Hydrogen and the Energy Transition

When former Minister of the Ecological Transition Nicolas Hulot presented his hydrogen roll-out plan for the energy transition on 1 June 2018, it probably seemed to come out of left field for the general public, which does not yet view hydrogen energy and fuel cells as an alternative to petrol/diesel and the internal combustion engine. This is hardly surprising, because while most car manufacturers now sell hybrid vehicles, and recharging stations for electric cars are commonplace, there is no national infrastructure for the distribution of hydrogen and very few manufacturers have fuel cell electric vehicle (FCEV) solutions for the general public.

And yet hydrogen has massive potential as an alternative to fossil fuels for mobility; not only are FCEVs silent, they also produce zero pollution at their point of use (their only waste emission is water). Moreover, although most hydrogen today is produced using fossil fuels (for an explanation of the different ways of producing hydrogen, see here), the technology now exists to decarbonise hydrogen production and make it truly carbon-neutral.

The most environmentally friendly way to do this is through electrolysis, a process that consists in separating water into its constituent parts (oxygen and hydrogen). Not only does the process itself not generate greenhouse gas or waste (the only raw material is water), but it is also more efficient than so-called “brown” or “black” production processes, which produce hydrogen through a process called coal gasification. Moreover, if the energy used to power the production process comes from sustainable sources, the resulting hydrogen energy is completely carbon neutral. Such hydrogen is known as “green hydrogen” and it creates real possibilities for synergies between hydrogen production and renewable energies; the energy produced by wind turbines and solar panels is by nature intermittent, and it must be used immediately (or stored) or it is lost. Using this so-called “unavoidable energy” to produce hydrogen through electrolysis is a win-win.

So what is holding back the transition? There is definitely an element of path dependency, but there is also something of a chicken and egg situation: The cost of vehicles and the lack of a national infrastructure is a problem, but distributors do not have the incentive to roll out infrastructure while there is so little demand; manufacturers cannot generate demand from the general public while there is no distribution infrastructure and while vehicles are so expensive; and yet vehicles will remain expensive until manufacturers can generate economies of scale thanks to large-scale demand.

Companies such as Air Liquide have sought to get around this Catch-22 situation through partnerships with fuel cell technology manufacturers and by developing hydrogen distribution networks for owners of captive fleets. One of the first of such projects was the development of a solution for forklift truck fleets in warehouses and logistics hubs; Air Liquide installs on-site refuelling stations, delivers the hydrogen, and supplies the fuel cells through its subsidiary and partners. Forklift trucks powered by fuel cells don’t create harmful and unpleasant emissions like combustion forklift trucks, and the downtime for recharging is significantly shorter than with battery-powered forklifts. In the medium-term, one can even envisage fully self-sufficient, carbon-neutral forklift truck fleets thanks to on-site hydrogen production through electrolysis powered by solar panels on warehouse roofs, for example.

The second step was the development of partnerships with car manufacturers and taxi operators; Parisian taxi firm Hype will soon boast a fleet of 600 FCEVs operating within Paris city limits thanks to a network of six refuelling stations all around the French capital. Similar partnerships have been developed with bus networks, truck manufacturers and distributors like Carrefour or Asda, who are committed to reducing their carbon footprint by converting their rolling stock to FCEVs.

The final stage before a generalised roll-out is the creation of pilot grids in autonomous regions or small countries, which will be the precursor for national networks in larger countries. An example of this technology at scale can been seen in the HyBalance project, located in Hobro, Denmark, where wind turbines provide the power needed to produce hydrogen through water electrolysis. This green hydrogen is stored under pressure and used to balance the grid as well as to supply a network of local hydrogen charging stations, which will eventually be capable of supplying a fleet of more than 1,000 FCEVs.

Thanks to this type of experiment – and state support like the €2 billion devoted to hydrogen in the French government’s economic recovery plan announced on 3 September 2020 – it will eventually be possible to expand such local initiatives into a national infrastructure that allows the economies of scale that make FCEVs a viable, low-carbon alternative to petrol/diesel cars.