Success from hydrogen transition — for businesses and society

Hydrogen is one of the cornerstones of the future energy economy. So, how can hydrogen be produced now and in the future? How can we move towards fossil-free hydrogen production as smoothly as possible? What refineries are made from hydrogen? What are the benefits of the hydrogen transition for businesses and society? In this blog post, I share my thoughts on the first steps of the hydrogen transition.  

Hydrogen with electricity, sunlight and new innovations  

Hydrogen will be produced by electrolysis using electricity generated by wind, solar panels, nuclear power and possibly fusion power in the future. But electricity alone is not enough to produce hydrogen on a very massive scale. Those who understand big numbers will realise, for example, the huge electricity requirements of electrolysis-based production. So, we need to actively develop existing and look for new hydrogen production solutions.  

A number of new innovations have already emerged. Hydrogen can also be produced without electricity, for example photocatalytically using sunlight alone. This so-called solar hydrogen can be produced commercially, as long as alternatives that mimic natural photosynthesis become more efficient. Solar hydrogen production is also being piloted using photoelectrocatalytic manufacturing techniques that combine electricity and light. The University of Oulu is also researching new photocatalysts suitable for solar water production.  

From a technological point of view, it is important to understand that the hydrogen economy is also closely linked to electrification. Hydrogen and its refined products act as energy storage, energy carriers and raw materials for chemicals. The energy of hydrogen-based products can be harnessed as electricity, heat or mechanical energy, for example. Hydrogen therefore has a strong link to electricity, both in terms of production and use.  

Hydrogen produced from fossil raw materials is not sustainable nor the solution of the future  

In the future, hydrogen will not be made from fossil raw materials — at least not for a very long time. In addition to emissions problems, fossil-based hydrogen is also a geopolitically problematic and inequitable solution.  

However, in the early stages of the hydrogen transition, fossil raw materials are needed to really get the transition going. If carbon can be efficiently captured without releasing it into the atmosphere, the use of fossil raw materials as a temporary solution for the transition period may be more sustainable — especially if the growing demand for hydrogen cannot be met by other means. A promising pioneer in capturing the carbon released in the production of natural gas-based hydrogen is Finnish Hycamite. Their technology is based on research at the University of Oulu. More innovations are expected in this area.  

Hydrogen is refined and enables new processes  

A successful transition to a hydrogen economy requires a strategic approach from companies. It requires, for example, assessing and developing their own capabilities and partnerships, actively seeking new business models, investing in research, development and innovation and, of course, getting things done.  

Indeed, companies are already working hard to develop new ways of using hydrogen in different processes. Hydrogen is often used in the production of various refined products such as ammonia and hydrocarbons. This makes sense for a number of reasons, not the least of which is utilizing existing infrastructures, uses and logistics. Hydrogen will also play a more important role in the fuel and chemical value chains.  

One of the biggest consumers of hydrogen in the future is likely to be the steel industry. SSAB, the largest steel producer in the Nordic countries, is a pioneer in the use of hydrogen solutions in its sector. Their HYBRIT technology replaces coal in the iron ore reduction process with hydrogen. The University of Oulu is collaborating with SSAB in research on this topic. We are also investigating hydrogen processing techniques, its effect on steel in different structures and its use in engines.  

Hydrogen is also used to make refined products: ammonia and various hydrocarbons directly replace fossil products as transport fuels. The technologies and chemical syntheses are familiar, but there is much scope for development and improvement. Refining has its own potential for innovation.  

A smart legislator sees the big picture and acts as an enabler  

The national success of a society is built on sound policies. Policy makers need to understand the big picture of technological development, challenge themselves a little in terms of technology management, trust the experts and distinguish between short- and long-term goals. Lobbying needs to be understood and seen as a complementary perspective to information, rather than blindly believing the loudest voices. Legislation must enable an innovative environment and remove barriers to innovation. Research institutes and companies must be encouraged and supported to carry out genuine innovation activities, taking into account the needs of technologies and solutions at different stages of development: do we need basic research, applied research, product development or production investment? 

In terms of the national economy, it is clear that the transition from the fossil energy chain to a hydrogen economy offers an opportunity to improve the current account balance in a country without its own fossil raw material reserves. If a country has no oil sources, the strategy must be to move away from oil dependency. Cheap electricity or the hydrogen it produces must be able to be refined, i.e. they must be sought to increase in value. The energy produced in the country must be exploited by producing more valuable export products.   

It is to be hoped that technological progress, but also the expansion of production and increased self-sufficiency, will make energy cheaper in the future. This will be a challenge as energy demand grows. National competitive advantage will certainly not be based on the export of unrefined energy. On the contrary, excessive energy exports likely stand in the way of the development of a competitive society. 

An innovative community wins in times of change  

The energy transition that has begun is a huge global technological and economic disruption. Its success will require, among other things, the development of new products and technologies, the production of hydrogen and hydrogen refineries, and the use of hydrogen in materials manufacturing, production processes, energy storage and hydrogen logistics. Changes in legislation are also required. We need technological, business, regulatory and social innovations and solutions.  

The University of Oulu is one of the most important centers for hydrogen research in Finland. We aim to solve the challenges of hydrogen transfer in a multidisciplinary way in hydrogen production and handling, in steel industry processes and in hydrogen storage and transport. The university directs its research to meet the needs of both industry and society. Training is also provided in this area.  

Whether you are planning a strategy or practical measures for hydrogen transition, don’t hesitate to contact the University of Oulu.  

How can we help your company succeed in hydrogen transition? Contact us:

Petri Leukkunen, Customer Manager 
petri.leukkunen@oulu.fi 
+358294481162