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The Future of Hydrogen Chapter 5: Opportunities for hydrogen in transport, buildings and power Chapter 5: Opportunities for hydrogen in transport, buildings and power • Hydrogen holds long-term promise in many sectors beyond existing industrial applications. The transport, buildings and power sectors all have potential to use hydrogen if the costs of production and utilisation develop favourably relative to other options. The complex processes involved in developing and deploying hydrogen, however, mean that carefully crafted policy support will be critical. • The competitiveness of hydrogen FCEVs in transport depends on fuel cell costs and on the building and utilisation of refuelling stations. For cars the priority is to bring down the cost of fuel cells and on-board hydrogen storage. This could make them competitive with battery electric vehicles at driving ranges of 400–500 km and make them potentially attractive for consumers that prioritise range. For trucks the priority is to reduce the delivered price of hydrogen. In early stages of deployment, building hydrogen stations that serve captive fleets on hub-and-spoke missions could help to secure high refuelling station utilisation and thus could be a way to get infrastructure construction off the ground. • Shipping and aviation have limited low-carbon fuel options available and represent an opportunity for hydrogen-based fuels. Ammonia and hydrogen have the potential to address environmental targets in shipping, but their cost of production is high relative to oil-based fuels. Hydrogen-based liquid fuels provide a potentially attractive option for aviation at the expense of higher energy consumption and potentially higher costs. Policy support in the form of low- carbon targets or other approaches is critical to their prospects. • The largest near-term opportunity in buildings is blending hydrogen into existing natural gas networks. In 2030 up to 4 Mt of potential hydrogen use for heating buildings could come from low-concentration blending which, if low-carbon, could help to reduce emissions. The potential is highest in multifamily and commercial buildings, particularly in dense cities, where conversion to heat pumps is more challenging than elsewhere. Longer-term prospects in heating could include the direct use of hydrogen in hydrogen boilers or fuel cells, but both of these would depend on infrastructure upgrades and on measures to address safety concerns and provide public reassurance. • Power generation offers many opportunities for hydrogen and hydrogen-based fuels. In the near term ammonia could be co-fired in coal-fired power plants to reduce CO2 emissions. Hydrogen and ammonia can be flexible generation options when used in gas turbines or fuel cells. At the low capacity factors typical of flexible power plants, hydrogen costing under USD 2.5/kg has good potential to compete. Key low-carbon competitors for such services include natural gas with CCUS and biogas. In the longer term, hydrogen can play a role in large- scale and long-term storage to balance seasonal variations. PAGE | 123 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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