Hydrogen explained

Discover how hydrogen has the potential to significantly impact small and medium-sized enterprises (SMEs) in engineering and manufacturing, and find out more about the hydrogen value chain.

Engineer working on solar panels.

The hydrogen value chain

The hydrogen value chain begins with hydrogen production, which can be achieved through various methods, including electrolysis powered by renewable energy (green hydrogen) or natural gas with carbon capture (blue hydrogen). Once produced, hydrogen must be stored and distributed. Storage options include high-pressure tanks or liquid hydrogen, while distribution can be handled through pipelines, road transport, or shipping.

The final stage involves the utilisation of hydrogen across various markets. This includes its use in industry for processes like steel production, as a fuel for hydrogen-powered vehicles, and in power generation through hydrogen fuel cells or combustion in turbines. Hydrogen also plays a role in heating and as a potential energy carrier for balancing supply and demand in the energy grid.

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*Image: The Hydrogen Value Chain. Source: TGE from Hydrogen UK

The Hydrogen Value Chain

Hydrogen production technologies

There are various methods of hydrogen production, with green hydrogen production through electrolysis being the most sustainable and promising method. Other methods include those for blue hydrogen, which involves steam methane reforming (SMR) with carbon capture and storage (CCS), and turquoise hydrogen, produced via methane pyrolysis.

Hydrogen renewable energy production pipeline

Hydrogen infrastructure

Hydrogen storage solutions are crucial, and these include underground salt caverns and compressed hydrogen tanks. Hydrogen also needs a robust hydrogen distribution network, including pipelines, trucks, and ships designed to transport liquefied or compressed hydrogen.

Hydrogen storage and wind turbines

Hydrogen markets

There are various markets of hydrogen across different sectors, such as its use in the steel industry, ammonia production, transportation (fuel cell vehicles, trucks, buses), and energy storage. Hydrogen is also seen as a key enabler for the decarbonisation of industries that are difficult to electrify.

A hydrogen fuel cell bus with filling station

End uses for hydrogen

Hydrogen fuel cells

Manufacturers are integrating hydrogen fuel cells into operations for power supply, particularly for forklifts, heavy machinery, and backup power systems.

Industrial process heat

Hydrogen is being explored as a clean energy source for generating high-temperature heat required in industries like steel, cement, and chemical manufacturing, where electrification is challenging.

Automotive

Efforts are increasingly focused on designing and manufacturing hydrogen fuel cell vehicles (FCVs). Companies are also exploring hydrogen combustion engines as an alternative to battery electric vehicles.

Aerospace

Hydrogen is being explored for use in both fuel cells and as a direct combustion fuel for aircraft, with the potential to significantly reduce aviation-related emissions.

Energy storage and grid stabilisation

Excess renewable energy can be converted into hydrogen and stored for later use, helping to stabilise grids and balance supply and demand. Engineering companies are also developing large-scale hydrogen storage solutions, which can be used to store renewable energy and supply it back to the grid when needed.

Hydrogen as a feedstock

Hydrogen is already used extensively in chemical processes, such as ammonia production and oil refining. Efforts are being made to replace grey hydrogen (produced from natural gas) with green or blue hydrogen to reduce emissions in these sectors.

Logistics

Hydrogen is being considered for use in logistics and transportation fleets (especially rail), which would reduce emissions across supply chains.

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