Semafor Net Zero: One Good Text
After winning a $20 billion contract with Google, Intersect Power wants to “create a whole new class of real estate.”
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Clean hydrogen has shown significant promise as a key tool to lower greenhouse gas emissions that contribute to climate change in critical sectors of the global economy. However, for hydrogen to make a significant contribution to the clean energy transition, policy options are needed that overcome current technical and financial challenges and align with markets, investors, and public interests. Advances in policy, technology and finance can potentially unlock hydrogen as an energy and climate solution, and allow it to be more broadly and equitably adopted in sectors like industry, transportation and power generation, in particular for “harder to abate” sub-sectors like steel, shipping, trucks, and industrial heat.
In a series of three fact sheets, Dr. Julio Friedmann, Emeka Ochu, Griffin Smith, Sarah Braverman, and Caleb M. Woodall examine the challenges and opportunities of low-carbon hydrogen. Explore all the fact sheets below.
To reach net-zero emissions by 2050 to limit global temperature rise to 1.5 degrees Celsius (°C), low-carbon hydrogen can play an important role both as a carbon-free fuel and as a feedstock for fuels and products. Hydrogen use can be versatile: a substitute fuel for industrial heat or chemistry, a feedstock to make synthetic fuels (e.g., ammonia or methanol), and an efficient power technology when converted into electricity with a fuel cell.
Hydrogen is abundant in water, biomass, and hydrocarbons. It is easily ignited and burns at about 2,200°C in air, yielding water, with zero direct greenhouse gas emissions. Generating hydrogen can be carbon intensive, however, and the process of compressing, cooling, and liquifying it is energy-intensive. For hydrogen use in different applications to be carbon free, it must be produced through a low-carbon process.
Since 1975, global demand for hydrogen has increased more than threefold, to about 70 metric tons in 2019. Most of the hydrogen used today is “grey” hydrogen (produced from fossil fuels). However, as carbon capture, utilization, and sequestration (CCUS) technology becomes more affordable, and cheaper renewable energy becomes more accessible, hydrogen use will progressively become less carbon intensive, what is known as “blue” hydrogen (conventional production coupled with CCUS) or “green” hydrogen (electrolysis of water using renewable energy). As a fuel, it can substitute for other fuels that produce greenhouse gases (GHG) during combustion.
Hydrogen can play an important role in decarbonizing global energy systems, both in supplying low-carbon fuels and feedstocks and in using them to deliver products and services. Challenges limit the speed and scale of increased production and use of low-carbon hydrogen, including market economics and infrastructure constraints. Enhanced government regulatory and market aligning policies could overcome these limits and encourage private sector investment in low-carbon hydrogen production and use.
By Jason Bordoff | En route back to NYC now following a fascinating and very productive week in India with the Center on Global Energy Policy India program, led by Shayak Sengupta, and our colleagues Trevor Sutton and Dave Turk.
The US State Department's Office of Global Change represents the US in climate negotiations and helps implement the country's climate change policy.
Economist Noah Kaufman discusses the complexities of America's energy transition, highlighting the decline of coal despite federal rhetoric. He emphasizes the need to address the economic vulnerabilities of fossil fuel-dependent communities, particularly oil and gas regions often overlooked in climate policies. Kaufman also warns that potential tariffs and US disengagement from global climate agreements could hinder progress.
The actions of the Trump administration will significantly decelerate the race to decarbonize economies around the world, according to energy and climate change experts.
Energy abundance isn't a climate strategy—it delays clean energy progress, harms global cooperation, and repeats past policy mistakes.
President Donald Trump has made energy a clear focus for his second term in the White House. Having campaigned on an “America First” platform that highlighted domestic fossil-fuel growth, the reversal of climate policies and clean energy incentives advanced by the Biden administration, and substantial tariffs on key US trading partners, he declared an “energy emergency” on his first day in office.