Bank of Africa expert projects hydrogen to take over a quarter of the oil demand in the next three decades

Hydrogen energy developers have been researching and emerging with better technologies to increase confidence levels in this source of energy. Bank of Africa analyst stated that the ongoing transition to clean energy would witness hydrogen replace a quarter of the oil market. The analyst, Haim Israel, stated that oil and gas are approaching their maximum demand in this decade and will be eventually phased out of the system after this decade.

Israel enumerated factors like affordable renewable energy, the ban on fossil fuel cars, and the incentives on their electric counterparts will spearhead the dethronement of oil and gas from their large market share. Hydrogen will be among the beneficiaries that will take a quarter of the market share, especially when oil markets face fluctuations that have been exacerbated by the coronavirus pandemic.

The US Department of Energy cited hydrogen as an energy carrier and not a source implying that it is a supplementary product just like electricity. The department added that they could harvest a considerable quantity of energy from hydrogen and store it in fuel cells for providing electricity, heating, and lighting. Various governments globally have expressed their desire to minimize emissions from their countries that affect the environment.

For example, the UK and the European Union are anticipating net-zero emissions in three decades. These targets’ achievement will switch the energy sector towards renewables preserving the environment that would have been degraded by emissions and extraction operations. Israel outlined that fossil fuel companies’ diversification would help keep them afloat in the business rather than closing down operations.

Israel stated that mega oil companies must start investing in renewables to ensure that they remain in business. Most of the companies have procured assets in solar and wind energy. Other companies have expressed interest in hydrogen energy, with the EU proposing the development of 40 gigawatts of renewable hydrogen electrolyzers. The union projects the production of over 10 million metric tons of renewable hydrogen energy by the end of this decade.

Hydrogen is produced in two different methods, one involving the catalysis of water. This production method may utilize wind energy, creating the name renewable hydrogen. Currently, most of the hydrogen is obtained from fossil fuels. However, companies like Repsol, BP, and Siemens Energy want to venture into hydrogen’s renewable production. The companies can utilize wind energy to generate hydrogen energy or focus on offshore wind energy to manufacture it.