The Role of Green Hydrogen in Decarbonizing Heavy Industry

Heavy industries such as steel, cement, and chemicals are among the largest contributors to global greenhouse gas (GHG) emissions, responsible for approximately 20-30% of global CO₂ emissions. Decarbonizing these sectors is critical to meeting international climate goals and transitioning to a low-carbon economy. However, traditional methods of decarbonization—such as electrification—are often insufficient for these energy-intensive industries. This is where green hydrogen comes in. Produced using renewable energy sources, green hydrogen has the potential to drastically reduce emissions in industries that are notoriously difficult to decarbonize.

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This article explores the role of green hydrogen in heavy industry, how it can replace fossil fuels in industrial processes, the challenges of scaling it up, and the key projects already underway to utilize hydrogen in the global fight against climate change.

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Why Heavy Industry Needs Green Hydrogen

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Most of the emissions from heavy industry stem from the combustion of fossil fuels for heat, power, and chemical processes. For example, the production of steel involves the use of coal in blast furnaces, releasing significant amounts of CO₂. Similarly, the production of cement releases emissions from the burning of limestone, while chemical industries use natural gas as a feedstock.

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Electrification, while a promising solution for many sectors such as transportation and light manufacturing, is often less feasible in heavy industry. This is because:

• High-temperature heat requirements: Many industrial processes require temperatures of 1,000°C or higher, which are difficult to achieve using electricity alone.
• Feedstock replacement: In some industries, such as steelmaking, fossil fuels are used not just for heat but also as a chemical feedstock. Replacing this requires a fuel source that can participate in chemical reactions without adding carbon.

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Green hydrogen, produced via the electrolysis of water powered by renewable energy, presents a unique opportunity to replace fossil fuels in both of these areas.

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Applications of Green Hydrogen in Heavy Industry

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Green hydrogen can decarbonize heavy industries in several key ways, either by replacing fossil fuels directly or by serving as a feedstock in chemical processes:

1. Steel Production:some text
   • Current Process: The traditional method of steel production relies on a blast furnace process, where coal is used both as a fuel and as a reducing agent to remove oxygen from iron ore, producing molten iron and CO₂.
   • Green Hydrogen Solution: Hydrogen can replace coal in the process of direct reduced iron (DRI), where hydrogen acts as the reducing agent. Instead of producing CO₂ as a byproduct, the use of hydrogen results in the release of water vapor. This process is already being tested in several pilot projects, including the HYBRIT initiative in Sweden, which aims to produce fossil-free steel by 2026.
2. Cement Production:some text
   • Current Process: The production of cement involves the burning of limestone in kilns, which releases CO₂ both from the combustion of fossil fuels and from the limestone itself during the calcination process.
   • Green Hydrogen Solution: Hydrogen can be used to replace the fossil fuels burned in cement kilns, reducing the carbon footprint of cement production. While the process does not eliminate the emissions from limestone calcination, combining hydrogen with carbon capture technologies can help reduce overall emissions.
3. Chemical Industry:some text
   • Current Process: Many chemicals, such as ammonia, methanol, and synthetic fuels, are produced using hydrogen derived from natural gas in a process known as steam methane reforming (SMR), which emits significant amounts of CO₂.
   • Green Hydrogen Solution: By replacing hydrogen derived from natural gas with green hydrogen in these processes, the chemical industry can significantly reduce its carbon footprint. For instance, the production of green ammonia (ammonia produced using green hydrogen) could help decarbonize the agriculture sector, as ammonia is a key ingredient in fertilizers.
4. Refineries:some text
   • Current Process: Refineries use hydrogen in several processes, including hydrocracking and desulfurization, to convert crude oil into usable products such as gasoline, diesel, and jet fuel. Most of the hydrogen used today is produced from natural gas, leading to significant CO₂ emissions.
   • Green Hydrogen Solution: Replacing this "gray" hydrogen with green hydrogen can help decarbonize the refining sector, reducing emissions from fuel production.

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Challenges to Scaling Green Hydrogen in Industry

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While the potential of green hydrogen in decarbonizing heavy industry is immense, there are significant challenges to its widespread adoption:

1. Cost Competitiveness:some text
   • One of the major hurdles to the widespread adoption of green hydrogen in industry is its current cost. Green hydrogen is more expensive than gray hydrogen (produced from natural gas without carbon capture) and blue hydrogen (produced from natural gas with carbon capture and storage). This is largely due to the high cost of electrolyzers and the price of renewable electricity.
   • However, technological advancements, economies of scale, and government support are expected to drive down the cost of green hydrogen in the coming years. According to the International Energy Agency (IEA), the cost of green hydrogen could fall by 30% by 2030.
2. Infrastructure and Storage:some text
   • The infrastructure for transporting, storing, and distributing hydrogen is still underdeveloped. Hydrogen has different physical properties than natural gas, meaning existing pipelines and storage tanks may not be suitable for hydrogen without modifications or replacements.
   • Hydrogen is also highly flammable and leaks more easily than other gases, raising safety concerns. Developing the necessary infrastructure to support the large-scale use of hydrogen in industry will require significant investment.
3. Energy Efficiency:some text
   • Producing green hydrogen via electrolysis is less energy-efficient than some other decarbonization technologies. For every unit of electricity used in the production of hydrogen, only about 70-80% of the energy is captured in the hydrogen, meaning significant energy losses occur. This makes it less efficient than using renewable electricity directly in some cases.
   • However, in industries where direct electrification is not feasible, hydrogen remains a promising alternative, and improving the efficiency of electrolyzers is a key area of research.
4. Policy and Regulation:some text
   • Decarbonizing heavy industry with green hydrogen will require supportive government policies and regulations. Governments will need to provide financial incentives for industries to switch to green hydrogen, such as carbon pricing, subsidies, or grants for green hydrogen projects.
   • Regulatory frameworks will also need to be updated to ensure the safe production, transportation, and use of hydrogen, as well as the integration of hydrogen into national energy systems.

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Key Projects Driving Green Hydrogen in Heavy Industry

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Several projects around the world are leading the way in using green hydrogen to decarbonize heavy industry:

• HYBRIT (Sweden): A joint venture between steelmaker SSAB, mining company LKAB, and energy firm Vattenfall, HYBRIT aims to produce the world's first fossil-free steel by using green hydrogen in place of coal in the DRI process. The project is expected to reduce Sweden’s CO₂ emissions by 10% and Finland’s by 7%.
• H2GreenSteel (Sweden): Another Swedish initiative, H2GreenSteel, plans to build a large-scale steel production facility that uses green hydrogen to produce steel with virtually zero carbon emissions. The facility is expected to begin production in 2025.
• Refhyne (Germany): The Refhyne project, supported by the European Union, is one of the largest green hydrogen initiatives in Europe. Located at a Shell refinery in Germany, the project uses a large PEM electrolyzer to produce green hydrogen for industrial processes and transportation fuel production.
• ACWA Power Green Hydrogen Project (Saudi Arabia): In Saudi Arabia, the ACWA Power project is set to become one of the world’s largest green hydrogen plants. Using solar and wind power, the facility will produce green hydrogen for the global export market, particularly for use in heavy industry and transportation.

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The Future of Green Hydrogen in Heavy Industry

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As the global push for decarbonization intensifies, green hydrogen is set to play a pivotal role in reducing emissions from heavy industries that have been difficult to decarbonize with traditional methods. With technological advancements, falling costs, and increasing government support, green hydrogen could revolutionize industries such as steel, cement, and chemicals by replacing fossil fuels and reducing their carbon footprints.

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In the coming decades, green hydrogen could transform not only the energy sector but also the industrial landscape, helping to create a cleaner, more sustainable global economy. The transition to green hydrogen will not happen overnight, but the early projects and innovations we see today are laying the foundation for a future where heavy industry operates with minimal environmental impact.

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