The project Hydrogen Supply to the West Coast has analysed and compared the costs of importing blue or green hydrogen for industry in western Sweden, both in the near term and in anticipation of local wind power production and grid connections being in place. Here, project manager Pontus Bokinge from Chalmers Industriteknik shares the results.
What did the project investigate?
The project evaluated value chains for large-scale import of green or blue hydrogen to the West Coast of Sweden, which can serve as transitional solutions until local production capacity has been built. The evaluation focused on determining the costs per kg of imported hydrogen and the hydrogen's climate performance.
What were the most important results?
The results show that value chains for blue hydrogen - i.e., natural gas-based value chains with the capture and storage of the carbon dioxide formed in the production process - can deliver hydrogen to industrial users on the West Coast at lower total costs than local value chains for green (renewable) hydrogen. While the green value chains provide a greater climate benefit per kilo of delivered hydrogen, the lower costs of the blue value chains mean that in many cases they can deliver more cost-effective emission reductions. Furthermore, we believe that value chains for the import of blue hydrogen can be established faster than large-scale local production of green hydrogen, which provides an opportunity to accelerate the transition of industry on the West Coast.
How can the results be used going forward?
The project's results can serve as a knowledge base and a starting point for more in-depth investigations for companies that view hydrogen as part of their transition work and are interested in exploring avenues other than local production. The results also provide important insights for policymakers and decision-makers at various levels: The fact that regulations and support systems prioritise green hydrogen risks delaying emission reductions in industry by excluding blue value chains, despite the fact that in many cases they can achieve emission reductions at lower costs and be more easily implemented in the near term.