The development of a "green" economy, a reduction in the consumption of petroleum products causes the active development of hydrogen energy throughout the world. Experts believe that in the near future this will allow achieving environmentally friendly production and transportation. To date, hydrogen strategies have already been approved in 26 countries around the world. Developing and developed countries are interested in introducing hydrogen as the main innovative type of fuel. Therefore, a large number of pilot projects have already been created for large-scale hydrogen production in many countries of the world. So, there are a number of ways to produce hydrogen for energy needs, the main of which are:
- electrolysis of water;
- steam conversion of methane;
- coal gasification;
- pyrolysis.
From this list, the most environmentally friendly way to produce hydrogen is the electrolysis of water. The only disadvantage of this method is that in order to produce hydrogen, it is necessary to use electricity, for the production of which, in fact, hydrogen is obtained.
Global Hydrogen Energy Market
The Paris Agreement, adopted on December 12, 2015 and entered into force on November 4, 2016, contributed to the acceleration of the development and implementation of hydrogen energy. It can distinguish two obligations concerning all the countries that have signed this agreement:
- From 2050 to 2100, countries are obliged to limit greenhouse gas emissions to such a volume that the ecosphere is able to process independently (without human intervention).
- Developed countries are obliged to allocate money to a special climate fund to help poor countries to struggle the effects of climate change, as well as to introduce renewable energy in poor countries to improve the environmental situation in these territories.
At the beginning of the XXI century, the global hydrogen market began its development. Thus, by the end of 2022, the portfolio of hydrogen projects in the world exceeded 71 million tons per year, which is already comparable to the current annual consumption of hydrogen in the world.
According to consolidated estimates, tens of millions of tons of hydrogen will be traded on the global low-carbon hydrogen market in 2030, and its volume will reach $500-800 billion.
The global market of energy equipment for hydrogen energy is also actively being developed, first of all, electrolyzers and fuel cells, the volume of which already amounts to $5-7 billion, and by 2050 it may reach $200-225 billion.
In 2022, 98 million tons of hydrogen were produced worldwide (90 million tons in 2020, 94 million tons in 2021), which accounted for 6% of total natural gas consumption and 2% of coal consumption.
According to the IEA report, by 2050 the global demand for hydrogen should reach 528 million tons – against 98 million in 2022 - and its share in world consumption will be 18%, of which 10% will be green hydrogen.
The main consumers of hydrogen
In 2022, the main consumers of hydrogen in the world were oil refining (45%), ammonia and methanol producers (36% and 14%, respectively) and metallurgy (5%). The consumption of hydrogen for energy needs and transport amounted to approximately 40 thousand tons (0.04% of total global consumption).
Fig. 1. Global hydrogen production (by raw materials)
Source: data of Gubkin Russian State University of Oil and Gas
It must be said that the main processes of the development of the low-carbon hydrogen market in the world are primarily associated with the replacement of captive hydrogen with a high carbon footprint with low-carbon hydrogen, as well as with the formation of hydrogen transport infrastructure and the beginning of the use of low-carbon hydrogen in industries where this gas has not been used before.
The state of hydrogen energy in Russia
Russia's share in the global hydrogen production market today is about 7% (approximately 5 million tons per year), the country ranks fifth in the world after China, the USA, the EU and India. At the same time, while in China more than 62% of hydrogen is produced from coal by gasification, in Russia – from natural gas by steam conversion. More than 28 billion m3 of natural gas is used for hydrogen production in this way, which is about 6% of its domestic consumption in Russia.
From 2018 to 2022, hydrogen production in Russia increased by 16.6%: from 2.05 to 2.39 billion m3. However, compared to 2021, hydrogen production decreased by 1.2%.
Fig. 2. Hydrogen production in Russia in 2018-2022 (million m3)
Source: Rosstat, Ministry of Energy
Hydrogen consumption in Russia
The positive dynamics is primarily due to the breadth of its application. The main consumers of hydrogen in Russia are chemical industry companies that use hydrogen to produce ammonia, methanol, plastics, hydrogen chloride, hydrochloric acid, as well as oil refineries (hydrogen is used to produce fuel of the Euro 5 standard).
The consumption of hydrogen in metallurgy is insignificant, however, hydrogen is involved in the reduction process of some metals. In the energy industry, hydrogen acts as an alternative fuel source, in medicine it is involved in the production of an aqueous solution of hydrogen peroxide, in the food industry, hydrogen is necessary to check the tightness of food packaging.
Fig. 3. Hydrogen consumption in Russia by industry
Source: data of Gubkin Russian State University of Oil and Gas
A characteristic feature of the domestic hydrogen market is that the largest producers of this product are also its main consumers. About 90% of the hydrogen produced in Russia is accounted for in-plant consumption. The use of hydrogen in most cases is integrated into single chains with the production of end products (ammonia, methanol, polyamides), which is due to the high cost of its storage and transportation.
Hydrogen as an energy carrier is the optimal solution for reducing emissions in a number of sectors of the economy. Thus, according to the head of the National Hydrogen Union of Russia Denis Deryushkin, the potential for reducing emissions through the use of hydrogen in road transport is estimated at 57%, in metallurgy – at 63%, and in energy – at 20%.
Key Hydrogen Production projects in Russia
The "hydrogen hype" that has arisen in Russia in recent years has led to the emergence of a large number of announced projects for the production of "low-carbon" and "renewable" hydrogen. The Ministry of Industry and Trade of Russia has prepared an Atlas of Russian projects for the production of low-carbon and carbon-free hydrogen and ammonia. It contains 41 pilot projects in 18 regions of Russia, the implementation of which will contribute to the creation of a full-fledged hydrogen industry in the country.
For Russia, the hydrocarbon giants with state participation remain the leaders of the industry: Gazprom, Rosatom, NOVATEK. Several dozen companies are engaged in hydrogen technologies in Russia, including H2 Clean Energy, Sistema, Norilsk Nickel, as well as those engaged in gas production, such as Gazprom. These companies invest in the development of technologies for the production, storage and transportation of hydrogen, CO2 utilization, and also work on the use of hydrogen in various fields of industry. With their participation, the largest hydrogen production clusters are being created on Sakhalin (Rosatom's project to transport "blue" hydrogen by sea to China), in Yakutia (the project of the Northeastern Alliance to transport "blue" hydrogen to China by rail), in Yamal (NOVATEK's project to export "blue" hydrogen by sea to Germany), in Eastern Siberia (En+ "green" hydrogen supplies to China by rail) and in the North-West (Rosatom, Rusnano, H2 Clean Energy projects).
Thus, one of the most important projects for the production of hydrogen energy should be considered the foundation of a hydrogen cluster in the Sakhalin region. Several major companies, including Rosatom, H2 Clean Energy, are planning to implement an organizational mechanism for the production, export to the Asia-Pacific countries and the development of domestic consumption of hydrogen. The territory of Sakhalin has excess resources to launch such projects, including raw materials (natural gas, coal) and energy (developed generation infrastructure using renewable energy). In the region, it is planned to build a plant for the production of hydrogen from natural gas by steam conversion of methane. A pilot project on the use of hydrogen in railway transport is also being implemented, including in the future the creation of a railway sour on which only hydrogen trains will run. The regional authorities consider the production of "green" hydrogen as a promising direction and intend to establish its production up to 100 thousand tons per year by 2030. Rosatom considers Sakhalin as a key platform for large-scale hydrogen production.
In the Arkhangelsk region and Kamchatka, issues of the production of "green" hydrogen using electricity from tidal power plants are being worked out. So, in the region it is planned to use the Mezen NPP with a capacity of up to 12 GW with a projected volume of hydrogen production of up to 500 thousand tons per year by 2030 and up to 1 million tons per year by 2033. The project participants are the Agency for Regional Development of the Arkhangelsk Region and NordEnergoGroup.
It is planned to produce "green" hydrogen in the Kaliningrad region, where it will be obtained by electrolysis of water using wind energy, and in the Murmansk region - "pink" hydrogen on electricity from the Kola NPP. Rosatom took up these projects. These projects are focused on exports to the EU. In addition, LUKOIL plans to produce "green" hydrogen in the Krasnodar Territory - up to 13 tons per year.
Within the framework of the cooperation agreement (the Government of the Russian Federation, Rosatom State Corporation and Gazprom PJSC) By 2030, Rosatom State Corporation will implement a program to create domestic technologies in the field of hydrogen production and handling, organize mass production of Russian electrolysis plants of various capacities, and work will also be carried out on a project to create a nuclear power plant with high-temperature gas-cooled reactors and a chemical-technological part.
Also in March 2023, Rusatom Overseas JSC (RAOS, part of Rosatom State Corporation) and Polycom, a leading supplier of industrial hydrogen generators, signed a consortium agreement for the development and promotion of equipment in the field of hydrogen energy. The parties plan to join efforts to promote Russian-made electrolyzers to domestic and foreign markets, as well as to organize the supply of high-tech equipment and services to consumers in various sectors of the economy.
It should be noted that with the help of the electrolysis plant of the domestic production of the company "Polycom" at the Kola NPP in December 2022, the first hydrogen was already produced, which is necessary for cooling the turbine generators that generate electricity at the nuclear power plant. This experience in handling hydrogen allowed the Kola NPP to become a pilot site for hydrogen production in Russia.
In September 2022 JSC "Rusatom Overseas" and GKNPC im. Khrunicheva (part of the state corporation "Roscosmos") signed an agreement of intent, which provides for cooperation in the development of domestic technologies for the storage and transportation of hydrogen, which will be in demand in the space industry.
Along with this, TVEL Fuel Company is implementing a large-scale investment project to create a pilot production of electrolysis equipment in Novouralsk. Thus, by order of Rosenergoatom Concern JSC, specialists of NPO Centrotech LLC developed an electrolysis plant with a capacity of 50 Nm3/h (normal cubic meters of hydrogen per hour).
Rosatom's hydrogen production equipment is based on eco-friendly water electrolysis technology using a unique anion-conducting matrix. The use of the matrix and the selected engineering and technological solutions make it possible to ensure the compactness of the entire installation, low specific energy consumption of the electrolysis battery (no more than 4 kW/ h per normal cubic meter of hydrogen produced), high dynamic characteristics, safe operation of the electrolysis plant from zero to 115% of the nominal capacity, as well as the required purity of the hydrogen produced.
In addition, in Russia, within the framework of the federal project "Electric Car and hydrogen car", it is planned to create a range of cars powered by electricity and hydrogen fuel, as well as charging and refueling infrastructure for them by 2030.
There are already projects for the development of hydrogen transport. So, KAMAZ has created a hydrogen bus capable of traveling 250 km without refueling; at the moment, the model exists only in a pilot version. Passenger cars powered by hydrogen fuel cells are developed by the Central Scientific Research Automobile and Automotive Engines Institute experts. The companies belonging to AFK Sistema are working on an electric catamaran with a hydrogen engine and a power plant for civilian drones.
Along with this, hydrogen can also be in demand in the implementation of Russian high-tech projects. Hydrogen fuel cells or hydrogen-powered engines are suitable for UAVs, can be in demand for sea and river navigation (in the world, such a possibility is being studied, in particular, by Korean Samsung Heavy Industries). Given the significant land and water expanses, such application scenarios are becoming increasingly relevant for our country. Their commercial and technical implementation depends on the correct assessment of needs and costs throughout the value chain, as well as the formation of conditions for industrial replication.
And this is only a small part of the projects implemented by domestic corporations and institutions in order to develop hydrogen energy and scale new technologies and products of domestic origin.
These examples point to the timely implementation of the plan for the transition to renewable energy, in particular hydrogen.
But, it is worth noting that now in Russia there are economic and technical barriers to the extraction and transportation of hydrogen. These include:
- lack of necessary infrastructure for storage and transportation of hydrogen;
- high hydrogen transportation costs;
- limited regulatory framework in the field of hydrogen energy.
International partnership in the field of hydrogen energy
For the speedy and less risky introduction of hydrogen energy, the countries began to combine their efforts to develop advanced technologies for the extraction of hydrogen. Germany, China, Korea and Japan are traditionally considered potential partners for Russia in this direction. But in connection with the current situation, the plans for further cooperation with Russia in these states have changed a lot. The only country with which Russia continues to cooperate in the field of hydrogen energy is China, with which Russia has not only established good diplomatic relations, but also develops cooperation in the field of innovation. Such relations can become a "window of opportunity" for Russia, but it is necessary to implement them for the production of hydrogen fuel as soon as possible, since China plans to create The China Hydrogen Alliance, which will help China to do without anyone's help in the production of hydrogen.
Other potential partners of Russia in the field of hydrogen energy can be:
- Latin American countries (2 million tons of hydrogen per year);
- African countries (2.2 million tons of hydrogen per year);
- Middle East countries (3.2 million tons of hydrogen per year).
There may be no problems with Latin America and the Middle East. But France may be interested in African countries as its former colonies, because most of North Africa, which is now the most developed, has historically been under French rule.
Russia's competitors in the hydrogen export market will be the UAE, Saudi Arabia, Australia, Norway, Oman, who also bet on the production and sale of hydrogen abroad. China and Kazakhstan are included in the race. It is worth noting that they are also oil- and carbon-producing countries, that is, at the first stages, hydrogen production will still remain "gray" and "brown".
Future development of hydrogen energy
Today, hydrogen is considered as a promising energy carrier capable of providing reliable, affordable, stable and more environmentally friendly energy. Most of the currently developed development strategies and initiatives in the field of hydrogen energy in most countries of the world are aimed at supporting research and development, the results of which could become the basis for creating viable solutions in industries.
The largest number of initiated research in the field of hydrogen energy is associated with the production of hydrogen. It is at this stage of the value chain that a significant variety of technologies is noted, although hydrogen storage is considered the most expensive, primarily due to its high explosive and volatility.
The majority of national research today concerns the production of hydrogen fuel cells that convert chemical energy into electricity and are used in industry for autonomous generation and energy storage, in transport (air, auto, railway), in the electric power industry to provide energy to remote and hard-to-reach areas.
For example, in India, the strategy for the development of hydrogen energy involves, first of all, the implementation of projects to create fuel cells for the functioning of road and rail transport. Starting in 2021, the world's largest hydrogen fuel cell power plant has been put into operation in South Korea. A number of large Japanese corporations (for example, Teijin Group) in 2022 launched pilot projects for testing portable hydrogen fuel cells in several directions at once: the possibility of using them in the construction industry, maritime transportation and for aerospace purposes.
An equally important direction in scientific research is the search and creation of materials for hydrogen components. Only on the basis of special materials and compounds is the efficient operation of hydrogen-based energy generators possible. First of all, scientific interest concerns the development of materials used for catalysts that provide electricity generation. As a rule, platinum is used in catalysts, due to which hydrogen fuel cells have a very high cost. By the way, catalytic technologies, without which the entire modern oil refining and chemical industry, oil and gas chemistry, pharmaceutical and food industries are unthinkable, form the basis of hydrogen technologies. Accordingly, the possibilities of using other materials are being actively studied today. In 2022, specialists from the University of California at Los Angeles used platinum crystals instead of platinum. At the beginning of 2023 Russian scientists have developed another material for electrocatalysts – carbon microtubules coated with nickel- and copper-based composites, which make the process of producing hydrogen cheaper and more efficient.
But the production of environmentally friendly "green" hydrogen, primarily through the electrolysis of water using renewable energy, remains an expensive technology with long-term prospects for implementation. The current level of readiness does not yet allow us to talk about the commercialization of these developments. They have gained popularity due to large-scale and systematic investments in research by a number of states, primarily EU countries. The cost of electrolyzers is gradually decreasing (for 2018-2022 by half), more powerful and scalable installations are appearing, although their use is still limited.
As for the promising development of hydrogen storage, today the main task is to create such commercial storage systems that would differ in energy efficiency and capacity. One of the most convenient and least expensive options for long–term use on an industrial scale is underground storage of hydrogen. Back in the 1970s, underground salt mines were equipped for these purposes, for example, in the USA, Germany. Projects are being actively developed in this direction in the USA, where it is currently planned to build an underground hydrogen storage facility with a capacity of 300 GW/h.
Innovative developments and scientific research in the field of hydrogen consumption today mainly concern the possibility of its use and scaling of projects within the framework of the development of automotive electric transport. The flagships in the development of the hydrogen-mobile industry are Japan and South Korea. In particular, companies such as Toyota and Hyundai have put passenger electric vehicles powered by hydrogen fuel cells into mass production. Due to state support for the production of these companies, sales of passenger and cargo transport on fuel cells increased by more than 66% over the period from 2020 to 2021.
Conclusions
In general, with regard to the development of the global hydrogen energy market, experts from different countries are inclined to believe that it will be formed no earlier than the early 2030s. Due to the immaturity of existing technologies for implementation on a commercial scale, as well as due to the lack of legislative regulation in this area, ensuring the safe and efficient use of hydrogen.
Amid the high uncertainty of market development, investors are still conservative in their expectations: although hydrogen projects are being funded, they are not so actively. In 2022, 680 large-scale hydrogen projects worth $240 billion were announced in the world, but only investments were allocated for every tenth proposal. The development of the hydrogen energy market is hindered by high costs of hydrogen production and storage, energy losses at each stage of the value chain, transportation difficulties, etc.
For Russia, in the current geopolitical conditions with the rejection of Russian traditional energy resources and the protracted energy crisis in Western countries, the development of the hydrogen economy is of particular importance. Under these circumstances, Russia simply cannot afford to abandon the creation of hydrogen energy for reasons of technological security of the country. After all, if a new energy industry with its completely new technological package based on hydrogen technologies will be developed in the world, any technological lag in the future will lead to an inevitable dependence on the leaders of this industry.
The main goal of hydrogen energy in our country should be considered the development of domestic technologies, as well as ensuring the competitiveness of the country's economy in the context of a global energy transition. The Hydrogen Energy Development Concept adopted in 2021 in the Russian Federation provides for the creation of a hydrogen energy segment as part of an energy industry with high export potential. To do this, our country has a unique combination of factors, including significant natural gas reserves, its own scientific and technological reserves, and an advantageous geographical location.
