Oil War? The 'Hydrogen War' to Save the Earth Begins [Reading Science]

Countries Worldwide Intensify Research, Development, and Infrastructure Building to Secure Hydrogen Resources

File photo. [Image source=AP Yonhap News]

[Asia Economy Reporter Kim Bong-su] There is a saying, "He who controls oil controls the world." However, this is no longer true in the carbon-neutral era. This is because the primary energy source humanity uses to prevent global warming is shifting from oil to hydrogen and other renewable energies. In particular, countries around the world are focusing on research, development, and infrastructure expansion to secure hydrogen, one of the major alternative energy sources to oil. South Korea is also preparing concrete plans to secure hydrogen, including importing hydrogen from overseas, to achieve its 2050 carbon neutrality goal. The "oil wars" that once centered around the Middle East could be replaced by "hydrogen wars" in the future. Let's take a look at the efforts of countries worldwide to secure hydrogen.

◇ Why Hydrogen?

According to the global market research firm IHS, as of 2018, the global hydrogen consumption was 75 million tons annually, with 90% used in the refining and petrochemical industries. Currently, hydrogen is produced by decomposing liquefied natural gas (LNG) or methane, but this method emits significant carbon dioxide, making it difficult to call it "green energy." During usage, current technology causes nitrogen oxides to be generated due to the high combustion temperatures, and hydrogen fuel cells have low efficiency, which poses problems.

However, hydrogen, one of the most abundant elements in the universe, is a clean fuel that emits no carbon dioxide once produced. It can be produced from various energy resources such as natural gas, coal, oil, renewable energy, and nuclear power, and can be used as a raw material for the petrochemical industry or converted into synthetic fuels for power generation and transportation by combining with carbon dioxide. Especially for South Korea, the fact that hydrogen can be "imported from overseas" is important. Countries with many deserts like Saudi Arabia or Australia can produce solar power using abundant sunlight, then use it to create clean hydrogen, convert it into more stable substances like ammonia, and transport it to countries like South Korea that have limited renewable energy potential for utilization. It is even imaginable that future wars could be fought over hydrogen transportation routes rather than oil transportation routes.

The International Energy Agency (IEA) predicts that by 2050, global carbon demand will increase to 530 million tons, accounting for 13% of final energy consumption. Of this, 50% will be used in steel, petrochemical, and transportation sectors, 30% for synthetic fuel production, and 17% as a complementary resource for renewable energy. For example, by 2050, 45% of ship fuel will be replaced by green ammonia derived from hydrogen, and coal power plants are developing technologies to mix hydrogen to reduce carbon dioxide emissions.

Hydrogen Charging Station. Stock Photo

◇ Countries Worldwide Prepare for the 'Hydrogen War'

In recent years, major countries around the world have been actively creating policies, developing technologies, and promoting industrial applications to secure hydrogen. The European Union (EU) Commission announced a "Hydrogen Strategy" last July with the goal of producing 1 million tons of clean hydrogen from 6GW-scale electrolysis facilities by 2024 and 10 million tons from 40GW-scale electrolysis facilities by 2030. The EU Commission plans to invest between 180 billion and 470 billion euros in the hydrogen strategy by 2050 and announced the establishment of the "European Clean HYdrogen Alliance" aiming to build a large-scale hydrogen pipeline network.

Among European countries, Germany is particularly proactive. In June last year, Germany announced its National Hydrogen Strategy, setting a target to produce 14 TWh of green hydrogen by 2030 and actively pursuing 38 detailed implementation plans. France also announced a 100 million euro "Hydrogen Fuel Power Plan" in June 2018, followed by the enactment of the Energy Law in 2019 and the National Clean Hydrogen Development Strategy in September 2020. Last year, France declared plans to invest 3.4 billion euros by 2023 and 7.2 billion euros by 2030 in the hydrogen industry. Recently, a Hydrogen Committee involving the Ministry of Environment, Ministry of Economy, and Ministry of Industry was formed, and in February, France decided to invest 300 billion euros in a hydrogen railway project.

Hydrogen truck. Stock photo

The United Kingdom also announced in its national long-term power scenario last year that it would increase green hydrogen and other hydrogen facility capacity to 7.4 million tons by 2050. The policy support plan for green hydrogen activation (UKHFCA) confirmed this year includes replacing 25 TWh of industrial energy consumption with hydrogen and electricity starting from 2022. Japan announced its Hydrogen and Fuel Cell Roadmap in 2016, the Basic Hydrogen Strategy in 2017, and the 5th Basic Energy Plan in 2018, significantly expanding hydrogen utilization. In 2019, Japan revised its Hydrogen and Fuel Cell Roadmap to supply 300,000 tons of hydrogen annually by 2030 and reduce the price to $3 per kilogram. It also plans to actively develop carbon dioxide-free electrolysis technology to reduce costs to around 50,000 yen per kW by 2030.

The United States announced a hydrogen program led by the Department of Energy last November, integrating various ongoing research and development projects and presenting phased strategies and value chain goals. President Joe Biden pledged during his presidential campaign to invest $400 billion in green hydrogen production and announced in March that he would maintain a $15 billion investment in pilot projects such as hydrogen storage technology.

Australia also announced its "National Hydrogen Strategy," aiming to popularize hydrogen by lowering its price to $2?3 per kilogram by 2030. To achieve this, Australia is actively promoting the establishment of commercial hydrogen hubs, removing market barriers, and securing price competitiveness. China, too, officially entered the hydrogen energy industry development at the government level by submitting related matters on hydrogen energy facilities and charging station construction to the National People's Congress in March 2019. China has an ambitious plan to increase the share of hydrogen energy to the 10% range between 2036 and 2050.

Renewable Energy.

South Korea is currently leading the "hydrogen economy," with the highest sales of hydrogen fuel cell vehicles worldwide. In January 2019, South Korea announced the "Hydrogen Economy Activation Roadmap," and on February 4, 2020, it enacted the world's first Hydrogen Economy Promotion and Hydrogen Safety Management Act (Hydrogen Act), which came into effect in February this year. Detailed plans are expected to be finalized along with the government's carbon neutrality scenario scheduled for confirmation this October, including strategies for domestic production and consumption as well as overseas hydrogen imports.

Some voices raise the necessity of nuclear power and point out the current limitations of hydrogen technology. Recently, the Intergovernmental Panel on Climate Change (IPCC), involving 195 countries including South Korea, warned that only 20 years remain to keep the "deadline" for global warming, meaning to limit the average temperature rise since industrialization to within 1.5 degrees Celsius. It is time to concretize hydrogen product distribution strategies starting with the power generation, industrial, and transportation sectors, which are the largest greenhouse gas emitters. Active efforts are needed in green hydrogen production and procurement methods, international cooperation, and infrastructure development.