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The Role of Green Hydrogen in Decentralized Energy Systems

SPICOS - Chemical, Fertilizer, Oil & Gas, Petrochemical, Process & Water

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June - August 2025

Amidst the ongoing transformation of the global energy landscape toward sustainability and decarbonization, green hydrogen is emerging as a crucial enabler of this shift.

- By Editorial Team

The Role of Green Hydrogen in Decentralized Energy Systems

Introduction

Generated through the electrolysis of water using renewable electricity sources, green hydrogen offers a carbon-neutral energy carrier that supports clean energy goals. Concurrently, decentralized energy systems—localized networks of energy production and distribution—are gaining momentum for enhancing energy accessibility, reliability, and independence. The intersection of these two innovations presents promising opportunities, especially in remote or energy-insecure areas.

This paper explores the technical, operational, and economic considerations involved in integrating green hydrogen into decentralized energy systems. It also assesses the mutual benefits, practical challenges, and future potential of this integration in fostering a resilient and sustainable energy infrastructure.

1. Overview of Green Hydrogen

Hydrogen, the most abundant element, functions effectively as an energy carrier. Its environmental footprint, however, is determined by the production method:

•Grey Hydrogen: Derived from fossil fuels, such as natural gas, with significant CO₂ emissions.

•Blue Hydrogen: Similar to grey but with emissions partially mitigated through carbon capture and storage (CCS).

•Green Hydrogen: Produced via water electrolysis powered by renewable energy, generating no direct emissions.

The electrolysis reaction splits water (H₂O) into hydrogen (H₂) and oxygen (O₂), using electricity. Technologies involved in this process include:

•Alkaline Electrolyzers

•Proton Exchange Membrane (PEM) Electrolyzers

•Solid Oxide Electrolyzers (SOE)

PEM and SOE are gaining traction in decentralized setups due to their compact design and efficiency.

2. Decentralized Energy Systems: Concept and Significance

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