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.

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.
Plug Power finalised a deal with an institutional investor to raise $370mn through the immediate exercise of warrants, with the possibility of securing an additional $1.4bn if new warrants are exercised.
Air Liquide announces a $50mn investment to strengthen its hydrogen network on the US Gulf Coast, following long-term contracts signed with two major American refiners.
Global demand for industrial gases will grow on the back of hydrogen expansion, carbon capture technologies, and advanced use in healthcare, electronics, and low-carbon fuel manufacturing.
Green ammonia reaches a new industrial milestone with 428 active projects and over $11bn in investments, highlighting accelerated sector growth across Asia, the Middle East, Europe and the Americas.
Nel Hydrogen US will supply a containerised electrolyser to H2 Energy for a hydrogen production facility commissioned by the Association for Waste Disposal in Buchs, Switzerland.
UK-based manufacturer ITM Power has signed an engineering contract for a green hydrogen project shortlisted under the country's second Hydrogen Allocation Round.
Agfa strengthens its industrial position with the launch of a ZIRFON membrane production site for electrolyzers, backed by a €11mn European subsidy.
Driven by Air Liquide and SEGULA Technologies, the ROAD TRHYP project aims to lower hydrogen transport costs and improve safety through a series of technical innovations by 2030.
Qair obtains structured bank financing of €55mn for its Hyd’Occ ecosystem, integrating renewable hydrogen production and distribution in Occitanie, with commissioning scheduled before the end of 2025.
Swedish firm Metacon has secured a EUR7.1mn ($7.7mn) contract to deliver a 7.5 MW electrolysis plant to Elektra Power SRL, marking its operational entry into the Romanian market.
The Clean Hydrogen Partnership has closed its first call for Project Development Assistance (PDA), totaling 36 applications from 18 countries. Results are expected in October, with support starting in November.

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.