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Wen/Dong Yifan, Ma Xue, Liu Yun, Gao Hui, China Institute of Contemporary International Relations, PetroChina Economic and Technological Research Institute, China Petroleum News
Hydrogen energy in China
Hydrogen energy track accelerates the "hydrogen" dedication of oil companies
China is one of the key players in green hydrogen fuels, making it a core element of its climate plan for a long time. Many domestic oil companies have been actively practicing the green and low-carbon strategy and carbon neutrality vision to create a growth pole for the hydrogen energy industry. The combined hydrogen production capacity of PetroChina and Sinopec has reached about 4 million tons per year.
Compared with traditional oil and gas businesses, the hydrogen energy industry has the characteristics of high similarity, similar customers, and shared infrastructure. For petroleum and petrochemical enterprises, in the early stage of the current development of hydrogen energy industrialization, they should take the lead in carrying out the operation and practice of demonstration projects in areas with conditions, and learn from practice. For example, in areas with dense petrochemical enterprises and developed transportation and logistics in the east, hydrogen fuel cell vehicles can be developed for logistics fleet business, and it is a good demonstration that some hydrogen refueling stations in Shanghai have achieved profitability.
In terms of industry, oil and gas companies have mature hydrogen production, gas-liquid storage and transportation experience and hazardous chemical storage and transportation management qualifications and perfect sales systems, and have certain hydrogen energy consumption capabilities. Before the commercialization of hydrogen production from renewable energy power generation, mature technology and low cost of fossil fuel hydrogen production can participate in the upstream link of the hydrogen energy industry chain as a mainstream hydrogen production method; some gas stations have the conditions for the development of oil-hydrogen, gas-hydrogen mixing stations, and are also the industrial basis for oil and gas enterprises to participate in the hydrogen energy industry chain.
In terms of technology, oil and gas companies have rich experience in pipeline design, construction and operation. In 2015, China's first hydrogen pipeline, the Jiyuan-Luoyang pipeline, built by the China Petroleum Pipeline Bureau, was successfully put into operation and operated stably. PetroChina, Sinopec and other companies have invested tens of millions of yuan in technical research in all aspects of the hydrogen energy industry chain in recent years, such as hydrogen sulfide electrolysis hydrogen production, natural gas catalytic cracking hydrogen production, renewable energy power generation hydrogen production, heavy aromatic hydrocarbon storage materials and dehydrogenation catalytic materials, metal skeleton organic compound storage, long-distance pipeline hydrogen transportation evaluation, micro-cogeneration energy station, hydrogen refueling station construction specifications and standards and other projects, for the future development of hydrogen energy business has been useful early technology exploration.
From the experience of countries around the world, the commercial development of the hydrogen energy industry needs to solve many problems such as technological breakthroughs, policy coordination, industrial support, economic feasibility, and social cognition. China's hydrogen energy industry is still facing the lack of national hydrogen energy strategy, insufficient core technology, lack of hydrogen refueling station approval and regulatory regulations, technical standards and testing system lag, etc., it is urgent to strengthen the top-level design and promote the high-quality development of the hydrogen energy industry.
First of all, the development of the hydrogen energy industry needs to clarify the energy attributes of hydrogen. At present, hydrogen is listed as a hazardous chemical in China, has not yet been included in the energy management system, and it is urgent to define the role of hydrogen energy in the blueprint for national energy transition. At the same time, the business of major energy companies has its own advantages and emphases, and it is impossible for each of them to develop a "large and complete" hydrogen energy industry chain. Industrial policies should be formulated at the national level, the competent departments of the industry for hydrogen energy development should be clarified, the regulatory regulations and testing systems should be improved, and the regions and enterprises with real resource advantages and technical strength should be encouraged to cooperate with each other and jointly promote the development of the hydrogen energy industry.
Secondly, there is still a big gap between some key components and product technologies in China's hydrogen energy industry chain and the most advanced foreign technologies, and key components such as membrane electrodes, air compressors, hydrogen storage materials, hydrogen refueling guns and hoses still need to be imported. In terms of development mode, on the one hand, we can refer to China's high-speed rail technology innovation and major oil and gas special models, organize major scientific and technological projects for hydrogen energy utilization, effectively break through the bottleneck of large-scale low-cost hydrogen production, efficient safe storage and transportation and hydrogenation technology, and drive industrial technological progress with leading enterprises; on the other hand, considering that the hydrogen energy industry in the world is still in the early stage of development, the leading technology and design have not yet been finalized, and it is very necessary to establish a venture capital fund and maintain attention to related technologies. Promote market prosperity with technological breakthroughs and resolutely guard against speculation.
Infrastructure construction is a key link in the upstream and downstream of the hydrogen energy industry chain, and it is also a prerequisite for the large-scale promotion and application of hydrogen energy. Hydrogen long-distance pipeline and hydrogen refueling station construction investment is large, long cycle, high operating costs, coupled with the hydrogen source, transportation mode restrictions, before the large-scale construction of hydrogen refueling stations, it is particularly important to obtain construction and operation experience through demonstration stations. Oil companies can make full use of the existing oil and gas infrastructure, orderly promote the construction of hydrogen energy infrastructure, and effectively improve the safety and economy of hydrogen storage, transportation and refueling.
Finally, hydrogen energy is a new industry in all countries, so it is inseparable from active international cooperation in the process of promoting the development of hydrogen energy industry. Japan, Germany, the United Kingdom, the United States and other countries in the face of hydrogen energy industry policy, technology, safety, business model and public acceptance and other issues, there are some advanced practices worth learning from the mainland. If we can use our advanced experience and actively participate in the energy transition in terms of resources, industries and markets, I believe that the development of hydrogen energy will have a profound impact on the energy production, consumption and transnational trade pattern of the mainland and even the world.
Hydrogen energy in the United States
Hydrogen energy industry investment is huge, private enterprises are scrambling to layout
With the deepening development of global energy conservation and emission reduction, the United States has also increased its efforts to develop hydrogen energy to mitigate the impact of climate change. According to the "energy independence" goal pursued by successive US governments, the United States has been committed to the diversification of energy, and promoting the hydrogen economy is one of its important measures. Observing its hydrogen energy development path, it is not difficult to find the following characteristics.
First, diversify development and promote the construction of hydrogen energy projects on the basis of ensuring energy security. Since THE 1970s, when US President Richard Nixon first proposed the idea of "energy independence", successive US governments have taken "energy independence" as a historical mission to promote energy diversification and ensure local energy security. In 1980, Carter signed the Energy Security Act, which includes incentives for geothermal, solar and biomass energy to provide new petroleum alternatives to generators. In 2005, the U.S. Congress passed the Energy Policy Act, which includes new incentives for transportation fuel alternatives and flexible fuel vehicles, as well as new subsidies for domestic oil exploration.
On this basis, the United States has vigorously developed the hydrogen economy, with hundreds of millions of dollars of public and private investment every year. More than half of the world's fuel cell vehicles, 25,000 fuel cell material handlers, more than 8,000 small fuel systems are spread across nearly 40 states, and more than 550 MW of large fuel cell power has been installed or is planned to be installed. According to the U.S. Hydrogen Energy Commission, as of November 2021, the cumulative number of large-scale hydrogen projects announced in the United States has doubled from January to 522. Nearly three-quarters of the projects are expected to be partially or fully operational during the decade, with two-fifths of them already funded or under construction.
Second, bottom-up development, with private companies as the main driving force of the hydrogen market, stimulate the development of the hydrogen energy economy. In 2021, 11 companies, including Air Liquide, Anglo American, Cummins, Hyundai, Linde, Shell and Toyota, announced a partnership to form the Hydrogen Forward Alliance, which aims to promote hydrogen energy development in the United States. The alliance is making significant investments in the U.S. and promoting specific hydrogen projects across the country to scale hydrogen technologies. From the production and sale of hydrogen fuel cell vehicles (FCEVs) to hydrogen refueling stations, Hydrogen Forward members are at the forefront of innovation in transportation. At the same time, hydrogen storage solutions from its member companies are helping the power generation industry decarbonize with renewable energy.
In November 2021, Long Ridge became the first hydrogen power station in the United States and the first power plant in the world to incorporate hydrogen into a GE H-class gas turbine. The GE turbines it uses are capable of using 80% natural gas and 20% hydrogen. After adjustment, in the future the plant will likely achieve 100% hydrogen combustion.
Third, the U.S. government has begun to make up for it and strengthen hydrogen energy development to consolidate its global energy leadership. How fast hydrogen energy grows depends largely on the pace of subsidies, technological innovations and scale-ups. The lack of systemic policy support for hydrogen could derail these efforts. Because in many places, carbon prices can't cover the extra costs, and most customers aren't willing to pay more for green steel or cement. In the early stages of new projects, government policies are highly influential, particularly in coordinating supply-demand growth and avoiding high mismatch costs. Europe and East Asia have pledged hundreds of billions of dollars to invest in hydrogen solutions, and the United States has been the only major market for hydrogen without a national hydrogen strategy.
Recently, the US government has begun to make up for the position and strengthen the development of hydrogen energy. In July 2021, the U.S. Department of Energy (DOE) announced the launch of the Energy Research Program, which aims to accelerate low-cost, reliable and clean energy technology breakthroughs over the next decade. The first initiative launched on the same day is the "Hydrogen Tackle" program, which aims to reduce the cost of clean hydrogen by 80% to $1/kg over the next decade to accelerate hydrogen technology innovation and stimulate clean hydrogen demand. Previously, the U.S. Department of Energy (DOE) also issued the Hydrogen Energy Plan development plan, proposing to establish an overall strategic framework for hydrogen research, development and demonstration in the next decade and beyond. The plan projects that U.S. hydrogen projects will generate $140 billion in revenue and 700,000 jobs per year by 2030, thereby strengthening U.S. energy leadership and driving U.S. economic development; by 2050, $750 billion in revenue and 3.4 million jobs will be created annually.
Comprehensive policies that provide a legal framework are essential for the development of the hydrogen economy. On November 15, 2021, U.S. President Joe Biden signed the Infrastructure Investment and Employment Act (also known as the BFI Act), which has an entire budget of $1.2 trillion, including $8 billion for the construction of regional hydrogen energy centers in the five years from 2022 to 2026, and $1.5 billion for the research and development and demonstration of the entire industrial chain of electrolyzers and hydrogen energy. The introduction of this bill provides a much-needed framework for the development of hydrogen energy in the United States, and helps the United States to achieve the rapid development and large-scale application of hydrogen energy.
"Hydrogen Energy Hundred Questions", deeply grasp the opportunity of hydrogen energy, scan the code and place orders
Hydrogen energy in Europe
Good momentum of industrial development Future opportunities and challenges coexist
As the EU regards green transformation as one of the important drivers of economic recovery and economic and industrial transformation in the post-epidemic era, hydrogen energy-related industries have received widespread attention from the EU and are regarded as important pillars for decarbonizing the economic system, addressing climate change, cultivating emerging technology-intensive energy industries, and promoting the linkage and coupling of energy systems.
In July 2020, the European Commission proposed a draft EU hydrogen energy strategy, which plans to increase the eu electrolyzer hydrogen production capacity to 6 GW and 40 GW by 2024 and 2030, respectively, with an annual hydrogen production capacity of 1 million tons and 10 million tons respectively. At the same time, it is also proposed to make the industry bigger and stronger through the development of industrial alliances, the support of key projects, and the promotion of international cooperation.
After the EU proposed relevant strategies, major member states have also followed suit, Germany proposed its own hydrogen energy strategy in June 2020, and France, Spain, Italy and other countries have also proposed their own hydrogen energy plans.
On the basis of the strong support of the EU and member states and the coordinated promotion of industry, the EU has set off a boom in hydrogen energy construction. In 2021, McKinsey released a report saying that 126 of the 228 hydrogen energy projects announced worldwide are located in Europe, accounting for about 45% of the $300 billion in global hydrogen energy investment in the next 10 years. In November 2021, the European Alliance for Clean Hydrogen, built under the EU Hydrogen Strategy framework, will promote 750 projects covering industries such as industry, transport, energy and construction. At the same time, European companies have launched large-scale hydrogen energy projects. For example, German steel manufacturer Salzgitter will cooperate with German power company E.ON and chemical giant Linde to build a one-stop project of wind power hydrogen production and "green hydrogen production"; Sweden, Germany, Japan and other countries are preparing to build "Europe's largest green hydrogen plant" with a capacity of 100 MW in Hamburg, Germany; French energy giants Total and Enji are preparing to build the largest green hydrogen project in France, which is expected to reach 50,000 tons per day in 2024. In addition, the EU will also explore the application of hydrogen to the heating industry to enhance its widespread use.
The EU has a good momentum of development in terms of industrial clusters, hydrogen production costs, and supporting facilities. The northwestern European countries around the North Sea have 5% of the world's hydrogen demand and 60% of Europe's hydrogen demand, forming a hydrogen valley that connects transportation, manufacturing, and downstream use. With the soaring price of globalized stone energy in 2021, the cost of gray hydrogen with higher carbon emissions will increase, making the cost of green hydrogen more competitive. ICIS data shows that in November 2021, the cost of grey hydrogen production in europe has reached 5.59 US dollars / kg, which is 20% higher than green hydrogen. In terms of infrastructure, Europe already has 200 commercially operated hydrogen refueling stations, while vigorously promoting the hydrogen transmission transformation of natural gas pipelines, it is expected that in 2040, The European hydrogen pipeline will reach about 40,000 kilometers, and the investment amount will reach 43 billion to 81 billion euros.
From the perspective of the International Energy Agency, the European Union and major member states, the future global hydrogen energy market will be a super blue ocean market with an annual investment of hundreds of billions of dollars or even trillions of dollars, and its potential to promote emission reduction and integration of renewable energy is huge. However, the EU's hydrogen strategy still faces considerable challenges. For example, in the issue of upstream and downstream matching of the industry, the investment cycle of renewable power generation asset capacity is generally as long as seven years, which is much longer than the construction time of hydrogen energy electrolyzers in two years, and the uncertainty of renewable energy expected production capacity is likely to affect the investment willingness of hydrogen energy developers. For example, the current EU investment standards for hydrogen energy are still controversial, countries and industries have different opinions on the division of hydrogen energy sources as "clean or not", and hydrogen energy investors are difficult to form clear expectations for the future prospects.
Hydrogen energy in Japan
Strategic first-mover advantage is obvious Technology research and development leads the world
Japan is one of the first countries to develop hydrogen energy technology, in 1973 established the "Hydrogen Energy Association", in 2013 the development of hydrogen energy as a national policy into the "revitalization strategy", long-term hydrogen energy technology development, application of subsidies, in hydrogen fuel cells, hydrogen energy production, storage and transportation and other fields have a certain first-mover advantage.
At present, Japan has planned a roadmap of "zero greenhouse gas emissions in 2050" in accordance with its own energy structure and industrial interests, and intends to increase the proportion of renewable energy by 50%-60%. Among them, Japan regards hydrogen energy as one of the key points, and is committed to building a stable industrial chain and supply chain, expanding social popularization and expanding practical uses; at the same time, it plans to invest 370 billion yen in the next 10 years to support the hydrogen energy industry, with the goal of reducing the cost of hydrogen energy to 30 yen / cubic meter.
Under the support of policies, Japan is at the forefront of the world in the field of hydrogen energy applications. First, the sales volume of Japan's household fuel cell combined heat and power system (ENE-FARM) has increased exponentially, with cumulative sales of more than 400,000 units by the end of June 2021. As of the end of January 2022, a total of 157 have been put into use, including 58 in the "Capital Circle", 45 in the "Zhongjing Circle", 19 in the "Kansai Circle", and 14 in the "Kyushu Circle". According to the government's plan, Japan will build 1,000 hydrogen refueling stations by 2030. Third, the sales of hydrogen fuel cell vehicles have exploded, and Toyota will sell more than 5,600 hydrogen fuel vehicles in 2021, which has reached 50% of its cumulative sales.
Under the heat of carbon neutrality, Japan's hydrogen energy technology has developed rapidly. According to the latest statistics from data analysis company Astamuse, the number of patent applications for hydrogen energy technology in Japan ranks first in the world, and the "hydrogen energy patent assets" of 9 companies such as Toyota, Nissan and Honda rank among the top 20 in the world. In terms of production, Toyota Central Research Institute has increased the energy conversion efficiency of the laboratory's "artificial photosynthesis hydrogen energy" to 10.5%, exceeding the industry's recognized practicality target of 10%, and the technology can also be used to produce formic acid (a carrier for storing and transporting hydrogen energy at room temperature); Asahi Kasei's 10,000-kilowatt hydrogen energy production facility in Nanae-cho, Fukushima, has been put into trial operation, and plans to accept commercial orders in 2025 and reduce the price of gigabit equipment from 200,000 yen to 50,000 yen in 2030. In terms of storage and transportation, Kawasaki Heavy Industries has developed the world's first liquefied hydrogen carrier, striving to achieve scale and commercialization by 2030; the Japanese Quantum Science and Technology Research and Development Agency has developed an "alloy that can efficiently adsorb hydrogen without the use of rare metals", which has the characteristics of "no leakage at room temperature and high temperature release"; Chiyoda Chemical has developed a technology that converts hydrogen into liquid "methylcyclohexane", which can be transported using oil tanks and tankers.
While hydrogen energy is booming in Japan, it also faces many constraints. First of all, Japan's indigenous renewable energy production conditions are poor, do not have the conditions for large-scale production of green hydrogen, and the use of fossil fuels such as natural gas to produce gray hydrogen will still produce carbon dioxide emissions. Secondly, in the face of the second echelon - China, the United States, South Korea, Europe to catch up, Japan alone rely on domestic production and sales is not enough to maintain its leading position. Japan is trying to solve these problems by building a global supply chain. For example, Sumitomo Corporation and others have promoted the "Concentrated Photovoltaic Power Generation Hydrogen Production" project in Queensland, Australia, New Nippon Petroleum has launched two projects in Malaysia, "Hydropower Residual Electricity Hydrogen Production" and "Petrochemical Plant Emissions Associated Hydrogen", Mitsubishi Heavy Industries has participated in the "Conversion of Power Generation Fuel into Hydrogen" program in the United Kingdom, and Asahi Kasei will participate in the trial business of recycling carbon dioxide and hydrogen from spontaneous power plants and manufacturing chemicals such as transportation fuels in Germany. In the future, Japan also needs to increase its efforts in improving the domestic business environment, participating in global infrastructure construction, and expanding international markets.
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