Author: Georgia

Recent years have seen a surge of interest in hydrogen, and especially in its potential role in decarbonizing energy systems and wider economies. References to “green,” “blue” and “clean” hydrogen may at times be confusing, but can also leave the impression that the important issues around hydrogen are simple and well understood, or at least should be relatively easy to sort out. TUED’s latest Working Paper, True Colors: What Role Can Hydrogen Play in the Transition to a Low-Carbon Future? argues that such an impression could hardly be further from the truth.

The paper argues that mainstream policy voices and private-sector interests have largely shaped and driven the debates around hydrogen, without seriously questioning, let alone challenging, current policy and ownership patterns. As a result, these debates often take place as if the priority is to choose among technology options, without worrying about what else might need to change in order for any of those options to be able to really help solve the climate and energy crisis.

Hydrogen and the Decarbonization Challenge

Hydrogen already plays an important role in many industrial and other processes. Large quantities of hydrogen are used in refining petroleum, in the production of steel, ammonia and other chemicals, as a coolant in power stations, and much more. Hydrogen can be used to produce electricity through fuel cells, which can power vehicles or be fed into electrical grids. It can be used as a fuel for heat or to drive gas turbines, or can be converted into ammonia or other fuels. In principle, it can be produced from “carbon-free” sources and used as a fuel in ways that produce only water as waste.

But ensuring that hydrogen can play a significant role in decarbonization would require both a major expansion of its use — into more of industry, as well as into sectors where it is currently hardly used at all, like transport and power generation — as well as the decarbonization of its own production — either by “capturing” emissions generated during its production from fossil fuels (often called “blue hydrogen”) or, preferably, by producing it through processes that generate few or no emissions to begin with (often called “green hydrogen”).

The paper provides an overview of the technical facts about hydrogen’s current role in the economy, as well as the much-expanded role it is expected to play in major decarbonization scenarios, and the levels of investment required to achieve that expanded role. It also explains the various “colors” of hydrogen that readers might encounter in these debates, and outlines the technical issues and challenges involved in the main options for decarbonizing hydrogen production that figure in popular reporting and debates. 

Regarding “green hydrogen for grid storage” in particular — which many consider to hold significant potential as part of decarbonized electrical systems based on wind and solar power generation — the paper offers a deep dive into the production processes involved, the options for storage, and the reconversion of stored hydrogen into usable electrical power. It argues that, given the energy losses and technical hurdles involved at each stage, relying on private sector investment to drive the scaling up of hydrogen in ways that support the kinds of decarbonization we need seems highly unrealistic. The paper argues that, given the technical challenges involved in scaling up hydrogen in line with meeting the decarbonization challenge, there can be little doubt that doing so requires a dramatic shift in approach — a shift away from trying to “incentivize” private investors, and toward a planned, coordinated mobilization under public ownership and control.

Hydrogen and the Case for Public Ownership

The paper concludes by offering reflections aimed at developing an alternative approach that offers a better chance at achieving decarbonization, and at allowing hydrogen to play whatever role it can in helping to reach that goal — a “pro-public vision for hydrogen in decarbonization.” It argues that only an approach grounded in public ownership, decommodification, and freeing the development and deployment of hydrogen (and other technologies) from the imperatives of profit stands any real chance of delivering the energy transition that workers, as well as their unions, communities and allies, urgently need.

Trade Unions for Energy Democracy (TUED) is a global, multi-sector trade union initiative to advance democratic direction and control of energy in a way that promotes solutions to the climate crisis, energy poverty, the degradation of both land and people, and responds to the attacks on workers’ rights and protections. TUED is is part of the Global Labour Institute Network. 

In recent years hundreds of cities have adopted 100% renewable energy targets. This has left many with the impression that cities are “taking the lead” in addressing climate change, showing more ambition than most national governments, and taking measures to disrupt energy markets in ways that challenge the dominance of large energy utilities. Cities are believed to be both riding and driving a technological revolution that is reflected in the growth of local-level energy generation and the proliferation of “distributed energy resources” such as rooftop solar panels, battery storage, and digital control systems. Electricity users, on this view, are becoming increasingly active players in electricity markets, turning from “consumers” to “prosumers.” The days of centralized power generation, from this perspective, are thus numbered.

TUED’s Working Paper 14, Beyond Disruption: How Reclaimed Utilities Can Help Cities Meet Their Climate Goals, shows that this image of cities as “climate leaders” is misleading, as is the idea that large energy utilities are becoming obsolete. The paper documents  the technical limitations of city-level energy generation (principally solar photovoltaics), and shows that public subsidies, not “active consumers” or competitive markets, are driving many of the changes taking place. 

The paper also shows that cities will not be able to reach their renewable energy targets without sourcing energy from large energy companies. This is already happening through power purchase contracts with for-profit entities, producing outcomes that contribute to energy poverty, compromise energy security, and cause technical problems that threaten to put climate targets beyond reach. The real “disruption” in electrical power systems is being felt by working people, while large energy interests continue to reign supreme. 

As an alternative, Beyond Disruption proposes a “public-public partnership” approach in which  progressive municipalities can partner with utilities to drive energy efficiency, conservation, digitalisation, and a managed growth in distributed generation. For this approach to succeed, however, energy systems must be brought back into public ownership, and utilities still under public ownership (full or partial) must be fully “demarketized,” and issued a “new mandate” that reflects social and ecological goals and operating principles. Rather than being compelled to meet the needs of private investors for “acceptable returns on investment,” reclaimed utilities will be key partners in what will be a decades-long effort to decarbonize the economy. 

Just a few years ago, proposals to reclaim energy to public ownership would have been dismissed as “mission impossible,” but today many in the policy mainstream are questioning the current “energy for profit” policy framework. Concerns about climate change, energy security, and unreliable power increasingly demonstrate the need for a public pathway approach to the energy transition.

As many unions today recognise, a public pathway approach will require repealing the neoliberal reforms of the 1980s and 1990s and reversing the drive to further liberalise and privatise the electricity sector (a drive that is currently being pursued in many countries of the Global South).  A full-on energy transition must involve a phase-out of so-called competitive electricity markets and the decommodification of electricity, as articulated in the Trade Union Program for a Public, Low-Carbon Energy Future, which is already supported by 50 trade union bodies from two dozen countries and regions around the world.  

The reforms articulated by the Trade Union Program  would set the stage for strong partnerships between cities around the pursuit of climate targets and economy-wide decarbonisation. Reclaimed companies and municipalities should have full control over prices in order to address energy poverty and discourage the wasteful use of electricity.  Progressive cities that aspire to control their energy systems (including distribution grids) can build on what they have already achieved by using their political strength to insist on a full reclaiming of energy to public control. 

As the paper argues, “the incumbent energy companies will not be dis­rupted out of existence; rather, they will remain dominant as market players and, under the current neoliberal framework, they will help perpetuate an energy for profit regime. If this is not changed, then cities will not be able to reach their energy and decarbonization targets.

Trade Unions for Energy Democracy (TUED) is a global, multi-sector trade union initiative to advance democratic direction and control of energy in a way that promotes solutions to the climate crisis, energy poverty, the degradation of both land and people, and responds to the attacks on workers’ rights and protections. TUED is is part of the Global Labour Institute Network.