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Application of Hydrogen Energy and Review of Current Conditions

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ACCESE 2020 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 526 (2020) 012124 doi:10.1088/1755-1315/526/1/012124

Application of Hydrogen Energy and Review of Current

Conditions

Pan Aiqiang1, Liu Jing1, Liu Zhipeng2, Yang Yunwei2, Yang Xiu2, Zhang Meixia2
1
State Grid Shanghai Electric Power Research Institute, Shanghai 200437, China
2
Shanghai University of Electric Power, Shanghai 200090, China
*
Corresponding author’s e-mail: yangyunweiyyw@163.com

Abstract. Energy reforms advance development of human civilizations. As environmental

problems go increasingly severe, hydrogen energy which is featured by zero carbon emissions,
high efficiency, easy storage and other advantages has won attention from researchers from
around the world. China has rich hydrogen energy, and in the next energy reform, hydrogen
will play an important role. This paper will introduce the application of hydrogen energy in
industries, fuel-driven and electric cars, hydrogen storage and heat-power joint production in
hybrid energy systems as well as the current development conditions. Typical study cases from
different countries have been analyzed and interpreted. On that basis, the problems and
bottlenecks for development of hydrogen energy in China are concluded.

1. Introduction
Fossil fuel has caused tremendous threats to the global environment, and emission of greenhouse gases
becomes a major problem that holds back sustainable development. Thus, the world now is witnessing
the third energy structure reform: from a fossil fuel-dominated energy system to a diversified system
that combines fossil fuel, nuclear power and renewable energies, and at last to a green energy system
dominated by solar energy and nuclear power. Hydrogen energy, thanks to its rich reserve, high
combustion value and ecological and economic benefits, provides a solution to the dilemma between
environmental protection and continuous economic growth. Meanwhile, hydrogen energy is
complementary to electric power, and will link renewable energies with traditional energies in the
future smart energy system. It is predicted that in 2050, the hydrogen energy will make a market value
of 8250 billion yuan, fulfill a 20% reduction of emissions of greenhouse gases, and provide 18% of
energy for terminals.
America, Europe, Japan and other regions have a head start over other regions in adopting
hydrogen energy, and has raised development of hydrogen energy and fuel cells to a level of state
strategies, outlined the development path, initiated R&D of key technologies, advanced demonstration
application, and explored a road for industrialization. In 2002, the U.S. state department of energy
released the “National Hydrogen Energy Development Map”, interpreted the technologies for
hydrogen energy preparation and storage, and proposed a goal for hydrogen economy in 2040. To
reduce dependence on oil import, Japan started the WE-NET program in 1993 to research and develop
hydrogen energy related technologies, carried out application demonstrations and led the world in this
field. Now, China is facing challenges in reforms of the energy structure and environmental problems,
making development of the hydrogen energy industry a must. Since 2011, the central government has
issued a series of favorable policies for development of hydrogen energy from the perspectives of

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ACCESE 2020 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 526 (2020) 012124 doi:10.1088/1755-1315/526/1/012124

strategic outline, industrial structure and technological research. The “Development planning for
energy conservation and new energy car industry (2012-2020)” issued in 2012, “Strategic action plan
for energy development 2014-2020” issued in 2014, “key innovation planning for energy technologies”
and “the blue book” for hydrogen energy development infrastructure in China (2016) issued in 2016,
the “Clean energy consumption plan (2018-2020)” issued in 2018 all intend to promote development
of hydrogen energy and accelerate the industrialization of hydrogen energy. Since the start of 2019,
these initiatives are accelerated. The national two sessions included “promote construction of
infrastructure for electric charging and hydrogen energy” into the Government Work Report; cities,
industrial alliances and associations issued related development plans, covering areas including
industries, transportation and hybrid energy consumption. This paper introduces the application of
hydrogen energy and study cases, and analyzes the bottlenecks that obstacle the hydrogen energy
industry in China.

2. Analysis of hydrogen energy utilization

China has a rich reserve of hydrogen energy. Hydrogen energy has the second highest calorific value
only lower than nuclear combustion, good environmental effects and no emission of hazard gases, and
thus it achieves high production efficiency in industries and transportation. Meanwhile, hydrogen is
complementary to electricity, and hydrogen production by water electrolysis is likely to become an
economical, efficient and environmentally-friendly hydrogen production technology. Thus, using
secondary energies like clean electricity and hydrogen energy as the basis to establish a complete
industrial chain of “production – delivery - application” is an inevitable trend.

2.1. Industrial application of hydrogen energy

Hydrogen energy is mainly used in industries including the oil & chemical industry and steel
processing industry. In the oil & chemical sector, most hydrogen is used for hydrogenation,
hydrocracking and desulfurization [1]. Hydrogen is also used in preparation of ammonia and methyl
alcohol in the chemical industry, among which, hydrogen takes up the largest volume in synthesis of
ammonia. 60% hydrogen in the world is used in synthesis of ammonia, and the proportion rises to 80%
in China. The volume of hydrogen used in oil refining is just second to that used in synthesis of
ammonia. In oil refining, hydrogen is mainly used in hydrogenation and desulfurization of naphtha,
gas oil and fuel oil, improving the flame height of aircraft fuel and hydrocracking.
Hydrogen serves two purposes in the steel industry. In the steel production process, hydrogen
serves as a middle product. This hydrogen producing method is cost-efficient, but the produced
hydrogen is often used to assist combustion in the furnace, and little can be provided to the outside.
Secondly, it serves as a protection gas during cold rolling. Besides, as the limit for carbon emissions
grows more and more strict, more and more steel manufacturers are starting to use hydrogen power
instead of carbon for metallurgy processing. The principle is that hydrogen replaces carbon to serve as
the reductant in metallurgy processing, thus reducing the carbon emission. One typical example is the
Salcos project of Salzgitter Group of Germany [2]. By introducing hydrogen and natural gas for
reduction of iron smelting, the project reduces carbon emission. In the future, this project plans to use
solar energy, wind energy and other forms of clean energy to replace hydrogen to further reduce
carbon emission.

2.2. Application of hydrogen in hybrid energy systems

Though hydrogen is mainly used in industries across the globe, relevant studies are progressing.
Hydrogen energy is now seeing wider application in energy storage and energy supply, and it shows
great potential in application in hybrid energy systems. In hybrid energy systems, hydrogen is mainly
used for storing power and heat-power joint supply.

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ACCESE 2020 IOP Publishing
IOP Conf. Series: Earth and Environmental Science 526 (2020) 012124 doi:10.1088/1755-1315/526/1/012124

2.2.1. Electricity-hydrogen energy storage technology.

As the resources do not match load distribution in China, and the regional consumption capacity of
some renewable resources is weak, most new energy-driven power production in China dispenses with
wind, light and water. The waste volume of power generated by new energies between 2011 and 2018
is shown in Figure 1.
Power Abandon/100million kWh

Hydropower Wind power Photovoltaic power

Figure 1. waste of power generated by renewable energies between 2011 and 2018 in China

As of 2018, the waste volume of power generated by renewable resources has reached 100 billion
kilowatt-hours for three consecutive years. Therefore, to seek an appropriate energy storage method to
store the power that has not been consumed timely is necessary. Hydrogen is clean, pollution-free, and
has high energy densities. Because of these advantages, it can be used as a medium to construct
hydrogen energy storage systems. These systems consist of a hydrogen production subsystem, a
hydrogen storage subsystem and a hydrogen-driven power generation subsystem. The major work
process is as follows: if the power output generated by wind, photovoltaic panels and other renewable
energies is too high, the power supply will exceed the power demand; the excessive power is then
injected into the hydrogenation system to generate hydrogen, after which the produced hydrogen will
be stored and enter the hydrogen-driven power generation system to produce electric power.
Currently, electricity-hydrogen storage and power generation technology has been used in power
supply projects. One typical example is the hydrogen-driven power generation plant in Yutzla Island
in Norway. The plant is located in Yutzla Island, covering an area of 5 km2, 20 km away from the
western coastline of Norway and having a population of 250. The diagram for the electricity system is
shown in Figure 2. The system uses the excessive power generated by the wind power generator to
perform electrolysis of the sea water to produce hydrogen and then stores the hydrogen into a storage
container. When the power generated by wind is not sufficient, the hydrogen will be injected into the
fuel cells to supply power [3]. Thanks to this technology, the island realizes self-sufficiency of power
supply.

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IOP Conf. Series: Earth and Environmental Science 526 (2020) 012124 doi:10.1088/1755-1315/526/1/012124

Wind turbine
generator system
Users

Rectifier Frequency
=
converter =

Fly
Electrolytic Auxiliary device： wheel
tank Water supply, Fuel cell
cooling, gas dryer,
lighting, et al Battery

Hydrogen Generator
storage
H2 Engine
H2 Compressor
Figure 2. A hydrogen-driven power generation system

2.2.2. Hydrogen energy heat-power joint supply.

Current energy supply is shifting from electricity supply to more efficient heat-power joint supply, and
some industrial parks are using cold-heat-electricity triple supply systems. In the future, multiple
energy supply systems for industrial gardens will play an important part in energy supply systems. The
hydrogen heat-power joint supply system has been used in more and more power supply systems as it
is clean and efficient.
The current hydrogen energy heat-electricity joint supply systems are divided into hydrogen
internal combustion engine heat-electricity joint supply systems and hydrogen fuel cell heat-electricity
joint supply systems by the supply equipment.
For hydrogen internal combustion engine heat-electricity joint supply systems, the supply
equipment is the gas turbine fueled by hydrogen. The working principle is basically the same as that of
the heat-electricity joint production unit of common gas turbines: The combustion of fuel drives the
turbine blades of the power turbine to drive the power generator, and the high-temperature exhaust
steam generated after the combustion produces hot water through the waste heat boiler. Through
reassembly, the gas turbine can be converted into a hydrogen fuel gas turbine, making it convenient
for the promotion of this technology [4].
The Minatojima hydrogen heat-electricity joint supply system in Kobe is a typical example. This
hydrogen energy power generation system is built on an artificial island, covering an area of 3,700 m2,
and the major equipment include a hydrogen storage container and a large gas turbine. The generator
unit uses hydrogen and mixed natural gas to generate electricity or solely uses hydrogen to generate
power. The maximum output power is about 1.7 megawatts. The generated power and heat mainly
supply four municipal facilities including the hospital and sports center.
As the fuel cells produce heat when generating electricity, they are ideal equipment for power-heat
joint production. Their working mechanism is shown in Figure 3. Air and hydrogen are injected into

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IOP Conf. Series: Earth and Environmental Science 526 (2020) 012124 doi:10.1088/1755-1315/526/1/012124

the fuel cells to produce direct current, which is converted into alternating current by an inverter.
Meanwhile, the cooling system of the fuel cells heats up the water using the heat produced by the
power generation process and stores the heat in the heat storage container. In this way, joint supply of
electricity and heat is realized.
AC Hot water

Inverter

DC Heat
Hydrogen Anode Storage

Air Cathode Heat

Exchanger
Cooling
System

Fuel Cell Generation Unit Heat Storage Unit

Figure 3. Fuel cell power-heat joint production system
There are already some hydrogen fuel cell power-heat joint supply systems in use. Japan has built
the worlds’ first hydrogen energy town in Kitakyushu. For resident buildings, accumulators, solar cells
and hydrogen fuel cells are used to produce electricity jointly. In resident buildings, electricity is
supplied by external power grids as well as solar cells and fuel cells the building is equipped with. The
heat produced by the fuel cells when producing electricity can provide hot water, thus realizing joint
supply of electricity and heat, and the hydrogen is loaded into the hydrogen fuel cells via pipes from
outside.

2.3. Application of hydrogen in transportation

Currently, application of hydrogen energy in the transportation sector is in fuel cell cars; meanwhile,
to meet the needs for hydrogen of vehicles, it is necessary to construct hydrogenation stations to
supply hydrogen energy.

2.3.1. Hydrogen cells.

Currently, electric cars suffer problems like short mileage and long charging time. Equipping electric
cars with small hydrogen fuel cells can realize zero carbon emission and fulfil power needs, thus
providing a solution to solve problems electric cars face.
One major difference between fuel cell electric cars and other vehicles is the unique motor system.
The hydrogen in the hydrogen storage container in vehicles and air from outside are loaded into the
fuel cells to produce electricity, with which the motor drives the vehicles. To solve problems of fuel
cells like poor dynamic response and insufficient maximum output, adding accumulators as a
supporting power source to the fuel cells can increase the power while serving as an energy recycling
device, thus improving the comprehensive efficiency of vehicles.
Most passenger vehicles in China are hydrogen fuel electric cars, because private cars have high
technical requirements and costs; also, due to lack of supporting facilities, the practicability and
convenience of these cars are undermined. On the other hand, fuel cell cars in China are now in the
stage of policy support. Using fuel cell passenger cars as a means of public transport in industrial
gardens follows the policies and has low standards for infrastructure. Moreover, the internal space of
passenger cars is sufficient, making it convenient to install fuel cells and hydrogen containers. Many a
vehicle manufacturer in China is investing more and more into development of hydrogen fuel cell

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IOP Conf. Series: Earth and Environmental Science 526 (2020) 012124 doi:10.1088/1755-1315/526/1/012124

vehicles, thus raising the performance of vehicles to the standards of traditional vehicles in terms of
service life, cell power density and mileage [6].

2.3.2. Hydrogenation station.

Hydrogenation stations are the sources of hydrogen for fuel cell vehicles, an important supporting
facility and play a crucial role in promotion of hydrogen fuel vehicles. After obtaining hydrogen from
outside or inside, the hydrogenation station adjusts the drying system and converts hydrogen into dry
gas with stable pressures; after that, the hydrogen is transferred to the high-pressure hydrogen storage
containers via the hydrogen compressor, and then fills the fuel cells via the hydrogen injector.
There are several hydrogenation stations in China. As of November 2018, there are a total of 27
hydrogenation stations in China, with 3 demolished and some not operating yet. It shows that
construction of hydrogenation stations in China is still in its infancy and there is still a long way to go
to develop into large scale. The major reason that hydrogenation stations develop so slowly is the high
construction cost. Currently, a hydrogenation station in China with a capacity of 200 kg has a cost of
10 million yuan per day, and the components of its construction cost is shown in Figure 4.
13.0%

30.0%
11.0%

7.0%

15.0%
13.0%
11.0%

Compressor Construction Equipment Management Precooler Accumulator Eles

Figure 4. Major components of cost of a hydrogenation station

3. Analysis of bottlenecks in development of hydrogen energy

The hydrogen energy industry in China is still in the introduction stage, showing many defects in
application when it is used in industries, transportation and other fields. The core technologies are
backward, the cost of hydrogen remains high, the infrastructure is weak, the standards are absent – all
these problems are bottlenecks that hinder the development of the hydrogen energy industry.
China has now basically grasped many core technologies regarding the fuel cell stacks, engine
systems, core components and vehicle integration, but key technologies for proton exchange
membrane lag behind developed countries and have large cost. Moreover, for infrastructure like
hydrogenation stations, the industrial hydrogen production capacity takes up 95% of the total capacity,
and over 90% hydrogen is consumed by industrial parks without need for delivery, thus the
commercial storage, delivery and filling network of hydrogen has not been established. The
bottlenecks in production and storage technologies will in the end raise the cost of hydrogen. As is
estimated, the hydrogenation price of hydrogen cell commercial cars and passenger cars is controlled
within 37 yuan/kg and 27 yuan/kg, respectively, and only with a low cost of operation can these cars
compete with electric cars. With the cost for production, acquisition, storage, delivery and filling
considered (without considering the profits), the final cost for industrial byproduct of hydrogen, coal-
produced hydrogen and electricity-produced hydrogen is 47 yuan/kg, 42 yuan/kg, and 63 yuan/kg,
which are all above the hydrogenation price, showing poor economic efficiency. Besides, in terms of
standards, to ensure safety management of hydrogen chemicals, hydrogenation process is not allowed

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IOP Conf. Series: Earth and Environmental Science 526 (2020) 012124 doi:10.1088/1755-1315/526/1/012124

in hydrogenation stations; and due to lack of a set of national standards, commercial hydrogen can
only be transferred in the form of gas, and the cost is five times that of liquid hydrogen storage and
delivery. The cost aside, the industrial standards and technical regulations for the hydrogen energy
industry are also absent, which impedes the adoption and spread of products.

4. Conclusions
Hydrogen energy has wide adoption ion various fields, playing a crucial role in industrial production,
transport, and hydrogen-electricity coupling energy systems. In China, it is necessary to invest more
into research and development of hydrogen production, fuel cells, hydrogen storage and delivery
technologies, to improve infrastructure of hydrogenation stations, seek breakthroughs, reduce the cost
and establish relevant industrial standards. Only in doing so, can we overcome the bottlenecks of
hydrogen energy and lay a clean, efficient and complementary system with secondary energies as the
core.

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