“Industry + Green Hydrogen” — Reconstructs the Development Pattern Of the Chemical Industry

45% of carbon emissions in the global industrial sector come from the production process of steel, synthetic ammonia, ethylene, cement, etc. Hydrogen energy has the dual attributes of industrial raw materials and energy products, and is considered to be an important and feasible solution to deep decarbonization of industry. With the significant decline in the cost of renewable energy power generation, the problem of green hydrogen cost will gradually be solved, and "industry + green hydrogen" is expected to enter the chemical industry to help chemical companies achieve value revaluation.

The significance of "green hydrogen" entering the production process as a chemical raw material for chemical and iron and steel enterprises is that it can meet the needs of energy consumption and carbon emissions at the same time, and even provide additional economic benefits for enterprises to provide new business growth space.

There is no doubt that chemical industry is fundamental. In the next 10 years, the product demand of the chemical industry will continue to grow steadily, but due to the adjustment of the production structure and product structure, it will also have a certain impact on the demand for hydrogen. But overall, the chemical industry in the next 10 years will be a large increase in the demand for hydrogen. In the long run, in the zero-carbon requirements, hydrogen will become basic chemical raw materials, and even hydrogen chemical industry.

In practice, there have been technical programs and demonstration projects that use green hydrogen as raw material to add to the coal chemical production process, improve the economic utilization of carbon atoms, and reduce carbon dioxide emissions. In addition, there are green hydrogen to produce synthetic ammonia to produce "green ammonia", green hydrogen to produce methanol to produce "green alcohol" and other technical solutions are also carried out in China. It is expected that in the next 10 years, the above technology is expected to achieve a breakthrough in cost.

In the "iron and steel industry capacity reduction", "to ensure the year-on-year decline in crude steel production" requirements, as well as the gradual promotion of scrap recycling and hydrogen direct reduced iron and other technologies, the industry is expected to future based on traditional blast furnace iron smelting required coking capacity will decline, coking by-product hydrogen decline, but based on hydrogen demand of hydrogen direct reduced iron technology, hydrogen metallurgy will get breakthrough growth. This method of replacing carbon with hydrogen as a reducing agent in iron making makes the iron making process produce water instead of carbon dioxide, while using hydrogen to provide high-quality heat sources, thus significantly reducing greenhouse gas emissions, which is regarded as a green production method for the steel industry. At present, many steel enterprises in China are actively trying.

Industrial demand for green hydrogen market has gradually become clear, the future market prospects are broad. However, there are three conditions for the large-scale use of hydrogen as a raw material in the chemical and steel fields: 1. The cost must be low, at least it is not inferior to the cost of gray hydrogen; 2, low carbon emission level (including blue hydrogen and green hydrogen); 3, the future "dual carbon" policy pressure should be heavy enough, otherwise no enterprise will take the initiative to reform.

After years of development, the renewable energy power generation industry has entered a stage of large-scale development, the cost of photovoltaic power generation and wind power generation continues to decline. The price of "green electricity" continues to decline which means that green hydrogen will enter the industrial field and gradually become a stable, low-cost, large-scale application of chemical production raw materials. In other words, low-cost green hydrogen is expected to restructure the chemical industry pattern and open new channels for chemical industry growth!

Post time: Mar-07-2024