[SMM Analysis] The Future of Hydrogen Energy Industry Development in Ports

Recently, Lingniu Hydrogen Energy and TEDA Holding signed a strategic cooperation agreement to jointly build the "Tianjin Hydrogen Port," sparking a new round of discussions on the application of hydrogen energy in ports. What is a hydrogen energy port? What aspects does it involve? Let's explore these questions in this article.

I. What Are the Key Segments of the Port Hydrogen Energy Industry?

The hydrogen energy industry chain mainly includes four core segments: hydrogen production, storage and transportation, refueling, and application. These segments play a crucial role in the development of the port hydrogen energy industry.

Hydrogen Production:The starting point of the port hydrogen energy industry lies in hydrogen production. Port cities often have abundant renewable energy resources, such as offshore wind and solar energy, which can be converted into hydrogen through methods like water electrolysis. Additionally, some port cities are major production sites for steel and petrochemical products, offering rich industrial by-product hydrogen resources, such as hydrogen from coke oven gas and hydrogen produced from biogas fermentation.

Storage and Transportation:Hydrogen has an extremely low density under normal temperature and pressure, requiring methods such as compression, liquefaction, or adsorption to increase its density for economical storage and transportation. Currently, high-pressure gaseous hydrogen and cryogenic liquid hydrogen are the two main storage and transportation methods. High-pressure gaseous hydrogen technology is the most mature and is the mainstream route at this stage, while liquid hydrogen, with its higher storage density, is more economical for long-distance transportation.

Refueling:Hydrogen refueling stations serve as a critical bridge connecting hydrogen production and consumption in the hydrogen energy industry chain. As an important application scenario for hydrogen energy, ports need dedicated hydrogen refueling stations to meet the refueling needs of hydrogen-powered vehicles.

Application:Hydrogen energy has a wide range of application scenarios, particularly in the port sector, including the replacement of transportation equipment such as hydrogen-powered heavy trucks, forklifts, and ships. As a clean and efficient energy source with the significant advantage of "zero emissions," hydrogen energy is gradually becoming a key clean energy for the green transformation of ports.

II. Why Encourage the Development of Hydrogen Energy in Ports?

Encouraging the development of hydrogen energy in ports is mainly based on the following considerations:

Addressing the Challenges of Global Climate Change:As a vital part of the transportation sector, ports have high energy consumption and significant emissions issues. Hydrogen energy, as a clean and efficient energy source with the advantage of "zero emissions," can help ports achieve a green and low-carbon transformation, reduce carbon emissions, and address the challenges of global climate change.

Reducing Operating Costs:Although the initial purchase cost of hydrogen energy equipment is relatively high, in the long term, the operating costs of hydrogen energy are lower. For example, the hydrogen-powered heavy trucks introduced at Jiaxing Port can reduce carbon emissions by approximately 80 mt per vehicle annually and are expected to save the port over 3 million yuan in fuel costs each year. This demonstrates that the application of hydrogen energy can help ports reduce operating costs and improve economic efficiency.

Promoting Energy Transition in Port Cities:Port cities typically have comprehensive multimodal transportation systems and advantageous geographical locations, facilitating the transportation of hydrogen to inland areas and abroad. Encouraging the development of hydrogen energy in ports can promote the energy transition of port cities, building a clean, low-carbon, safe, and efficient modern energy system.

Driving the Development of the Hydrogen Energy Industry Chain:As an important application scenario for hydrogen energy, ports can contribute to the improvement and development of the hydrogen energy industry chain. Demonstration and promotion in port application scenarios can drive technological innovation and industrial development in hydrogen production, storage and transportation, and refueling, forming hydrogen energy industry clusters.

III. Technical Challenges in the Development of Hydrogen Energy in Ports

Despite the many advantages of hydrogen energy development in ports, there are still some technical challenges, mainly including:

Improving the Economic Viability of Hydrogen Energy Applications:Currently, the high initial purchase cost of hydrogen-powered trucks and other equipment, coupled with high hydrogen production and refueling costs, results in relatively high costs for using hydrogen energy in port equipment. This limits the large-scale application of hydrogen energy in ports to some extent.

Lagging Planning and Construction of Hydrogen Refueling Stations:Most domestic ports lack coordinated planning for hydrogen refueling facilities. Additionally, the tight land use in port areas makes the coordinated layout of hydrogen refueling stations inadequate, and construction efforts need to be intensified. As of November 2019, China had only 41 operational hydrogen refueling stations, mainly concentrated in certain cities, with very few dedicated hydrogen refueling stations for ports.

Innovation and Breakthroughs Needed in Production and Storage Technologies:Currently, China's hydrogen production through "water electrolysis" using wind and solar power is relatively limited, and the efficiency and cost of hydrogen storage and transportation are relatively high. While high-pressure gaseous hydrogen technology is mature, its storage density is limited. Liquid hydrogen has a higher storage density but faces high technical barriers and has long been monopolized by foreign countries. Additionally, domestic hydrogen storage cylinders are mainly 35MPa, lagging behind the 70MPa hydrogen cylinder technology of foreign countries, affecting hydrogen storage and transportation efficiency.

Further Improvement Needed in Standards and Regulations:The standards and regulations related to compliance and safety for hydrogen storage, transportation, and refueling in port areas need further improvement. This limits the standardized and large-scale application of hydrogen energy in ports to some extent.

IV. Future Outlook

Looking ahead, the port hydrogen energy industry is expected to embrace unprecedented development opportunities, mainly in the following areas:

Building Hydrogen Energy Demonstration Ports:Leveraging port scenarios and geographical advantages to further cultivate the hydrogen energy industry and create "hydrogen energy demonstration ports." By introducing advanced equipment such as hydrogen-powered heavy trucks and forklifts, actively promote the green and low-carbon transformation of port logistics and transportation. At the same time, strengthen R&D in hydrogen production and storage equipment, improve policy support and standard systems, and enhance the economic, safe, and standardized use of hydrogen energy.

Developing Hydrogen Production Supply Ports:Vigorously promote the development and utilization of green energy such as wind and PV power in ports, accelerate offshore wind power development, strengthen renewable energy power generation infrastructure, and actively develop multi-mode clean energy hydrogen production to enhance hydrogen supply capacity. Additionally, rely on chemical enterprises near ports to strengthen the collection and application of industrial by-product hydrogen, forming a diversified hydrogen supply system.

Planning Hydrogen Energy Industrial Ports Near Ports:Leverage port advantages to proactively plan and build specialized industrial parks, attract leading enterprises, establish supporting service platforms and infrastructure, strengthen R&D and commercial promotion, and accelerate the construction of a hydrogen energy industry system near ports, covering hydrogen production, storage, transportation, refueling, and application. Through industrial clustering and coordinated development, promote the improvement and optimization of the hydrogen energy industry chain.

Technological Innovation and Industrial Upgrading:Strengthen technological innovation and industrial upgrading in hydrogen production, storage, transportation, and refueling. For example, develop more efficient and economical water electrolysis hydrogen production technologies; promote breakthroughs and industrialisation in high-pressure gaseous hydrogen and liquid hydrogen storage and transportation technologies; and accelerate the R&D and localisation of hydrogen refueling station equipment. Through technological innovation and industrial upgrading, reduce the cost of hydrogen energy applications and improve the efficiency and safety of hydrogen energy utilization.

International Cooperation and Exchange:Strengthen cooperation and exchange with the international hydrogen energy industry, learn from advanced foreign experiences and technologies, and promote the international development of the hydrogen energy industry. Through international cooperation and exchange, jointly address the challenges and opportunities of hydrogen energy industry development, and promote the prosperity and development of the global hydrogen energy industry.

In summary, the development prospects of the port hydrogen energy industry are broad, but it also faces many challenges. Only through efforts in technological innovation, industrial upgrading, and policy support can the sustainable and healthy development of the port hydrogen energy industry be promoted, contributing to the green and low-carbon transformation of global ports.