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The Future of Hydrogen Chapter 1: Introduction The crucial difference between hydrogen and electricity is that hydrogen is a chemical energy carrier, composed of molecules and not only electrons. This distinction underpins all the reasons why hydrogen might outcompete electricity in some situations (and vice versa). Chemical energy is attractive because it can be stored and transported in a stable way, as is done today with oil, coal, biomass and natural gas.4 Molecules can be stored for long periods, transported across the sea in ships, burned to produce high temperatures, and used in existing infrastructure and business models designed around fossil fuels. Because of its molecular nature, hydrogen can also be combined with other elements such as carbon and nitrogen to make hydrogen- based fuels that are easier to handle, and can be used as feedstock in industry, helping to reduce emissions. Without hydrogen a decarbonised energy system based on electricity would be much more flow-based. Flow-based energy systems must match demand and supply in real time, across wide distances, and can be vulnerable to disruptions of supply. Chemical energy can add a stock-based element to an energy economy and thus contribute significantly to energy system resilience. All energy carriers, including fossil fuels, encounter efficiency losses each time they are produced, converted or used. In the case of hydrogen, these losses can accumulate across different steps in the value chain. After converting electricity to hydrogen, shipping it and storing it, then converting it back to electricity in a fuel cell, the delivered energy can be below 30% of what was in the initial electricity input. This makes hydrogen more “expensive” than electricity or the natural gas used to produce it. It also makes a case for minimising the number of conversions between energy carriers in any value chain. That said, in the absence of constraints to energy supply, and as long as CO2 emissions are valued, efficiency can be largely a matter of economics, to be considered at the level of the whole value chain. This is important as hydrogen can be used with much higher efficiency in certain applications and has the potential to be produced without greenhouse gas emissions. For example, a hydrogen fuel cell in a vehicle is around 60% efficient, whereas a gasoline internal combustion engine is around 20% efficient, and a modern coal-fired power plant is around 45% efficient, with electricity power line losses accounting for a further 10% or more. What is the difference between hydrogen and hydrogen-based fuels and feedstocks? Hydrogen can be used in its pure form as an energy carrier or as an industrial raw material. It can also be combined with other inputs to produce what are referred to as hydrogen- based fuels and feedstocks. Hydrogen-based fuels and feedstocks can be produced using hydrogen from any source, whether electricity, biomass or fossil fuels, and can readily be used in applications such as engines, turbines and chemical processes. They include such derivative products as synthetic methane, synthetic liquid fuels and methanol, all of which require carbon alongside hydrogen. They also include ammonia, which can be used as a chemical feedstock or potentially as a fuel, and which is made by combining hydrogen with nitrogen. 4 Batteries also store chemical energy, but not in the bonds of molecules that can be stored in bulk. In batteries, the chemical energy is a build-up of ions and electrons on cathodes and anodes in specially prepared combinations of chemicals; often these are complex chemicals with poor stability. The chemical energy in batteries degrades more quickly over time. PAGE | 33 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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