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News
By 2050 , hydrogen production will require more than half of today ’ s total electricity demand .
GREEN HYDROGEN MUST BE USED AND PRODUCED WISELY TO HARNESS ITS FULL POTENTIAL
The Danfoss White Paper .
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The new Danfoss Impact paper , ‘ Green hydrogen : A critical balancing act ’, presents a balanced approach to hydrogen where efficiency and affordability play a key role .
A new Danfoss Impact paper reveals that with hydrogen production set to consume more than half of today ’ s electricity demand by 2050 , energy efficiency in its production is paramount .
Decisive steps must be taken to scale its production for use in the hard to abate sectors , without putting an unmanageable strain on renewable energy production or financial resources .
Danfoss calls for a nuanced approach to green hydrogen , because it will play a critical role in the transition away from fossil fuels . However more focus needs to be put on how we use and produce green hydrogen in the most efficient way , lowering cost and the demand for renewables .
Crucially , hydrogen production should be recognised as a limited resource that must be strategically allocated to sectors
RACA Journal I July 2024
Images supplied by Danfoss that are otherwise challenging to decarbonise , such as heavy industry and long-distance transport .
" The potential of hydrogen as a clean energy carrier is immense ," states Mika Kulju , president : Danfoss Power Electronics and Drives . " But it must be produced efficiently to minimise costs , and we need to deploy it judiciously . To maximise its impact , which is paramount , green hydrogen should be channelled into sectors where alternatives to fossil fuels are limited , ensuring the greatest reduction in greenhouse gas emissions ."
With green hydrogen production requiring immense amounts of electricity , energy efficiency in its production is vital to its sustainability . While current green hydrogen conversion processes incur an energy loss of approximately 30 %, existing technology can minimise this loss . For instance , efficient converters converting alternating current ( AC ) to direct current ( DC ) for electrolysers can increase overall production efficiency by roughly 1 %. Though seemingly small , a saving of 1 % of the electricity demand in 2050 for hydrogen is enough to power London for almost four years .
Hydrogen holds significant promise in many countries ’ climate strategies , with substantial funding programmes underway globally . However , rapid action is necessary . To realise the goals set by the Paris Agreement , global electrolysis capacity must reach more than 550GW by 2030 . Green hydrogen production can grow massively by 2030 , but cost challenges are hampering deployment .
In fact , hydrogen-dedicated renewable energy capacity is expected to grow by 45GW between 2022 and 2028 , some 35 %
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