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Gray hydrogen future in the energy transition is uncertain. As the world increasingly focuses on reducing carbon emissions, gray hydrogen is losing favor due to its high carbon footprint. Many countries have set ambitious targets to reach net-zero emissions by 2050, which requires a significant reduction in greenhouse gas emissions. This has led to a growing interest in cleaner hydrogen production methods, such as green and blue hydrogen.<br><br>
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GRAY HYDROGENFUTURE Thereisdiscussionregardingtheroleofgrayhydrogen,or hydrogenderivedfrom fossilfuels, asthe worldmovestoward clean energy.Grayhydrogencanreduce emissionsintheinterim whilegreener hydrogenproductionrampsup,accordingtosupporters.Grayhydrogen'sdetractors arguethatitcould lockintheuseoffossilfuelsindefinitely and divertattentionfromtrulyrenewablealternatives. DownloadPDF:https://www.marketsandmarkets.com/industry-practice/RequestForm.asp Steammethanereformingisaprocessthat producesgrayhydrogenbyreactingnaturalgasmethane with steamtoproducecarbondioxideand hydrogen. Grayhydrogenhasa carbonfootprintbecause the CO2isnotcapturedbutinsteadreleasedinto theatmosphere.However,supporterspoint outthatgray hydrogenstill emitslessCO2than burningcoalor naturalgasdirectly,eveninthe absence ofcarbon capture. Someconsidergrayhydrogento beapracticaloption thatmakesuse ofthecurrentnaturalgas infrastructuretoproducecheaphydrogeninlargequantities.Theycontendthatsustainabilitymust be balanced with affordabilityand energy security. Some arguethatincreasingreliance onfossilfuels undermineseffortstocombatclimatechange.Additionally,investinginless expensivegrayhydrogen produced throughrenewableenergy-poweredelectrolysiscouldbeunderminedbycheapergreen hydrogen. Withtheproposaloflarge-scalegrayhydrogenprojects,thedebateisunfolding.However,some climate expertsargue thatgrayhydrogenshouldonlybeusedincertain situations, such astheproduction of steel,wheregreen hydrogenisn'tyeteconomicallyfeasible.Theysupportgivingrenewableenergytop priorityin ordertolowerthecost of green hydrogen. Grayhydrogen'sfutureisuncertain.Supportersseeitasaviable option forindustriesthat are challengingtodecarbonize.However,environmentalistsworrythatunlessitsscopeand longevityare restricted, itwillonly prolong theuse of fossilfuels.Whethergrayhydrogenisadiversionor abridgeto a cleanerenergyfuturewillbecomeclearin the upcomingyears. GrayHydrogenRegulationsandPolicies: Governmentsare creating policiesand incentivestocontroltheexpansionofgrayhydrogenprojects as theyhavegrown.GrayhydrogenproponentsciteEuropeanregulations thatpermitnaturalgas hydrogen projectsto proceed aslong astheyswitchtolow-carbonhydrogenby 2030. By 2050,theEuropean Union wants toincreasetheshare ofhydrogen inits energy mixto 13–14%,andithas allocatedfundsto buildinfrastructuresupporting hydrogen. Critics claim that insufficientregulationsposearisk oflockingintheuse offossilfuelsand that Europe's approach is inadequate.Theycitemorestringentregulationsinnations suchasNewZealand,which prohibittheclassificationofhydrogen derivedfromnaturalgas as"renewable" or"low-emissions".A cleanfuelstandardbeingdevelopedinCanadamightrestrict the amount ofcreditsavailableforgray hydrogen.
Onlyblue hydrogenproducedusingcarboncaptureiseligiblefor creditunderCalifornia'slowcarbon fuelprogram atthestatelevel.StateslikeNew Jersey and NewYorkareofferingincentivesforgreen hydrogen. Finding the ideal policy balance to promote decarbonization while simultaneously assisting affordability, scale, and a seamless energy transition is likely to be a topic of ongoing discussion. The course that gray hydrogen takes will beshapedbytheregulatorymeasuresthatgovernmentsadopt. RaedMore:https://www.marketsandmarkets.com/industry-practice/hydrogen/gray-hydrogen
