Introduction:

How many colours are associated with the naming of types of hydrogen? Have you heard of Green hydrogen, blue hydrogen, brown, yellow, turquoise and even pink? These are essential colour codes or nicknames used within the energy industry to differentiate between the types of hydrogen. They get their colour codes based on the type of production used, and these colour definitions change with time and even between countries. The invisible gas has no visible difference despite their colour descriptions, however, in this article, we have explored its massive potential and its enormous potential as a fuel. Do you know that hydrogen emits only water on combustion yet produces about three times more energy per unit weight than gasoline? Dive into the article to explore more about the potential of hydrogen and the opportunities that lay ahead in the context.

Blue hydrogen and green hydrogen: Best alternatives to power cities:

Blue hydrogen and green hydrogen are the best alternatives for solving the climate crisis and improving energy security. These grey, blue and green hydrogen are capable of revolutionizing power generation, transportation and industrial processes and creating a better greener future. Let’s learn how.

Climate crisis might seem deceptively simple, but burning fossil fuels and switching to renewable sources of energy and electrification is never that easy.

There are several industrial processes in-between and the carbon-intensive activities are not easy to electrify. They either require massive amounts of heat, manufacturing of iron, steel and glass or the current battery technology with the power density doesn’t suffice for long-distance transport like shipping or air travel.

Is there any potential solution to save us? Yes! Hydrogen!

Clean hydrogen has massive potential in energy generation and it can play a critical role in the energy transition. The green and blue hydrogen alongside other hydrogen-based fuels such as synthetic methane, ammonia and methanol are excellent alternatives with less environmental impact.

What is its potential? How massive it is?

Hydrogen is a clean energy source and emits only water on combustion, thereby in the energy industry, is termed as a Zero-emission energy carrier. This positions it as a critical alternative to fossil fuels in mitigating climatic changes and reducing air pollution.

Hydrogen delivers nearly 3 times more energy per unit of weight than gasoline and offers higher energy efficiency for multiple applications.
Its versatility is excellent and it is suitable for powering vehicles ranging from cars, and buses to trains, ships and aircraft.

It converts renewable energy into storable fuel that can be used to generate electricity when demand is high or when renewable sources are unavailable.

It can potentially replace natural gas for residential, commercial and industrial heating and can be indispensable in industries such as steelmaking, refining and chemical production. It is also capable of helping to decarbonize heavy industries.

The most significant advantage of hydrogen is its ability to store energy from renewable sources such as solar energy and wind energy thereby addressing the intermittency problem of renewables by allowing surplus energy to be stored as hydrogen and used on demand.

Hydrogen can be stored for long periods and is thus ideal for balancing seasonal energy demands. It can also be liquefied or compressed and then transported through pipelines, ships or trucks, thereby enabling global energy trade.

Hydrogen is central in the decarbonizing sector, without them the transition is extremely difficult.

Heavy industries such as steel, and cement production rely on high-temperature processes where hydrogen can offer its support.

On the other hand, hydrogen-based fuels such as ammonia are perfect for aviation and maritime shipping.

Some of the reliable reports cover the massive benefits of hydrogen. According to studies by the Hydrogen Council, hydrogen could meet 24% of global energy needs by 2050!

Therefore it is evident that the hydrogen economy is projected to generate trillions of dollars in value and create millions of jobs across the globe.

Since it effectively replaces fossil fuels, hydrogen could prevent about 6 gigatons of CO2 emissions annually by 2050!

Clean energy milestone: Zurich and Aon Launch comprehensive hydrogen project coverage:

Zurich’s role reinforces its commitment to sustainability through innovative insurance products, customer engagement and support for emerging clean technologies. Aon has utilized its expertise in brokering and risk management to tailor solutions that mitigate the intricacies of hydrogen projects.

Zurich Insurance Group and Aon’s innovative clean energy insurance facility represents a strategic leap towards the global net-zero transition by addressing the unique needs of hydrogen projects.

The facility provides risk management solutions that suit the hydrogen projects and it provides coverage for projects that budget up to USD 250 million. It also addresses the diverse risks associated with hydrogen production including construction, operation and potential environmental liabilities.

The strategic focus is on blue and green hydrogen, which are considered mature hydrogen technologies. Blue hydrogen is produced from natural gas using carbon capture technologies to reduce carbon emissions while creating a lower-carbon alternative to conventional fossil fuels.

The green hydrogen produced through electrolysis powered by renewable energy achieves zero emissions in both production and end-use.
The facility is designed to support projects worldwide and encourage the adoption of hydrogen as a clean energy source in diverse markets and geographies. They have also created this insurance solution after two years of extensive research and consultation with industry stakeholders and the goals are:

Mitigate financial risks that deter investments in clean hydrogen projects.

Provide confidence and backing to the stakeholders, financiers, governments and project developers.

The capital expenditures for the eligible projects can go up to USD 250 million and Zurich acts as the lead insurer. Aon serves as the exclusive broker leveraging their expertise to address specific project-related risks. However, the initiative aligns with Zurich’s broader strategy in facilitating the transition to a low-carbon economy through customer-focused solutions and innovation.

The new clean energy insurance facility combines several types of coverage into one easy-to-manage policy. It includes protection for construction, delays in starting operations, ongoing activities, business interruptions, transporting materials and third-party liabilities. The policy also covers carbon capture, utilization, and storage(CCUS) technologies thereby offering complete support for every stage of hydrogen production. The facility has already received more interest and subscriptions from the insurers than expected and showing strong demand for sustainable solutions and growing willingness in the insurance industry to support new and emerging risks.

What can be done in the future, and what are the challenges that are ahead?

Despite its promise, hydrogen’s widespread adoption faces significant challenges.

Green hydrogen production is expensive and due to the high costs of electrolyzers and renewable energy, it is costly.

Developing a global hydrogen supply chain requires significant investment in expenses such as storage, transport and distribution systems.

Bold government actions, subsidies and international collaborations are needed to create demand and scale production.

Take away:

Hydrogen holds a transformative potential as a clean and versatile energy source while addressing global challenges. Its ability to deal effectively with the challenges in aspects of energy generation, storage, decarbonization and ability to replace fossil fuels is considered a great breakthrough. However, this potential requires overcoming challenges such as high production costs, infrastructure limitations and bold policy support. With the collaborative efforts from governments, industries and insurers such as Zurich and Aon, hydrogen can become a driving force in achieving a sustainable net-zero future!