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NETWORK / 29 / DECEMBER 2019 / JANUARY 2020 In fact, a "hydrogen-based economy" need not actually involve much pure hydrogen. Perhaps 10% of the total would be pure hydrogen for use in industrial applications. For the rest, it would be more economi- cal to use the existing infra- structure and convert hydrogen to synthetic methane. For industrial applications, the pure hydrogen might be fossil-fuel based at • rst, to start to reduce emissions, and then we can gradually eliminate fossil-fuel based hydrogen. To develop the market, it's likely that transport fuels, for use in road transport and shipping, will be the • rst to use synthetic hydrogen-based meth- ane, or methanol, as people are willing to pay a premium for green fuels. However, the price premium is likely to disappear quickly. To produce green hydrogen, Bloomberg NEF recently projected an 80 percent drop in costs by 2040-2050 as the industry scales up, opening the way for its widespread use as a carbon-free fuel. At Wärtsilä, we have esti- mated that fossil-fuel based hydrogen can currently be produced for $1.90 per kg. Green hydrogen, depending on the country it's produced in, might be available today at a price between $2.40 per kg and $5 per kg. By 2030, however, when we have harnessed economies of scale, green hydrogen could be price competitive with fossil-fuel based hydrogen. Looking further ahead to 2050, when we have seen further decreases in price for wind and solar electricity, green hydrogen will de• nitely become cheaper than fossil-fuel based hydrogen. New ideas To help in the development of hydrogen-based fuels and sector coupling, we developed the Wärtsilä SparkUp Challenge back in 2017. Our eventual winner was Carbon Recycling International (CRI), based in Ice- land, which has become a world leader in the utilization of COŸ to produce synthetic fuels. It is using cheap excess electricity and an electrolyser to produce hydrogen, then combines it with COŸ to produce synthetic methanol for multiple use cases including road transportation. We have also provided EUR 500,000 in seed funding to a Finnish company called Soletair Power, which has developed a unique concept to improve air quality in buildings by cap- turing carbon dioxide (CO2) and combining it with green hydrogen to produce a synthetic renewable fuel (see graphic, above). In September, we signed a cooperation agreement with a Finnish company called Q Power. Its patented biologi- cal methanisation technology produces biomethane from hydrogen and carbon dioxide. Finally, we are also work- ing with a utility company in Nebraska, USA, which is looking to convert excess hydrogen into synthetic methanol by combin- ing it with COŸ. Whichever party wins power in the UK's upcoming general election, they must enable the installation of additional renewable capacity, develop the market for green hydrogen- based fuels and encourage sector coupling. By taking those steps, they will help to lay the groundwork for net-zero ahead of COP 26 in Glasgow next year. The UK has a huge opportu- nity to develop into one of the leading players in the develop- ment of green hydrogen, but the long-term planning must start now to have an impact by 2050. Buildings as CO 2 sinks - Carbon minus CO 2 and H 2 O can be captured from the air and recirculated to energy CO 2 & H 2 O CO 2 capture and ventilation Hydrogen produced with electricity reacts with CO ² to form hydrocarbons (e.g. fuels) City air Elect ricity Lower CO ² indoor air fuel collection Transport Energy storage Distribution CH 4 We spend 90% of our time in buildings. 90% of office building's cost overall are the salaries of the people inside. DECARBONISATION OF TRANSPORT LOCALISED ENERGY Finland's Soletair Power plans to combine COŸ and green hydrogen