Energy companies play a crucial role in our economic development and in achieving our global climate goals. They carry the responsibility for ensuring a reliable and secure energy supply. Hydrogen and biofuels can play an essential role in decarbonizing economies. Although hydrogen has a lower carbon footprint compared to fossil fuels, it does have a large water footprint for the electrolysis process and cooling. Growing water challenges like water scarcity, water pollution and droughts, combined with shifting towards renewable energy sources can lead to constraints in access to water and to stakeholder conflicts if not managed well.
Balancing energy needs with sustainable water management
The energy transition requires careful considerations on the impacts and dependencies to water. Responsible water management as part of the energy transition will ensure business continuity, license to operate and the availability of sufficient and safe water for future generations. There are several key challenges in relation to water that need to be considered:
Alternative energy products like hydrogen and biofuels can have large water footprints and other water requirements than fossil fuels, geothermal energy, and solar power. Producing green hydrogen requires not only water for the electrolysis process, but even larger quantities for cooling. To provide these quantities, the availability and quality of water supplies must be investigated carefully.
The quality of the water matters as green hydrogen production requires ultra-pure water for the electrolysis process. The lower the raw water quality is, a higher level of treatment is needed. This will not only add costs, but also the management of reject waters like brine.
Securing permits to access water sources for hydrogen production can become complex as some countries have already restricted access to freshwater resources for hydrogen production. What are the optimal water supply sources? How can water be supplied from these and of what quality? Especially in water stressed regions impacted by climate change and population growth. The costs and environmental implications of tapping into alternative water supply sources must be carefully evaluated.
Site-specific challenges: each location can present unique local challenges and opportunities. Local stakeholder engagement and water resources management require contextual approaches and solutions.
These challenges need to be considered carefully to take decisive steps prior to transforming business models and operations as these hold strategic opportunities to enhance competitiveness, business resilience and create value for stakeholders.
Steps to mitigate water risks in hydrogen production
Water in hydrogen production is multifaceted and should be considered from a technical, physical, regulatory, social, financial, and environmental aspect. This can be done by through the following steps:
Step 1: assess the availability, quality and access of water supply sources and discharge options when developing hydrogen projects. Undertaking a water risk assessment and investigating alternative water supply options, like effluent re-use and seawater can help to reduce water-related risks. This is particularly important in regions where freshwater resources are under stress.
Step 2: compile an overview of current and future regulations, particularly for regions with regulatory restrictions towards the use of water resources for hydrogen production. Developing a stakeholder engagement plan and alignment with local plans and policies can support more resilient operations.
Step 3: explore most suitable and cost-effective water technology options for water processing and treatment technologies. This is key to reduce water consumption and identify potential options to improve the water balance, like re-use of wastewater.
Step 4: compare operational and capital expenditures of different water supply, treatment and processing technologies and combine this with insights into risks. Careful consideration of the risks and selecting the appropriate technology might not be the lowest cost option but will ensure business continuity in the long run.
Step 5: combine the insights from all above steps to show the impact of different investment choices and their implications towards physical and regulatory risks, technology options and costs. We can build customized and interactive decision-support tools to give you the opportunity to assess impacts of different investment scenarios.
Royal HaskoningDHV has supported multiple energy companies to make informed decisions on water resource management as part of their energy transition. Our clients value the diverse expertise we bring from our technical process engineers, hydrogen experts, policy and water governance experts. Our sustainability consultants assist you to integrate decision making on water in your corporate ESG and Sustainability Strategy.
At an asset level, focusing on managing your water resources more effectively and responsibly can be achieved by developing a Water Stewardship Plan or a Water Master Plan. These plans are designed to help you identify and address the water-related risks and opportunities that affect your business, your stakeholders, and the environment. Our technical engineers can help you navigate most optimal water technology choices.
Royal HaskoningDHV offers a wide range of solutions that can help the transition of energy companies while achieving your sustainability goals, including those in relation to water. Reach out to us to learn more and start your journey towards sustainable water management for your energy company.
