Iberdrola highlights hydrogen’s commercialisation challenges despite its green potential

A green and abundant energy source for the future, hydrogen commercialisation is difficult without government subsidies, according to Iberdrola, the world’s third-largest private renewable electric utility provider. The company suggests that hydrogen might not be the ideal energy source for passenger cars, but rather for heavy logistics and industry.

Armando Martinez, Iberdrola’s chief executive, acknowledged that hydrogen has been used by industry for decades but has not yet become a viable fuel source for the consumer market, particularly in passenger cars. Martinez revealed that 90% of hydrogen utilised by customers originates from conventional, non-renewable methods, primarily due to economic considerations.

In a meeting with executives from PTT Plc, the Thai national energy conglomerate, in Madrid, Martinez highlighted the reluctance of customers to pay extra for green hydrogen. He indicated that government subsidies would be required to close the cost discrepancy, citing the United States as a leading country in subsidising hydrogen production, thereby facilitating the transition of companies to sustainable practices.

The discussion also touched on the difficulties associated with transporting hydrogen efficiently. Martinez pointed out that despite the long-standing presence of the hydrogen industry, a universally adopted method for hydrogen transport is yet to be established, with the current practice being storage in bottles or high-pressure cylinders.

The CEO of Iberdrola further spoke on the impracticality of hydrogen commercialisation as a fuel for private vehicles, citing incongruences between charging infrastructure and user habits. He proposed that hydrogen could be more fitting for heavy vehicles and transport services that require larger energy capacities. Martinez emphasised the need for government subsidies to realise the economic viability of hydrogen energy, underlining the transport challenges that need to be overcome, reported Bangkok Post.

PTT Plc, a national energy leader, is intensifying efforts to tap into additional renewable power sources and advance its hydrogen fuel enterprise. This initiative forms a key component of the company’s strategy for sustainable growth. Read more HERE.