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Low-carbon hydrogen, a key element in decarbonising heavy industry and transport

When we talk about decarbonising energy, the first solution that comes to mind is to gradually electrify all energy-consuming sectors: heating buildings, vehicles, industrial processes, etc. And since electricity is (or will be, depending on the country) increasingly decarbonised thanks to the development of renewable energies or nuclear power, this should significantly reduce greenhouse gas emissions. This is, of course, true, but only to a certain extent.

This is because not all sectors can be easily electrified. In heavy industry, like chemicals and steel, energy often has to be supplied in the form of a chemical reagent or a flame, hence the need for energy in the form of molecules (liquid or gaseous) rather than electrons. Heavy land, sea and air transport is also difficult to electrify for another reason: the main problem is the very low energy density of current batteries, even though steady progress is being made. On this criterion, liquid fuels currently have a huge advantage over electrified transport. The second problem is their recharge time, which is not always compatible with operating and profitability constraints.

Read the report here

Today, most gaseous and liquid energy carriers are unfortunately of fossil origin (natural gas, hydrocarbons). One of the challenges of the Energy Transition is to develop gaseous or liquid energy carriers from renewable sources. This is the case for biomethane and biofuels. However, we already know that the biomass resources needed to produce these biomolecules will be unsufficient to meet the demand of non-electrifiable sectors.

This is where hydrogen comes in! Provided, of course, that hydrogen is produced without CO2 emissions. Depending on how it is produced, greenhouse gas emissions can vary greatly. This is why we talk about different types of hydrogen, which we distinguish for ease of reference by assigning them colours.

Read the special report on hydrogen written by Philippe Garrel, Managing Director – Energy Transition at Sienna IM, Bernard Blez, Senior Consultant – former R&D Director at Engie, with assistance from Romain Vélon, Fund Manager – Energy Transition at Sienna IM.