The economic challenges of the hydrogen sector: Is hydrogen the solution for the energy transition?

Damette, Olivier

The economic challenges of the hydrogen sector: Is hydrogen the solution for the energy transition? - 2020.


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In this work, we study to what extent the energy vector of hydrogen is likely to help solve the problems of the energy transition. We present an overview of the hydrogen sector, from its production methods and its potential integration into the electricity network all the way through to its final uses (industrial, transport, heating, etc.), in order to discuss its potential to become the energy of the future and to help build a new sustainable economy. We show that there are several ways to build a hydrogen economy: these involve a more or less rapid completion of the energy and ecological transition, more or less significant costs, and different returns on investments. An intertemporal trade-off between reduction of environmental emissions and economic development of the sector will no doubt be necessary. There is no single hydrogen economy pathway, and it may be necessary to prime the pathway with so-called “blue” hydrogen. Finally, the uses of the future may be very different in the future once the benefits of hydrogen technology will be fully exploited. Does hydrogen represent a small step or a real solution for the energy transition?

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