The Promises and Perils of the Hydrogen Economy with Peter Kelly-Detwiler | EP207

Clean Power Hour

The hydrogen economy is all the rage, with billions in government funding and skyrocketing private investment. But should we buy into the hype? Energy and utility guru Peter Kelly-Detwiler joins Tim Montague to separate fact from fiction about the promises and perils of the hydrogen economy.
They discuss the existing hydrogen economy, which is largely centered around industrial processes like refining and fertilizer production, and the potential for decarbonizing hard-to-abate sectors like steelmaking, high-heat industrial processes, and long-haul transportation using green hydrogen.
Peter explains the challenges and opportunities associated with producing green hydrogen cost-effectively, including the need to drive down renewable energy costs, improve electrolyzer efficiency, and achieve economies of scale.
They also delve into the complexities of transporting and storing hydrogen, including the limitations of existing natural gas pipelines and the potential for leakage, which could indirectly contribute to global warming.
The conversation touches on various pilot projects and initiatives, such as the Inflation Reduction Act's incentives for green hydrogen, the Department of Energy's Hydrogen Hubs program, and hybrid power plants aiming to blend hydrogen with natural gas (ACES in Utah) or potentially transition to pure hydrogen.
Peter emphasizes the importance of failing fast and discarding approaches that don't work, as well as being cautious about investing in the wrong areas, which could provide ammunition to those who don't wish for a successful energy transition.

Overall, the episode provides a nuanced and balanced perspective on the role of hydrogen in the energy transition, highlighting both its potential and the need for careful consideration of its costs, efficiency, and environmental impacts.
Peter emphasizes hydrogen is a tool in the decarbonization toolkit but not a "Swiss army knife" that solves all problems. The next few years will provide more clarity on its optimal role in the energy transition.
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