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Best use of renewable hydrogen : various applications , carbon intensity of hydrogen , and substitute products
The U . S . Inflation Reduction Act ( IRA ) incentivizes the decarbonization of a wide range of energy sectors , including hydrogen . This article analyzes various hydrogen applications and their life cycle GHG emissions using the 45VH2-GREET model to identify best use case applications for green hydrogen and provides insights for greater uptake .
By Stefan Unnasch , Managing Director ; Brian D . Healy , Chief Economist ; Abhishek Kumar , Environmental Scientist ; and Kathleen Dailey , Business Development Engineer , Life Cycle Associates , LLC
Green hydrogen options
Approximately 10 million tonnes of hydrogen are currently utilized in various industrial applications in the United States , which is mostly produced from natural gas ( Shearman , 2021 ). The Inflation Reduction Act ( IRA ), specifically Section 45V concerning the clean hydrogen production credit , supports the expansion of green hydrogen applications through tax credits that increase based on reductions in carbon intensity ( CI ). Green hydrogen refers to the production of hydrogen via water electrolysis and low CI electric power . The goals of the IRA and the U . S . National Clean Hydrogen Strategy and Roadmap are to expand the use of green hydrogen to reduce GHG emissions and create new jobs in the sector ( DOE , 2023 ).
While these frameworks are sector and technology agnostic relative to green hydrogen applications , new technologies will contribute the most substantive GHG reductions . Figure 1 shows current global uses for hydrogen . Oil refining is the leading use , with most of it produced from natural gas . Other uses include ammonia production , methanol , steel manufacturing , and heat and chemical applications . In each application , green hydrogen could displace the fossil incumbent . The overall impact of green hydrogen in reducing GHG emissions will depend not only on its carbon intensity but also on how it is deployed .
Fig . 1 . The global hydrogen value chain shows that the dominant uses of hydrogen are oil refining and ammonia production . Transportation is an emerging opportunity . Source ( IEA , 2019 ).
26 Hydrogen Tech World | Issue 17 | August 2024