Hydrogen comes in many different colours

The clean hydrogen economy is taking shape, with governments and operators boosting investment and major projects set to transform the commercial appeal of the sector. By 2050, the Hydrogen Council estimates clean hydrogen could represent 22 percent of global energy demand, reports affiliate title Infrastructure Investor.

Undoubtedly, green hydrogen will have to play a major role – particularly as renewable energy capacity booms – but clean hydrogen could arrive in a variety of colours and shades. From nuclear-produced pink, purple or red hydrogen, to solar-generated yellow hydrogen or turquoise hydrogen made through methane pyrolysis, the options far exceed grey, blue or green. 

“What matters more than colours is the carbon intensity of the power that will supply the electrolysis process producing clean hydrogen,” says Amir Sharifi, chief investment officer at hydrogen investment manager Hy24.  

Nuclear-driven pink hydrogen could be a frontrunner. Power plants typically provide base load electricity to the grid but could be adjusted to incorporate hydrogen production facilities and excess energy used in electrolysis. 

Last year, a Swedish nuclear power plant co-owned by German energy firm Uniper and Finnish energy company Fortum set a world first by announcing a deal to sell fossil-free pink hydrogen to European industrial gas firm Linde. “In some countries like France and Sweden, pink hydrogen in the power grid could be used as a direct source of power, [acting as] a strong complement to renewable energy production,” says Sharifi.

Replacing fossil fuels

If scaled, clean hydrogen could replace fossil fuels in many sectors, including steel and cement. “Hydrogen is now widely recognised by most companies and governments as key to enabling the energy transition, at the very least for hard-to-abate industrial sectors,” says Phil Caldwell, CEO at Ceres Power, a UK-based developer of electrochemical technology.

However, David Daum, co-head of private infrastructure Europe at Partners Group, says we must “look at electrifying everything first” and only then turn to hydrogen. “Hydrogen is not going to be a silver bullet for everything.” 

Others point to the role of policy, regardless of the type of hydrogen, to encourage investment and build scale. “Government support is crucial,” says Richard Hulf, managing partner at London-listed fund HydrogenOne. “It is now time for the government to catch up with industry and accelerate the scale up of clean hydrogen.”