Hydrogen: A Critical Enabler of the Energy Transition
The global push toward net-zero emissions has positioned hydrogen as a crucial energy carrier and ingredient in the transition to sustainable, less carbon intensive applications. ABB provides integrated automation, electrification, and digital technologies that help industries outperform.
Web Story
4min
2025-02-17
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Hydrogen is essential for decarbonizing transportation, industry, ammonia and power generation sectors.02
High production costs, slow infrastructure development, inconsistent policies, and a nascent supply chain hinder hydrogen’s large-scale adoption.03
Advancements in ABB’s automation, electrification, and digital technologies support scaling up of blue and green hydrogen production and integration.World hydrogen trends
Global hydrogen demand reached 97m tons in 2023, and could reach up to 100 m tons in 2024, with most production coming from unabated fossil fuels (grey hydrogen) which primarily served as feedstock for the refining and chemical sectors. While low-emission hydrogen played a minimal role at less than 1m tons in 2023, it could reach 49m tons a year by 2030 through projects that have already been announced1.
Hydrogen as an energy source contributes to enhancing grid flexibility, complementing solutions such as batteries and acting as an energy storage medium. This makes hydrogen essential for balancing supply and demand, particularly as more renewable energy sources like wind and solar are integrated.
Hydrogen Production Cost Analysis (2023/2024 Data) - Base Production
Hydrogen Production Cost Analysis (2023/2024 Data) - Operating Cost
Hydrogen Production Cost Analysis (2023/2024 Data) - Fuel/Electricity
Hydrogen Production Cost Analysis (2023/2024 Data) - Carbon Price
Hydrogen Production Cost Analysis (2023/2024 Data) - Total Cost
Hydrogen Production Cost Analysis (2023/2024 Data) - Capital Cost
Hydrogen Production Cost Analysis (2023/2024 Data) - Notes
The emergence of blue hydrogen (with carbon capture and storage) and green hydrogen (using renewable electricity) represents a pathway to decarbonizing power generation at scale, and although most current production relies on fossil fuels, investment in clean hydrogen projects is accelerating. This shift is driven by decreasing renewable energy costs, improving electrolyzer technology, and strengthening government support through national hydrogen strategies and funding commitments.
Overcoming Obstacles: The Path Forward for the Pulp and Paper Industry
Today’s pulp and paper industry is evolving, adapting to new consumer needs and innovative product possibilities, including paper-based alternatives for bags, bottles, and even battery components. But achieving this evolution sustainably requires overcoming significant challenges.
The challenges of transitioning to clean hydrogen
The transition to clean hydrogen does face several hurdles:
High Cost
Production costs within energy industries remain high, particularly for green hydrogen where electricity represents over 70 percent of operating costs [2]. This requires optimized energy management systems and more efficient electrolysis processes.Slow Infrastructure development
Infrastructure development is progressing; however, most potential production is still in planning stages. The industry needs standardized solutions for production, storage, and distribution, alongside robust safety systems and control technologies.Inconsistent policies
Policy frameworks are crucial in guiding the growth and adoption of hydrogen energy. However, inconsistencies across different regions can create uncertainty and discourage investment. To foster a supportive environment, policymakers should establish clear, comprehensive policies that promote research, development, deployment, and commercialization of hydrogen technologies.[3]Nascent supply chain
While hydrogen production must scale up from kilowatt and megawatt to eventually gigawatt capacity, the supply chain remains nascent, with insufficient manufacturing capacity for key components like electrolyzers, and lack of standardization. These limitations pose significant challenges for achieving the required scale of production.Scaling up green hydrogen - what will it take?
Watch the ABB Process Automation podcast on the challenges and solutions required to scale up green hydrogen.
Hydrogen Solutions Required
While energy efficiency, electrification and renewables can achieve 70 percent of the mitigation needed to reach net zero by 2050 [4], hydrogen-based integrated solutions across four key areas will be needed to decarbonize end uses where other options are less mature or more costly, such as the production of derivatives, heavy industry, long-haul transport and energy storage.
Derivatives Production
Hydrogen plays an unavoidable role in the production of ammonia, methane and methanol as key ingredients. Here the migration from natural gas will enable further energy security and energy access to a carbon neutral future. The demand for ammonia is growing as new applications, apart from fertilizers, are developed and methanol is an attractive path for carbon neutral fuels- efuels.Heavy Industry
Steel and cement manufacturing typically feature high-temperature processes that are difficult to electrify directly, resulting in high CO2 emissions. These ‘hard-to-abate’ sectors are therefore attractive candidates for green hydrogen power and require reliable hydrogen supply systems and advanced process controls to maintain production efficiency.Transportation
Long-haul shipping and heavy-duty vehicles - including trains and trucks - need efficient fuel cell systems, safe storage solutions, and reliable power conversion technologies to make hydrogen a viable alternative to conventional fuels.Power Generation
Using hydrogen for energy storage requires efficient conversion systems between electricity and hydrogen, sophisticated energy management, and integration with renewable power sources.ABB solutions for energy industries producing hydrogen
ABB's portfolio addresses the above challenges through integrated automation, electrification, rectifiers, and digital technologies powering the hydrogen value chain as demonstrated in several groundbreaking projects. Our digital solutions for sustainability ensure accurate control and optimization throughout the production process, while comprehensive instrumentation and analyzer solutions support operations from electrolysis to final verification of hydrogen purity. The company is also supporting hydrogen transport applications through marine fuel cell technology, as well as advanced traction converters and battery systems.
Case studies for hydrogen from Norway, Sweden and Denmark
Norway
The HyPilot project at Norway's Kårstø facility showcases ABB's power supply technologies for containerized electrolyzers.
Sweden
The Lhyfe/Skyborn collaboration represents one of Europe's largest renewable hydrogen projects. Powered by Skyborn’s planned offshore wind farm, the plant in Söderhamn, Sweden, will produce around 240 tons of hydrogen per day, equivalent of around 1.8 million barrels of oil per annum
Denmark
ABB will provide electrical engineering support for the H2 Energy Esbjerg hydrogen production facility in Denmark. The 1 GW plant will produce 90,000 tons of green hydrogen per year, the equivalent of about 1.9 million barrels of oil per year. The output will support the decarbonization of heavy industry and road transportation.
Case studies for hydrogen from Poland, USA and Netherlands
Poland
PESA, in collaboration with ABB, unveiled Poland's first hydrogen-powered shunting locomotive, marking a significant step toward sustainable rail transport. This prototype features a 4-axle configuration where ABB supplied the traction converter and the LTO battery system. Hydrogen stored in 175 kg tanks is converted into electricity via two 85 kW fuel cells, which then charges the batteries to power the electric motors, resulting in zero CO₂ emissions.
USA
The FLIRT H2 rail is the first hydrogen-powered train in the United States. Power is sent on to the drivetrain where ABB supplies the traction converter, a DC/DC converter, three BORDLINE® ESS 28kWh battery packages, and a battery thermal management system. The fuel cell / battery combination stores enough energy to operate the train over 285 miles daily.
ABB will also support the construction of Danish company Topsoe’s Solid Oxide Electrolysis Cells factory in the US (pending a financial investment decision) by providing electrolyzers for green hydrogen production. Delivering ABB’s automation and electrical expertise as part of this alliance, we support the scaling of technology to enable a net-zero future.
Netherlands
ABB will deliver a comprehensive power distribution system for two newbuild hydrogen-fueled short-sea container ships of the global logistics company Samskip Group headquartered in Rotterdam, Netherlands. Built by Cochin Shipyard Ltd, the largest shipbuilding and maintenance facility in India, the 135-meter ships will operate between Oslo Fjord and Rotterdam, a distance of approximately 700 nautical miles.
Accelerating hydrogen adoption
Hydrogen is gaining momentum, driven by technological innovation and the urgent need for decarbonization. While challenges remain, particularly in cost and infrastructure development, continued advancement in automation, electrification, and digital solutions is accelerating adoption and building confidence for those investing in a cleaner future.
As the technology matures and scales, blue and green hydrogen will play an increasingly vital role in achieving global climate goals, particularly in hard-to-abate sectors. Success requires collaboration across industry, supported by proven technology partners who can optimize the entire value chain from production to end use.
Footnotes
Engineered to Outrun
At ABB, we are on a mission to help industries outrun – leaner and cleaner. With our leading technologies in electrification and automation, we help all industries run at high performance and become more productive, efficient and sustainable so they can outperform.