How Green Are my Molecules?

Hydrogen is considered to be THE definitive beacon of hope for the energy transition, but not all hydrogen is environmentally friendly. Ensuring that hydrogen is sustainable also poses challenges for industrial users who are considering it as an alternative decarbonization option. Blockchain technology could be the solution, as it can be used to ensure that the hydrogen delivered to users is sustainable and green – thus overcoming a significant hurdle on the road to a greener future.

As the energy carrier of the future, hydrogen will be used as a fuel for vehicles and in industry to decarbonize energyintensive processes that currently still rely on fossil fuels. Implementing hydrogen is no longer just a dream – it’s getting closer day by day. Alexander Grünewald, a research scientist in the Supply Chain Development & Strategy department at Fraunhofer IML, also stresses our society’s high hopes for hydrogen: “Sustainable hydrogen is a key part of the energy transition – but without a trustworthy hydrogen network, it could be impossible to create a climate-neutral production sector.” In order for this to work, we need a way to prove that hydrogen is green.

"Sustainable hydrogen is a key part of the energy transition – but without a trustworthy hydrogen network, it could be impossible to create a climate-neutral production sector”

- Alexander Grünewald

One molecule – many colors

Green, pink or blue hydrogen – it comes in a whole rainbow of colors. But that doesn’t mean the H2 molecules are turning pink all of a sudden. The terms are used to indicate the different ways in which the hydrogen is produced. Currently, the various processes used to produce hydrogen require a great deal of energy. The color is determined by the type of energy and the production process that was used – for example, in pink H2 , the energy comes from nuclear power. However, the holy grail is green hydrogen, which is produced using renewable energy sources. This makes it particularly climate-friendly in the long term; however, only 0.03 percent of the hydrogen produced worldwide is green. So to drive progress in the energy transition, we urgently need to produce more green H2 . One of the biggest challenges here is proving that the hydrogen produced is really green. This is because the idea of clearly separating hydrogen types by color codes does not match up with the complex reality. Numerous steps come between the hydrogen production and utilization phases, and these involve mixing H2 of different colors. It is not always easy for companies along the supply chain to prove that the end product is still green.

Trust is good – proof of origin is better

The problem is that several different methods are currently used to assess whether hydrogen is green. However, legislation is now in place that will require proof of origin for hydrogen in the future, which shows the increasing importance of the topic. Companies can now use blockchain technology to comply with the new regulation: A blockchain network allows its users to store all their data transparently and securely. The companies in a blockchain network can view product properties and emissions at any time. This technoogy offers far more benefits than just certifying green hydrogen: Blockchain-based documentation can also be used for digital product passports and to comply with recycling regulations, which will become mandatory in the future.

Innovations for all!

It’s a well-known fact that people work better in a team than alone, and the same goes for the hydrogen ecosystem – because using blockchain-based records to prove that hydrogen is green all by ourselves is never going to succeed. Every company in the hydrogen ecosystem needs to work together to make the idea of green hydrogen a reality. Because blockchain technology functions most effectively when everyone participates. Innovations such as blockchain are not a one-way street, nor are they a privilege that’s just reserved for large corporations. Small and medium-sized enterprises (SMEs) can also benefit from this technology. That is why the Fraunhofer Institute for Material Flow and Logistics IML and the Technical University of Dortmund are supporting companies with using blockchain technology as part of project DUH-IT, an initiative for blockchain in logistics that is focusing on innovation transfer for the Dortmund-Unna-Hamm model region. Building up basic expertise in the field of blockchain is the first big step in this project. The companies will then be supported as they select and design their ideal blockchain technology – and what’s more, they can also get their own ideas for potential areas of application by visiting labs and seeing demonstrations. This is about more than just using this technology in the hydrogen sector. Due to its long mining history, the Dortmund-Unna-Hamm region is being particularly affected by the phasing-out of coal and the structural change that has come along with this transition. Developing and strengthening other industrial sectors through blockchain could strengthen the region’s overall economy, making it a role model for other areas – including for other regions in Germany.

Sabine Jakob M.Sc.

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Sabine Jakob M.Sc.

Head of Departement Visibility & Finance

Fraunhofer Institute for Material Flow and Logistics IML
Joseph-von-Fraunhofer-Str. 2-4
44227 Dortmund, Germany

Phone +49 231 9743-299

Alexander  Grünewald, M.Sc.

Contact Press / Media

Alexander Grünewald, M.Sc.

Fraunhofer Institute for Material Flow and Logistics IML
Joseph-von-Fraunhofer-Str. 2-4
44227 Dortmund, Germany

Phone +49 231 9743-433

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