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Author: Federico Re Ferrè

Key Points of the Article

  • Hard-to-abate sectors are those in which decarbonization is particularly difficult but essential for the energy transition.

  • There are two industrial sectors that require green hydrogen: those that use fossil fuels and those that use fossil hydrogen as a reactant.

  • Hydrogen is essential in the production of steel, ceramics, glass, and cement, as well as in chemical processes such as the production of ammonia, methanol, and iron.

  • The PNRR has allocated 1 billion euros to replace 10% of the natural gas used in production processes with hydrogen.

  • The main obstacles to the widespread adoption of green hydrogen are high costs,the impact on final prices, and the need for supportive policies.

In the fight against carbon emissions, particular attention is focused on the so-called “hard-to-abate” sectors—that is, sectors where decarbonization is very difficult. This is a very broad topic, but in the remainder of this article, we will attempt to provide an overview of the “hard-to-abate” sectors and the useof hydrogen as a potential solution.

Industrial Sectors and the Need for Green Hydrogen

There are two broad categories of industrial applications that require green hydrogen to become sustainable:

  • sectors that use fossil fuels

  • sectors that already use hydrogen, but which in turn is derived from fossil fuels without CO₂ capture

The first category would use hydrogen as a fuel, while the second already uses fossil-derived hydrogen—but as a reactant. Currently, about 95% of the country’s hydrogen consumption is produced and used primarily in refineries and the petrochemical industry, while 99% of it is used as a raw material.

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Hydrogen as a Fuel: Industrial Applications

The applications that would require hydrogen to replace fossil fuels are primarily steel, glass, cement, ceramics, and paper production. These applications require high temperatures, and although it is theoretically possible to achieve them using electric furnaces and reactors, electrification would result in lower efficiency and reliability.

Hydrogen has alsobeen considered for hard-to-abate sectors by public institutions, as well as by the private sector, with the PNRR allocating 1 billion for projects and initiatives aimed at replacing 10% of the natural gas and fossil fuels used in production processes.

Steel Projects and Solutions

  • Snam and RINA oversaw the pilot project at the GIVA Group’s Rho Forging plant, where a 30% mixture of natural gas and hydrogen supplied by the Sapio Group was used to preheat the furnaces;
  • RINA is also coordinating the European project DEvH2forEAF for the development of a new hydrogen burner;
  • Tenaris, Edison, and Snam announced in 2021 their intention to adopt green hydrogen at Tenaris’s Dalmine site by installing a 20-MW electrolyzer;
  • Enel Green Power and Acciaierie di Sicilia plan to replace as much as 30% of the natural gas used in the reheating furnace with hydrogen;

Projects in the Ceramics Industry

  • In 2021, Iris Ceramica Group decided to partner with Snam to build the first ceramics factory in Castellarano powered entirely by green hydrogen;
  • In 2022, Atlas Concorde invested 60 million euros in the expansion of its Modena plant to make its porcelain tile production capable of using hydrogen as a fuel;
  • Ceramica Mediterranea has partnered with Enel to replace LPG in one of its firing lines.

Hydrogen in Glass and Concrete

Glass:

  • Murano’s historic glassworks are preparing to develop hydrogen-powered furnaces thanks to a collaboration between the Glass Section of Confindustria Venezia, Hydrogen Park, and the Glass Research Station;
  • The Bormioli Group, in collaboration with RINA and Snam, is testing the introduction of increasing percentages of hydrogen into existing furnaces to understand the current limitations and develop furnaces capable of operating on 100% hydrogen.
  • Enel Green Power and RCR Cristallerie Italiane (a company specializing in eco-friendly crystal) are collaborating on the use of hydrogen to replace natural gas in the flame-polishing process.

Cement:

  • Buzzi Unicem, in collaboration with Italgas, will conduct a feasibility study to explore the possibility of producing methane from green hydrogen and CO2 captured before it is released into the atmosphere, for use in cement production. The direct use of hydrogen is currently problematic because a hydrogen flame emits less heat than a methane flame.

Hydrogen as a Reagent in Industrial Processes

The main industrial applications in which hydrogen is used as a reactant:

  • Oil Refining: Hydrogen is used in refining processes known as “cracking” or “hydrocracking,” in which high-molecular-weight hydrocarbons in crude oil are converted into lighter hydrocarbons used as transportation fuels, primarily gasoline and diesel.

  • Ammonia Production: Ammonia, NH3, It is currently produced using the Haber-Bosch synthesis process, which involves reacting nitrogen and hydrogen in the presence of a ferrous catalyst. Ammonia is primarily used in the production of fertilizers, where it helps enrich the soil with nitrogen. Here is its formula:

N2 + 3H2 → 2NH3

  • Methanol production: Hydrogen is also used to produce methanol through a catalytic reaction with CO at high temperatures (approximately 250°C) and pressures (50–100 bar), as illustrated below:

CO + 2H₂ → CH₃OH

  • Direct Reduction of Iron (DRI): Iron production requires that iron oxide be reduced in order to remove the oxygen. Currently, coal is often used, but this results in the production of 2 metric tons of CO2 per metric ton of iron; less frequently, methane is used, which results in only 0.5 metric tons of CO2 per metric ton of iron. The use of green hydrogen, although technically feasible, is still very expensive compared to the use of coal.

Conclusions: Economic Obstacles and Prospects

Hydrogen therefore plays an important role in industrial processes as a reactant; as previously mentioned, most of it is derived from fossil fuels and, consequently, is a major source of CO₂ emissions. The adoption of green hydrogen—both as a reactant and as a fuel—will be one of the most effective drivers for the decarbonization of hard-to-abate sectors.

The main obstacles:

  • Costs are still too high compared to conventional fuels

  • Impacts on the final prices of goods (paper, ceramics, iron, etc.)

  • The Need for Government Policies to Promote the Industrial Energy Transition

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