Recent years have informed the involvement of Repsol, Orsted, BP, and Siemens Energy in projects associated with green hydrogen power generation. Experts argue that this project’s investments will be vital if more investors venture hydrogen energy as a renewable source of power. The chief strategist of BNP Paribas Asset Management, Mark Lewis, explained to the media that the most profitable green hydrogen investment opportunity is exploring it from the renewable energy viewpoint.
Lewis emphasized that the profitability of hydrogen energy is if it becomes renewable to power systems like electrolyzers. This technology will help to prove its versatility as an energy source once the storage technology is plausible. Green hydrogen is a product of the water’s electrolysis, with the supplier of the driving force being either wind or solar energy.
The International Energy Agency views hydrogen as a variable energy carrier whose usage ranges from the production and manufacturing industries to the electric vehicles’ transport sector. Clear applications of green hydrogen include in vehicles where the hydrogen cells power the automobile and release water as the exhaust waste. The European Union thinks that venturing green hydrogen will accelerate the decarbonization of the member countries. The Union intends to develop more renewable energy sources like this hydrogen technology to facilitate the quick transition to clean energy and minimize global warming and other climatic problems. The International Energy Agency revealed that hydrogen energy generation ranks at approximately 70 million metric tonnes annually.
BNP’s Lewis stated that the investment required to scale up renewable energy potential is approximately 400 billion. This sum will tune the expansion of the renewable energy sector and create an energy mix that the European Union will love to realize the reduction in greenhouse gas emissions. Lewis explained that the purchase of electrolyzers and supportive components would have rounded up to about 20% of the general financial forecast.
Other variables included in this 400 billion are logistics, electrolyzers, site development, facility erection, employee management, and administrative operations. Lewis retorted that the companies that will be developing the hydrogen energy components would benefit the most, provided they develop reliable and efficient equipment.
Currently, hydrogen energy production schemes have links to fossil fuels, which negatively impact the environment. The IEA reported that hydrogen energy production accounts for approximately 830 million metric tons of carbon emissions annually. This statistic has engineered the possibility of evolving hydrogen energy production schemes to utilize renewables and minimize emissions.
In conclusion, experts and energy analysts think that green hydrogen energy is achievable, provided all the stakeholders come together to support this noble mission. The level of success of hydrogen energy is proof that it can revive the economy and maximize production. Lawmakers ought to support the development of green hydrogen by passing laws and enacting policies supporting its growth.