Global energy crisis revives industrial interest in hydrogen fuel alternatives

The global energy shock caused by the war in Iran has renewed international interest in using hydrogen to replace fossil fuels across heavy industry, Oilprice and EnergyNow.com reported. Industrial applications under consideration include steelmaking and shipping operations. The ongoing conflict in Iran has disrupted global oil and gas supplies, according to EnergyNow.com reports. [1][2][5]

Production costs remain a significant hurdle for widespread adoption, Oilprice reported. Green hydrogen remains very expensive to produce, which limits its ability to scale commercially. Meanwhile, gray and blue hydrogen production relies on the very fossil fuels that international markets are attempting to replace. [1]

The current conflict included the closure of the Strait of Hormuz, creating what the International Energy Agency characterized as the largest supply disruption in the history of the global oil market. The disruption has generated supply shortages, inflation, and risks of stagflation similar to the 1970s energy crisis. Recent market analyses show that initial energy price spikes during major oil shocks are historically larger than long-term sustained price increases. [6]

Emerging scientific developments in solar technology, ammonia, and natural hydrogen deposits could make clean energy supplies cheap enough to become viable, Oilprice reported. Energy companies have seen major financial impacts from the broader crisis, with Shell reporting that its profit more than doubled to 9.8 billion dollars as war-related disruptions lifted market prices, EnergyNow.com reported. [1][4]