GREEN HYDROGEN IN FOCUS
GREEN HYDROGEN PRODUCTION
At Canigou we are focused on developing innovative technology to create a sustainable, affordable and reliable source of green hydrogen for the US market.
To make green hydrogen instead of using SMR, hydrogen is made from water using electrolysis. This process splits water molecules into hydrogen and oxygen molecules through the application of an electric current. The electrolysis process is then powered by renewable energy sources such as solar, wind, hydro power, and geothermal. Most green hydrogen is produced using a combination of these technologies in order to power the electrolysis all year round. Green hydrogen production is also a way to use excess renewable energy when the grid is saturated. The hydrogen produced through this process is considered to be “green” or “clean” because it does not produce any emissions or pollutants.
Hydrogen has many applications worldwide and the demand for hydrogen continues to rise, meaning a way to produce it, in a green fashion is highly desirable. Green hydrogen currently only makes up 6% of global hydrogen and that percentage is based primarily on pre-existing renewable energy projects that have added hydrogen production or vice versa.
Current Production
of H2
Hydrogen production is commonly done using steam methane reforming (SMR) which is a process in which methane from natural gas is heated, with steam, usually with a catalyst, to produce hydrogen and carbon monoxide. This process has a high carbon emission and uses fossil fuels and forms “Grey” hydrogen.
Greening H2
To make green hydrogen instead of using SMR, hydrogen is made from water using electrolysis. This process splits water molecules into hydrogen and oxygen molecules through the application of an electric current. The electrolysis process is then powered by renewable energy sources such as solar, wind, hydro power, and geothermal.
Reasoning
Applications?
Hydrogen is used in many industries, as fuel in all the transport industries as well as space exploration. As a heat source in residential and commercial buildings.
Why now?
With the global move towards renewable energy sources, many countries are investing heavily in green hydrogen in order to reduce their reliance on fossil fuels.
How much?
Green hydrogen currently only makes up 6% of global hydrogen and that percentage is based primarily on pre-existing renewable energy projects that have added hydrogen production or vice versa.
Inflation Reduction Act
Hydrogen Incentives
The law includes a breakthrough tax credit for “qualified clean hydrogen” which would pay producers up to $3 per kilogram of hydrogen from 2023. A producer could choose an investment tax credit of up to 30% of the cost of the energy facility. The full tax credit of $0.60 per kg of hydrogen (multiplied by five if labour and wage standards are met) is available for hydrogen where greenhouse gas emissions are less than 0.45kg CO2e/kg hydrogen. With increased investment and research, green hydrogen has the potential to become an integral part of the energy industry. By replacing fossil fuels with green hydrogen, the US can reduce its carbon footprint and move towards a more sustainable energy future.
CANIGOU PROJECTS WITH GREEN HYDROGEN
The Canigou Sun Bear project, situated in Colorado, will be a 1-5GW solar farm connected to the national grid. We are currently evaluating if this project could be linked to a green hydrogen project using electricity produced by the solar panels to power electrolysis.
The hydrogen produced could then be used in multiple ways, either as a gas or to be converted into ammonia to then be used as ammonia as a feedstock or to be transported as ammonia but then cracked back into hydrogen.
