PDF Publication Title:
Text from PDF Page: 094
94 GREEN HYDROGEN COST REDUCTION Enabling actions Long-term signals and commitments: These are necessary to attract private capital, which will be needed for scaling up. For conventional technologies, investors already have long- term horizons, covering the lifetime of assets, aiming to recover the cost and make a profit. For hydrogen production with water electrolysis – a nascent industry – additional certainty from governments is needed to justify the additional risk and investment. This can come in the form of commitment to netzero emissions targets, since hydrogen is the most useful for hardtoabate sectors that are required to achieve these targets, or in the form of strategies that set the direction for hydrogen deployment. This commitment to develop hydrogen should ultimately be reflected in the long-term strategies and nationally determined contributions of each country. Market creation: This will drive demand for green hydrogen. One measure in this is public procurement (e.g. a percentage of green steel for public infrastructure). Blending mandates or quotas are also an attractive alternative. Examples include: requiring a percentage of industrial hydrogen to shift to green, as already covered in French and Portuguese strategies; requiring a percentage of gas demand to be met by green hydrogen, or requiring a percentage of shipping or aviation fuel to be sustainable. Phase-out mandates, similar to those implemented in fossil fuel or nuclear power, or to internal combustion engines in transport, could be used to promote demand by setting a timeline to phase out blast furnaces for steel or fossil fuelbased ships. Standards and certifications: Uptake for green hydrogen requires that the customer is able to know what the source of the hydrogen is to be able to link it to an additional premium or quota target, while the producer is able to validate lower CO2 emissions and be remunerated accordingly. This needs to be transparent to be able to communicate the emissions that have been accounted for (upstream, production, transport, and re-conversion). It also needs to be robust, potentially including more than CO2 only, to ensure high sustainability standards that are internationally accepted, compatible with other schemes (e.g. electricity and gas) and with an adaptable framework to be adjusted based on lessonslearned, once it is deployed. Governments could also use specific policy instruments for green hydrogen production. Many of these are already outlined in published strategies and the level of these instruments will be better defined once impact assessments are made. The tradeoffs to consider in the policy design for these instruments, as well as examples from around the world, are further explained in the associated briefs of another IRENA publication (IRENA, 2020d). Options include: Capacity targets: This is the most used measure so far in hydrogen strategies (see Section 1.2). These should be deployed in tandem with an increase in renewable capacity targets (if any) to make sure renewable electricity use for hydrogen does not displace more efficient uses (such as increasing the renewable share of the grid). Financial support: This can be in the form of grants or concessional loans that decrease the investment risk for industry and close part of the cost differential with fossil- based hydrogen. One example is Australia, where hydrogen is one of the technologies supported under the AUD1.9 billion investment package for new energy technologies. The Clean Energy Finance Corporation will make AUD300 million available to support the hydrogen industry and there is also some funding through the Australian Renewable Energy Agency (ARENA), which has a AUD70 million grant programme aimed at demonstrating the technical and commercial viability of hydrogen production. Recent COVID-19 strategies and recovery packages also have financial support for hydrogen (some of which could be used forPDF Image | GREEN HYDROGEN SCALING UP ELECTROLYSERS
PDF Search Title:
GREEN HYDROGEN SCALING UP ELECTROLYSERSOriginal File Name Searched:
IRENA_Green_hydrogen_cost_2020.pdfDIY PDF Search: Google It | Yahoo | Bing
Salgenx Redox Flow Battery Technology: Power up your energy storage game with Salgenx Salt Water Battery. With its advanced technology, the flow battery provides reliable, scalable, and sustainable energy storage for utility-scale projects. Upgrade to a Salgenx flow battery today and take control of your energy future.
| CONTACT TEL: 608-238-6001 Email: greg@salgenx.com | RSS | AMP |