Market analysis company BlueTech Research says the hydrogen economy could be worth as much as $12-trillion by 2050, but there is concern about the availability of water, particularly in water-stressed countries and regions.
The number of green hydrogen projects – where hydrogen is produced through water electrolysis powered by renewable energy – is expected to grow considerably, as is the size of hydrogen plants.
The European Union (EU) anticipates investment of up to €470-billion, or $557-billion, into hydrogen production and infrastructure by 2050, with annual capital expenditure of around $20-billion.
In the period from 2020 to 2030, the EU itself is expected to invest between €24-billion and €42-billion, or between $29-billion and $50-billion, in electrolysers and between €220-billion and €340-billion, or between $260-billion and $400-billion, on scaling-up production and directly connecting 80 GW to 120 GW of solar and wind energy capacity to the electrolysers.
BlueTech notes that, while there is a global push for green hydrogen, there are concerns about the amount of water and renewable energy that will be needed.
Research analyst Kim Wu says water demand could be a concern for the large number of green hydrogen projects being planned, particularly for water utilities and councils, or in water-stressed areas, as some hydrogen projects might expect to use tap water supplied by local utilities.
However, given that water is the main feedstock for hydrogen production, the boom in the hydrogen market presents a range of opportunities for water and wastewater businesses, BlueTech finds in a report titled ‘Water and the Hydrogen Economy’.
“Interestingly, water utilities have a unique role to play in the hydrogen economy. There are different pathways that water utilities can produce hydrogen at their wastewater facilities and benefit from implementing those processes,” Wu explains.
Conventionally, hydrogen has been produced through steam methane reforming (SMR) using natural gas as the feedstock.
To date, 90% of hydrogen from methane or light hydrocarbons is produced from SMR and the hydrogen produced is mostly used as a chemical feedstock.
Wu highlights that, with companies and governments leading and actively pushing towards net-zero carbon emissions, there is an ongoing shift in which hydrogen is now being considered as the clean energy carrier in addition to a chemical feedstock.
She adds that green hydrogen projects also rely on the availability of, and investment in, renewable energy infrastructure. Suitable hydrogen storage and transport facilities will also be needed which amount to significant investment costs.
BlueTech CE and founder Paul O’Callaghan points out that after years of research and development, anticipation and slow market growth, the hydrogen economy is beginning to take off, fuelled by the pressing global agenda to decarbonise.
“Our research highlights different opportunities for water and wastewater business in the growing hydrogen technological and economic landscape. A particular focus will be on green in green hydrogen production, in which hydrogen is produced by renewable energy through electrolysis.”