Hydrogen stands out as an energy source that produces no greenhouse gases when burned. Its only byproduct is water vapor, making it a far cleaner alternative to fossil fuels like coal, oil, and natural gas. However, hydrogen’s main drawback is that it isn’t easily found in a form that can be directly extracted. While it can be produced through various methods, most of these processes still emit greenhouse gases. Additionally, hydrogen is not yet produced at the scale necessary for it to be cost-competitive with fossil fuels.
This, however, could soon change. Several companies are working towards unlocking the massive potential of this near-zero-emission fuel.
Investing in Hydrogen: Key Insights
Hydrogen can be produced in several ways, with some methods leading to carbon dioxide emissions. For instance, when hydrogen is generated from burning natural gas, it’s referred to as “blue hydrogen.” This method requires carbon capture and storage (CCS) to capture and sequester the emitted carbon dioxide underground, reducing greenhouse gas emissions.
Another approach uses renewable energy to power an electrolyzer that separates hydrogen from water. This results in “green hydrogen,” a production method with zero carbon emissions. Both green and blue hydrogen represent different production methods categorized by their emissions profiles.