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Low carbon
intensity hydrogen

What is low carbon intensity hydrogen?

Hydrogen is the lightest element, and it forms the simplest molecule H2.

Traditional hydrogen production stems mainly from steam reforming and partial oxidation of hydrocarbons, predominantly using natural gas (methane).

Low Carbon Intensity Hydrogen are produced from alternative process routes which have lower carbon equivalent emissions.

How can etasca help?

We have delivered detailed global and regional market analysis for hydrogen, competitive landscape of the different hydrogen production and technologies (including reviews of all electrolyser technologies), pricing analyses of low CI hydrogen.

Interested?  contactus@etasca.com

million tons

of grey hydrogen demand currently

million tons

of EU renewable hydrogen demand
target by 2030 under RePowerEU Plan

Commercial considerations:

Hydrogen production and consumption is not novel, and it is currently consumed in large amount in refining and ammonia (fertilizer) production.

  • However, to achieve its proposed decarbonisation role as per energy transition and net zero targets, it will need implementation at a previously unseen scale.

The global nuclear energy market is expected to grow from $61.2 billion in 2021 to $74.8 billion by 2026, at a CAGR above four percent.

  • Pink hydrogen, utilizing nuclear energy as a basis for electrolysis of water, offers commercial potential for countries with existing nuclear infrastructure.  Small modular reactors (SMRs) are central to reducing high capex and long construction times typical of traditional reactors, making pink hydrogen more competitively priced.  However, challenges such as regulatory hurdles and public scepticism persist.

Low carbon hydrogen production currently totals less than 5 million tons globally, around 5% of total hydrogen production. 

  • This is expected to grow to more than 20 million tons by 2030, and 300 million tons by 2050, globally (CAGR of over 15%).

Projected to reach $201 billion by 2025, blue hydrogen, derived from natural gas with carbon capture and storage (CCS), is being increasingly pursued. 

  • Blue hydrogen offers significant commercial potential, especially in regions rich in natural gas.  Advancing CCS technology is anticipated to drive cost reductions, however, blue hydrogen is typically only financially viable depending on carbon pricing to compete against other colours of hydrogen.

Turquoise hydrogen production, utilizing methane pyrolysis, is in the pilot stage but is gaining commercial interest due to its ability to generate commercially valuable solid carbon as a byproduct.

  • The market for similar products like carbon black is projected to grow to $23.8 billion by 2026, demonstrating significant potential for the byproduct’s commercial viability.

Technical considerations:

There are various production pathways for synthesising low-carbon hydrogen, including but not limited to:

  • Blue Hydrogen – produced from traditional hydrocarbons through steam methane reforming or partial oxidation with carbon capture and storage.
  • Green Hydrogen – derived from renewable sources via electrolysis, utilising electricity to split water molecules into oxygen and hydrogen.
  • Purple/Pink Hydrogen – produced through electrolysis using nuclear power as a low-carbon energy source.
  • White hydrogen – extracted from natural sources within the earth (such as deep rocks).
  • Turquoise hydrogen – produced through methane pyrolysis, where the methane is split into hydrogen and solid carbon.

Operational large-scale CCUS facilities reportedly captured and stored approximately 40 million tonnes of CO2 in 2020. 

  • Blue hydrogen production is focused on integrating advanced carbon capture, utilization, and storage (CCUS) technologies to significantly improve efficiency. The aim is to enhance capture rates from the current average of around 60% to closer to 90%. A major technical and financial challenge lies in developing infrastructure capable of managing large-scale CCUS.

Electrolyser technology is well proven but scale up is required. 

  • Challenges remain around the variability of renewable power, electrolysis performance and any link to steady-state downstream processing.  However, continued technological advances are expected to see the total installed costs fall by up to half between 2020 and 2030.
  • There are several different types of electrolyser technology available, with Europe prioritising polymer electrolyte membrane (PEM) types for investment – about three quarters of the ca. 200MW total European project capacity announced in 2023 is expected to be utilising PEM.

Turquoise hydrogen, currently in the pilot phase, faces critical challenges as it scales to commercial production. 

  • Key technological advancements are needed in methane pyrolysis, including development of more efficient catalysts and reactor designs that operate at lower temperatures and pressures.
  • Simultaneously, it is crucial to establish a viable market for the solid carbon byproduct, which has potential as a feedstock in industries such as tire manufacturing, plastics, and carbon fibre.

 

etasca electrolyser conference post:
https://www.linkedin.com/posts/etasca_worldelectrolysiscongress-activity-7170835549585424384-57p6