How hydrogen revolutionizes industry and employment on the examples of well-known companies

In the quest for sustainable and renewable energy sources, hydrogen is a key player poised to revolutionize industries worldwide. As countries and companies seek to reduce carbon emissions, the hydrogen industry is a beacon of hope for environmental sustainability and a catalyst for profound transformations in the global labor market. But what does the hydrogen economy mean for workers worldwide, and how will it affect the future of employment across sectors?

In this blog post, we aim to explore the extensive impact of hydrogen across multiple industries and spheres in 2024, highlighting its crucial role in the global energy transition and efforts toward achieving a more sustainable and cleaner energy future.

Hydrogen versatility and potential to decarbonize sectors where reducing emissions is particularly challenging make it a crucial element in the global energy transition.

Key industries and spheres impacted by hydrogen:

• Oil and Energy. Hydrogen, a game-changer in the energy industry, is primarily utilized in oil refining, ammonia, methanol, and steel production, which heavily rely on fossil fuels. The transition to clean hydrogen in these sectors holds immense potential for substantial emissions reductions, paving the way for a greener industrial future.
• Transport. The transport sector presents a vast horizon for hydrogen-based fuels, including hydrogen fuel cell cars, trucks, shipping, and aviation. In the automotive industry, the focus is on reducing fuel cell costs and expanding refueling infrastructure. Trucks prioritize reducing hydrogen’s delivered price, while shipping and aviation, with limited low-carbon fuel options, stand to gain significantly from hydrogen-based solutions.
• Construction. The potential for hydrogen in construction includes blending it into existing natural gas networks, which could significantly affect multifamily and commercial buildings, especially in dense urban areas. The direct use of hydrogen in boilers or fuel cells for heating presents a longer-term opportunity.
• Power and heating. As a storage medium for renewable energy, hydrogen offers a way to balance the variability of sources like solar and wind. It can also be used in gas turbines and coal-fired power plants to increase flexibility and reduce emissions.

The impact of hydrogen is felt worldwide, with regional focuses highlighting the tailored applications and benefits it can offer across different geographic areas. From Africa to North America, initiatives are underway to implement hydrogen’s potential, reflecting its global importance and versatility.

Let’s consider the possibilities of using hydrogen in the examples of the companies listed below:

• Advanced Energy
• DTE Energy
• Energy Harbor
• Global Energy Interconnection Research Institute Europe GmbH
• Hitachi Energy 
• Puma Energy
• Siemens Energy
• Shell Energy
• The African Energy Chamber (AEC)

A notable hydrogen-related project for Advanced Energy is the Advanced Clean Energy Storage (ACES) project in Delta, Utah. This initiative is poised to become the U.S.’s largest renewable hydrogen energy hub. The project aims to produce up to 100 metric tonnes of hydrogen per day using water and renewable energy sources. The hydrogen generated will be stored in two vast solution-mined caverns within the only salt dome in the Western U.S., offering a substantial 300 GW energy storage capacity. These efforts support the transition of the Intermountain Power Plant from coal to a combined cycle power system that will utilize a mix of hydrogen and natural gas, aligning with clean energy targets and innovation in hydrogen storage and generation.

The Advanced Clean Energy Storage (ACES) project in Delta, Utah, significantly impacts the local labor market and workforce through its development and operation. Up to 400 local jobs are expected to be created during the project’s three-year construction cycle. Once operational, approximately 25 full-time operators and technical staff will maintain the facility’s 24/7 operation. These jobs are critical to the local economy, creating new opportunities in the emerging clean energy sector.

In addition, the project will contribute to the local economy through property tax revenue collected by Millard County, Utah. These funds are expected to support essential services, including law enforcement, emergency response, infrastructure, and other public services.

DTE Energy made significant strides in hydrogen technology through its Hydrogen Technology Park in Southfield, Michigan. This demonstration facility park includes a hydrogen electrolyzer, compressed hydrogen storage, a dispenser, and fuel cells. An analysis of the park’s operating data and costs indicates that while the facility provides valuable insights into hydrogen technology applications, its current demonstration-stage technologies and costs still need to be competitive in commercial hydrogen, utility-scale energy storage, or hydrogen vehicle markets.

Although the primary function of DTE Energy’s Hydrogen Technology Park is technology demonstration and validation rather than commercial production, it’s a critical step toward understanding and increasing the competitiveness and practical application of hydrogen technologies. The park’s economic analysis highlights the high costs of hydrogen production and the future challenges to make such technologies commercially viable and competitive in the energy market.

As hydrogen technology continues to develop and these initiatives move toward commercial viability, there will likely be increasing effects on the labor market and workforce development, particularly in sectors focused on renewable energy, engineering, and environmental sustainability.

Energy Harbor is actively involved in developing and implementing zero-carbon hydrogen production initiatives. They collaborated with the Department of Energy (DOE) on a pilot project at the Davis-Besse Nuclear Power Plant using carbon-free nuclear energy to produce hydrogen through low-temperature electrolysis (LTE) using polymer electrolyte membrane (PEM) technology. This initiative aims to demonstrate hydrogen production’s feasibility and economic viability for large-scale commercialization.

One study highlighted that the hydrogen sector could create 675,000 jobs by 2035, significantly impacting US employment. These jobs span various sectors of the economy, from manufacturing to construction, supporting the energy economy, and providing jobs for Americans in industries that are making a real difference to the world.

In addition, Energy Harbor is part of the Great Lakes Clean Hydrogen Partnership (GLCH), which partners with Linde, GE Aerospace, Cleveland-Cliffs, and the University of Toledo. This coalition aims to transform the Midwest into a leading center for low-carbon fuels by developing a hydrogen hub that leverages regional resources such as carbon-free nuclear power and a skilled workforce. GLCH’s efforts focus on using clean hydrogen for various applications, including manufacturing, power generation, and transportation, which can significantly benefit the region’s economy and environment.

Global Energy Interconnection Research Institute Europe GmbH (GEIRI Europe) is a subsidiary of the Beijing-based Global Energy Interconnection Research Institute, engaged in research and development related to new energy technologies and smart grids. They are active in the hydrogen sector. They had an opening for a Hydrogen Technology Research Engineer, which involves ongoing research and development of hydrogen-related technologies, including production, storage, distribution, and end-use.

The position requires significant experience and knowledge in the field, as evidenced by the requirement for a Ph.D. in electrochemistry or chemical engineering and experience in hydrogen technology.

GEIRI Europe’s focus on hydrogen technologies can be seen as part of a wider movement towards decarbonization and the energy transition. This movement will likely affect the labor market and workforce in the energy sector by creating specialized jobs requiring a degree and expertise in new energy technologies.

Hitachi Energy has been actively developing hydrogen technology, as evidenced by their recent unveiling of the HyFlex Hydrogen Power Generator. This innovative solution, developed in collaboration with PowerCell Group, is designed for locations where conventional power sources are impractical. The HyFlex generator is a scalable, plug-and-play solution for temporary and permanent installations, providing a clean, emission-free power alternative. It suits various applications, including construction sites, remote venues, data centers, and hospitals. It is expected to be available for temporary deployment by late 2024, with a permanently deployable variant following in 2025. The initiative underscores Hitachi Energy’s commitment to supporting the green hydrogen value chain and advancing a sustainable energy future.

Additionally, Hitachi Energy has played a significant role in Finland’s landmark green hydrogen plant project, underscoring its commitment to green hydrogen technology and potential contributions to Finland’s climate and energy goals. The project aims to strengthen the operational security of Finland’s electrical grid and help maintain competitive electricity prices, further bolstering the country’s industrial competitiveness.

Hydrogen technology, including developing and implementing solutions such as Hitachi Energy’s HyFlex Hydrogen Power Generator and participation in a green hydrogen plant project in Finland, is expected to have significant implications for the labor market. The push for clean hydrogen as part of the future’s decarbonization can create jobs across sectors.

Given Hitachi Energy’s active role in developing hydrogen solutions, such initiatives will positively contribute to job creation and workforce development in their operating regions.

Puma Energy is linked to a major hydrogen project at its former site in Milford Haven, which is expected to be converted into a 20MW hydrogen plant. The project, managed by H2 Energy Ecosystem UK Limited, aims to produce approximately five tonnes of hydrogen daily using clean electricity from UK wind farms. This initiative, planned to be completed as early as 2025, highlights the growing focus on renewable energy solutions and the role of hydrogen in the clean transition. The hydrogen produced is destined for various applications, including industrial use and environmentally friendly transport, which is a significant step towards sustainable energy practices in the region.

With government support, the initiative is expected to create 17 permanent high-skilled jobs, indicating the project’s potential to contribute to the local economy by offering new employment opportunities. In addition, the project’s focus on clean hydrogen production aligns with the global push for clean and sustainable energy solutions, promising local and national economic benefits. The UK’s energy security secretary has highlighted the potential for hydrogen to create over 12,000 jobs and up to £11bn of investment by 2030 across the UK, further highlighting the significant economic opportunities presented by projects such as the Milford Haven project.

The broader impact of hydrogen on the labor market and workforce, including Siemens Energy initiatives, indicates a transformational phase driven by the transition to sustainable energy solutions. However, the direct links between Siemens Energy’s specific hydrogen projects and their impact on the labor market and workforce development, especially in the context of Siemens Energy’s operations, require further investigation.

Siemens Energy’s involvement in hydrogen projects is extensive and global. It aims to revolutionize energy systems with environmentally friendly hydrogen solutions. The projects mentioned, such as the clean hydrogen plant in Wunsiedel, Germany, and collaborations in China, the USA, South Korea, and Air Liquide, represent significant investments in developing and implementing hydrogen technologies. These initiatives are key because of their technological advances and potential to impact labor markets by creating new jobs and skill requirements.

The implications of the hydrogen sector for the labor market in general highlight the growing need for specialized skills and training. The US Department of Energy’s investment in training the next-generation hydrogen workforce and its focus on unions in the $7 billion Regional Clean Hydrogen Hubs program indicate a strategic approach to workforce development in this emerging sector. These efforts aim to ensure that the transition to a hydrogen-based economy includes creating high-quality, sustainable jobs aligned with economic recovery and growth goals in environmental technologies.

Although direct links between Siemens Energy’s hydrogen initiatives and specific labor market outcomes were not detailed in the information provided, the overall growth of the hydrogen sector, supported by public and private investment, suggests a positive impact on job creation and workforce development. Being at the forefront of this transition, Siemens Energy will likely play a significant role in shaping the future labor market by focusing on innovation and sustainability in the hydrogen sector.

Shell Energy is actively involved in various hydrogen projects, reflecting a significant interest in hydrogen’s role in energy transition and decarbonization. Notably, Shell has partnered with Bloom Energy to explore large-scale hydrogen production. They aim to develop solid oxide electrolyzer systems that could significantly affect decarbonizing challenging industry sectors. Shell Energy’s commitment also covers several important areas, including the construction of Europe’s largest renewable hydrogen plant, Holland Hydrogen 1, underscoring the scale of their investment in clean hydrogen production. This initiative is key as it demonstrates Shell’s efforts to meet the growing demand for renewable hydrogen in hard-to-decarbonize sectors such as heavy industry, shipping, and aviation.

In addition, Shell has outlined ambitious plans in its Energy Transition Strategy 2024, highlighting a strategic shift towards more sustainable energy solutions, including significant investment in hydrogen. This strategy is part of their goal to achieve zero emissions by 2050, reflecting the company’s commitment to environmental sustainability and the transition to a low-carbon economy.

Specific figures for employment or job creation are directly because Shell’s hydrogen projects are not available, and the scale and ambition of these projects suggest a significant potential impact. Investments in new technology and infrastructure, such as the construction of large-scale hydrogen plants, inherently create jobs at various stages, from research and development to construction, operation, and maintenance. In addition, Shell’s aim to invest up to £25 billion in the UK energy system, focusing strongly on low-carbon and renewable energy products and services, points to a broader trend towards creating job opportunities in the green energy sector.

This transition to hydrogen and other renewable energy sources supports environmental goals and transforms the energy sector’s workforce needs. As Shell and other companies invest in these technologies, we can expect a growing demand for skills related to renewable energy production, engineering methods, and sustainable development practices, potentially leading to a more diversified and sustainable energy sector job market.

The African Energy Chamber (AEC) is significantly impacting the workforce in Africa through its initiatives, particularly in Namibia, where it’s fostering local content development and capacity building across the energy value chain. Establishing an AEC office in Namibia aims to promote local content and capacity building, a crucial step given the country’s potential for rapid transformation in its energy sector due to recent oil and gas discoveries. The office’s mission includes working with various stakeholders to scale up local talent and capabilities, creating a globally competitive workforce in Namibia.

The AEC’s efforts in Namibia are extensive. They aim to prepare the workforce for the demands of the oil and gas sector and the burgeoning green hydrogen market. The organization works on a supplier development and registration database to ensure that Namibian businesses and service providers are identified, registered, and funded. Furthermore, it is scaling up oil and gas courses, seminars, business mentorship, and partnership programs to foster credible local partnerships.

Beyond hydrocarbons, Namibia’s ambition to become a global green hydrogen hub presents significant opportunities for businesses and service providers across the green energy industry. The AEC is poised to support this through courses, seminars, and partnership programs covering the renewable energy space, positioning the domestic workforce at the forefront of the country’s green hydrogen expansion.

Additionally, the AEC has unveiled a new energy jobs portal for the African workforce, aiming to assist in recovering African energy markets after the COVID-19 crisis. This portal is designed to help local and international companies attract local talent across various skill sets in the oil & gas, power, and renewable energy sectors. It allows all energy companies operating in Africa to post job offers for free, ensuring the offers’ credibility and reducing entry barriers in the job market.

These initiatives underscore the AEC’s commitment to developing a competitive workforce and local content in Africa’s energy sector, contributing to sustainable economic growth and the transition towards green energy solutions.