Hydrogen Leaks: A Critical Challenge Highlighted by the OIES Report

Hydrogen Leaks: A Critical Challenge Highlighted by the OIES Report

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

In the race toward carbon neutrality, hydrogen is often seen as a miracle solution, capable of decarbonizing the most challenging sectors such as heavy industry or maritime transport. However, a recent report by the Oxford Institute for Energy Studies (OIES) points out an underestimated problem: hydrogen leaks.

Although these losses may seem minimal, their environmental and economic impact is far from negligible. The study, entitled Review of Hydrogen Leakage along the Supply Chain, provides a detailed analysis of the risks related to leaks, their causes, and ways to reduce them. This article deciphers the report’s findings while shedding light on the challenges it raises for the future of the energy transition.

An Invisible but Devastating Risk

Hydrogen is often described as “clean energy” because its combustion produces only water. However, when it escapes into the atmosphere, it can cause significant indirect climatic effects. The OIES report explains these mechanisms in detail.

– Slowing the breakdown of methane: Hydrogen competes with methane for hydroxyl radicals (OH), which play a key role in breaking down this powerful greenhouse gas. This interaction prolongs methane’s atmospheric lifespan, amplifying its climatic impact.

– Increasing tropospheric ozone: By reacting with nitrogen oxides (NOₓ), hydrogen contributes to the formation of tropospheric ozone. This gas, toxic to humans and harmful to crops, is a major pollutant in urban areas.

– Effects on the stratosphere: When hydrogen reaches the upper layers of the atmosphere, it can increase water vapor concentration, which worsens ozone layer destruction. This exposes the Earth’s surface to harmful UV rays.

These indirect effects, while less visible than CO₂ emissions, could hinder global climate goals if hydrogen leaks are not controlled.

A Supply Chain with Multiple Risks

The report identifies the main vulnerabilities in the hydrogen supply chain where leaks are most frequent.

1. Production:
– Leaks are relatively limited in modern facilities like electrolyzers, but they can occur during complex processes such as carbon capture and storage in methane reforming plants (blue hydrogen).
– Aging equipment and inadequate maintenance procedures increase risks.

2. Transport and storage:
– Pipelines: Hydrogen embrittlement of materials is a major issue. This phenomenon weakens steel pipelines, making them more likely to leak. Micro-leaks, although often imperceptible, accumulate over long distances.
– Cryogenic tanks: Storing liquid hydrogen at -253°C leads to losses through “boil-off” (evaporation), particularly when tanks are poorly insulated.

3. End-use:
– Hydrogen refueling stations and vehicles handle gases under high pressure, increasing the risk of leaks.
– In industrial applications, high-pressure or high-temperature equipment requires constant maintenance to prevent losses.

The report estimates that the transport and storage segment alone accounts for about 50% of hydrogen leaks in the supply chain.

The Economic Consequences of Leaks

Hydrogen leaks not only pose an environmental problem, but they also result in significant financial losses. With production costs ranging between $2 and $4 per kilogram, every leak represents substantial waste.

According to the report, if current infrastructures are not adapted, up to 6.9% of the hydrogen produced could be lost into the atmosphere. Economically, this could translate to annual global losses of several billion dollars.

Beyond direct losses, leaks also increase the maintenance costs of infrastructure, as materials damaged by hydrogen require frequent repairs. These additional costs could deter investors and slow the development of the hydrogen sector.

Solutions Proposed in the Report

To reduce hydrogen leaks, the OIES report proposes a combined approach of technological innovations and ambitious public policies.

1. Technological innovations:
– Advanced materials: The use of nanocoatings like graphene or pipelines lined with polymers helps limit embrittlement and permeation.
– Advanced detection: Optical and electrochemical sensors can detect leaks at very low levels, ensuring quick intervention.

2. Infrastructure design:
– Reducing the number of connections in pipelines minimizes leak risks.
– Modular systems simplify maintenance and reduce vulnerable areas.

3. Public policies:
– Establishing international standards, such as those proposed by ISO and ASME, is essential for uniform practices.
– Financial incentives, such as subsidies for modernizing infrastructure, would encourage the adoption of advanced technologies.

To learn more and download the full report, click here: ET41 – Review of Hydrogen Leakage along the Supply Chain

An Urgent Global Challenge

The report concludes with an uncompromising observation: controlling hydrogen leaks must become a strategic priority to ensure the success of the energy transition. Without rapid and coordinated action, the climate benefits of hydrogen could be partially negated.

The path forward is clear: invest in adapted infrastructure, strengthen regulatory frameworks, and promote technological innovations. Hydrogen can fulfill its promise as a clean and sustainable energy source, but only if the issue of leaks is addressed today.

HTEC has inaugurated a clean hydrogen production facility in Burnaby, British Columbia, marking the launch of the province’s first commercial-scale electrolyzer, with a combined production capacity of 1.8 tonnes of clean hydrogen per day.
Buscando Resources officially becomes Element One Hydrogen and Critical Minerals Corp. and completes a C$1.03mn fundraising through a three-tranche private placement.
The partnership includes local manufacturing in Poland of electrolysis systems using Elogen’s technology, with deliveries targeting the Europe, Middle East and Africa markets.
Vema Hydrogen has been named a qualified supplier by the First Public Hydrogen Authority to deliver clean hydrogen at industrial scale to California’s public and private infrastructure.
Le groupe français HRS a signé une commande pour la livraison d'une station hydrogène haute capacité, renforçant sa présence dans un réseau en expansion à l’échelle européenne.
With a $14mn investment, Enap progresses on the construction of its first green hydrogen plant, expected to be operational in early 2026 in the Magallanes region of southern Chile.
Plug completed the first delivery of 44.5 tonnes of hydrogen for the H2CAST project in Germany and secured a new contract for an additional 35 tonnes, confirming its logistical capabilities in the European market.
Gushine Electronics has opened a lithium battery plant in Vietnam, with an estimated annual production value of $100 mn, marking a new phase in the international deployment of its industrial capacities.
Indonesian nickel producer Anugrah Neo Energy Materials plans a $300mn IPO in December to finance its growing battery materials operations.
Sultan Qaboos University announces a breakthrough in water electrolysis using new rare-metal catalysts, improving production efficiency by more than 30%.
Standard Lithium a sécurisé $130mn via une émission d’actions ordinaires pour financer ses projets d’extraction de lithium en Arkansas et au Texas, consolidant sa position sur le marché nord-américain des métaux stratégiques.
Asset manager Quinbrook expands its North American portfolio with a first Canadian investment by acquiring a strategic stake in developer Elemental Clean Fuels.
Lhyfe commissions a 10 MW site in Schwäbisch Gmünd, its first in Germany, to supply RFNBO-certified green hydrogen to industrial and heavy mobility clients.
Brookfield will invest up to $5 billion in Bloom Energy's fuel cells to power future artificial intelligence factories, initiating the first phase of a dedicated global digital infrastructure strategy.
Metacon acquired components from the bankruptcy estate of Hynion Sverige AB for SEK3.5mn ($320,000), aiming to support its hydrogen refuelling station projects in Sweden.
The United Kingdom has carried out its first real-life trial of green hydrogen blending into the national gas transmission network, with power generation as a result.
Swedish company Liquid Wind has secured €3.6mn in public funding for the engineering phase of its eMethanol plant, integrated into a biomass-fuelled cogeneration site.
The Japanese industrial group will replace a 73.5 MW coke and gas-fired turbine with a 30 to 40 MW hydrogen-ready unit, scheduled to start operations in 2030 with ¥7.1bn ($47mn) in public support.
A two-year project aims to identify areas in Texas suitable for natural hydrogen exploitation, despite challenges related to infrastructure, public policy and economic viability.
Plug Power has announced the appointment of Jose Luis Crespo as President effective October 10, before assuming the role of Chief Executive Officer once the company publishes its annual report, expected in March 2026.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.