What is a Hydrogen Hub and What Are They Used For?
As the world strives toward a more sustainable future, hydrogen is emerging as a promising alternative to fossil fuels. This zero-emission energy source only releases water as a byproduct. Better yet, it can outperform many mainstream renewable alternatives like solar and wind.
Expanding the availability of hydrogen energy requires cohesive infrastructure. That’s where hydrogen hubs come in.
Hydrogen hubs unify the necessary staff, resources, and infrastructure for hydrogen production, storage, distribution, and transportation.
Now that many countries are recognizing the potential of hydrogen hubs, the race is on. North America and Europe are competing to establish themselves as hydrogen hubs. Read on to learn how hydrogen hubs are decarbonizing various industries and which countries are creating them.
What is a Hydrogen Hub?
A hydrogen hub is a centralized network that facilitates the efficient deployment of clean hydrogen energy. It simplifies various parts of the hydrogen supply chain, including:
- Production – One of the primary functions of hydrogen hubs is producing clean hydrogen fuel. The most sustainable production method is electrolysis, which separates hydrogen and oxygen using electrolyzers. When renewable energy sources like wind, solar, and hydro power this process, its only byproduct is water.
- Storage – Hydrogen requires unique storage due to its low energy density. Hydrogen hubs store hydrogen safely and effectively with high-pressure tanks, cryogenic storage containers, and more.
- Transportation – Once hydrogen energy is produced, it must travel to its end users. Hydrogen hubs facilitate this with ease, shipping hydrogen safely and efficiently to the pipelines, trucks, and ships that deliver it to its end destinations.
- Utilization – Hydrogen energy has many uses. Fueling hydrogen-powered vehicles, powering industrial processes, and heating residential and commercial buildings are just a few examples. Hydrogen hubs distribute this renewable energy source to its users, wherever they are.
Hydrogen hubs play an essential role in the global energy ecosystem. By supporting the transition away from fossil fuels, hydrogen hubs can help further many countries’ initiatives to reduce global greenhouse gas emissions. Moreover, hydrogen hubs attract leading environmental experts to foster more innovation in the clean energy space.
On a local level, hydrogen hubs create economies of scale that streamline the costs of hydrogen production. As hydrogen becomes more affordable, it is well-positioned to secure its status as a mainstream energy source.
What Are Hydrogen Hubs Used For?
As a multifaceted fuel source, hydrogen lends clean energy to these applications and beyond:
- Industrial – Thanks to its high energy density, hydrogen is a highly efficient energy source for industrial factories. Hydrogen can replace natural gas in steelmaking, chemical and fertilizer production, petroleum refining, and more.
- Transportation – Since most vehicles still use internal combustion engines, the transportation sector contributes 29% of U.S. greenhouse gas emissions. Hydrogen fuel cells can provide emission-free energy for hydrogen-powered cars, trucks, buses, and trains. Along with these fuel cells, hydrogen hubs can also construct the necessary refueling infrastructure for these vehicles to aid widespread adoption.
- Residential and commercial heating – Hydrogen can heat residential and commercial buildings more cleanly and cost-effectively than fossil fuels. Hydrogen heat is produced by burning hydrogen in special boilers or by blending hydrogen with natural gas, reducing carbon dioxide emissions.
- Energy storage – Renewable energy sources, such as wind and solar, often produce excess energy. Hydrogen can store this excess energy until it’s ready to be converted back into electricity or used as fuel. As a result, it can optimize the electricity grid and improve the efficiency of intermittent clean energy sources.
Leading Hydrogen Programs Globally
Let’s take a look at three of the world’s leading hydrogen programs and the role they play in sustainable clean energy infrastructure.
The H2 Hubs Program in North America
In 2022, the Biden Administration’s Infrastructure Law and the US Department of Energy developed the Regional Clean Hydrogen Hubs (H2Hubs) program.
With more than $7 billion in funds allocated to the program, the DOE is currently planning to establish between 6–10 regional hubs that help cover the production, processing, transportation, storage, delivery, and end-use of hydrogen.
If all goes according to plan, this program will serve as the foundation of a national clean hydrogen network, helping to decarbonize multiple sectors of the economy.
Of the 79 total pre-proposal applicants, we currently know of 22 identified hubs that the DOE encouraged to submit a full application in April 2023. They include:
- Pacific Northwest Hydrogen Hub
- Obsidian Pacific Northwest Hydrogen Hub
- Alliance for Renewable Clean Energy Systems (ARCHES)
- Southwest Clean Hydrogen Innovation Network (SHINe)
- Western Interstate Hydrogen Hub (WH2)
- Heartland Hydrogen Hub
- Hawai’i Pacific Hydrogen Hub
- Trans Permian Hydrogen Hub
- Horizons Clean Hydrogen Hub
- HyVelocity
- HALO Hydrogen Hub
- HARVEST Hydrogen Hubs Coalition
- Mid-Continent Hydrogen Hub
- Midwest Alliance for Clean Hydrogen (MachH2)
- Northwest Indiana Hydrogen Hub
- Southeast Hydrogen Hub
- Great Lakes Clean Hydrogen Hub
- Appalachian Regional Clean Hydrogen Hub (ARCH2)
- Decarbonization Network of Appalachia
- Mid-Atlantic Hydrogen Hub (MAHH)
- Mid-Atlantic Clean Hydrogen Hub
- Northeast Hydrogen Hub
Not every hub will have the same intended end use and industry application. For instance, the Western Interstate Hydrogen Hub has intended end uses in industrial, transportation, power generation, and residential and commercial heating sectors. The Mid-Atlantic Clean Hydrogen Hub would focus exclusively on industrial end-usage.
Regardless, the DOE will select 6–10 winners. Each winner will receive up to $1.25 billion in funding, which will then be allocated to renewable energy services such as planning, financing, building, and operating these hydrogen hubs over the next decade.
Germany's Nuclear Plant Closure and Focus on Hydrogen
For decades, nuclear power plants energized Germany, providing tens of millions of homes with cheap, safe, and reliable power. In 2011, Germany obtained 25% of its total electricity from its 17 nuclear reactors.
Last year, Germany sparked controversy as it forged ahead with its regressive plan to close down its final three nuclear plants. This decision was criticized by many environmental experts who warned that wind and solar technologies were incapable of filling the energy gap left in their wake.
To fill the energy void, Germany is investing in capable, renewable alternatives. Here, hydrogen hubs could be the long-term answer, which is why Germany has fast-tracked its National Hydrogen Strategy.
Germany's stated goal is to become a global leader and exporter of clean hydrogen tech. Their plan includes:
- Establishing a domestic market for the production and use of hydrogen.
- Developing a 1,800 kilometer (1,118 miles) hydrogen energy pipeline network by 2027.
- Creating up to 5 GW [gigawatts] of generation capacity, including the offshore and onshore energy generation facilities needed for this.
- Assisting European partners in their own efforts to scale up hydrogen production.
- Doubling electrolysis capacity to 10 gigawatts by 2030.
Australia’s Hydrogen Pipeline
In 2019, Australia released its National Hydrogen Strategy, which sought to establish Australia as a leading producer and exporter of hydrogen in the Asia-Pacific region.
Currently, Australia has 106 active, planned, or operational hydrogen projects in its hydrogen pipeline, comprising approximately $230 billion to $300 billion in investment. According to Chris Bowen, the Minister for Climate Change and Energy, the pressure to speedily complete these programs is mounting:
“Global hydrogen leaders have caught up to our early lead and are advancing fast. We face determined competition from other countries in the hydrogen race, that also see the hydrogen opportunity and are implementing substantial and practical measures to stimulate their own industry growth.”
By 2030, Australia aims to produce hydrogen at a cost of $2 AUD per kilogram or less. In tandem, experts also aim to:
- Develop at least one regional hydrogen export hub to facilitate international trade.
- Establish a domestic hydrogen industry to supply hydrogen for various sectors, including transport, industry, and power generation.
- Ensure safety and sustainability standards are in place for the production, storage, transport, and use of hydrogen.
Benefits of Establishing Hydrogen Hubs
The U.S., Germany, and Australia are just a few countries investing in hydrogen hubs. Many more are following suit or planning to do so in the near future.
That’s because hydrogen hubs stand to benefit their environment, economy, and energy security. Here’s how:
- Environmental benefits – One of the most significant benefits of hydrogen hubs is their potential to dramatically reduce greenhouse gas emissions and help countries meet their decarbonization goals. By facilitating hydrogen production at scale, hydrogen hubs pave a promising path away from fossil fuels and toward climate change mitigation.
- Economic benefits – Hydrogen hubs create new jobs. They require a skilled workforce of engineers, project managers, researchers, compliance officers, business managers, and administrators. Therefore, establishing hydrogen hubs can stimulate local economies. Hydrogen hubs also drive technological innovation. As more hubs compete in the marketplace, more research, development, and technological breakthroughs must follow. This innovation stimulates the economy while enhancing the efficiency and cost-effectiveness of hydrogen over time.
- Energy security – In recent years, energy shortages and prolonged power outages have devastated vulnerable communities across the globe. Hydrogen can help diversify energy supplies to reduce power disruptions and their damaging effects. Hydrogen also supports a more flexible energy infrastructure.
With these benefits in mind, it's no wonder that many influential countries are funneling their resources into hydrogen hubs.
The Future is Clean (Hydrogen)
The race to be a hydrogen leader is on. As countries around the world move to establish and implement hydrogen infrastructure, they set the stage for a more renewable and sustainable future.
At FASTECH, we’re a proud partner in the global decarbonization campaign, helping would-be hubs build renewable energy resilience with hydrogen. As a leading energy solutions provider, we offer end-to-end renewable energy engineering, procurement, construction, and maintenance expertise.
What does that look like?
Reach out today to learn more about the hydrogen-powered future.
Sources:
U.S. Energy Information Administration. Use of hydrogen.
Energy.Gov. Hydrogen’s Role in Transportation.
https://www.energy.gov/eere/vehicles/articles/hydrogens-role-transportation
Energy.Gov. Regional Clean Hydrogen Hubs. https://www.energy.gov/oced/regional-clean-hydrogen-hubs
Resources.Org. Hydrogen Hubs: Get to Know the Encouraged Applicants. https://www.resources.org/common-resources/hydrogen-hubs-get-to-know-the-encouraged-applicants/
World Nuclear. Nuclear Power in Germany. https://world-nuclear.org/information-library/country-profiles/countries-g-n/germany.aspx
CSIS. Germany’s Hydrogen Industrial Strategy. https://www.csis.org/analysis/germanys-hydrogen-industrial-strategy
H2View. Australia hydrogen pipeline accounts for between $230-300bn of investment. https://www.h2-view.com/story/australia-hydrogen-pipeline-accounts-for-between-230-300bn-of-investment/
World Economic Forum. Which countries could become the world’s hydrogen superpowers?
https://www.weforum.org/agenda/2022/02/clean-hydrogen-energy-low-carbon-superpowers/
Scientific American. Increasing Power Outages Don’t Hit Everyone Equally.
