions of ships. It is exploring the various ways that hydrogen can contribute to this objective.

Pioneers in Hydrogen Adoption:

Germany is at the forefront of hydrogen technology, particularly in integrating green hydrogen into its national energy strategy. The country's National Hydrogen Strategy emphasizes both domestic production from renewable energy sources and the import of hydrogen from countries with cheaper production costs. This dual approach aims to secure a stable hydrogen supply while fostering international relations with potential hydrogen-exporting countries. Through its partnership with Morocco, Germany was able to import green hydrogen. These collaborations have helped strengthen the country's energy security and economic relations, as well as encourage sustainable growth in other nations. Germany's progress in infrastructure development and hydrogen technology has played an instrumental role in its shift toward a less coal and nuclear-powered energy system. It has positioned itself as a leader in the renewable energy industry in Europe and beyond.

Whereas, the goal of Japan's Hydrogen Strategy is to make the country a carbon neutral society by 2050. To address its limited renewable energy resources, it has heavily invested in the development of hydrogen technology, such as fuel cells and vehicles. The Basic Hydrogen Strategy also emphasizes international collaboration to ensure the security of the supply chain. In addition to establishing strategic partnerships with other countries, such as Australia and Brunei, Japan has also been collaborating with maritime organizations to develop efficient and safe shipping methods for liquid hydrogen. This strategy helps the country secure its energy supplies and drives global standards for the transportation of this resource.

Challenges:

Technological and Environmental Challenges: Hydrogen's potential as an energy carrier is hindered by the need to develop efficient production facilities and distribution networks. In green hydrogen, on the other hand, the availability of renewable sources and electrolyzers' effectiveness are crucial. In addition, there are various environmental issues that need to be resolved before commercial production can begin.

Political Hurdles: The political obstacles that prevent the spread of hydrogen are complex. For instance, establishing regulations and standards that are aligned with global trade can be difficult due to different national interests. Also, due to the lack of coordination and political changes, the viability of hydrogen projects can be jeopardized.

Maritime Transport Risks: Most of the operational risks associated with transporting hydrogen are associated with maritime routes. Since it's highly flammable, vessels carrying this liquid form of hydrogen may encounter issues with leaks or explosions. Regulations related to this type of transportation are still being developed. In order to be accepted as a marine fuel, the safety of transporting hydrogen must be ensured through rigorous international regulations and standards.

Conclusion:

Hydrogen holds significant potential to transform the global energy landscape into one that is more sustainable and secure. As a versatile and clean energy carrier, hydrogen can help reduce carbon emissions across various sectors, including transportation, industry, and power generation. Its ability to store and deliver energy generated from renewable sources addresses the intermittency issue of solar and wind energy, thus enhancing energy security and grid stability. Furthermore, hydrogen can facilitate the decarbonization of hard-to-abate sectors such as steel manufacturing and maritime transport. In maritime applications, hydrogen not only reduces greenhouse gas emissions but also helps in lowering air pollutants, contributing significantly to global environmental health.

The cost of producing green hydrogen is expected to decrease as technological advancements and economies of scale improve. This will make it more competitive against other energy sources. Besides the expansion of fueling stations and pipelines, international trade agreements and safety standards will also help in the hydrogen economy's growth. To ensure the safety and efficiency of the hydrogen supply chain, policymakers should regularly engage in international collaboration. This can be done through the establishment of regulations and trade agreements related to the production, transportation, and storage of hydrogen. Therefore, R&D is an important component of the hydrogen technology industry's efforts to reduce costs and improve its efficiency. It is necessary to sustain investments in the development of electrolyzers, storage solutions, and hydrogen transport safety. Countries should also encourage the widespread utilization of hydrogen by implementing policies that support its use in different sectors. These include tax breaks for the production of green hydrogen, regulations for hydrogen refueling stations, and incentives for industries.

As the hydrogen industry grows, there will be a rising need for skilled workers. To meet this demand, policymakers should allocate funds toward training initiatives and educational programs that will help people become more knowledgeable about hydrogen technologies. Hence, for the maritime industry, it is important that policymakers prioritize the establishment of hydrogen-powered vessels and the necessary infrastructure for their bunkering. This will help in reducing emissions and establishing new routes for the international hydrogen trade. Lastly, hydrogen can contribute to the mitigation of climate change and improve global energy security through international collaboration.

Pic Courtsey-Darren Halstead at unsplash.com

(The views expressed are those of the author and do not represent views of CESCUBE.)