Cleaner industry with Clean Hydrogen

More than 99% of the hydrogen produced worldwide comes from fossils, which make a large amount of CO2 a major greenhouse gas (GHG). All major processes that produce hydrogen are performed without carbon capture, generating low prices per kilogram at high environmental costs. The primary uses of hydrogen include ~33% of oil refining, ~27% of ammonia production (fertilizer and chemical industry), ~11% of methanol production, and ~3% of steel production, among other minor uses. With the rising demand for hydrogen approaching 2050 as a path to decarbonize industrial processes, at HyC Light Inc., we are committed to providing clean hydrogen using solar light, targeting prices of a low $2/kg of H2 for the fertilizer, oil refining, and automotive industries.

Clean hydrogen for ammonia production and fertilizer industry

Traditionally, hydrogen production for ammonia synthesis relies heavily on natural gas through steam methane reforming (SMR). This hydrogen feeds the Haber-Bosch process to produce ammonia, a crucial component for nitrogen-based fertilizers like urea and ammonium nitrate which are indispensable for global food security. In 2020, ammonia production, was largely dependent on natural gas (methane), reached more than 180 million tons. This accounted for at least 20% of the industry’s natural gas used as fuel and feedstock, representing nearly 4% of the world’s total natural gas consumption. This energy-intensive process, consuming about 45 gigajoules per ton of ammonia that is predominantly centered in regions with cheap hydrocarbon resources, as energy and feedstock constitute a significant portion of production costs. The early months of 2022 saw significant upheaval in gas markets, particularly in Europe, due to geopolitical tensions like the Ukraine crisis. This led to gas prices soaring from roughly $25 to over $250 per megawatt-hour, making energy costs a major driver of record inflation in the region. Consequently, around half of Europe’s ammonia production capacity was curtailed or shut down, and global ammonia spot prices surged from $200–$400 per ton between 2017 and 2020 to $1300 per ton in early 2022. Similarly, urea prices raised from $230 per ton in 2019-2020 to $774 per ton by mid-2022, which directly impacted food production costs.

Benefits of Using Clean Hydrogen

By choosing clean hydrogen from HyC Light Inc., the fertilizer industry can reduce its dependance on black and grey hydrogen which are from fossils. The potential of clean hydrogen to sig. The clean hydrogen at HyC Light Inc., mainly produced using direct solar light and renewable energy sources, offers a path that reduces the carbon footprint of ammonia production. Significantly enhance food security and sustainability cannot be overstated. Investing in our clean hydrogen technology for ammonia synthesis can spark innovation and create new economic opportunities. It supports the development of a green economy, leading to job creation in emerging sectors related to hydrogen production, conversion and distribution. The benefits of using clean hydrogen in the fertilizer industry are supported worldwide and wide-ranging, making it an affordable strategy and sustainable choice for the future. By stabilizing fertilizer production using renewable technologies and solar production of hydrogen, the costs and the environmental impact of ammonia synthesis are reduced. Clean hydrogen ensures that global food production can meet the demands of a growing population without exacerbating climate change or depleting natural resources. Embracing HyC Light Inc.’s clean hydrogen for ammonia and urea production represents a strategic shift towards sustainability, resilience, and economic stability in the fertilizer industry.

Clean hydrogen for oil refining

In the oil refining industry, hydrogen is an expensive chemical that is highly important for processes like hydrocracking and hydrotreating. It is essential for producing cleaner fuels and commercial products and removing impurities such as sulfur from crude oil. Hydrogen has been produced through methods like SMR, which primarily uses natural gas or coal. All these energy-intensive methods generate vast amounts of carbon dioxide, contributing to the sector’s overall carbon footprint with deleterious environmental impacts. However, transitioning to HyC Light Inc., clean hydrogen —produced through a patent-pending process powered by direct solar light—offers a path to decarbonizing the refining sector.

On the other hand, green hydrogen production involves splitting water into hydrogen and oxygen using electricity that is generated from renewable sources, resulting in zero carbon emissions during production but at a much higher cost per kg of H2 (50-55 kWh) compared to HyC Light Inc., process (<15 kWh per kg of H2). In the near future, when all the ‘bad hydrogen’ (black and grey sources) is ideally replaced by clean hydrogen, refineries will still need a large amount of H2. This transition aligns with environmental sustainability objectives at HyC Light and worldwide and enhances energy security by reducing dependence on fossil fuel-derived hydrogen.

Furthermore, challenges remain, such as the current high production costs of green hydrogen compared to fossil fuel-derived counterparts and the need for substantial infrastructure development to support its widespread adoption that we, at HyC Light, are ready to provide. However, as renewable energy costs continue to fall and economies of scale are achieved, the economic viability of green hydrogen is expected to improve, making it a cornerstone of future energy systems. Ultimately, transitioning to our clean hydrogen, will represent a crucial step towards reducing the industry’s carbon footprint, supporting international commitments to combat climate change, and paving the way for a more sustainable energy landscape in oil refining industries.