The global energy crisis has reshaped global energy priorities seemingly overnight. The Strait of Hormuz has been closed to virtually all commercial traffic for more than a month, severely restricting global oil and gas flows. As a result, global energy prices have soared, supplies have tightened, and many countries are scrambling to find alternative energy routes. This has led to a disappointing resurgence of coal-fired power generation, particularly in Asia, but will also intensify the clean energy industry globally. And one of the unexpected beneficiaries of this new wave of investment. <\/span>It could become a green hydrogen industry.<\/span>.<\/span><\/p>\n China, the world’s largest hydrogen producer, plans to increase production of hydrogen, especially green hydrogen, faster than previously planned in order to strengthen energy security as import-dependent Asian markets are shaken by soaring oil and gas prices. China’s National Energy Administration (NEA) has called hydrogen a “strategic instrument” for national energy independence and resilience and pledged to accelerate the development of the domestic sector accordingly.<\/span><\/p>\n chinese <\/span>15th Five Year Plan<\/span>announced last month, marking hydrogen as an “industry of the future”. But apparently the future is now. According to a recent report in the South China Morning Post, hydrogen rhetoric coming out of China signals a rapid shift from research to practical application of the field.<\/span><\/p>\n Last year, the NEA allocated 41 projects in nine regions across the country to lead hydrogen pilot projects along the entire value chain “from production and transportation to storage and utilization.” The leadership is currently pushing to move these projects from the demonstration stage to industrial applications as soon as possible.<\/span><\/p>\n European leaders are also turning to green hydrogen production with renewed enthusiasm. Earlier this month, ministers from Austria, Germany, the Netherlands, Poland and Spain <\/span>petitioned<\/span> The European Union is calling for production regulations to be eased to encourage investment in the sector. And Italy successfully approved <\/span>6 billion euro national aid plan<\/span> Supports renewable hydrogen.<\/span><\/p>\n Even the United States is getting in on the action. This week, the Trump administration directed the Department of Energy to:<\/span> Save $5 billion worth of hydrogen hubs<\/span> One that was scheduled for closure. Although not green hydrogen ventures, these hydrogen projects were funded under the Biden administration to promote cleaner-burning fuel sources.<\/span><\/p>\n Hydrogen burns with high heat like fossil fuels, so it could be an important pathway for decarbonization. But unlike fossil fuels, when burned, only water vapor remains. This could become essential for decarbonizing sectors that are difficult to reduce, such as steel manufacturing and shipping. However, the majority of commercial hydrogen is made from fossil fuels. Green hydrogen, on the other hand, is produced using renewable energy.<\/span><\/p>\n However, while hydrogen, and especially green hydrogen, has the potential to be an important part of the global clean energy transition, research and development in this field has been slow for years as commercial, cost-effective green hydrogen production methods have been largely unavailable. “Even if production costs fall as predicted, storage and distribution costs will hinder hydrogen’s cost competitiveness in many areas,” said Roxana Shafi, a postdoctoral fellow at Harvard University’s Center on the Environment. <\/span>told the Harvard Gazette<\/span> Shafie led the study that found reason to believe that “hydrogen’s window of opportunity may be narrower than previously thought.”<\/span><\/p>\n But the energy economy is changing as we speak, and the global hydrogen market is likely poised to reap a windfall as the world races to replace geopolitically risky fossil fuels that have become prohibitively expensive overnight. Clearly, world leaders are already beginning to re-embrace this emerging sector as part of an all-the-above approach to energy security and independence. Hydrogen may not be like that, but <\/span>silver bullet solution<\/span>it could become an important part of a more diverse and therefore more resilient global energy landscape in the future.<\/span><\/p>\n Written by Haley Zaremba, Oilprice.com<\/span><\/p>\n More top articles on Oilprice.com<\/strong><\/p>\n <\/p><\/div>\n