Green hydrogen is a type of hydrogen gas that is produced using renewable energy sources such as wind, solar, and hydropower. It is considered "green" because the process of producing it does not produce carbon dioxide or other greenhouse gas emissions that contribute to climate change.
Green hydrogen is produced through a process called electrolysis, which involves splitting water molecules into their component parts of hydrogen and oxygen using an electrical current. The electricity used in this process is generated from renewable energy sources, such as wind or solar power.
However, producing green hydrogen can be energy-intensive, as it requires a significant amount of electricity to split water molecules into hydrogen and oxygen through electrolysis.
That’s where GH Power comes in. The Canadian energy producer has a 1-25 MW reactor that uses zero hydrocarbons and leaves no carbon footprint.
The reactor requires small start-up power (about 30 minutes) but produces green outputs significantly cheaper than existing processes such as electrolysis. Once the 1-25 MW reactor is running at a steady state, it can power the grid 24/7.
GH Power’s scaled-up 25 MW reactor will also allow for the production of green hydrogen at much lower costs. The International Energy Agency (IEA) says we need 520 million tonnes of hydrogen to achieve net-zero targets by 2050.
If GH’s hydrogen project succeeds, it could decarbonize air travel and shipping. Alongside GH Power, other companies are working on hydrogen tech solutions. These include BP (BP), Plug Power (PLUG) , Royal Dutch Shell (SHEL), Fuelcell Energy (FCEL), and more.
On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
