One of the biggest challenges of our time is decarbonizing heavy industry. Power-to-X (PtX) technologies and in particular the use of green hydrogen, are emerging as a key solution. The following is a rundown of how the technology is transforming sectors like chemicals and steel.

1. From Power to Product: The Basics

PtX is a term that covers technologies to convert electricity from renewable energy into chemical energy carriers or feedstocks. Green hydrogen is produced at its basic level by electrolysis, in which renewable electricity is applied to split water into hydrogen and oxygen. This provides a CO₂-free industrial basis. The two main electrolysis technologies are: Alkaline Electrolysis, a more mature and cheaper but less flexible technology when it comes to handling variable power inputs; and PEM Electrolysis, a more expensive but highly dynamic technology ideal for pairing with intermittent renewable energy sources like wind and sun.

2. Decarbonizing the Chemical Industry

The chemical sector, specifically the manufacture of ammonia for fertilizers, is one big consumer of hydrogen. The traditional Haber-Bosch process is extremely CO₂-intensive. By replacing fossil-based hydrogen with green hydrogen, the sector can significantly cut its emissions. Plans to adapt and optimize this process for green hydrogen, thereby making it more sustainable and versatile, are already being created by firms like BASF and thyssenkrupp.

3. Greening Steel Production

Steelmaking is another major source of CO₂, traditionally relying on coal and coke as a reducing agent in blast furnaces. The alternative is Direct Reduced Iron (DRI), a technology that uses hydrogen instead of coal. This switch removes CO₂ emissions at the source, as the reaction releases water instead of CO₂. Sector leaders like ArcelorMittal are investing billions of dollars in large-scale DRI plants to replace their fossil-fueled blast furnaces, showing that the technology is ready for industrial implementation.

4. Challenges and Outlook

Despite the technological readiness, there are enormous challenges lying ahead. The biggest hurdles are the high cost of green hydrogen, a lack of infrastructure for a dedicated hydrogen pipeline network, and the need for a massive, low-cost, and continuous supply of renewable electricity to satisfy the enormous appetite. To overcome these hurdles, mechanisms like Carbon Contracts for Difference are being implemented by governments to offset the higher cost to industry and offer investment certainty.

The move to green hydrogen in heavy industry is a marathon, not a sprint. The technology is here, and projects are advancing from pilot phase to large-scale deployment. The emphasis now is on ramping up production and creating the required infrastructure to release its full potential.

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