The Scalability of Hydrogen Compared to Carbon Capture Solutions

As the demand for clean energy and lower emissions grows, hydrogen has massive potential to facilitate the move to a low-carbon future. Similarly, carbon capture and storage (CCS) has become a viable strategy for delivering negative emissions. In certain cases, using hydrogen and CCS together can be beneficial.

Where hydrogen can serve as a clean fuel, CCS creates a closed-loop, low-carbon cycle. Excess renewable electricity can help in hydrogen electrolysis processes, with CCS capturing the resulting emissions. Implementing these strategies as complementary measures in energy production can positively impact environmental sustainability efforts.

Still, both hydrogen and CCS come with numerous considerations, many of which have to do with scalability. Whether used as complementary approaches or individually, mitigating these challenges is essential to getting the most out of each strategy. Understanding the scalability of hydrogen and CCS provides insight into their impact on the transition to a low-carbon economy and their long-term viability in this effort.

Hydrogen Production and Usage

Put simply, hydrogen is an energy vector that converts, releases and stores energy but also acts as a secondary, zero-emission energy carrier. This energy source currently finds use in industrial applications such as manufacturing steel. It’s a highly versatile fuel and power source that can significantly lower greenhouse gas emissions with widespread use.

Specifically, hydrogen can come from different primary energy sources, including:

Green Hydrogen Systems

Green hydrogen production uses electrolysis through renewable energy sources like solar and wind power to separate water molecules into hydrogen and oxygen. It’s the cleanest, most sustainable hydrogen manufacturing method, using 50 to 55 kilowatt hours (kWh) per kilogram of hydrogen produced with no greenhouse gas emissions.

The primary challenge with this process is its high cost and the opportunity to establish a sound production infrastructure. Still, this method has the most potential for energy independence, as it uses locally available renewable sources.

Gray Hydrogen Systems

As the most popular form of hydrogen production, gray hydrogen uses steam methane reforming (SMR) with a natural gas feedstock. It’s the most economical way to create hydrogen, but it releases more CO₂ into the atmosphere, contributing to climate change.

Gray hydrogen is most commonly used in ammonia production and the petrochemical industry. It is also the most scalable hydrogen product method, as there is an existing infrastructure to support its processes.

Blue Hydrogen Systems

SMR methods can also create blue hydrogen. In this case, CCS technology allows the capture of the carbon emissions from this production method, storing them underground to reduce emissions. Yielding 1 kilogram of blue hydrogen can use fewer kWh of energy, including energy consumption from the CCS operations.

Blue hydrogen is often the bridging technology as organizations transition to green hydrogen systems, but CCS technologies like chemical loop reforming need more development to facilitate the process.

Carbon Capture Technology Basics

CCS captures CO₂ emissions from industrial processes, transporting them safely to underground storage in geological formations that prevent their release into the atmosphere. CCS captures CO₂ emissions in one of three ways:

1. Pre-combustion capture: Before ignition, gasification converts fossil fuels like natural gas or coal into syngas. The CO₂ is captured with the syngas and separated before combustion.
2. Post-combustion capture: CO₂ is captured from flue gasses released from fossil fuels in power plants. Chemical solvents or sorbents absorb the CO₂ from the gas.
3. Oxy-fuel combustion: Oxy-fuel combustion burns fossil fuels in a high-purity oxygen environment, creating a flue gas stream consisting of water vapor and CO₂. The CO₂ is taken from this concentrated stream and packaged for storage.

CO₂ is transported to suitable storage sites via pipelines, trucks or ships, where it’s stored underground in geological formations like saline aquifers, unmineable coal seams or depleted oil and gas reservoirs. There is significant potential to reduce greenhouse gas emissions from large-scale operations with this technology, despite challenges like energy requirements for the capturing process, high costs and the need for more suitable storage sites.

As capture technologies grow, storage techniques and regulatory frameworks intensify in an effort to commercialize CCS usage.

Navigating Hydrogen and CCS Technology Integration Challenges

One of the primary concerns with switching to and scaling hydrogen and CCS is the challenges of technology integration. Despite their advantages in decarbonization, each technique has complexities that can make growth an in-depth process. A multifaceted approach is required to navigate these hurdles, focusing on economic, infrastructural, regulatory and technical aspects.

Economic viability: CCS and hydrogen production have significant operating costs and need new, cost-effective pathways with potential synergies to reduce these overheads. Funding solutions like carbon pricing mechanisms, incentives and subsidies can promote investment to address this technology’s economic viability.

Infrastructure development: Robust infrastructures are necessary to support the integration of these technologies. This process includes establishing storage and distribution networks for captured CO₂, developing or maintaining pipelines for transport, and retrofitting industrial facilities for CCS deployment.

Regulatory and policy frameworks: Clear regulatory frameworks and supportive policies make addressing integration challenges easier. Government research funding, safety standards and infrastructure development will help solidify these needs.

Research and innovation: Continued research and collaboration between industries, government agencies and educational institutions will drive technological advancements to speed up the deployment of these technologies.

Stakeholder engagement: Proactively engaging relevant stakeholders to address concerns and manage regulatory obligations will foster greater acceptance of hydrogen and CCS. These stakeholders can include communities, environmental groups, industry players and policymakers. Building consensus and maintaining transparent communications will also help gain the support needed to push for project implementation.

Technical compatibility: The crux of technological integration starts with establishing technical compatibility. It’s necessary to optimize process parameters and ensure compatibility between equipment and systems through integrated monitoring and control strategies.

Analyzing Economic Viability: Hydrogen vs. Carbon Capture

Costs, market demand, policy support, potential revenue streams and technological maturity impact the economic viability of hydrogen and CCS technology adoption. Both have considerable economic potential, and further technological innovation, business model development and increases in market demand can boost their economic viability.

1. Cost Considerations

Hydrogen production costs depend on the method used and the energy source. Green hydrogen using electrolysis is powered by renewable energy sources, which face significant cost challenges, especially in large-scale productions. Green hydrogen systems will only impact decarbonizing efforts if the product is readily available and affordable. The Inflation Reduction Act of 2022 offers various clean energy tax credits to drive clean incentives, including clean hydrogen and fuel cell technologies.

CCS technology is maturing but requires significant upfront costs to capture emissions and transport them to underground storage facilities. It’s worth noting that the Section 45Q tax credit is expanding to include all carbon dioxides in an effort to drive innovation and usage. Organizations using CCS services can get a tax allowance of 100% over 10 years, import duty and sales tax exemption on CCS technology between 2023 and 2027, and a 70% tax exemption on their statutory income for the following decade.

2. Market Demand and Applications

Market demand for hydrogen as a clean energy carrier in energy storage, industry and transportation is growing thanks to an increase in government policies and initiatives that support hydrogen infrastructure. In comparison, CCS technologies had a global market size valued at $2.4 billion in 2023, but to grow, this industry needs uniform carbon pricing and regulatory incentives for widespread market adoption.

3. Revenue Streams and Business Models

Hydrogen production opens up revenue opportunities through energy storage services, participation in renewable energy integration and fuel sales to various industries, including transportation. By assessing market trends and demand for this energy source, stakeholders can develop viable business models for this investment.

CCS can offer stable revenue streams through carbon credits and trading, long-term contracts with industrial emitters and enhanced oil recovery that uses captured CO₂ for oil extraction. However, sound financial models are necessary to capture this income, which is vital for project economies.

4. Technological Maturity and Scalability

Hydrogen production methods like electrolysis are quickly advancing as they are efficient and highly scalable. Still, more infrastructure development is required for continued growth and cost competitiveness with conventional fuels.

CCS is deployed in more global projects, demonstrating this technology’s feasibility. With advances in geological storage technologies, capture efficiency and transport infrastructure, its scalability will continue to improve.

The Sustainability of Hydrogen and CCS and How It Affects Scalability

Accurately assessing CCS and hydrogen’s impact on the environment is important for further understanding each option’s scalability. With a better understanding of each technique’s particular sustainability considerations, organizations can determine which approach is best for their operations and future growth. This analysis starts by evaluating each strategy’s energy efficiency, environmental risks, contributions to greenhouse gas emission reduction and lifecycle assessments.

Energy Efficiency

Hydrogen’s energy efficiency depends on its production method. The capabilities to produce green hydrogen systems are expanding with technological advancements in proton exchange membrane electrolysis and solid oxide electrolysis cells. However, some concerns with efficiency losses during electricity conversion and generation still need to be addressed. The scalability of this production system requires abundant renewable energy sources like hydropower, solar and wind alongside the development of cost-effective electrolysis technologies.

CCS runs the risk of penalties as fuel requirements for electricity generation can reach 44% in CO₂ capture, compression, transport and storage. These requirements must be balanced with emissions reduction benefits to align with environmental sustainability goals and be realistically scalable.

Environmental Risks

Green hydrogen production has low environmental risks as it produces few emissions. However, there are challenges with water use for electrolysis and the materials sourced for this technology. Some experts believe there isn’t enough water to logically support a hydrogen economy, though research finds that one way to improve the scalability of hydrogen power is by isolating the water sources specifically used for electrolysis.

CCS presents some environmental risks with CO₂ storage integrity and potential leakage at storage sites. It requires robust monitoring, regulation and verification frameworks to mitigate these risks and confirm secure, long-term, scalable storage.

Greenhouse Gas Emissions Reduction

Relying on the minimal direct emissions from green hydrogen systems offers a way to decarbonize high-emission sectors. Hydrogen produced with CCS technology may be required to better decrease greenhouse gas emissions, as hydrogen still creates emissions during production.

CCS directly targets CO₂ emission reduction as part of its core process. Using this technology may not reduce greenhouse gases on the scale necessary to avert climate change altogether, but removing CO₂ from fossil fuel-based activities is a step in the right direction, especially on a global scale.

Lifecycle Assessment

The full lifecycle of hydrogen production, including raw material extraction, end-use emissions, production processes and transportation, provides a clear view of its sustainability and scalability.

Gray hydrogen has high emissions of 13.9 kilograms of CO₂ per kilogram of hydrogen. Blue hydrogen has lower emissions, thanks to CCS technology, at 7.6 kilograms of CO₂ per kilogram of hydrogen when transported via the pipeline route. Green hydrogen systems using wind energy have low emissions of 0.6 kilograms of CO₂ per kilogram of hydrogen.

The lifecycle of CCS relies on energy inputs, environmental risks associated with CCS processes and emissions reductions. This technology can deliver 79% to 91% efficiency in greenhouse gas emissions removal, especially in locations with high solar irradiation. CCS does require infrastructure with suitable storage formations to prevent potential CO₂ leaks and deliver this level of efficiency.

Partner With TRC Companies for a Sustainable Energy Future

Both hydrogen and CCS have scalability challenges. Fortunately, these challenges can be mitigated with investments that promote infrastructure development, supportive policies and technological advancements. Production methods, end-use applications and regulatory frameworks will all contribute to each method’s adoption and growth. Governments, industries and research institutions must collaborate to realize their full scalability in pushing for clean emissions and energy.

Since 1969, TRC has provided cutting-edge environmental consulting services, ranking #16 on ENR’s list of the Top 500 Design Firms. From advising on ESG frameworks to solar installation and infrastructure solutions, we help fuel your project’s way forward. When you collaborate with us, you receive tangible solutions with ongoing benefits and quantifiable results even after project completion.

Our advanced energy advisory solutions can help your business work toward a zero-carbon future. Whether you’re interested in electrifying a fleet of business vehicles, creating a sustainable workforce, or simply learning more about the scalability of low-carbon hydrogen, our team is ready to assist. We’re passionate about decarbonization and clean energy methods, delivering expert guidance from project conception all the way through to continuous improvement.

Start building a more sustainable organization today by contacting TRC Companies for green energy planning, consulting and engineering solutions.