Light Transport for a Light Element
Distributed Hydrogen Logistics Fuel a Rational Energy Transition and Strengthen Security
The global economy is undergoing yet another energy transition – a profound transformation of the energy system, with old energy sources steadily replaced by the new ones. There have already been three energy transitions in history: from wood to coal, from coal to oil, and from oil to gas. We are now living through the fourth era: renewable energy sources and so-called promising energy technologies, with hydrogen as the main star, are becoming the new heroes of the energy transition.
Engines and Brakes of the Hydrogen Economy
Paradoxically, the current turbulence in the world does not push the energy transition aside, but only emphasises its strategic importance. This is no longer limited to the environmental agenda or the efficiency of the energy system. It is a question of technological sovereignty, economic competitiveness and national security. It is in this context that the launch of the hydrogen economy is turning from an ambitious idea into a practical necessity. The world is looking for new energy directions, and hydrogen remains one of the most auspicious ones.
According to forecasts by the International Energy Agency (IEA), global demand for hydrogen will grow from ~97 million tonnes in 2023 to ~150 million tonnes by 2030. At the same time, 40% will arise from new areas of application: transport, metallurgy, and energy. It is the transport sector that will be the driver of the hydrogen economy’s development in the coming decade. The reason is simple: batteries are suitable for passenger cars, but heavy and long-distance means of transport like trucks, ships, trains, quarry equipment, aviation, etc. require solutions that enable large amounts of energy to be stored and transported in a compact form. This is where hydrogen wins out thanks to its high energy density, allowing long distances to be covered on a single charge.
However, several factors are hindering hydrogen’s triumphant advance. The first is the obsessive ‘greening’ of the hydrogen agenda, which fails to pay heed to the objective economic and strategic characteristics of various countries and regions. Industrial-scale hydrogen production by electrolysis of water using renewable energy may not always be economically viable. In Russia, for example, it is most expedient to produce hydrogen from natural gas. Gas fuels energy transition, as hydrogen is the second life of natural gas. A fair energy transition must account for these country-specific characteristics. This approach will help us set the right pace and priorities correctly.
The second factor encumbering the development of hydrogen energy sector is the distance between hydrogen production and consumption sites. Regions where it is economically viable to produce hydrogen (Russia, the Middle East, China, India, North Africa, Latin America) are usually geographically far from the main potential consumers: the EU, Japan, the US, and South Korea. International trade in hydrogen calls for the creation of reliable global logistics chains for long-distance transportation and the proper storage infrastructure.
Hydrogen’s Quest for Efficiency
Today, ‘hydrogen corridors’ and ammonia are considered the main means of transporting hydrogen.
A hydrogen corridor is a special infrastructure network for transporting gas. Modifying existing gas infrastructure for hydrogen is impractical both technologically and economically. Yet, the construction of new hydrogen corridors involves enormous capital investment and lengthy construction times.
Transportation in the form of ammonia (NH3) seems to be advantageous, as high hydrogen density in gaseous form, ease of liquefaction and use of existing infrastructure networks are touted. However, advocates of using ammonia as a means of transporting hydrogen often forget to mention the cost of subsequent cracking to release hydrogen at the destination. In energy-deficient regions, this operation can ‘eat up’ all cost savings of such transportation. Therefore, ammonia is good only as ammonia – for its traditional uses.
Another important logistical challenge in the hydrogen industry is the ‘first and last mile’ problem, in other words delivery from a production site to export hubs and then from import terminals to end users. This puts forward flexible solutions that allow for distributed logistics with neither additional costs for creating specialised infrastructure nor hydrogen losses during transshipment.
Therefore, in order to start far-reaching and flexible hydrogen transportation here and now thus giving the industry a rational start, it is necessary to:
— remove natural and artificial barriers that make lengthy and costly capital construction projects the only option;
— utilise existing infrastructure: ports, cargo ships, barges, trucks and railways;
— automatically free users from first and last mile problems with excessive logistics costs and losses during transshipment.
Go liquid!
As mentioned above, transport will be the driving force behind global demand for hydrogen in the coming years. Long-haul trucks and heavy machinery are becoming more powerful, travelling greater distances and consuming more fuel. No hydrogen-powered quarry dump truck will be able to carry a day’s worth of fuel in gaseous form, unless, of course, it still has to transport ore in addition to its own fuel. Liquid hydrogen is the solution here. Such programmes have already been implemented by major equipment manufacturers: Komatsu, Daimler, Volvo, Iveco, Mercedes, and Kawasaki. A significant amount of equipment running on this type of fuel makes it relevant and efficient to deliver hydrogen to filling stations in a liquefied state. Thus, there are two most likely scenarios for hydrogen filling stations:
1) storage and refuelling of liquid hydrogen,
2) storage of liquid hydrogen with its regasification during refuelling.
In any case, for the faster development of the hydrogen economy, it is necessary to reduce the cost of large-scale long-distance hydrogen transportation. This can be achieved by optimising routes, choosing cheaper means of transport and increasing density during transportation. There is one answer to all three questions and that is, once again, the liquid aggregate state.
In the long term, as the hydrogen economy scales up, the range of solutions will undoubtedly expand. But even today, for the transport of significant volumes of hydrogen over medium and long distances, transportation in a liquid state (-253°C) is the most pragmatic and often the only option.
Distributed Logistics for Energy Security
All methods of hydrogen transport will sooner or later contribute to the overall energy security of the country. Whichever method is discussed, security means minimising risks, and this is best achieved through diversification. When it is important to guarantee security of supply, there is no need for pegging to sites on the map or modes of transport. On the contrary, maximum flexibility and freedom of choice are sought.
Genuine energy security is based on distributed logistics, which in turn is ensured by multimodal transport of liquid hydrogen. To ensure comprehensive energy security in the longer term, it makes sense to combine trunk pipelines with flexible and mobile means of carrying hydrogen.
Standards Pave the Future
The emerging hydrogen industry requires an effective universal means of transport that can be moved by any vehicle, stored anywhere and connected to anything. The hydrogen economy needs its own standard, like USB Type C in the world of gadgets.
In logistics, it is difficult to imagine anything more standard and universal than a 40-foot ISO container. Therefore, a universal USB C for hydrogen transport must:
— withstand the weight of several similar containers on top for stacking and increased transport and storage efficiency,
— retain hydrogen without loss for a sufficiently long time to deliver it over thousands of kilometres, even in the event of unforeseen delays en route or for temporary storage of hydrogen on site,
— be truly multimodal, i.e. suitable for road, water and rail transport.
Here is a summary of the main criteria that a technological solution must meet in order to eliminate infrastructure constraints and kick-start large-scale hydrogen transportation. For widespread use of such a standard solution, the technology for its production must be easily scalable and rely on a flexible supply chain with standard or, at a minimum, understandable materials.
The Future Arrived
CryoSafe-42 is an innovative tank container for transporting and storing liquid hydrogen, developed by H2 Tech (part of H2 Invest). Fully certified and ready for scaling, this technology not only solves the current challenges of the global hydrogen economy, but also symbolises a Russian technological breakthrough, providing reliable, safe and cost-effective logistics for the ‘fuel of the future’. The future of hydrogen energy, which CryoSafe-42 is helping to bring about, is based on the principles of rationality, energy security, industrial safety and standardisation. The interaction of these four elements will result in a fair energy transition and sustainable development. Russia has everything it needs to gear the accelerated production and practical use of hydrogen fuel. N2 Tech has all the capabilities for flexible localisation and application of production technologies both in Russia and across borders.
