Hydrogen has long been heralded as a potential game-changer for various industries, particularly in the quest for cleaner energy solutions. Hydrogen is often seen as a key player in transitioning to a more sustainable future with zero-emission potential.
However, despite the promise, hydrogen faces significant challenges preventing it from being widely adopted and mainstream.
According to a Car and Driver article, there are only about 17,000 hydrogen-powered automobiles in the US. In fact, all of them are in a single state, California. While major vehicle manufacturers are focusing on electric cars, hydrogen vehicles are still in the background despite their lucrative promise.
The same applies to adopting hydrogen-fueled vehicles in the supply chain industry, as it faces many challenges. These challenges span production, storage, distribution, and economic viability, creating a complex web of issues that must be addressed comprehensively.
Let’s explore some obstacles preventing hydrogen-fueled vehicles from becoming mainstream in the supply chain industry.
Production Challenges
Hydrogen production is notoriously energy-intensive, particularly when derived from water through electrolysis. Electrolysis involves splitting water into hydrogen and oxygen using electricity; the electricity must come from renewable sources for it to be green.
However, the current infrastructure for renewable energy is not yet sufficiently widespread or efficient to support the large-scale production of green hydrogen. Additionally, producing hydrogen from natural gas, known as steam methane reforming (SMR), releases significant amounts of carbon dioxide, negating the environmental benefits.
As stated in a CNBC article, another significant production challenge is its cost. Making hydrogen from natural gases can cost around $1.5 per kg, whereas clean hydrogen costs $5. This economic barrier is a significant deterrent for industries adopting hydrogen at scale. However, the good news is that the Department of Energy has launched a program to reduce production costs within a decade.
Storage Issues
Hydrogen, the lightest element in the world, has a very low energy density by volume. This means it must be stored under high pressure, at low temperatures, or in chemical compounds to be viable for industrial use.
High-pressure storage requires robust and often costly materials and infrastructure to ensure safety and efficiency. Cryogenic storage, which involves keeping hydrogen at extremely low temperatures, presents technical and financial challenges.
Moreover, hydrogen is highly flammable and can cause explosions if not handled correctly. This necessitates stringent safety measures in storage facilities, which can be both technologically challenging and expensive.
According to H2MOF, these challenges can be mitigated by using nanomaterials designed with and atomic precision. With this technology, atomic precision, hydrogen fuel can be stored in solid state at ambient temperature and low pressure, eliminating the need for high-pressure or cryogenic, large storage tanks.
This efficient storage technology also allows fuel storage for long hauls and transportation, essential for supply chains.
Distribution Challenges
The existing infrastructure for distributing hydrogen is limited and largely underdeveloped compared to the extensive networks for oil, natural gas, and electricity.
Building new infrastructure or retrofitting existing ones to accommodate hydrogen is massive and costly. Pipelines must be constructed anew or significantly upgraded to prevent hydrogen embrittlement.
Transporting hydrogen in its compressed or liquid form is also expensive. The energy required to compress or liquefy hydrogen and the specialized vehicles needed add significant costs. This makes establishing a cost-effective hydrogen supply chain challenging, especially for remote or less accessible locations.
Economic and Market Factors
The transition to hydrogen requires substantial upfront investment in production facilities, storage solutions, and distribution networks. This high capital expenditure is a major barrier for many companies, particularly in the current economic climate.
The International Energy Agency mentioned this in its Global Hydrogen Review 2023. It states that the equipment and financial costs of adopting hydrogen are increasing significantly. Therefore, many projects have increased their initial costs by around 50%.
This puts projects at risk, but there is also some movement in the private sector to adopt hydrogen. However, the movement is marginal, and the efforts are very small.
There is no denying that there is a growing interest in hydrogen. However, the current market demand is insufficient to drive the economies of scale needed to reduce costs.
Technological and Innovation Hurdles
Fuel cells convert hydrogen into electricity and are a key component in realizing hydrogen’s potential. However, the efficiency and durability of current fuel cell technologies are not yet at the level required for widespread commercial adoption. Improvements in fuel cell technology are essential to making hydrogen a competitive alternative.
Continuous innovation is crucial for addressing the multifaceted challenges of hydrogen. However, R&D in this field requires significant funding and time. Governments and private sector stakeholders must be willing to invest in long-term research initiatives to advance hydrogen technologies. However, this is often hindered by short-term financial goals and risk aversion.
Frequently Asked Questions
What are the primary problems associated with the transition to a hydrogen economy?
The move to a hydrogen economy confronts numerous significant hurdles. One significant barrier is the high expense of producing, storing, and transporting hydrogen. Hydrogen must be generated cost-effectively and ecologically beneficial, for example, by electrolysis utilizing renewable energy.
What are the challenges to hydrogen technology?
Hydrogen technology offers hurdles in terms of fuel cell efficiency and durability. To be commercially feasible, fuel cells that convert hydrogen into electricity must be more efficient and last longer.
What is the most significant obstacle for hydrogen production?
The most significant hurdle for hydrogen generation is ensuring economic viability. Currently, most hydrogen is generated by natural gas reforming, which is carbon intensive. Manufacturing methods such as electrolysis using renewable energy must become more cost-effective to make hydrogen a truly green energy source.
This necessitates considerable technological developments and investments in renewable energy infrastructure.
What variables impact hydrogen production?
The cost of raw materials, the efficiency of the production method, and the energy source employed in the process all impact hydrogen generation. The environmental effect and energy efficiency of hydrogen manufacturing systems are also important factors.
While hydrogen holds immense potential to revolutionize supply chains, it faces substantial challenges that must be overcome. These multifaceted challenges involve technological, economic, infrastructural, and regulatory hurdles.
Addressing these issues requires coordinated efforts from governments, industry players, and research institutions to invest in and develop the necessary technologies.
Article and permission to publish here provided by Daniel Washington. Originally written for Supply Chain Game Changer and published on June 6, 2024.
Cover photo by pexels.com.