Hydrogen, traditionally used across industries from petroleum refining to food processing, has recently gained prominence as a potential major fuel source capable of diminishing global reliance on fossil fuels.

Despite its promise as a clean energy source, it's important to recognize that hydrogen is not a silver bullet when it comes to climate change. While there is little doubt that hydrogen will be key in global decarbonization efforts, to understand how and why, it’s important to start with what’s been called the “long tail” model of climate change solutions.

Renewable energy sources, like wind, solar, geothermal and even small modular reactors can generate enough power to satisfy most of the demand for green energy. Hydrogen can play a pivotal role in energy storage, thereby reducing the intermittency of renewables and making them more stable. Where hydrogen will be most critical, however, is in reducing emissions from some of the hardest-to-abate industries, like long-distance transportation and shipping and aviation.

For an example of how hydrogen can help decarbonize industry, take steel production. Today, steel production generates significant carbon emissions due to the use of coke – typically derived from coal – to both create high heat and to chemically reduce iron ore into raw iron, later used to make steel.

By replacing coke with hydrogen in a process called Direct Reduced Iron (DRI), which is powered by renewable electricity, hydrogen serves a dual purpose. It functions both as a heat source and a reduction agent, enabling producers to transform iron ore into iron without relying on carbon-based feedstocks or generating emissions. This dual role of hydrogen underscores its versatility and efficiency in sustainable iron production.

In recent years, hydrogen’s potential role in decarbonization has driven a worldwide explosion in projects, with nearly 1,500 – representing more than $2 trillion in investment – proposed in just the last two-and-a-half years, according to Gulf Energy Information.

Demand for hydrogen is expected to see similar increases. According to the International Renewable Energy Agency, demand could increase six-fold, to as much as 650 million tons per year, by 2050, while other studies suggest the value of the hydrogen market could increase from about $160 billion today to $640 billion by 2030 and more than $1.4 trillion in 2050.

Last fall, during a panel discussion at key industry event ADIPEC on the hydrogen economy, the agreement among government and business leaders was clear – scaling the hydrogen economy to meet those demands will require effort and focus on many levels, as well as unprecedented global cooperation. The time for us to act on hydrogen technology is now, and if we hope to achieve success, digitalization will play a critical role in those efforts.

Modelling and simulation tools, optimization software, reliability analyses – all will be critical to de-risking hydrogen projects, ensuring that projects which go forward are based on the best possible plans in terms of safety, sustainability and profitability.

Technology will also be a critical factor in the economics of hydrogen. By enabling efficient hydrogen production, advanced process controls and optimization will help reduce the green premium for industry and drive increased adoption of hydrogen-based technologies and processes.

Digital tools like asset performance management can improve the safety and reliability of hydrogen systems by monitoring for potential leaks in both above and below-ground hydrogen storage facilities, making such systems significantly safer, resulting in better outcomes in general.

Hydrogen, however, faces challenges, including the high cost of electrolyzers, due to their reliance on rare metals.

Beyond cost, though, there are safety issues associated with hydrogen, which is explosive when ignited. Those risks must be considered at all stages of the hydrogen value chain, from production to storage to distribution.

Beyond helping to decarbonize some of the hardest-to-abate parts of the economy, though, hydrogen may also be key in helping unlock the success of other technologies, particularly renewable energy generation.

While wind and solar today make up nearly a third of all electricity generation around the world, their intermittent nature represents a challenge. When the sun shines or the wind blows, renewable systems can often generate enough power to push the grid over capacity. Today, the solution is to redirect some of that energy into batteries, which are later discharged back into the grid.

While batteries are effective for short-term power storage, hydrogen offers a more efficient solution for longer-term storage. Excess electricity can be used to produce hydrogen, which can then be stored indefinitely and used to generate power as needed.

It’s clear today that there is no singular solution, no one technology or approach which can solve the challenge of climate change on its own. There are many pathways the world can take as we work to meet sustainability targets, and those will likely be different in different parts of the world and in different industries. But what’s also clear is that hydrogen will be an indispensable part of that future, and we must begin working today to help make it a reality.