The green hydrogen revolution

Green hydrogen, obtained through a process called electrolysis that uses electric current to separate hydrogen from the oxygen in water, is a fantastic alternative to help the world decarbonise. It is a universal, clean source of energy that leaves no residue in the air like coal and oil.

This is a green resource that could become one of the fuels of the future, as it can be used as fuel for planes and ships, where electrification is not possible. Emanuele Taibi, a consultant in the energy sector, explains its applications: "From talking about pilot projects for the sale of kilowatts, we are now talking about commercial projects with intercontinental infrastructures to be built in the range of tens of gigawatts. In other words, a million times larger than what was being discussed three or four years ago".

The agreement reached between Iberdrola and H2 Green Steel for the construction of a 1,000 MW plant for the production of green hydrogen is a clear example of where the energy sector of the future is heading. With an estimated investment of €2.3 billion, the companies are taking a further step towards the decarbonisation of heavy industrial processes.

Kajsa Ryttberg-Wallgren, EVP Head of Business at H2 Green Steel, says that the collaboration with Iberdrola will perfect future green hydrogen projects: "This will enable the production of around five million tonnes of green steel in Europe. In addition, it can eliminate about 10 million tonnes of CO2 emissions per year. So it is significant.

The recently inaugurated green hydrogen plant in Puertollano (Ciudad Real) is a pioneer in this sector. With an investment of €150 million, the construction of what is the largest H2 generating plant in Europe represents just one of more than 50 projects being developed by the Iberdrola Group worldwide. "All countries and companies, whether large or small, are thinking about how they can contribute to this ambition to develop the green hydrogen industry. Being the first to do so is very important," stresses Millán García-Tola, Iberdrola's Global H2 Director.

However, the fight against climate change needs more than just good ideas. The implementation of new technologies that accelerate decarbonisation, such as green hydrogen, requires measures by states to incentivise industry.

And that is what Kajsa Ryttberg-Wallgren advocates: "On the one hand you have to incentivise the existing industry to transform itself. The other part is obviously the financing of green initiatives that are large-scale and have a customer. And thirdly, governments should help with the permitting of these new types of factories and also renewable energies.

Source: WSJ Custom