HYDROGEN BUSINESS CHALLENGES The developing sector of the energy industry is facing both logistical and economic challenges as nations and businesses strive to develop hydrogen technology as a sustainable energy source. Download PDF: https://www.marketsandmarkets.com/industry-practice/RequestForm.asp For a considerable amount of time, hydrogen has been celebrated for its ability to supply clean power for industrial operations, transportation, and electricity production. Only water vapor is released as waste when hydrogen is burned or used in fuel cells. Because of this, it is a compelling alternative to fossil fuels for reducing greenhouse gas emissions. Still, there are a lot of barriers in the way of expanding hydrogen infrastructure. At the moment, the cost of producing low-carbon hydrogen is high; estimates vary from two to seven times the cost of natural gas per unit of energy. The two primary production processes are natural gas steam reformation with carbon capture and electrolysis driven by renewable electricity. Large initial capital expenditures are needed to build the facilities for these processes. Hydrogen distribution is not without its difficulties. Since hydrogen is the lightest element, cooling or pressurizing it into a liquid state requires a significant amount of energy. We are still in the early stages of pipeline, truck, train, and ship transportation. For end users to have widespread access to hydrogen, significant infrastructure development would be required for storage tanks, fueling stations, rail cars, and other distribution systems. Despite national strategies prioritizing hydrogen in countries such as Australia, Germany, South Korea, Japan, and South Korea, private businesses have faced challenges in making the economics work thus far. Producers such as Honda, Hyundai, and Toyota have been introducing models of hydrogen-powered cars progressively, but the lack of a substantial infrastructure for refueling and the higher price of hydrogen in comparison to battery-electric vehicles continue to limit growth. According to industry experts, it will take hydrogen another 15 to 30 years to reach commercial viability and scale without government support. However, as a result of numerous governments now providing billions in funding, businesses are arranging themselves throughout the supply chain to facilitate adoption. With the advancement of technology and the initiation of additional projects, hydrogen has the potential to become a significant component of a clean energy economy. Economic Hurdles: The economic conundrum is the main obstacle facing the hydrogen industry. Hydrogen is widely available, but getting it out of the ground in a way that is both economical and sustainable for the environment is still a big challenge. Green hydrogen, which is produced using renewable energy sources, can be more expensive to produce and distribute than conventional hydrogen, which calls into question its economic feasibility. Infrastructure Dilemmas: Another challenge is constructing a strong infrastructure to facilitate the production, storage, and transportation of hydrogen. In contrast to conventional fossil fuels, hydrogen necessitates specific infrastructure, storage options, and pipelines. A thorough infrastructure is necessary to support the hydrogen economy and ensure its widespread adoption, but this is not the case now. Technological Complexities: It is important to recognize that harnessing hydrogen presents significant technological challenges. Technological developments in electrolysis and other production processes are essential to reducing costs and increasing productivity. Realizing these breakthroughs will be crucial to maximizing hydrogen's potential as a clean energy source. Regulatory Uncertainties: For hydrogen businesses, navigating the regulatory landscape is a delicate dance. The policies and guidelines that will control the production, distribution, and use of hydrogen are still being developed by governments throughout the world. The absence of well-defined and uniform protocols breeds doubt among investors and industry participants, impeding the sector's expansion. Public Perception: As with all emerging industries, the perception of the public is crucial to the success of the hydrogen industry. Industry stakeholders need to take the challenge of dispelling doubts and cultivating a favorable perception of hydrogen as a secure, dependable, and sustainable energy source very seriously. Working together, governments, corporations, and research institutions can overcome these obstacles as the hydrogen industry navigates them. The way we work together to overcome these obstacles will determine how the hydrogen economy develops and how it fits into the larger global energy transition. In conclusion, the hydrogen industry is at the forefront of a revolution in the energy sector, even though the path ahead may be difficult. To overcome these challenges, we'll need to be creative, cooperative, and dedicated to sustainability. The world is waiting impatiently to see the emergence of a cleaner, more sustainable energy future as the hydrogen horizon opens up. Read More: https://www.marketsandmarkets.com/industry-practice/hydrogen/business-challenges
