수소경제-수소의 종류-수소시장

Hydrogen Economy

Efforts to become a leader in the hydrogen economy of NEXON STAR

• Crisis due to global climate change

• From Fossil Fuel Era to Hydrogen Economy Era

• NEXON STAR strives to become a global leader through technological innovation and strengthening cooperative partnerships

[ UN IPCC - Intergovernmental Panel on Climate Change Report ]

"The apocalypse cannot be prevented unless carbon dioxide emissions are reduced to net zero."

Since the last industrial revolution, the global average temperature has risen by 1°C for more than 100 years. The 'tipping point' is crossed.

In order to limit global temperature rise to less than 1.5 degrees Celsius above pre-industrial levels in 1900, carbon dioxide (CO2) emissions must be reduced by 45% by 2030 compared to 2100 levels, and by 2050 195 countries around the world are committed to gradually reducing greenhouse gas emissions so that the average temperature of the earth does not rise. An agreement was reached, and many countries are working to discover eco-friendly energy to replace carbon energy.

Energy Paradigm Shift

carbon resources oil, carbon, gas, etc.	decarbonization center
centralized energy supply	decentralized energy supply
resource development and energy security War	securing technological competitiveness and competing with economy of scale
greenhouse gas, air pollutant dispose CO2, NOx, SOx	eco-friendly with no greenhouse gas emissions By-product = water (H2O)

[ Energy paradigm shift ]

The end of the fossil fuel era, competition for technological supremacy with hydrogen energy begins
Beyond the limits of renewable energy such as solar and wind power
Energy paradigm shift with hydrogen energy

73% of global emissions are from energy-consuming industries (24%), buildings (17%) and transport. (16%), followed by transportation (12%) and steel (7.3%) in detail, in the case of Korea 40% of the power generation sector, 13% each of the steel and transportation sectors, and 6% of the chemical sector emits exhaust gas. The steel sector shows a high emission ratio.

As an alternative energy to fossil fuels, which are the main culprits of global warming, nuclear power generation eliminates high-level radioactive waste for 100,000 years. There is a problem that it must be stored for a while and requires limited resources such as uranium, and solar and wind power Renewable energy can damage the existing power grid because the generation output is not constant depending on the amount of sunlight and weather. There is a high concern that there is When more electricity than demand is put into the transmission and distribution network or when there is little generation A ‘blackout’ situation may occur, fires caused by large-scale energy storage systems (ESS), and many sites The problems you need follow.

For this reason, it is an eco-friendly energy that can replace carbon energy, which is an infinite resource and exceeds the demand for electricity. The supplied power can be stored as hydrogen, transported in liquid or gas, and converted into electricity through a fuel cell when needed. The energy paradigm is changing to hydrogen energy that can be converted and utilized.

Advantages and Disadvantages of Hydrogen Energy

Hydrogen has the advantages of unlimited energy, clean energy, production,
storage and distribution.
Excellent energy flexibility with compatibility between hydrogen grid (gas) and
smart grid (electric power)

According to the IEA, Global Hydrogen Review 2021 report, world hydrogen demand will rapidly expand from 90 million tonnes today to reach 520 million tonnes in 2050. The production method is also expected to be rapidly replaced by a method of producing hydrogen using low-emission clean hydrogen, especially water electrolysis technology, from gray hydrogen.

Advantages of hydrogen energy

• Infinite Resources: Hydrogen is present in water, which covers 75% of the mass of the universe and 70% of the Earth's surface.
• Harmless to the environment: The water electrolysis production method using renewable energy produces green hydrogen without greenhouse gas emissions during the production process.
• Complementing the shortcomings of renewable energy: Resolving the variability of power generation due to the intermittency of renewable energy such as solar and wind power, and the mismatch between demand and supply
• Possible to produce, store, and distribute: It can be stored as liquid (P2L) or high-pressure gas (P2G) that compensates for the disadvantages of electricity, and it is easy to transport by sea and long distances
• High Energy Efficiency: With high calorific value per unit weight, it is possible to obtain 3 to 4 times more energy than fossil fuel for the same weight.
• Energy replacement: All fossil fuel internal combustion engines (combustion engines) can be replaced, used for fuel and power generation
• Basic fuel for many industries: Metallurgy, Steel, Food, Glass
• Economical: high energy density through compression and easy handling, high economic feasibility
• Safety: As it is 14 times lighter than air, it spreads quickly into the air in case of leakage, so there is no possibility of ignition.

Disadvantages of hydrogen energy

• Lack of economic feasibility: $5 per 1 kg of hydrogen in 2020, but expected to drop rapidly to $3 per 1 kg of hydrogen in 2026 due to a decrease in the price of renewable energy and an increase in water electrolysis capacity
• Lack of market maturity: market creation stage by field of hydrogen economy in 2022, but expected to enter full-fledged market competition stage from 2023
• Lack of renewable energy required for green hydrogen production: Expected increase in power generation efficiency due to technological development

Type of Hydrogen

Classified according to whether or not carbon is emitted during the production process, ultimately transitioning to green hydrogen by water electrolysis with no carbon emission
NEXON STAR applied for a patent for the production of green hydrogen by water electrolysis by hybrid power generation and prepared for demonstration

Currently, about 96% of the hydrogen produced in the world is produced by the natural gas ‘reforming method’, which extracts hydrogen from natural gas composed of carbon and hydrogen. It is occupied by gray hydrogen.

Reformed hydrogen is extracted by reacting methane (CH4), the main component of natural gas, with high-temperature steam. In this process, 10 kg of carbon dioxide (CO2) per 1 kg of hydrogen is produced as a by-product In order to produce reformed hydrogen, greenhouse gas emissions are inevitable, and when the produced CO2 is captured and stored, it is called blue hydrogen. 1 to 3 kg of CO₂ is released per 1 kg of hydrogen.

‘By-product hydrogen’ is hydrogen incidentally produced in the petrochemical process or the process of making steel, and there is a limit to production in terms of using by-products. It has the advantage of high economic feasibility due to low additional facilities or investment costs. By-product hydrogen also emits a considerable amount of greenhouse gases during the pyrolysis process.

‘Green Hydrogen’ production is an electrochemical process that generates hydrogen and oxygen by electrolyzing water using electricity generated from renewable energy such as solar and wind power and moving ions to a separator. It is evaluated as a key technology for carbon neutrality as it does not emit carbon in the hydrogen production process. The production of green hydrogen is mostly produced by wind power and solar power. Production by hybrid power generation (wind power + solar power, water power, geothermal heat) is in the research stage, and NEXON STAR is an “energy self-sufficient type” using solar power + geothermal heat + N for green hydrogen production. We have applied for a patent for “Water Electrolysis System” and are preparing for the demonstration stage.

Global Hydrogen Competition

Accelerating competition between countries to secure clean hydrogen
Businesses need to invest for survival and accelerate business transformation

The hydrogen economy refers to an economic and industrial structure that uses hydrogen as its main energy source. According to the global greenhouse gas reduction plan, governments of each country are regulating fossil fuels and at the same time hydrogen economy Support policies are being strengthened, and companies are converting to the mobility industry (electric vehicles, hydrogen vehicles) and energy conversion (hydrogen energy storage, electrification) is accelerating.

The EU announced plans to introduce a carbon difference support contract (CCFD) system that pays the difference in production cost of green hydrogen and gray hydrogen in the form of a subsidy to REpowerEU, an energy transition policy. The United States included the world's first green hydrogen tax credit system in its Inflation Reduction Act (IRA).

Germany also plans to provide subsidies when green hydrogen produced outside the country is imported and supplied to Korea. Belgium-North Sea offshore wind power increase, Germany-80% renewable energy supply target by 2035.

Division	Regulation	Support
EU	• Fit for 55 bills(June.22) - Expansion of carbon emissions trading system (ETS), Strengthening the Carbon Boundary Adjustment System (CBAM) - Steel, electricity, aluminum, cement, fertilizer, etc. Abolition of free allocation for 5 industries(~2033) - Expansion of carbon border tax business (excluding 4 areas such as hydrogen and organic chemicals 2027 Commercial buildings, including ground transportation ) - Expansion of scope to indirect emissions such as electricity used in production process • Greenhouse gas emissions in Korea are 2 to 4 times higher than those in the EU and Canada.	- REPowerEU bill (22.5) to reduce Russian natural gas imports Investment of 300 billion euros by 2030 - Clean Hydrogen Partnership €300m - IPCEI Hy2Tech Mobility Value Chain €5.4 billion - IPCEI Hy2Use hydrogen infrastructure 5.2 billion euros + private sector 7 billion euros ＊ IPCEI Important Project of Common Eurpean Interest Common European Important Projects
USA	• GSSA Act(2021.10) Global agreement on Sustainable Steel and Aluminum - EU-US Global Agreement on Sustainable Steel and Aluminum - For evaluation of emissions inherent in traded steel and aluminum data sharing - Restriction of market access when emission conditions are not met	• IRA Act (22.8) $369 billion in support for fossil fuel conversion - Leading the U.S. to become the world's leading producer of cheap clean hydrogen - $406 million hydrogen R&D budget - 77% of the budget is invested in hydrogen production, storage and transportation

Global Hydrogen Market Size

By 2050, the global scale of the hydrogen economy will be 2,500 trillion won and domestic economic effects will be 70 trillion won.
The water electrolysis green hydrogen market, a major business sector of NEXON STAR, is an early market with a preemptive effect and a very large long-term growth rate.

By 2050, the global water electrolysis facility market will be worth 21 billion dollars (about 3 trillion won), and the hydrogen sales market will be worth more than 310 billion dollars (about 450 to 500 trillion won) at the price of $1.5 (hydrogen council) per 1 kg of hydrogen. It is estimated by size.

According to IRENA (International Renewable Energy Agency), by 2050, the water electrolysis capacity is expected to be about 1700GW (1.7TW, 19EJ), with annual hydrogen production accounting for 66% of 29EJ. Currently, the water electrolyzer (electrolyzer) manufacturers leading the market are mainly European and American companies, and the transportation/storage infrastructure is provided by existing industrial gas companies such as A and L companies. are leading

NEXON STAR is a global leader in hydrogen production & raw material electrolyzer and hydrogen sales, hydrogen filling stations for transportation and distribution, power generation and heating in the utilization sector, etc. We are striving to establish ourselves as a leader in the domestic and overseas markets through technological innovation and strengthening cooperative partnerships that can stand shoulder to shoulder with companies.

[ Conceptual diagram of the hydrogen market ]