In the long term, hydrogen also has potential to be blended into gas-fired power plants, reads a report published by DNV GL, Trend reports Jan.5.
"We project a maximum volumetric blending fraction of 60 percent in gas-fired power plants, starting from 2026, a ratio determined by the price differential between methane and hydrogen. Despite high volumetric blending fractions, globally, hydrogen-fired electricity reaches only a maximum of 1 percent in 2038, and then reduces to 0.3 percent by 2050, as a share of world electricity generation," reads the report.
DNV experts believe that in some regions, however, hydrogen takes a significant share of gas-fired electricity.
"In the OECD Pacific, we project almost 50 percent of electricity from gas-fired power plants to be running on hydrogen in 2050. Similarly, in Europe and Greater China, 20 and 30 percent of the electricity from gas-fired power plants will be generated by hydrogen in 2050, respectively. In these regions, hydrogen will increasingly be produced by grid-connected electrolysers," the report says.
DNV notes that these grid-connected electrolysers will produce hydrogen when electricity prices are low, typically when VRES have a large production share, and then blend the hydrogen produced and stored when gas-fired power plants need to be ramped up, typically in hours when electricity prices are high.
"So, while hydrogen on the global scale will not have a significant share even in 2050, in regions where hydrogen is present as an energy carrier, we foresee hydrogen playing a significant role in gas-fired electricity generation, as well as reducing the need for curtailment of VRES, and thus keeping electricity costs low."