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The Future of Hydrogen Chapter 1: Introduction The benefits of hydrogen for energy security, local air pollution, economic development and energy access are now routinely cited. Hydrogen can support energy security in several ways. When hydrogen is deployed alongside electricity infrastructure, electricity can be converted to hydrogen and back, or further converted to other fuels, making end users less dependent on specific energy resources and increasing the resilience of energy supplies. Hydrogen produced from fossil fuels with CCUS or from biomass can also increase the diversity of energy sources, especially in a low-carbon economy. If the right infrastructure is developed, it could be attractive in the future for countries to diversify their economies by exporting low-carbon energy in the form of hydrogen and hydrogen-based fuels, or importing hydrogen to benefit from competition that restrains prices. Countries with high-quality resources for hydrogen production are widely dispersed around the globe, and many current energy exporting countries are also endowed with renewable resources that could produce hydrogen. In an ambitious low-carbon context, such hydrogen trade would effectively enable trade and storage of wind and sunshine between different regions to overcome seasonal differences. Lastly, hydrogen could provide an additional way for countries to store reserves of energy strategically in a highly electrified low- carbon world. Using hydrogen instead of carbon-containing fuels in energy end uses could also reduce local air pollution, improving environmental and health outcomes. Urban air pollution concerns and its related health impacts are now major drivers of energy policy decisions, and governments are keenly interested in ways of reducing air pollution and improving air quality. When used in vehicles and heating appliances, hydrogen does not produce particulates or sulphur oxides or raise ground-level ozone (Stephens-Romero et al., 2009). When used in a fuel cell, hydrogen does not produce nitrogen oxides. Development of hydrogen infrastructure and technologies is often considered in relation to broader economic development objectives, especially in the context of energy transitions. Hydrogen value chains touch upon many different types of technology and manufacturing sectors. Producing, transmitting and using hydrogen may require chemical technologies, such as carbon capture solvents or fuel cell membranes, and new precision-engineered products, such as storage tank or pipeline materials and burners. There is scope for countries to develop leadership, technical expertise and new jobs in these areas, particularly when they reinforce existing skills and capacities. While owners of some existing skills and assets would see their value decrease in a low-carbon scenario, much of the value could be conserved by investing in low-carbon solutions that are compatible with current infrastructure. For example, some operators of natural gas grids are now exploring the opportunity to replace natural gas partially with alternatives that have a lower CO2 intensity, including hydrogen. Likewise, if hydrogen can be used cost-effectively to reduce industrial emissions without any relocation of manufacturing, that would help with the retention of local jobs. Similarly, if CCUS is used to reduce the CO2 intensity of fossil fuel hydrogen production, that would enable some fossil fuel resources to continue to be used. Transition pathways that make use of existing infrastructure, assets and skills could be easier and cheaper to navigate than the alternatives. Opportunities for off-grid hydrogen generation and storage systems have emerged from improvements in integrated designs of electrolysers, hydrogen storage and fuel cells. Containerised systems are in development that can be paired with off-grid energy supplies to provide backup power for important facilities such as hospitals and electricity storage for longer periods than battery-based systems. While these systems are still costly, such off-grid solutions PAGE | 24 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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