Hydrogen is considered a likely way to decarbonize industries that are hard to electrify, such as heavy transport or machinery. O’Regan said the clean-burning fuel could provide up to 30 per cent of Canada’s energy needs by 2050. He said it could be an industry worth $50 billion and could provide 350,000 jobs. Source - https://www.canadianmanufacturing.com/manufacturing/federal-plan-is-to-increase-hydrogen-use-and-focus-on-regional-hubs-265260/ Production: Today, 95% of hydrogen is produced either from wood or from fossil fuels, such as natural gas and oil. Three types of production process are currently in use: • The most common hydrogen production process is natural gas reforming — sometimes called steam methane reforming because it uses high-temperature steam. When exposed to steam and heat , the carbon (C) atoms of methane (CH4) separate. After two successive reactions, they reform separately to produce hydrogen (H2) and carbon dioxide (carbon dioxide (co₂) ). This operation therefore requires natural gas. • Another process is charcoal gasification1. Charcoal consists mainly of carbon and water. Burned in a reactor at a very high temperature of between 1,200 and 1,500 °C, the charcoal releases gas that separates and reforms to produce hydrogen (H2) and carbon monoxide (CO). • Hydrogen can also be produced using electricity , through electrolysis of water. An electric current is used to split water (H2O) into oxygen (O2) and hydrogen (H2). This method is not as cost-effective as using fossil fuels. Hydrogen produced by steam methane reforming costs around €1.5 per kilogram at the plant gate (excluding distribution costs), triple the cost of natural gas. Hydrogen produced using electrolysis is currently around four times more expensive, even before the cost of the electricity required is factored in. https://www.planete-energies.com/en/medias/close/hydrogen-production Risks 1. In the atmosphere, ozone and water vapour react with sunlight to produce what are known as hydroxyl radicals. These powerful oxidants react with and help remove other chemicals released into the atmosphere via natural and human processes, such as burning fossil fuels. One of these chemicals is methane, a potent greenhouse gas. 2. Our understanding so far suggests that if a hydrogen economy replaced the fossil fuel-based energy system and had a leakage rate of 1%, its climate impact would be 0.6% of the fossil fuel system. But we need to better understand the hydrogen cycle, such as how land surfaces absorb hydrogen. In the meantime, we must try to minimise leakage of hydrogen in production, storage and use. Source https://theconversation.com/dont-rush-into-a-hydrogen-economy-until-we-know-all-the-risks-to-our-climate-140433 3. Repurposing infrastructure - https://www.siemens-energy.com/global/en/news/magazine/2020/repurposing-natural-gas-infrastructure-for-hydrogen.html

1. WHAT IS THE FUTURE FOR
HYDROGEN
PAUL YOUNG CPA CGA
DECEMBER 17, 2020

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• What is Hydrogen
• Hydrogen Production
• Risks with Hydrogen
• World’s largest producers of Hydrogen
• Companies / Hydrogen Fuel Cells

4. WHAT IS HYDROGEN
Source - https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html

5. RISKS WITH HYDROGEN
Fact sheet / Safety Hydrogen
Source - https://www.hse.gov.uk/horizons/current-issues/energy-topics/hydrogen.htm or
https://theconversation.com/dont-rush-into-a-hydrogen-economy-until-we-know-all-the-risks-to-our-climate-140433
• In the atmosphere, ozone and water vapor react with sunlight to produce what are known
as hydroxyl radicals. These powerful oxidants react with and help remove other chemicals
released into the atmosphere via natural and human processes, such as burning fossil
fuels. One of these chemicals is methane, a potent greenhouse gas. But hydrogen also
reacts with hydroxyl radicals and, in doing so, reduces their concentration. Any hydrogen
leaked into the atmosphere – such as during production, transport or at the point of use –
could cause this reaction. This would reduce the number of hydroxyl radicals available for
their important cleansing function.
• Based on what we do know, hydrogen may increase global warming by 20-30% that of
methane if leaked into the atmosphere.
• Read more: Carbon pricing works: the largest-ever study puts it beyond doubt
• Our understanding so far suggests that if a hydrogen economy replaced the fossil fuel-
based energy system and had a leakage rate of 1%, its climate impact would be 0.6% of
the fossil fuel system.
• But we need to better understand the hydrogen cycle, such as how land surfaces absorb
hydrogen. In the meantime, we must try to minimize leakage of hydrogen in production,
storage and use.

6. HYDROGEN PRODUCTION
Source - https://www.shell.com/energy-and-innovation/new-energies/hydrogen.html

7. WORLD LARGEST HYDROGEN PRODUCERS
Source - https://www.greentechmedia.com/articles/read/10-countries-moving-towards-a-green-hydrogen-economy or
https://h2tools.org/node/820
• Australia
• Canada
• China
• France
• Germany
• Japan
• Norway
• South Korea
• United Kingdom
• United States

8. COMPANIES / HYDROGEN FUEL CELLS
Source - https://www.prnewswire.com/news-releases/companies-look-to-hydrogen-fuel-cells-as-production-costs-fall-301105662.html or
https://www.greentechmedia.com/articles/read/utilities-on-both-sides-of-atlantic-follow-oil-majors-hydrogen-lead or https://investorplace.com/2020/09/3-hydrogen-stocks-
ready-to-deliver-charge/

9. DATA AND AI
Data and AI can play a role with monitoring and analysis of hydrogen
• Machine Learning / Hydrogen - https://www.ibm.com/blogs/research/2020/09/machine-learning-helps-resolve-dense-
hydrogen-controversy/
Data and AI can play a critical part of leveraging digital commerce as part of both private and public sector in terms of
maximizing sources of income
• Financial Planning and Analysis - https://ibm.box.com/s/l00j4h6sbomv4uue9p8bgj72h9mxiys1
• Close, consolidate, and reporting - https://ibm.box.com/s/i7efp948qvb5l8bt96y8sigsup8yes2u
• Analytics and AI - https://ibm.box.com/s/fh9cns7sk3ffwhsqhazqpndz1kj3mqbk
• Risk Analytics and AI - https://www.ibm.com/blogs/regtech/introducing-ibm-openpages-with-watson-8-2-release/
• Cybersecurity - https://www.ibm.com/security/mobile/maas360
• CPLEX - https://www.ibm.com/blogs/journey-to-ai/2020/10/maximize-ai-benefits-with-optimized-decisions-powered-
by-cplex/
• Watson/Assistant - https://www.ibm.com/ca-en/cloud/watson-assistant/features

10. SUMMARY
• Hydrogen can play a role with clean energy, but the approach needs to be balance especially with by-products
created from the production process - https://theconversation.com/dont-rush-into-a-hydrogen-economy-until-we-
know-all-the-risks-to-our-climate-140433
• There are better options like Hydro or Molten Salt or Nuclear or Natural Gas that are more cost effective with both
the cost of power and their imprint to the environment - https://www2.slideshare.net/paulyoungcga/electricity-
analysis-canada-and-the-world
• Management of Methane is becoming key area of any fuel production -
https://www.epa.gov/climateleadership/atmospheric-lifetime-and-global-warming-potential-defined

11. OTHER SOURCES
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA CGA