Hydrogen comes with a "hefty price tag", says Methanol Institute

The Methanol Institute, in a White Paper that makes a pitch for methanol, has highlighted several problems with hydrogen, saying that costs of storage and transportation combined "present a hefty price tag on the supply chain" needed to support the delivery of hydrogen to its end user.

The paper hightlights several problems with hydrogen, leaving the reader sceptical about the future of the gas. 

"Given the current maturity of electrolyzer technologies, the cost of producing green hydrogen is high. These costs are expected to decrease over time, but India’s hydrogen economy vision will be constrained by the speed at which these costs diminish," the report says.

"As a highly volatile gas, hydrogen requires capital-intensive infrastructure and equipment to support its safe handling. This entails a storage and distribution network with either high-pressure or cryogenic capabilities, both will come at a significant cost as they are not widely prevalent in the Indian market. The need for high-pressure or cryogenic technology for hydrogen storage also renders it energy intensive, where it is estimated that 15% of the energy content of the hydrogen stored will be required for its safe storage (emphasis added). Beyond high-pressure and cryogenic technology, the materials and components used to construct hydrogen tanks and pipes are also more expensive with a limited lifetime of 1500 cycles," the White Paper says.  

Trailers fitted with adequate equipment to transport hydrogen will also be needed to deliver hydrogen to regions without access to pipelines. These factors combine to present a hefty price tag on the supply chain required to support the delivery of hydrogen to its end user. • Safety Concerns: Hydrogen is a highly volatile gas which requires adequate handling that can be more challenging than other liquid and gaseous fuels. It requires capital-intensive infrastructure and equipment to support its safe production, storage, and transport. Globally, instances of hydrogen leaks and explosions have proven to result in serious consequences. Strict safety protocols and standards will be required in India to ensure that mishaps do not occur. It will also be necessary to locate hydrogen production and storage in regions with low population density or away from residential areas to avoid significant loss of lives or damage to property. It is expected that the cost of hydrogen will reduce with greater technological maturity and economies of scale achieved when the demand increases. However, these challenges will delay the realization of India’s hydrogen economy vision. 

                                            Image Credit: Plug Power

The lack of durability will result in wear and tear and constant need for maintenance (emphasis added) to ensure that storage and transport systems are adequate. Last mile delivery to end users will also have to be considered as end users currently rely on liquid fuels which are much easier to handle. Underground pipes, storage tanks, and filling stations will have  to be constructed across the country to support a wide-scale adoption of hydrogen. Trucks and  trailers fitted with adequate equipment to transport hydrogen will also be needed to deliver hydrogen to regions without access to pipelines. These factors combine to present a hefty price tag on the supply chain required to support the delivery of hydrogen to its end user. 

Safety Concerns: Hydrogen is a highly volatile gas which requires adequate handling that can be more challenging than other liquid and gaseous fuels. It requires capital-intensive infrastructure and equipment to support its safe production, storage, and transport. Globally, instances of hydrogen leaks and explosions have proven to result in serious consequences. Strict safety protocols and standards will be required in India to ensure that mishaps do not occur. It will also be necessary to locate hydrogen production and storage in regions with low population density or away from residential areas to avoid significant loss of lives or damage to property. It is expected that the cost of hydrogen will reduce with greater technological maturity and economies of scale achieved when the demand increases. However, these challenges will delay the realization of India’s hydrogen economy vision.

The report pitches for methanol, calling it a "superior hdyrogen carrier". 

"With the highest hydrogen to carbon ratio of any liquid fuel, methanol circumvents the common challenges associated with storing, transporting, and utilizing hydrogen and support faster adoption of hydrogen,” says Prakriti Sethi, India Representative, Methanol Institute. 

“To achieve realistic goals it is important for India to focus on adopting a progressive roadmap which involves practical solutions that can lead to the ultimate realization of the country’s hydrogen aspirations,” says  Sethi. 

Investments in methanol production, utilization, and infrastructure supporting its logistic are investments made for a future hydrogen economy that deliver immediate economic returns today. This report presents the potential of methanol as a hydrogen carrier, addresses policy gaps in the Indian context, and proposes recommendations to promote faster adoption of methanol and hydrogen. 

Some of the key policy recommendations include: 1. Acknowledge methanol as a hydrogen carrier. Methanol and hydrogen are complementary energy products, and methanol offers roadmap to a future hydrogen economy by enabling hydrogen utilization today. 2. Develop a supportive policy landscape that creates commercial opportunities for the increased adoption of methanol as a hydrogen carrier for different applications such as mobility and power generation. 3. Encourage investments in R&D and pilot activities to promote the adoption of methanol as a hydrogen carrier. 4. Promote the development of methanol supply chains in India to ensure seamless storage and delivery of methanol as a hydrogen carrier to end-users.