From Natural Gas to Clean Energy: The Cost of Hydrogen Solution for Industry
The use of hydrogen gas instead of natural gas is the most important alternative fuel in the decarbonization process. The most important obstacle for industrial facilities to switch to hydrogen fuel instead of natural gas is electricity prices. For this reason, they have to invest in renewable energy about 5 times more than the electrolysis investment. This sharp increase in investment brings the green production process to the facility with both payback features and green hydrogen production authorization.
For every 1m3 of natural gas used as fuel, the plant should plan to invest approximately 65,000 USD to switch to hydrogen. For example, a industrial plant that consumes 100m3/hour of natural gas in a continuous drying oven can be considered to invest approximately 6,500,000 USD in the decarbonization process.
85% of the investment is required for renewable energy generation to provide electricity for hydrogen production through electrolysis. The remaining 15% is allocated to equipment and infrastructure investments, including electrolyzer, production facilities and hydrogen transportation and storage.
The transition from natural gas to hydrogen fuel is crucial for the decarbonization of industrial facilities. However, the high electricity prices associated with hydrogen production remain a major obstacle for many companies. Investing in renewable energy generation is necessary to make this transition possible, as well as investing in equipment and infrastructure, such as electrolyzer, production facilities, and hydrogen transportation and storage. The payback feature and green hydrogen production authorization make it worth the investment.
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