If Hard-to-Abate Sectors Were Easy to Decarbonize, We Would Have Already Done it. What Are We Waiting For?

The Crucial Role of Hydrogen Hubs in Decarbonizing Hard-to-Abate Sectors 

We know that achieving ambitious decarbonization goals by 2050 or sooner won’t happen without significant progress in decarbonizing hard-to-abate sectors. If they were easy to decarbonize, we would have accomplished it already. Today’s market demands a balance of diversity, versatility, and innovation, underpinned by a commitment to safety, grid flexibility, and energy security. 

Decarbonizing hard-to-abate sectors calls for a multifaceted approach, and hydrogen is one promising piece of the puzzle alongside approaches like carbon capture and demand-side management. I’m excited to discuss how the industry is building existing frameworks and applying evolved, creative ideas to address the major hurdles of cost and technology, as this thinking is critical to our success. 

Collaboration is Key 

We need to synchronize supply and demand for clean solutions by engaging the right partners and stakeholders. Similarly, hydrogen works in concert with other technologies, like battery energy storage. For example, while batteries are a key solution for intra-daily energy arbitrage, they’re ill-suited for long duration balancing. 

In another case, decarbonizing the long-haul trucking industry isn’t just about deploying hydrogen fuel cell trucks. It also requires clean fuel production, distribution, and fueling stations to install dispensary equipment to make those trucks a dependable, viable solution. 

With so many moving parts and considerations, adopting the right approach can’t be done alone. Instead, it will require partnership and collaboration with stakeholders across the energy transition, in addition to strong policy support, to understand and address the challenges each sector faces. 

Tailored Solutions for Each Sector 

As cross-sector collaboration provides significant value, it’s also important to recognize that each sector has its own decarbonization timelines and obstacles to overcome. Hard-to-abate sectors are facing key challenges in the form of high energy requirements and immature technologies. 

In the dynamic landscape of the energy transition, one thing is abundantly clear: There is no one-size-fits-all solution, and one sector’s success doesn’t necessarily mean that another is falling behind. Some sectors may have a greater ability to bear high initial costs and flexibility to adopt new technologies quicker, while others may opt for more consistent progress over a longer timeframe. When it comes to optimizing the energy transition, a one-size approach fails to adequately meet the needs of each sector – or it favors one at the expense of others. 

It also comes down to the lifespan and condition of equipment and infrastructure. With most assets built to last anywhere from 20 to 40 years, each sector should consider which assets can be transformed and which ones should be retired early to drive the largest reduction in carbon emissions. 

It’s equally important to ensure that hard-to-abate sectors can employ lower-carbon solutions in their day-to-day operations in ways that best fit their specific needs and priorities. That’s where hydrogen hubs come in. 

The Power of Hydrogen Hubs 

According to the International Energy Agency, we’ll need to expand existing global electricity networks by 80% by 2050 to keep up with rising demand. This need for electrification will, in turn, drive demand for utility-scale solutions to generate clean power. Among the most promising are hydrogen hubs (visit our page on Hydrogen Solutions: [link to MHI Hydrogen Solutions page on power.mhi.com]). 

These hubs provide a clear path to addressing hard-to-abate industries. Scaling the production of clean hydrogen energy lowers its costs and enables long-duration energy storage, and a network of hubs provides enough supply to encourage the adoption of clean-energy technologies in the very industries where decarbonization is most challenging. 

To see this approach in action, look no further than the Advanced Clean Energy Storage Hydrogen Project in Delta, Utah, the PNWH2 Hub in the Pacific Northwest, and the HyVelocity Hub along the U.S. Gulf Coast. These utility-scale projects are already demonstrating and producing valuable insights on how we’ll achieve lower emissions across multiple sectors. 

Scaling Up for Success 

Hydrogen hubs facilitate economies of scale. They balance supply and demand in specific areas and can cater to other national and international regions. As utilization and capacity increase simultaneously, the decrease in costs over time presents an opportunity to form networks of hydrogen hubs. Interconnected hubs will bolster the decarbonization efforts of hard-to-abate sectors and industries, even if they’re not linked to major demand or production centers. 

Stakeholders and leaders across business and government are starting to see the potential of this approach and the value of the hubs themselves, driving key investments that further enable the evolution of the hydrogen corridor. For example, in late 2023, the Biden administration allocated $7 billion in federal grants to regional hydrogen hubs. This will help reduce the cost of hydrogen, driving innovation and acceleration adoption in hard-to-abate sectors. 

One such hub is the PNWH2 Hub, which aims to produce clean hydrogen from 100% renewable sources. It’s specifically geared toward addressing hard-to-abate sectors through the wide use of renewables-powered electrolyzer technology, which will help drive down costs. 

The HyVelocity Hub is another strong example. Built on the largest hydrogen infrastructure network in the world, this Gulf Coast hub aims to reduce the cost of clean hydrogen by 80% in just one decade and provide clean hydrogen for use in chemical manufacturing, power generation, and marine or on-road vehicle applications. 

A single hydrogen hub can make a major impact in its geographic area, but a regional network of hubs will significantly extend the reach and accessibility of new, innovative solutions. The network effect will help hard-to-abate sectors accelerate progress on the path to net zero emissions. 

The Future of Hydrogen Hubs 

This is just the beginning – we’re entering a new era and on the verge of a massive transition in the energy industry. I look forward to discussing the potential of hydrogen hubs and other solutions in future discussions, where we’ll explore how different industries are selecting viable solutions, and which emerging technologies hold the potential to transform hard-to-abate sectors. 

Unlocking the Potential of Hydrogen Solutions 

To truly unlock the potential of hydrogen in decarbonizing hard-to-abate sectors, it’s essential to explore comprehensive hydrogen solutions. By leveraging advanced technologies and innovative approaches, we can drive significant progress in reducing carbon emissions. For more information on how hydrogen can play a pivotal role in the energy transition, visit our Hydrogen Solutions page.