HYDROGEN TO MOBILITY

Decarbonizing the Mobility Market with Cost-Effective and Low-Carbon-Intensity Hydrogen

The hydrogen mobility market is set to grow rapidly and is projected to reach $2.7 trillion by 2050. Compared to battery-only electric vehicles, hydrogen fuel cell electric vehicles (FCEV) and hydrogen internal combustion engine (ICE) vehicles have much faster refueling and longer range to cleanly power heavy-duty trucks, buses and trains. 

However, conventional methods of hydrogen production are facing roadblocks, including high emissions, costly infrastructure and significant energy and transport requirements. Furthermore, centralized hydrogen hubs raise transportation costs and increase supply chain risk, hindering widespread acceptance. 

Current Challenges to Mobility Sourcing Clean, Affordable Hydrogen

1. Steam Methane Reforming (SMR): Carbon- and Infrastructure-Heavy 

Today, nearly all hydrogen demand is supplied by Steam Methane Reforming (SMR), which uses natural gas to produce hydrogen, with further purification steps needed. While SMR is the cheapest form of hydrogen production at large scale, it is not the lowest cost at small scale and this method emits 8-10 kg of CO₂ per kg of hydrogen produced. Upgrading biogas to renewable natural gas to feed the SMR also suffers from methane slip, which has 84 times worse global warming potential than CO₂ over a 20-year period. 

Reducing CO₂ emissions from SMRs operating on natural gas requires carbon capture and storage (CCS), which is costly and not yet widely available, with only 15 CCS facilities operating in the U.S. While Renewable Natural Gas (RNG) is an option for larger RNG sites in North America with pipeline access, many biogas locations are too small or remote for a gas pipeline to make economic sense.

2. Electrolysis: Costly and Unreliable 

Electrolysis uses electricity to split water into hydrogen and oxygen and makes up only 4% of hydrogen production due to its high costs. To be economical, electrolysis requires continuous 24/7 power, often exceeding 1 GW, and incurs substantial water-related costs. Electrolyzers also rely on expensive precious metals like platinum and iridium, further increasing costs and creating supply chain vulnerabilities. 

When powered by intermittent renewable sources like solar or wind to create green hydrogen, electrolyzers experience low utilization and frequent swings in operation, reducing energy efficiency, accelerating degradation and lowering hydrogen output. Over time, they experience a decrease in performance from membrane degradation and fluctuating power, reducing electrolyzer reliability and performance.

3. Centralized Hubs: Limited Scalability and High Transportation Costs 

A consistent and affordable hydrogen supply is essential for the widespread adoption of hydrogen fuel cell technology. While global hydrogen demand is rising, it remains heavily concentrated in traditional sectors like chemicals, petroleum refining and fertilizer production, and mostly sourced from fossil fuels without carbon capture.

Rather than relying on centralized hubs, distributed local hydrogen production is crucial to reducing transportation costs, stabilizing supply and minimizing energy loss from evaporation—fostering growth in the clean mobility sector.

4. Regulatory Pressures: Transitioning to Cleaner Alternatives is Imperative

As global regulations increasingly favor low-carbon solutions, companies are under pressure to shift away from traditional hydrogen production methods like SMR. According to McKinsey, clean hydrogen is projected to supply 73 to 100% of global hydrogen demand by 2050. This regulatory push compels industries to prioritize Environmental, Social and Governance (ESG) targets, driving them toward cleaner, more sustainable alternatives.

Biogas: A Practical, Decentralized Solution for Hydrogen Mobility

Biohydrogen, produced from water via biogas, presents a low-cost, decentralized approach to producing high-purity hydrogen for the heavy-duty mobility sector. Biogas is a renewable energy source derived from decomposing organic matter, like agricultural residue, animal manure, plant material, municipal waste and food scraps. 

The U.S. biogas industry is booming, with a record-breaking 100 new biogas projects that came online in 2023, representing $1.8 billion in investment. The American Biogas Council estimates the potential for 15,000 more biogas sites based on the 100 million tonnes of organic material produced around the country, leaving much potential for expansion.

As the biogas industry continues to grow, more methane emissions can be diverted from landfills, wastewater treatment plants and agricultural waste to produce low-cost, high-purity hydrogen in the mobility sector and displace fossil fuels—potentially resulting in negative carbon emissions. 

H2Gen™: Scalable Biogas-to-Hydrogen Plants for On-Site, Decentralized Mobility Solutions

H2Gen is Utility’s innovative industrial decarbonization solution that uses electrochemical energy in biogas to produce high-purity hydrogen from steam in a single step. Designed with modular scalability, H2Gen systems enable localized hydrogen production, reducing the need for centralized infrastructure and minimizing transportation costs. This approach not only lowers hydrogen production costs but also provides flexibility for deployment in both urban and remote areas, at low capital investment requirements,  supporting a reliable and resilient hydrogen supply chain for heavy-duty transportation. By leveraging existing biogas sources, H2Gen empowers industries to meet decarbonization targets while enhancing energy independence.