Growing Interest in Grading Hydrogen
Cummins Inc. (CMI) highlights the growing importance of grading hydrogen for fuel cells and hydrogen internal combustion engines (H2-ICE). The PR discusses various methods of categorizing hydrogen, including color codes and carbon intensity scores. While color coding (e.g., green, blue, grey) provides a quick reference for hydrogen's sustainable value, carbon intensity scores offer more precise evaluations for environmental, social, and governance (ESG) goals.
The article emphasizes the impact of hydrogen production methods on emissions and performance. It also notes that fuel cells require purer hydrogen than H2-ICE. The Department of Energy (DOE) and California Air Resources Board (CARB) focus on carbon intensity values rather than color codes for assessing hydrogen's environmental impact.
Cummins Inc. (CMI) sottolinea l'importanza crescente della classificazione dell'idrogeno per celle a combustibile e motori a combustione interna a idrogeno (H2-ICE). Il comunicato stampa discute diversi metodi di categorizzazione dell'idrogeno, inclusi i codici colore e i punteggi di intensità di carbonio. Mentre la codifica a colori (ad esempio, verde, blu, grigio) offre un riferimento rapido per il valore sostenibile dell'idrogeno, i punteggi di intensità di carbonio forniscono valutazioni più precise per obiettivi ambientali, sociali e di governance (ESG).
L'articolo enfatizza l'impatto dei metodi di produzione dell'idrogeno su emissioni e prestazioni. Viene inoltre notato che le celle a combustibile richiedono idrogeno più puro rispetto agli H2-ICE. Il Dipartimento dell'Energia (DOE) e il California Air Resources Board (CARB) si concentrano sui valori di intensità di carbonio piuttosto che sui codici colore per valutare l'impatto ambientale dell'idrogeno.
Cummins Inc. (CMI) destaca la creciente importancia de la clasificación del hidrógeno para pilas de combustible y motores de combustión interna de hidrógeno (H2-ICE). El comunicado discute varios métodos de categorización del hidrógeno, incluyendo los códigos de color y las puntuaciones de intensidad de carbono. Mientras que la codificación por colores (por ejemplo, verde, azul, gris) proporciona una referencia rápida para el valor sostenible del hidrógeno, las puntuaciones de intensidad de carbono ofrecen evaluaciones más precisas para los objetivos ambientales, sociales y de gobernanza (ESG).
El artículo enfatiza el impacto de los métodos de producción de hidrógeno en las emisiones y el rendimiento. También se menciona que las pilas de combustible requieren hidrógeno más puro que los H2-ICE. El Departamento de Energía (DOE) y el California Air Resources Board (CARB) se centran en los valores de intensidad de carbono en lugar de en los códigos de color para evaluar el impacto ambiental del hidrógeno.
Cummins Inc. (CMI)는 연료 전지 및 수소 내연 기관(H2-ICE)의 수소 등급화의 중요성이 증가하고 있음을 강조합니다. 보도 자료에서는 색상 코드 및 탄소 강도 점수를 포함한 다양한 수소 분류 방법을 논의합니다. 색상 코딩(예: 녹색, 파란색, 회색)은 수소의 지속 가능한 가치를 빠르게 참조할 수 있는 기준을 제공하는 반면, 탄소 강도 점수는 환경, 사회 및 거버넌스(ESG) 목표에 대한 보다 정확한 평가를 제공합니다.
이 기사에서는 수소 생산 방법이 배출량과 성능에 미치는 영향에 대해 강조합니다. 또한 연료 전지는 H2-ICE보다 더 순수한 수소를 요구한다고 언급합니다. 에너지부(DOE)와 캘리포니아 대기 자원 위원회(CARB)는 수소의 환경 영향을 평가하기 위해 색상 코드보다는 탄소 강도 값에 초점을 맞추고 있습니다.
Cummins Inc. (CMI) souligne l'importance croissante de la classification de l'hydrogène pour les piles à hydrogène et les moteurs à combustion interne à hydrogène (H2-ICE). Le communiqué traite de différentes méthodes de catégorisation de l'hydrogène, y compris les codes couleur et les scores d'intensité carbone. Alors que la codification par couleur (par exemple, vert, bleu, gris) fournit une référence rapide pour la valeur durable de l'hydrogène, les scores d'intensité carbone offrent des évaluations plus précises pour les objectifs environnementaux, sociaux et de gouvernance (ESG).
L'article souligne l'impact des méthodes de production d'hydrogène sur les émissions et la performance. Il est également noté que les piles à hydrogène nécessitent un hydrogène plus pur que les H2-ICE. Le Département de l'Énergie (DOE) et le California Air Resources Board (CARB) se concentrent sur les valeurs d'intensité carbone plutôt que sur les codes couleur pour évaluer l'impact environnemental de l'hydrogène.
Cummins Inc. (CMI) hebt die wachsende Bedeutung der Wertung von Wasserstoff für Brennstoffzellen und Wasserstoff-Verbrennungsmotoren (H2-ICE) hervor. Die Pressemitteilung behandelt verschiedene Methoden zur Kategorisierung von Wasserstoff, einschließlich Farbcodes und Kohlenstoffintensitätswerte. Während Farbcodierung (z. B. grün, blau, grau) einen schnellen Bezug zum nachhaltigen Wert von Wasserstoff bietet, bieten Kohlenstoffintensitätswerte genauere Bewertungen für Umwelt-, Sozial- und Governance-Ziele (ESG).
Der Artikel betont die Auswirkungen der Wasserstoffproduktionsmethoden auf Emissionen und Leistung. Er stellt außerdem fest, dass Brennstoffzellen reineren Wasserstoff benötigen als H2-ICE. Das Energieministerium (DOE) und der California Air Resources Board (CARB) konzentrieren sich auf Kohlenstoffintensitätswerte anstelle von Farbcodes zur Bewertung der Umweltauswirkungen von Wasserstoff.
- Hydrogen fuel can significantly reduce emissions in medium and heavy-duty trucking
- Cummins' Accelera focuses on green hydrogen production through alkaline and proton exchange membrane (PEM) electrolyzers
- Hydrogen consistently posts some of the lowest carbon scores among transportation fuels analyzed by CARB
- High costs of manufacturing green hydrogen, though expected to decrease with innovations
- Grey hydrogen, comprising 95% of U.S. hydrogen production, produces greenhouse gas byproducts
- Potential methane and hydrogen leaks from storage pockets in blue hydrogen production
Insights
This article highlights a significant shift in the hydrogen industry towards more precise categorization methods. The growing interest in grading hydrogen based on carbon intensity rather than color coding is a crucial development for investors in the energy sector.
The move towards carbon intensity scoring aligns with increasing ESG demands and could impact investment decisions in hydrogen-related companies. Companies focusing on green or low carbon intensity hydrogen production, like Cummins' Accelera, may see increased investor interest.
However, the transition from color coding to carbon intensity scoring might create short-term market confusion. Investors should closely monitor how quickly industry standards adapt and how this affects company valuations in the hydrogen space.
The article also hints at potential growth in the hydrogen fuel cell and H2-ICE markets, which could present investment opportunities in companies developing these technologies.
The shift towards carbon intensity scoring for hydrogen is a significant policy development with far-reaching implications. This move aligns with broader climate policy goals and could accelerate the adoption of cleaner hydrogen production methods.
The Department of Energy's focus on carbon intensity in its Clean Hydrogen Strategy signals a potential shift in federal policy and funding priorities. This could lead to increased support for low-carbon hydrogen projects and potentially stricter regulations on high-emission production methods.
California's LCFS program, using carbon intensity values, sets a precedent for other states. We might see similar policies adopted across the U.S., creating a more unified national approach to hydrogen evaluation.
Investors should watch for policy changes that could affect the competitiveness of different hydrogen production methods, potentially reshaping the industry landscape.
The hydrogen market is at a critical juncture, with this shift in categorization potentially reshaping industry dynamics. The move towards carbon intensity scoring could drive market consolidation, favoring companies with cleaner production methods.
Investors should note the potential for market disruption as companies adapt to new standards. Those able to produce hydrogen with lower carbon intensities may gain a competitive edge, potentially leading to shifts in market share.
The article suggests a growing market for green hydrogen, despite current high production costs. As innovations progress and costs decrease, we could see a significant market expansion in this area.
The differentiation between fuel cell and H2-ICE fuel specs indicates two distinct market segments developing. This could lead to diversified investment opportunities within the hydrogen sector, catering to different end-user needs.
NORTHAMPTON, MA / ACCESSWIRE / August 29, 2024 / Cummins Inc.:
by Tom Quimby, On-highway Journalist
Knowing the fuel used for hydrogen fuel cells and hydrogen internal combustion engines (H2-ICE) is just as important as knowing the powertrains themselves. Fuel can impact not only performance but also a fleet's green profile.
Several terms are used to identify hydrogen and for various reasons. Different agencies, industries and entities involved in the use and production of hydrogen have begun categorizing it either by carbon intensity or with colors such as green, blue, grey and pink.
While hydrogen is the most prolific element in the universe, it must be extracted from sources like water, methane and oil which require various production methods and energy needs.
Depending on the source of hydrogen and how it's produced, undesirable emissions like carbon monoxide and carbon dioxide can occur. The cleaner the source of energy used to produce hydrogen, the better its well-to-wheels carbon profile.
To help get a better grasp on the climate change impact of the hydrogen that will power H2-ICE and fuel cells, look at color codes and carbon intensity scores. Each has a role to play as industry and government stakeholders work to set standards for this emerging fuel which has been shown to slash emissions while meeting the challenging demands of medium and heavy-duty trucking.
Being aware of variations in hydrogen production through color codes and carbon scores can help fleets more effectively reach environmental, social and governance (ESG) goals which according to McKinsey & Company can reduce risk and attract investors.
"The color wheel has traction and those that have been using it default to it," said Tom Swenson, Director of Global Regulatory Affairs at Cummins Inc. "But you need a number to do the math to say, ‘here's my carbon score,' for whatever you're trying to calculate. If it's for ESG you need a number."
Isabel Castro, Electrolyzer Marketing Director at Accelera™ by Cummins, pointed out the value of categorizing hydrogen by colors while leaning on carbon intensity scores as the final arbiter.
"Color coding is helpful and easy to understand and thus makes it easy to spread awareness of the different types of hydrogen production," Castro said.
While colors can be helpful to initially differentiate hydrogen sourcing and production methods, carbon intensity values provide a more precise evaluation since, as Castro explained, "color coding alone is not sufficient to provide the real carbon footprint."
Contaminants in hydrogen are also a factor especially for fuel cells which require a purer fuel than H2-ICE. Failing to recognize contaminants will hinder fuel cell performance.
"There will be two different [hydrogen] fuel specs. Fuel cell will have a fuel spec, and the hydrogen engine will have a fuel spec," explained Jim Nebergall, Executive Director of Market Strategy at Cummins. "The main difference is that fuel cells require very pure fuel, sometimes referred to as "five 9s purity" which means
Making sense of hydrogen's colors
Besides looking out for impurities in hydrogen, it's critical to keep an eye on the fuel's environmental impact.
Color coding can quickly identify hydrogen in terms of its sustainable value. Accelera has provided a look at some of the more popular colors used to categorize the fuel:
Green hydrogen: Obtained from water through electrolysis powered by renewable energy sources like solar, wind and hydropower. This is the only type of hydrogen that produces zero emissions during production. High costs of manufacturing are expected to drop as innovations in the arena grow. Accelera focuses on green hydrogen production through both alkaline and proton exchange membrane (PEM) electrolyzers.
Yellow hydrogen: A type of green hydrogen produced with solar power.
Grey hydrogen: Comprises
Blue hydrogen: Similar to grey hydrogen except that carbon capture and storage (CSS) sequesters carbon dioxide underground. Methane and hydrogen leaks from storage pockets are a concern and there is still debate on whether CSS combined with SMR is actually a low carbon process.
Turquoise hydrogen: Falling between green and blue hydrogen, turquoise is produced through methane pyrolysis, a high-temperature process that converts methane into hydrogen gas and solid carbon like coal or biomass in the presence of a catalyst. No carbon monoxide or carbon dioxide emissions are created.
Pink hydrogen: Like green hydrogen except nuclear energy is used to fuel electrolysis either through electricity or from steam rendered through the production of such nuclear energy. That steam can also be used for SMR to obtain hydrogen from natural gas.
Brown and black hydrogen: Hydrogen obtained from either brown or black coal. Though black coal releases less carbon dioxide, the gasification of coal is the most environmentally damaging.
White hydrogen: Naturally occurring hydrogen found in underground deposits. It's also known as gold hydrogen when found in depleted oil wells where fermenting microbes produce the gas.
When numbers count
As Tom Swenson noted there have been a growing number of colors being assigned to hydrogen. Some stakeholders have found the array confusing as it does not offer a value that can be accurately calculated for ESG. Access to the Department of Energy's (DOE) clean hydrogen production tax credit also deems color coding unnecessary.
DOE does not use colors to define hydrogen. The department refers instead to carbon intensity values in its U.S. National Clean Hydrogen Strategy and Roadmap.
"DOE does not use color definitions of hydrogen and focuses on enabling clean hydrogen from multiple pathways where the priority is to reduce carbon intensity," an emailed statement from DOE reads.
The California Air Resources Board (CARB) also uses carbon intensities to assess hydrogen. Through its Low Carbon Fuel Standard (LCFS) program, CARB has published monthly carbon intensity values of various transportation fuels including hydrogen.
Hydrogen has consistently posted some of the lowest carbon scores among the 17 fuels currently analyzed by CARB.
"LCFS does a fantastic job of doing that analysis and giving a number where everybody says, ‘okay, I understand what that means'," Swenson said.
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SOURCE: Cummins Inc.
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FAQ
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