Energy alternatives for a decarbonised future: the role of hydrogen

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In recent decades, the growing dependence of our economy on fossil fuels has aggravated both environmental and economic challenges due to a combination of two factors: the growth in energy demand and the progressive depletion of fossil fuel reserves. This scenario has created significant tensions in the energy supply chain, highlighting the urgent need to find sustainable alternatives. As a response, recent R&D&I efforts have increasingly focused on the decarbonisation.

However, for decarbonisation to be truly efficient, it is necessary to understand that the new energy system must be made up of a combination of technologies both being capable of satisfying the growing energy demand and being sustainable. Hydrogen enters the picture as a key energy vector – both at industrial and domestic level – with potential to transform the global energy landscape.

Hydrogen: the energy wildcard of the future

One of the features that make hydrogen a great alternative is that it can be produced by renewable energies through electrolysis. This technology makes it possible to convert the energy surpluses produced during peaks of renewable generation – when there is an abundance of sun or wind – into hydrogen, a clean energy and versatile energy carrier. Moreover, hydrogen can be stored for long periods and then be converted both into electricity – using fuel cells or generators – or into heat, using boilers.

In addition to its storage capacity, hydrogen also offers flexibility in terms of transport. It can be distributed through a pipeline network similar to that used for natural gas, although local or decentralised production is also feasible, which significantly reduces transport costs. Such decentralisation would enhance the sustainability and self-sufficiency of the developed electricity system, increasing storage capacity and providing greater flexibility and availability of clean energy.

Hydrogen also plays a key role in the current and future chemical industry, being a valuable resource in processes such as the production of gasoline and other petroleum derivatives. In the future, it will be fundamental in the creation of synthetic fuels from CO2, which will contribute significantly to reducing the carbon footprint of these fuels.

These include alkaline electrolysis, one of the oldest technologies; proton exchange membrane electrolysis (PEM) – whose development has accelerated in the last decade – and solid oxide electrolysis (SOEC) – which is under development and is prominent in industries with surplus heat.

The true colours of H2

The path towards decarbonisation cannot afford to get rid of fossil fuels immediately. It requires a planned and gradual approach that considers environmental impact. While hydrogen production through renewable energy is the most sustainable and preferred option in the long term, other technologies still play an important role in this process. These technologies, which allow hydrogen to be produced from different sources, have led to the classification of hydrogen into different ‘colours’, depending on the raw materials used and the production methods applied.

    • Golden hydrogen refers to hydrogen that existed already on Earth, in underground deposits, and does not require industrial processes to obtain it.
    • Brown hydrogen comes from coal gasification, a process with high carbon emissions.
    • Grey hydrogen, produced from natural gas, also emits large amounts of CO2 during its production. It’s currently one of the most common.
    • Blue hydrogen is produced in a similar way to grey hydrogen, but includes carbon capture and storage systems (CCS), which significantly reduces pollutant emissions.
    • Pink hydrogen is produced using nuclear-generated electricity, which, although low in emissions, raises debate over nuclear waste.
    • Yellow hydrogen refers to hydrogen produced using electricity from an energy mix that can include both renewable and non-renewable sources, which generates a medium environmental impact.
    • Green hydrogen, considered the most sustainable, is generated from renewable energy sources, such as solar or wind power, ensuring a zero-carbon production process.

By establishing these categories, a better understanding of the environmental footprint and the advantages or disadvantages of each type of hydrogen is facilitated, which is crucial for the design of energy policies and for guiding investment decisions towards cleaner technologies.

The technological evolution behind green hydrogen

The growth of renewable energy has driven the development of water electrolysis as one of the main technologies for producing green hydrogen. This process uses clean energy – such as solar or wind power – to split the water molecule into hydrogen and oxygen. Currently, there are three commercial electrolysis technologies operating and another one in development:

      • Alkaline electrolysis. It uses a basic medium and operates at temperatures close to 80ºC and at atmospheric pressure (1.01325 bar), although it is possible to work with up to 30 bar. Low current densities are used, which implies a lower production per occupied surface area, but high efficiencies are achieved, close to 70%. Abundant materials such as steel or nickel can be used for their construction.
      • PEM (polymeric proton membrane) electrolysis. It uses an acid medium and operates at temperatures close to 60ºC and pressures above 30 bar. High current densities are used, allowing for very compact equipment, but the efficiency is slightly lower. Rare metals are used in their construction, which makes the equipment more expensive.
      • SOEC (solid oxide electrolysis cell). It is a solid electrolyte which uses water at very high temperatures – around 800ºC – and atmospheric pressure. The current density used is somewhat lower than that used in PEM electrolysers, resulting in compact equipment and efficiencies of up to 80%. They require an external supply of energy in the form of heat though. The materials used are more expensive because they must withstand the high temperatures.
      • AEM (anion exchange membrane) electrolysis. It combines the best of PEM & Alkaline technologies obtaining high current densities and an average efficiency between the two variants. However, current equipment is not yet at the level of development needed to be competitive. While the necessary materials are abundant, the problem lies in the membrane, for which a suitable material has not yet been developed.

Pioneers in hydrogen: genesal energy bets for the change

Genesal Energy is actually committed to hydrogen. We are developing our own electrolyser with the aim of acquiring experience in this technology. It’s called the H2OG project. In the medium term, this knowledge will allow us to optimally integrate this energy vector in our machinery, not only in the generator sets, but also in the management and storage systems.
The development of this project began with the design of a small-scale electrolyser, which allows us to validate its operation and guarantee the expected results. This planning is key before building the final, larger equipment, as it allows solving possible design flaws before the final integration into the production system, which translates into lower costs.
If you want to know more about the project, watch the following video, in which Guillermo Martínez, Chemical Engineer, explains more about the subject.

Benefits of Industrial Energy Communities for Spanish SMEs

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Spanish small and medium-sized enterprises are currently the backbone of the national economy, representing a crucial source of employment and added value. According to data from the Ministry of Industry, they account for 99.8% of the total number of companies in the country, generating more than 62% of Gross Value Added and almost 70% of total business employment.

However, within the framework of an increasingly demanding and competitive economic environment, they face significant challenges every day that limit their ability to compete on equal terms with large corporations.

One of these is the lack of access to economies of scale, especially in the field of energy, where they face costs that can represent a significant part of their operating expenses. This situation leads companies to the constant need to innovate and seek solutions that allow them to maintain and improve their market position.

In this framework, a strategic solution to improve the competitiveness of SMEs emerges: industrial energy communities, which have the potential to reduce these costs and also promote sustainability and the democratisation of energy.

What are Energy communities?

In simple terms, an energy community is a cooperative entity in which its members, whether individuals, public entities or companies, come together to produce, manage and consume energy jointly.

In Spain, current legislation recognises two types of energy communities:

    • Renewable Energy Community (REC), provided for by Directive 2018/2001. Aimed at promoting the use of energy from renewable sources, they allow local SMEs with less than 250 employees, an annual turnover of less than EUR 50 million per year and a balance sheet total of less than EUR 43 million to join.
    • Citizen Energy Community (CEC), provided for by Directive 2019/944. They aim to ensure the rights and freedoms of access to the network under conditions of equality and non-discrimination; and, in this case, they only allow the presence of micro and small enterprises with no more than 50 employees.

These conditions allow almost 99% of national SMEs to participate in either of the two types of communities. In fact, in Spain, there are already examples of company-driven energy communities, especially in industrial estates. It is in these spaces that the perfect conditions exist to implement this type of initiative for two main reasons, the first being the agglomeration of companies in the same space, which facilitates cooperation and the creation of synergies between them. The second reason is the ease of having large areas, such as the roofs of the warehouses, which offer an ideal space for the installation of renewable energy infrastructures.

These characteristics allow companies to make the most of the available resources and generate their own energy in an efficient and sustainable way.

Energy communities’ benefits for SMEs.

First of all, one of the most tangible and immediate benefits has to do with the aforementioned cost issue, and that is that these communities allow for a reduction of energy costs. By sharing resources and participating in the generation of renewable energy, companies can access more competitive rates than those offered by the traditional market, achieving reductions of between 20% and 40%.

These savings not only improve operating margins, but also free up resources that can be reinvested in other areas of the company. The economic impact goes beyond mere cost reduction. In an economy where energy prices are volatile and sometimes difficult to forecast, participation in an energy community allows companies to benefit from more stable prices, facilitating more accurate financial planning while reducing associated risks.

Not to mention that if there is one thing that characterises energy communities, it is the possibility to make decisions and actively participate in their governance, unlike large energy corporations where they have no decision-making power. Thus, they have the opportunity to directly influence crucial aspects such as the type of energy to be used, the investments to be made in infrastructure and the distribution of benefits. This decision-making power not only strengthens the company’s autonomy over its energy supply, but also allows them to influence long-term energy strategies, aligning them with their own business and sustainability objectives.

Another benefit is the reduction of environmental impact and the boosting of social cohesion at local level. By participating in energy communities, companies reduce their dependence on traditional fossil fuels and consequently improve their carbon footprint.

Clean energy can be a crucial differentiator as this aspect is increasingly valued by consumers and business partners alike.

On the other hand, companies participating in the communities often create collaborative networks among themselves, fostering synergies that go beyond the energy sphere. Indeed, opportunities are generated to share knowledge, develop joint projects and improve the global competitiveness. Moreover, as they are open participation initiatives, the communities also help to promote new formulas for inter-cooperation at local level between citizens, public administrations and SMEs.

Summarising, industrial energy communities are a perfect opportunity for companies to overcome the barriers imposed by economies of scale, offering them access to cheaper and more stable energy, and helping to improve their competitiveness against large corporations.