Hydrogen Utilization in Industry. A Cost Comparison between On-Site Production and External Supply

Abstract

Hydrogen has gained prominence as a versatile and sustainable energy carrier with significant potential for decarbonizing various industrial processes. This paper explores the utilization of hydrogen in an industrial context, focusing on its applications, benefits, challenges, and future prospects. Key industrial sectors, such as refining, chemicals, and steel production, are discussed, highlighting the role of hydrogen in reducing greenhouse gas emissions and enhancing energy efficiency. Additionally, the paper addresses the technical and economic challenges associated with hydrogen adoption and outlines the research and development efforts required to unlock its full industrial potential. Furthermore, the economic convenience of on-site hydrogen production is compared against the supply from an external source, proposing a formula for a quick assessment of the most profitable alternative.