Countries are experiencing the transition in the clean energy system differently. Hydrogen is becoming a central component of every country’s strategy; however, the approaches differ. While the United States issues market-based subsidies to advance green hydrogen, Norway is advancing large-scale green hydrogen production through the use of cutting-edge technologies, and Japan is diversifying to what is called “red” hydrogen.
Norway’s HyPilot Project takes center stage
In Norway, the HyPilot project at the Kårstø Gas Processing Plant in Rogaland is one of the most prominent examples of the developing green hydrogen sector in the country. The 1.5 MW containerized PEM electrolyser is currently being operated under different sets of parameters, including some scenarios with intermittent renewable electricity supply, to investigate the performance of the electrolyzer. The HyPilot project is the first to test the safety, efficiency, and cost-effective electrolyzer technology developed by Hystar.
Scaling up to gigawatt-level
HyPilot is just the first step for Hystar. The company was granted funding from the EU Innovation Fund to establish an automated electrolyzer assembly plant of gigawatt capacity in Høvik, Norway, which is expected to produce 1.5 GW of electrolyzer units by 2027, and ramp production to 4.5 GW by 2031. Efficient scaling of production capacity from hundreds of megawatts to gigawatts is expected to be achieved by Thyssenkrupp Automation Engineering, which recently won the FEED contract for the new factory’s automated production line.
Geography as a strategic advantage for Norway
Based on the integration of renewable energies and HyPilot’s technology, Norway is expected to lead the world in the production of hydrogen and the manufacturing of electrolyzers required for the production of green hydrogen. The country also benefits from specific geographical features, such as its cold climate and geography, which enhance the efficiency and lower the cost of implementing the above renewable energy technologies.
The United States’ market-driven hydrogen strategy
The United States has adopted a market-centered approach towards its hydrogen strategy, as evidenced by policies that aid the formation of regional green hydrogen hubs and encourage both private and public investments; innovations directed towards technology are also spurred by such policies.
Under the Bipartisan Infrastructure Law, the U.S. is also seeking to deploy an unprecedented amount of electrolyzer capacity while decarbonizing heavy industry and electricity generation to enhance further opportunities on the international market.
Although the U.S. hydrogen projects are mostly driven towards the utilization of renewables, there is a significant move towards green hydrogen as the increasing utilization of renewables is directed towards the electrolysis of water. Hence, there is a demonstrated positive shift towards decarbonized fuels.
Japan’s pragmatic turn toward red hydrogen
Some contrast can, however, be demonstrated by the Japanese approach to the exploration of “red” hydrogen. This is achieved through the utilization of conventional energy fuel sources, the use of carbon capture technology, and the import of carrier fuels.
This is the most applicable, pragmatically speaking, fuel source given the circumstances of high-demand hydrogen, coupled with a lack of fuel resources and renewable energy generation. This is also evidenced by the need for fuel cells and hydrogen for industrial use.
Hydrogen strategies tailored to national priorities
The difference in approach also shows the versatility of tailoring hydrogen solutions. The abundance of renewables and the cold climate in Norway make scaling the green hydrogen approach singular to Norway.
The flexibility and federal incentives for production in the U.S. also make them singular in their approach. Japan’s singularity comes from a balance of high demand for industrial fuel and a reliance on imports. Collectively, the differences demonstrate the versatility of geography, technology, and policies to shape a country’s hydrogen system for its unique, individual set of priorities.
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