Digital backbone for green hydrogen production

The Internet of Things (IoT) refers to physical devices that use electronics, sensors and software to collect and exchange large volumes of data over the Internet or across communication networks. This makes it possible to monitor, control and optimise the operation of electrolysers and other key elements of the hydrogen ecosystem. The use of big data and artificial intelligence (AI), for example, can improve supply and demand planning, and provide more accurate forecasts of variable renewable power generation or energy demand.

Roughly, electricity accounts for 70% of total hydrogen production costs (H2GreenSteel, 2022). This means that a data-driven operation is key. Forecasting tools for renewable resource availability, production planning or software for the optimisation of storage capacity and electrolyser operation can support the deployment of the green hydrogen economy.

Building and operating the future hydrogen economy will require substantial data analysis. From the very beginning, for instance, it is vital to use data on the renewable energy potential in various regions, the potential constraints for hydrogen transport, the expected levels and locations of hydrogen demand, and local and international hydrogen prices (including country-specific taxes) to determine the best locations for hydrogen production plants or the most effective transport network designs.

Then, as the hydrogen economy expands, these digital technologies offer major benefits. They enable greater integration of variable renewable generation into the power system and more efficient coupling of electrolysers with generation sources. They facilitate increased automation and improve the forecasting of everything from renewable energy production to hydrogen demand, making it possible to improve the overall efficiency of the green economy.