A new report by Danfoss highlights the critical need for energy efficiency in hydrogen production, which is projected to consume over half of today’s global electricity demand by 2050. The report emphasizes the importance of scaling up hydrogen production, particularly for sectors difficult to decarbonize, without overwhelming renewable energy resources or financial systems.
Danfoss advocates for a strategic focus on the use and production of green hydrogen to lower costs and reduce the demand for renewables. Hydrogen is seen as essential in transitioning from fossil fuels, but its production and allocation must be efficient and targeted, especially for heavy industry and long-distance transport.
Mika Kulju, President of Danfoss Power Electronics and Drives, notes the immense potential of hydrogen as a clean energy carrier. However, he stresses the necessity of efficient production to minimize costs and strategic deployment to ensure maximum impact in reducing greenhouse gas emissions.
The report underscores that green hydrogen production requires substantial electricity, making energy efficiency vital for its sustainability. Current technology can reduce energy loss in green hydrogen conversion processes, with even a 1% improvement in efficiency potentially powering a city like London for nearly four years.
Despite the promise of hydrogen in climate strategies and significant global funding, challenges in cost and deployment persist. The International Energy Agency [IEA] has reported a slower-than-expected growth in hydrogen-dedicated renewable energy capacity, highlighting the need for accelerated, cost-efficient green hydrogen production to meet the Paris Agreement goals.
Kulju further points out the significant potential of recovering excess heat from electrolysis, which could provide substantial energy savings. In the EU, the potential recovery of excess heat from hydrogen production by 2030 could significantly exceed Germany’s current domestic heating needs. Kulju emphasizes the importance of setting appropriate regulatory and economic frameworks to facilitate efficient large-scale hydrogen deployment.
