global warming

Pieces That Need To Fall Into Place To Make Green Hydrogen Viable

By:  Steven Carlini, VP of Innovation and Data Center
View the original article here


In the zero-carbon economy of the future, electricity will become the dominant energy but green hydrogen (and the fuels derived from it) will have a role to play as well. Making green hydrogen viable and abundant will take collaboration, effort, and investment.

Pieces that need to fall into place to make green hydrogen viable

Hydrogen definitely has a role to play in global decarbonization. In the decarbonized world of the future, electricity will become the dominant energy with a 60-70% share in 2050, biofuels will rise, dependence on fossil-based energy will significantly decrease and hydrogen will increase. I want to focus on green hydrogen – derived from water using electrolysis since it is the most promising. In my estimation, green hydrogen will rise between 3 – 10 times the 90 Mt of hydrogen used today by 2050. The 3X – 10X projection goes from a very conservative 270 Mt (3X) to an aggressive 900 Mt (10X). So why is there such a large gap if green hydrogen is the energy source needed for hard-to-abate applications? Mainly because there are 10 significant “pieces” of the puzzle that must come together to produce green hydrogen at the scale needed.

1) Renewable Generation Electricity Capacity – Green hydrogen must be derived through electrolysis which is highly energy intensive. For hydrogen to be green the process must be electrified using a sustainable source (hydro, wind, or solar). How much? The electricity required by 2050 for decarbonized electrification and green hydrogen production of 900 Mt (10X) is estimated to be 130,000 TWh – around 5X today’s total electrical supply of 27,000 TWh. By 2050 using the 900 Mt (10X) green H2 assumption, 30% of electricity use will be dedicated to producing clean hydrogen and its derivatives, such as e-ammonia and e-methanol.

2) Electrolyzer Capacity – Once there is sufficient renewable generation, the capacity of electrolyzer plants needs to match. According to Bloomberg NEF, today’s global electrolyzer capacity of 300 MW must grow to 3000 GW by 2050 to meet clean hydrogen demands of 900 Mt (10X). IEA estimates that every month from January 2030 onwards, three new hydrogen-based industrial plants must be built.

3) Total Cost of green hydrogen – Green hydrogen is fundamentally tied to the cost of renewable electricity, the cost of clean water, CapEx cost of electrolyzer plants, the efficiency of the electrolyzer plant, and finally the cost of storing and transporting the green hydrogen. Today, green hydrogen can cost around €2.5-€5/kg, making it significantly more expensive than the fossil fuel alternatives. Levelized prices need to fall to €1.5/kg by 2050 and possibly sub-€1/kg, to make it competitive with natural gas. However, there are incentives from governments around the world to bring the price down. In the US part of the Inflation Reduction Act created new provisions for clean hydrogen. Under the law, clean hydrogen plants in 2023 can receive a production tax credit up to $3 per kg of hydrogen, for the first 10 years of operation through 2032.

4) Electrolyzer cost – the total installed costs of a GW scale industrial electrolysis plant is currently around 1400 €/kW for Alkaline electrolyzer technology and 1800 €/kW for PEM electrolyzer technology. These need to drop at least 50% by 2050 for green hydrogen to be cost-competitive. However, CapEx improvement plans cannot be a tradeoff resulting in reduced electrolyzer efficiency or durability.

5) Electrolyzer efficiency – Today’s efficiency hovers around 50%. To meet the cost targets, the consensus in the industry is that efficiency needs to continuously improve and be at 75% by 2050. This is a major engineering challenge, plus there is efficiency degradation every year as well.

6) Water Supply – Fresh or clean water must be used in electrolysis. Ocean or salt water (sometimes called seawater) cannot be used. Clean water can be aggregated from collecting rainwater or from a process called desalination. Desalination using reverse osmosis is another very energy-intensive process that also outputs brine (salt-dense water) as a byproduct.

7) Storage – Ideally, electrolysis plants should be located in areas that have abundant renewable electrical power and fresh water. Consumption in the future will likely be places like marinas for ships/vessels and airports for long-haul planes as well as strategic places in the electrical distribution system at the turbine or areas requiring grid stabilization. This means compression, storage, and transportation will be needed. Hydrogen does not degrade over time and can be stored indefinitely. In a gaseous form, it can be stored in ways: pressurized steel tanks and underground reservoirs or salt caverns (for large capacity). Hydrogen can also be liquefied. This would deliver about 75% higher energy density than gaseous hydrogen (stored at 700 bar), But it would waste the equivalent of 25%-30% of the energy contained in the hydrogen to liquefy.

8) Transportation Grid – Moving gaseous hydrogen from the place where it is derived to the place where it will be used is not a straightforward process. There is no piping infrastructure like there is with oil and natural gas pipelines or distribution grids. Because hydrogen is such a small and potentially combustible element, constructing a pipeline is quite challenging.

9) Demand side efficiencies – Just like miles per gallon affects how much fuel a car uses, all applications using electricity or hydrogen need to be made more efficient. A massive effort is required to modernize the existing stock of inefficient assets (buildings, mobility, industrial facilities, and machines, etc.), for higher efficiency or adapt to fun on hydrogen.

10) Funding – In total, investments could amount to almost $15 trillion between now and 2050 – peaking in the late 2030s at around $800 billion per annum1 for 900 Mt (10X). Of this, about $12.5 trillion (85%) relates to the required increase in electricity generation, with only 15% (peaking at almost $150 billion per annum in the late 2030s) relating to an investment in electrolyzer, production facilities, and transport and storage infrastructure. This investment must be coordinated between private-sector action and national and local governments.

The 10 “pieces” of the puzzle that must come together are significant. As with all puzzles, if a single piece is missing, the puzzle is ruined and the 3X scenario would be more likely than the 10X. We have no choice but to put this puzzle together and in this case, we must have all of the pieces in order to meet decarbonization targets and have green hydrogen play its critical role in the effort to halt global warming.

Now, let me tell you about this…

10/22/14

PJ Picture
By Paul L. Jones
, Founder,
Director, Financial Advisory Services for Emerald Skyline Corporation

 

I freeze…become paralyzed in the face of danger or uncertainty. It is something that I am getting better at as I age but I still tend to become a deer in the headlights from time to time. In heated discussions, I never come up with the one line “Buzzinga” response until later – sometimes days later – when it is too late to be effective.

Does this happen to you?   Or, are you one of the blessed people who know just the right response to any situation without giving it a second thought? Do you see a situation and instantly know and take the correct action to save the person from going into the undertow or stop the bleeding from a kitchen knife cut or have just the right response to win the debate?

We all respond to new circumstances differently. Some freeze, some panic and run, others deny what is happening like a child who pretends people cannot see him when he pulls his “magical” covers over his head. And, then, there are some charge forward full speed ahead.

Again, if you are like me, once you get over the shock of “is this really happening?” you assess the situation, spring into action and work feverishly to correct, or save, the situation….

Based on the muted reaction, or the “I am not a scientist so it does not exist” position of a significant number of our civic, community and business leaders, either they are in shock that the world’s climate can change so rapidly or they are in complete denial which is worse. The fact that many large American cities ranging from Galveston and New Orleans to Tampa, Miami and even as far north as New York City will be faced with significant issues from the rising sea level is still being debated among politicians reflects a similar approach to reality as the child with the magic blanket.

The news of global warming, now more appropriately referred to as Climate Change, is not new. Scientists have been ringing the warning bell for at least two decades. And yet we still do not want to believe.

Well, we are now starting to see the effects. Storms like Hurricanes Katrina and Sandy, increased flooding in cities like Miami Beach, increased tornado activity, the hottest year on record, and shrinking shorelines caused by sea level rise are now featured in the news on a regular basis.

Many government officials responsible for protecting the public from such events are joining in the chorus to raise awareness in order to make their job of obtaining public approval for a budget to install and maintain systems and equipment to reduce the damage from the effects of climate change feasible.

Yet, it is the real estate community that seems to most want to stick their head in the sand….For instance, last July, the Miami-Dade Sea Level Rise Task Force issued its report and recommendations. Shortly afterwards, the Miami Chapter of the American Institute of Architects held a meeting with Harvey Ruvin, Miami-Dade Clerk of Courts and Chairman of the Task Force, presenting the report. The meeting, which was broadly announced, had fewer than 100 attendees and almost no one from the real estate community was in attendance.

As reported in the June 2014 report “Risky Business: A Climate Risk Assessment for the United States”, it is apparent that climate change and sea level rise are going to have significant effects on the American global business community – and real estate, which has a particular distinction of being immovable, is going to be more impacted than most industries.

And yet. And yet the real estate community is acting as if it is business as usual. The level of interest in doing a sustainable retrofit has yet to make a significant impact on the market – especially for properties that are not seeking credit-quality tenants whose corporate sustainability policies encourage occupancy in LEED-certified buildings. (According to an article entitled “What’s Sustainability Wroth to Tenants?” by Paul Bubny of Cushman & Wakefield in the 10/28/2014 GlobeSt.com national eMagazine, ” Among the 37 real estate and sustainability directors at 23 US-based corporations surveyed by C&W, 74% see value in going to a sustainable building compared to a non-sustainable one.”1

With the obvious costs to upgrade and improve the infrastructure – especially electrical and water and sewer utilities, as well as expected increase in insurance costs, a prudent reaction to the reality of climate change and sea level rise would be to put improvements in place now that reduce the consumption of water and power as well as to make a building less susceptible to damage from major hurricanes, storms and other weather events (like flooding).

We can only hope that real estate owners, investors, managers and tenants will soon realize that the future is now, overcome their “shock” of the impending calamity and start to take action. It is time to take action. The economic, environmental and operational benefits will be immediate and, if done right, sustainable.

And, as in any crisis situation, if you wait too long to take action, the results can be devastating. Let me know if I can be of service.

1 See (http://www.globest.com/news/12_975/national/office/Whats-Sustainability-Worth-to-Tenants-351877.html?ET=globest:e44644:11970a:&st=email&s=&cmp=gst:National_AM_20141027:editorial).

Panel’s Warning on Climate Risk: Worst Is Yet to Come

By JUSTIN GILLIS

MARCH 31, 2014

View original article here

YOKOHAMA, Japan — Climate change is already having sweeping effects on every continent and throughout the world’s oceans, scientists reported on Monday, and they warned that the problem was likely to grow substantially worse unless greenhouse emissions are brought under control.

The report by the Intergovernmental Panel on Climate Change, a United Nations group that periodically summarizes climate science, concluded that ice caps are melting, sea ice in the Arctic is collapsing, water supplies are coming under stress, heat waves and heavy rains are intensifying, coral reefs are dying, and fish and many other creatures are migrating toward the poles or in some cases going extinct.

The oceans are rising at a pace that threatens coastal communities and are becoming more acidic as they absorb some of the carbon dioxide given off by cars and power plants, which is killing some creatures or stunting their growth, the report found.

Organic matter frozen in Arctic soils since before civilization began is now melting, allowing it to decay into greenhouse gases that will cause further warming, the scientists said. And the worst is yet to come, the scientists said in the second of three reports that are expected to carry considerable weight next year as nations try to agree on a new global climate treaty.

Panel on U.N. Climate Change Report

Rajendra K. Pachauri, the chairman of the Intergovernmental Panel on Climate Change, and Christopher Field, the co-chairman of the group that wrote the report, discuss its warning.

In particular, the report emphasized that the world’s food supply is at considerable risk — a threat that could have serious consequences for the poorest nations.

“Nobody on this planet is going to be untouched by the impacts of climate change,” Rajendra K. Pachauri, chairman of the intergovernmental panel, said at a news conference here on Monday presenting the report.

The report was among the most sobering yet issued by the scientific panel. The group, along with Al Gore, was awarded the Nobel Peace Prize in 2007 for its efforts to clarify the risks of climate change. The report is the final work of several hundred authors; details from the drafts of this and of the last report in the series, which will be released in Berlin in April, leaked in the last few months.

The report attempts to project how the effects will alter human society in coming decades. While the impact of global warming may actually be moderated by factors like economic or technological change, the report found, the disruptions are nonetheless likely to be profound. That will be especially so if emissions are allowed to continue at a runaway pace, the report said.

It cited the risk of death or injury on a wide scale, probable damage to public health, displacement of people and potential mass migrations.

“Throughout the 21st century, climate-change impacts are projected to slow down economic growth, make poverty reduction more difficult, further erode food security, and prolong existing and create new poverty traps, the latter particularly in urban areas and emerging hot spots of hunger,” the report declared.

The report also cited the possibility of violent conflict over land, water or other resources, to which climate change might contribute indirectly “by exacerbating well-established drivers of these conflicts such as poverty and economic shocks.”

The scientists emphasized that climate change is not just a problem of the distant future, but is happening now.

Studies have found that parts of the Mediterranean region are drying out because of climate change, and some experts believe that droughts there have contributed to political destabilization in the Middle East and North Africa.

 

In much of the American West, mountain snowpack is declining, threatening water supplies for the region, the scientists said in the report. And the snow that does fall is melting earlier in the year, which means there is less melt water to ease the parched summers. In Alaska, the collapse of sea ice is allowing huge waves to strike the coast, causing erosion so rapid that it is already forcing entire communities to relocate.

“Now we are at the point where there is so much information, so much evidence, that we can no longer plead ignorance,” Michel Jarraud, secretary general of the World Meteorological Organization, said at the news conference.

The report was quickly welcomed in Washington, where President Obama is trying to use his executive power under the Clean Air Act and other laws to impose significant new limits on the country’s greenhouse emissions. He faces determined opposition in Congress.

“There are those who say we can’t afford to act,” Secretary of State John Kerry said in a statement. “But waiting is truly unaffordable. The costs of inaction are catastrophic.”

Amid all the risks the experts cited, they did find a bright spot. Since the intergovernmental panel issued its last big report in 2007, it has found growing evidence that governments and businesses around the world are making extensive plans to adapt to climate disruptions, even as some conservatives in the United States and a small number of scientists continue to deny that a problem exists.

“I think that dealing effectively with climate change is just going to be something that great nations do,” said Christopher B. Field, co-chairman of the working group that wrote the report and an earth scientist at the Carnegie Institution for Science in Stanford, Calif. Talk of adaptation to global warming was once avoided in some quarters, on the ground that it would distract from the need to cut emissions. But the past few years have seen a shift in thinking, including research from scientists and economists who argue that both strategies must be pursued at once.

A striking example of the change occurred recently in the state of New York, where the Public Service Commission ordered Consolidated Edison, the electric utility serving New York City and some suburbs, to spend about $1 billion upgrading its system to prevent future damage from flooding and other weather disruptions.

The plan is a reaction to the blackouts caused by Hurricane Sandy. Con Ed will raise flood walls, bury some vital equipment and conduct a study of whether emerging climate risks require even more changes. Other utilities in the state face similar requirements, and utility regulators across the United States are discussing whether to follow New York’s lead.

But with a global failure to limit greenhouse gases, the risk is rising that climatic changes in coming decades could overwhelm such efforts to adapt, the panel found. It cited a particular risk that in a hotter climate, farmers will not be able to keep up with the fast-rising demand for food.

“When supply falls below demand, somebody doesn’t have enough food,” said Michael Oppenheimer, a Princeton University climate scientist who helped write the new report. “When some people don’t have food, you get starvation. Yes, I’m worried.”

The poorest people in the world, who have had virtually nothing to do with causing global warming, will be high on the list of victims as climatic disruptions intensify, the report said. It cited a World Bank estimate that poor countries need as much as $100 billion a year to try to offset the effects of climate change; they are now getting, at best, a few billion dollars a year in such aid from rich countries.

The $100 billion figure, though included in the 2,500-page main report, was removed from a 48-page executive summary to be read by the world’s top political leaders. It was among the most significant changes made as the summary underwent final review during an editing session of several days in Yokohama.

The edit came after several rich countries, including the United States, raised questions about the language, according to several people who were in the room at the time but did not wish to be identified because the negotiations were private. The language is contentious because poor countries are expected to renew their demand for aid this September in New York at a summit meeting of world leaders, who will attempt to make headway on a new treaty to limit greenhouse gases.

Many rich countries argue that $100 billion a year is an unrealistic demand; it would essentially require them to double their budgets for foreign aid, at a time of economic distress at home. That argument has fed a rising sense of outrage among the leaders of poor countries, who feel their people are paying the price for decades of profligate Western consumption.

Two decades of international efforts to limit emissions have yielded little result, and it is not clear whether the negotiations in New York this fall will be any different. While greenhouse gas emissions have begun to decline slightly in many wealthy countries, including the United States, those gains are being swamped by emissions from rising economic powers like China and India.

For the world’s poorer countries, food is not the only issue, but it may be the most acute. Several times in recent years, climatic disruptions in major growing regions have helped to throw supply and demand out of balance, contributing to price increases that have reversed decades of gains against global hunger, at least temporarily.

The warning about the food supply in the new report is much sharper in tone than any previously issued by the panel. That reflects a growing body of research about how sensitive many crops are to heat waves and water stress. The report said that climate change was already dragging down the output of wheat and corn at a global scale, compared with what it would otherwise be.

David B. Lobell, a Stanford University scientist who has published much of the recent research and helped write the new report, said in an interview that as yet, too little work was being done to understand the risk, much less counter it with improved crop varieties and farming techniques. “It is a surprisingly small amount of effort for the stakes,” he said.

Timothy Gore, an analyst for Oxfam, the antipoverty group that sent observers to the proceedings in Yokohama, praised the new report as painting a clear picture of the consequences of a warming planet. But he warned that without greater efforts to limit global warming and to adapt to the changes that have become inevitable, “the goal we have in Oxfam of ensuring that every person has enough food to eat could be lost forever.”

Correction: March 31, 2014

An earlier version of a picture caption with this article misidentified a station with flooded tracks. It is the South Ferry subway terminal, not Grand Central Terminal.