If Decarbonization is Easy, Then We’re Doing it Wrong

Written by Michael Ducker, President & CEO of MHI Hydrogen Infrastructure and Craig Brooker, Commercial Operations, Mitsubishi Power

Decarbonization is the keystone of the entire energy ecosystem. While the industry is not looking to reinvent the wheel, the global energy sector nevertheless faces the monumental task of transforming some of the fundamental pillars upon which it has relied for decades.

Prevailing industry narratives suggest that the decarbonization process is progressing smoothly, and the optimists among us would argue we are on course for many of the key decarbonization targets ahead.  

But complacency is a killer in the face of a century-old problem that we must solve in a generation.

The Need for Collaboration in Energy Transition 

Mitsubishi Power has long held that the energy transition does not exist in a vacuum – there is no single solution, company, organization, or government that can facilitate the change we need at the scale we need it. Addressing climate change is the great unifier: we are all responsible for driving forward decarbonization, and collaboration – cross border, cross-sector – is the key to making this a reality. However, the industry faces a complex trilemma: balancing energy security, environmental sustainability, and economic affordability. These interconnected challenges require innovative solutions and strategic collaboration to overcome. 

Multi-Pronged Approach to Decarbonization 

Addressing the challenges of decarbonization requires a multi-pronged approach, including: 

• •    Hydrogen infrastructure 
• •    Combustion advancements 
• •    Electrolyzer technology 
• •    Carbon capture 

Looking across the industry, partnerships are unlocking the potential of companies across the world to decarbonize. Major events like CERAWeek in Houston reflect a strong enthusiasm and commitment to advancing these partnerships and promoting collaboration. 

Challenges in Hard-to-Abate Sectors 

There is an elephant in the room that few are willing, or ready, to address.  

We have seen a rapid decarbonization in the power industry, as highlighted by the Carnegie Mellon University Power Sector Carbon Index. It’s easy to assume that this trend could seamlessly extend to other sectors in the near future. But this optimism often masks the daunting challenge posed by achieving deep decarbonization in power and beginning to decarbonize the hard-to-abate sectors, namely: trucking, shipping, aviation, steel, manufacturing, and chemicals.  

Decarbonizing these industries is such a mammoth task that some studies suggest that a staggering $13.5 trillion of projected investment would be required to decarbonize these sectors by 2050.  

And so, the question looms large: how can we effectively support the journeys to decarbonization for these sectors, which currently depend on fossil fuels for 90% of their energy demand, before they become the tipping point between a net-zero future and a global catastrophe? 

The first and most essential point to consider here is that there is no magic antidote. Only by adopting a holistic, pragmatic, and adaptable approach can we chart the course to decarbonization in the sectors where, frankly, it is needed more than anywhere else. 

Clean Hydrogen: A Game-Changer 

A burgeoning opportunity in clean hydrogen may hold the key to addressing these challenges. Clean hydrogen has the potential to significantly reduce carbon-intensive fuel dependencies in industries requiring decarbonization transformation. 

Clean hydrogen stands out as a game-changer for integrating and enabling renewables thanks to its durability and minimal degradation over time. Different types of clean hydrogen include: 

• •    Green hydrogen: Created through electrolysis using renewable energy. 
• •    Blue hydrogen: Derived from natural gas combined with carbon capture and sequestration. 
• •    Pink hydrogen: Leverages nuclear energy to power the electrolysis process. 

The availability of regional resources, such as suitable geology for CO2 sequestration or ample wind and solar for renewable power, plays a key role in determining the viability of blue, green, or even pink hydrogen as part of a project’s long-term decarbonization goal. The sandbox in which we solve problems is constantly changing, a solution today looks different from one 15 years ago and will 15 years from now. For example, both electrical and gas transmission infrastructure have been built out well over a 100-year time horizon. We’ve seen this before. Solar energy, once dismissed as too expensive, has become a thriving market after 15 years of sustained effort. Similarly, energy storage, once thought impractical, has made major strides over the past decade. How we consider existing and expanding infrastructure will play a role in near- and long-term implementation and replicating the national natural gas grid for hydrogen wouldn’t be a good fit; however, a more regional focus on production build out may make more sense. 

So, how might this sustainable resource revolutionize the daunting challenge posed by hard-to-abate sectors?  

Consider transportation, for instance. This carbon-intensive sector accounts for 75% of all transport mobility emissions. According to a McKinsey study, the complete decarbonization of this sector could be achieved through the adoption of hydrogen fuel cell technology.   

CERAWeek will bring together executives, policymakers, and professionals at the forefront of the rapidly expanding hydrogen industry and served as a bellwether moment for the resource’s long-term success, as well as being a real-life example of the collaborative spirit needed to accelerate game changing hydrogen solutions. The event helped leaders across the global energy value chain identify the most promising projects and technologies that can help transform key carbon intensive industries. 

Importantly, these aren’t speculative ideas: they’re increasingly concrete realities. These innovations may seem like visions of the future, but MHI Hydrogen Infrastructure, a wholly owned subsidiary of Mitsubishi Power Americas, is already pioneering the development and deployment of clean hydrogen production, hydrogen derivatives, storage, and delivery infrastructure to enable large-scale availability of renewable energy and decarbonized fuel options for the carbon-heavy sectors. 

Advancements in Hydrogen Production 

Hydrogen in particular is proving to be a game-changer—not just for energy production but as long-duration storage, enabling seasonal energy shifting and utilizing what would otherwise be curtailed energy. This innovation holds the key to decarbonizing carbon-heavy sectors at scale, making the future of clean energy closer than ever. 

Improving the scalability and commercialization of such game-changing resources must therefore be a priority if we are to meet the required levels of emissions reduction across the energy value chain. Fortunately, policymakers and industry leaders are, for the most part, answering the call. Tax incentives included in the Inflation Reduction Act accelerated investment in key climate technologies and nascent green resources, while private sector leaders, including Mitsubishi Power, have seized the opportunity to develop new products and solutions that can unlock a more efficient path to net zero.  

Mitsubishi Heavy Industries is advancing hydrogen production technologies with the operation of the Solid Oxide Electrolysis Cell (SOEC) test module at the Takasago Hydrogen Park in Japan. Building on the Solid Oxide Fuel Cell (SOFC) technology, this next-generation SOEC system is poised to enhance hydrogen production efficiency, further cementing hydrogen’s role as a cornerstone of decarbonization efforts. As these innovations gain scale, the pathway to a fully decarbonized future becomes increasingly tangible. Recent tests conducted in April 2024 have confirmed that this new technology operates with high efficiency. The SOEC test module comprises a module with multiple cartridges of 500 cell stacks bundled together. During test operations, the electrolytic efficiency of the module was 3.5 kWh/Nm3 (101%-HHV (higher heating value)), confirming that the module was operating with high efficiency. This is a major step forward toward achieving Mitsubishi Heavy Industry’s goal of building a system with an overall efficiency of 90%-HHV. 

The Path to a Decarbonized Future 

Looking forward, continued financing and public-private collaboration will be critical to ensuring the viability of all cutting-edge climate technologies. While such efforts may be challenging and costly, with some innovations failing to bear fruit, we must remember a key truth: the energy transition is just that—a transition, not an instant switch. 

Just as technology and physical infrastructure take time to evolve, so too will the energy transition. Unlike policy shifts, which can be swift, new energy solutions need time to mature and scale, and expecting instant results undermines the complexity of this monumental shift. The lesson is clear—what seems costly or slow at first can ultimately transform industries, given the right investment and collaboration. The energy transition will be no different; patience and persistence will be key to success. What’s hard is often what’s most important.