Hydrogen is a gas that can be reacted with oxygen to create water and energy.
Hydrogen can be burned in a combustion engine, for example as rocket fuel,
or it can be used in a fuel cell to create electricity.
Hydrogen cannot be found on its own and harvested like oil. Instead, it needs
to be created, by breaking apart other substances, like coal, gas or water.
Most of the hydrogen made in NZ is made from natural gas using a process called
steam reformation. Hydrogen produced this way is called “blue” hydrogen because
it creates greenhouse gas emissions.
Hydrogen that is made from fossil fuels can only have low emissions
the emissions are captured and stored using
carbon capture and storage
techniques.
Carbon Capture and Storage (CCS) involves storing CO2, typically in in old,
used-up, underground oil and gas reservoirs, coal beds or saline formations.
This is not widely used and can cost around $150 US per tonne of CO2 stored.
There is, however, also
research being done
on ways to store CO2 in materials
like concrete and carbon fibre. This would be much more cost-effective than burying it.
Hydrogen can also be made from water by using electricity to split water
into oxygen and hydrogen gas. This process is called
High Pressure Electrolysis
.
Hydrogen made this way is called “green” hydrogen if the electricity used
to make it comes from renewable energy sources.
Making hydrogen this way in New Zealand costs about $8.90 per kg before the costs
of transportation, storage and retail sale are added. In comparison, making it
from natural gas currently costs $2.70.