Hydrogen:

A Driving Force for Global Industrial Decarbonization

Decarbonized hydrogen, i.e. hydrogen produced without emitting any greenhouse gas emissions, is expected to play an important role in the decarbonization of industry worldwide.

In this new series of analyses, Institut Montaigne will be looking at the different angles of the debate: first by identifying the issues underpinning the production and transport of carbon-neutral hydrogen; then by analyzing the hydrogen strategies of other countries, notably in Asia. Institut Montaigne will end with recommendations for a realistic EU hydrogen strategy that benefits not only the European Union (EU), but also France.

An inescapable energy vector with significant technical challenges

Hydrogen has a broad range of potential applications and several sectors are already using it, including for refining, chemical production, and transport purposes. Hydrogen cannot be easily sourced from nature - instead it must be produced from electricity or from fossil fuels before it can be used. Fossil fuels are still the main source of hydrogen production today.

Having long been confined to a small role in states’ energy mixes, hydrogen is now considered a central technology for advancing decarbonization efforts in world economies. Whether we are talking about green hydrogen – produced from renewable energy – or pink hydrogen – produced from nuclear energy – hydrogen is expected to play an essential role as an alternative to fossil fuels in many aspects of industrialization: from heavy and long haul transport, to steelmaking, cement and the chemical industry. It could also be used to store electricity produced from renewable energies - a significant opportunity given their intermittent nature.

Yet hydrogen still faces many technical challenges regarding its production, storage, and transport. These constraints, which stem from its physical properties, limit the scope of its development and use.

Tomorrow: an emerging global hydrogen economy?

Like the US, China and Japan, the EU is adopting its own hydrogen strategy. Each country will face choices in balancing the two options available to them: prioritize their own hydrogen production capacities or pursue a strategy of importing hydrogen from regions where green hydrogen production is abundant and cheaper.

With comparatively limited production capacities, the EU risks becoming dependent on producing countries. Such risks will have to be carefully examined and taken into account in any import-focused strategy.

The development of hydrogen is based on unknowns, imperatives and technological gambles. States will need to factor these in particularly when thinking about production and transport costs, energy dependence and the necessary infrastructure investments required. Co-authored by Dr Joseph Dellatte, Research Fellow for Climate, Energy and Environment on Institut Montaigne’s Asia Program and by Georgina Wright, Senior Fellow and Director of Institut Montaigne’s Europe Program, this policy brief explores the major issues underlying the development of decarbonized hydrogen, from transport to import issues especially for the EU and for France.
 

Since 2014, Japan has pursued hydrogen strategies aiming to create a “hydrogen society”. Joseph Dellatte, Research Fellow for Climate, Energy and Environment in Institut Montaigne’s Asia Program, analyzes how Japan aims to use this small element to decarbonize large swathes of its economy. He underlines the distinctiveness of Japan’s model, which aims to import extensive quantities of hydrogen by sea. This analysis follows the publication of the policy brief “The Challenges of a Hydrogen Policy for Industrial Decarbonization”, both of which are part of Institut Montaigne’s series of publications which provides a comparative perspective by analyzing the hydrogen strategies of Japan and China.

China is the biggest hydrogen producer and consumer in the world though most of its hydrogen is produced from fossil fuels or derived from industrial processes. Joseph Dellatte, Resident Research Fellow for Climate, Energy and Environment at Institut Montaigne’s Asia Program, analyzes the role hydrogen will play in decarbonizing China’s economy. In this piece, he argues that despite China's immense industrial capabilities, and gigantic investments in renewable energy capacities, the country still lacks a comprehensive green hydrogen policy that would enable broader decarbonization efforts. This analysis follows the publication of the policy brief “The Challenges of a Hydrogen Policy for Industrial Decarbonization” and is part of Institut Montaigne’s series of publications which provides a comparative perspective by analyzing the hydrogen strategies of Japan and China.