Green hydrogen could use existing gas pipelines

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ENERGY & UTILITIES

Renewably sourced hydrogen and biofuels could make use of existing natural gas pipelines for transportation, according to Snam's CEO.

The chief of the Italian company outlined a future where existing infrastructure could aid in the transport and storage of green hydrogen as the world looks to decarbonise key sectors in a bid to keep global temperatures down to battle the worst of climate change.

Read more: G20 urged to speed up renewables development

Marco Alverà told CNBC's "Squawk Box Europe" about how current systems could be used to facilitate the delivery of hydrogen produced using renewable methods.

Existing gas pipelines stretch across the globe. Much of Europe's natural gas comes from pipelines out in Siberia. One example of a natural gas pipeline extending from Russia is the Nord Stream 2 pipeline - which is nearing completion - that has soured tensions between the EU and US

While natural gas contributes far less to pollution and greenhouse gas emissions and may be necessary for the start of the green energy transition, it must be phased out within the next few decades to meet global net-zero goals.

The use of existing pipelines could lead to significant cost reductions in the transport and storage of renewable energy. This could also stand to lower the barrier for entry for energy players and make it cheaper and easier for governments to layout their climate goals.

“Tomorrow, we will have hydrogen produced in North Africa, in the North Sea, with solar and wind resources,” he told CNBC. "And that hydrogen can travel through the existing pipeline.”

Snam claims to have tested different hydrogen blends using existing infrastructure. The company reports even 100% green hydrogen can travel through natural gas pipelines with little-to-no issues.

The CEO said the energy is also far cheaper than existing fossil fuels, describing the transition as "a real breakthrough."

Green hydrogen can be produced in several ways: the most common is through electrolysis, which effectively takes water molecules and splits the hydrogen from the oxygen. This is different from so-called "grey hydrogen", which is produced from methane and releases greenhouse gases into the atmosphere and "blue hydrogen", which captures those emissions and stores them underground as a way of preventing climate change.

Much of the electricity used in this process is also generated through renewable methods, such as solar or wind energy.

Hydrogen can also be used in many applications across multiple industrial sectors, such as hydrogen fuel cells for transport and logistics, to powering the machinery used in manufacturing.

However, green hydrogen is still currently expensive to produce, but continued development into renewable energy sources and increased emphasis on technological development in the wake of the coronavirus pandemic is starting to bring costs down.

Conversely, a recent World Energy Council report has said that zero- and low-carbon hydrogen is not cost-competitive and has called for support to bridge the price gap.

Read more: Hydrogen "not cheap" & "needs support" says World Energy Council

Renewable energy continues to operate larger and larger shares of the market, with it expected to start dominating within a decade.

Wind and solar energy, as well as green hydrogen, are also considered essential in the energy transition, as the world looks to move away from traditional fossil fuels to meet goals set out by the Paris Climate Agreement.

Many governments have pledged to become completely net-zero by at least 2050. However, there are murmurs this may not be soon enough, with the International Energy Agency (IEA) warning that new oil and gas projects must stop to secure the renewable future.

The agency has also called on older forms of green energy, such as hydropower, to aid in the energy transition.

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